A recent decision of the Appeal Panel of the NSW Civil & Administrative Tribunal (NCAT) has highlighted the potential risks for owners corporations seeking to impose penalties and other sanctions on lot owners in connection with non-compliance with by-laws.

Careful attention will need to be paid by owners corporations to “cost recovery” aspects of their by-laws to ensure that an otherwise well constructed by-law is not rendered completely invalid.

Here we share a recent case where NCAT Tightens the Screws on Strata By-laws.

Owners corporations who have these by-laws should give consideration to having them reviewed.

For all NSW strata legal advice including by-laws, building defects and levy collections contact us here or call 02 9562 1266, we’re happy to assist.

In a recent case, NCAT has decided that a landlord falls under no obligation to ensure that their tenants comply with the by-laws in a strata scheme.

The Case
The case of Filetti -v- Eales; Eales -v- Filetti [2018] NSWCATCD 66 involved a dispute about noise between owners and residents in an apartment building in Vaucluse, Sydney.  Ms Filetti owns and lives in an apartment in that building.  She claimed that the tenants who lived in the apartment above hers created excessive noise. Ms Filetti applied to NCAT for orders against the tenants and the owner of the apartment above, Mr Eales, to require them to treat the floor space of their apartment to prevent the transmission of excessive noise. Ms Filetti also sought an order to compel Mr Eales to require his tenants to comply with the by-laws concerning the noise, and an order to require Mr Eales to compensate her for breaches of the by-laws committed by his tenants.

The Decision
NCAT dismissed Ms Filetti’s claim.  NCAT was not satisfied that Ms Filetti had proven that Mr Eales’ tenants created excessive noise.  NCAT accepted that it had power to make an order to require a lot owner to comply with the by-laws.  However, NCAT did not consider that it could make an order requiring an owner to ensure his or her tenants comply with the by-laws.  NCAT observed that the strata legislation does not impose an obligation on landlords to ensure their tenants comply with the by-laws (although NCAT did find that a landlord had capacity to require his or her tenants to comply with the by-laws).  For that reason, NCAT dismissed Ms Filetti’s claim for an order for Mr Eales to ensure that his tenants complied with the by-laws.

The Claim for Compensation
Ms Filetti also made a claim for compensation against Mr Eales for a breach of the by-laws by him.  NCAT expressed doubt that it had power to make an order for compensation in the circumstances.  NCAT considered that the decision of the Court of Appeal in The Owners Strata Plan 50276 -v- Thoo [2013] NSWCA 27 suggested that compensation is not available in respect of a breach of a by-law either in NCAT or a court of general jurisdiction.

Conclusion
Ultimately, Ms Filetti’s claim was unsuccessful because she did not prove that Mr Eales’ tenants were making excessive noise in breach of the by-laws. However, the more interesting aspects of the case are the findings by NCAT that it cannot make orders requiring a lot owner to ensure his or her tenants comply with the by-laws or order one lot owner to pay another owner compensation for a breach of the by-laws.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Thank you for your continued support. We’re looking for a new team member and reaching out to our strata community to help find one.

We’ve been servicing the strata industry for almost 40 years and as our business and the strata industry continue to grow, so does our team of strata experts.

We’re Hiring!

Do you know of a Strata Lawyer looking for a new opportunity who would love to:

• Work with an established and highly regarded law firm
• Learn from leading lawyers who are making new law
• Work across a wide variety of matters
• Progress their career
• Enjoy flexible working conditions
• Enjoy a great salary package

Confidential

If you know of a strata lawyer looking for a new opportunity please contact partner, Adrian Mueller, direct on adrianmueller@muellers.com.au

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

The NSW Court of Appeal has handed down the most important decision concerning building defects in many years.

This decision means that builders and developers can be held liable for design defects.

This is a positive decision for owners corporations as it extends the scope of the statutory warranties concerning the quality of residential building work that is given by builders and developers to owners corporations under the home building legislation.

The case concerned defective residential building work that was undertaken to convert a warehouse complex originally built in 1928 into a mixed use strata development in Camperdown, Sydney.

So, what was the case about? Building Defects Case Important Decision

For NSW levy collection or strata legal advice please contact us here or call 02 9562 1266, we’re happy to assist.

Thanks strata for attending our recent forum. In the busy and hectic world of strata, we appreciate you taking the time and effort to join us.

We hope you enjoyed the forum as much as we did presenting and sharing our knowledge.

As promised, please find below copies of all presentations and papers.

If there is anything we can assist you with please do not hesitate to contact us here or one of our lawyers below.

How have the New Laws Shaped Up?

Warwick van Ede 
The Dawn of a New Era  I  Strata Renewals  and Collective Sales  Presentation and  Paper

Daniela Terruso 
How to Avoid the Pitfalls and Correct the Mistakes  I  By-law Reviews  Presentation and Paper

Faiyaaz Shafiq
The New Procedures and Traps for Young Players  I   Levy Recovery  Presentation and Paper

Adrian Mueller
Goodbye, Thoo  I  Novel Compensation Claims Against Owners Corporations Presentation and Paper

Adrian Mueller
How to Make You Look Good  I  The 5 Most Useful By-laws Presentation and Paper

Helen Amanatiadis
The New Regime  I  Building Bonds and Inspection Reports  Presentation and Paper

Adrian Mueller
The Good, Bad and Ugly  I  The New Strata Laws Presentation and Paper

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

It is anticipated that mid 2018 changes to the NSW property licensing laws are planned to take effect, subject to NSW parliament approval, which means changes for some strata managers.

The new NSW property licensing laws have been designed to increase consumer protection measures and will include the improvement of entry requirements for the real estate and property industry, including strata managers.

The main reasons for these changes are to:

• Provide a clearer career progression for real estate and property industry professionals
• Avoid start-up companies by individuals with no experience
• Reduce the risk of misappropriation of trust funds

Strata managers who currently hold a licence will still hold a licence under the new legislation.

Post introduction of the new laws, to obtain a licence in NSW will require strata managers to have 12 months’ experience working in strata. Currently, there is no strata experience required.

Continuing Professional Development (CPD) will also change to ‘hourly’ rather than a ‘points’ based system.

In summary, NSW property owners can rely on the fact that every strata manager in NSW will have a strata property manager licence within four years of the new legislation coming into force.

For further information on these proposed changes please refer to NSW Fair Trading.

For NSW strata legal or levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.

Another new law

In 27 days owners corporations must comply with another new law – window safety devices (window locks).

In NSW, window safety devices must be installed on certain windows by 13 March 2018 otherwise owners corporations may face hefty fines if requirements are not met by the due date.

Frequently asked questions?

Can an owners corporation force lot owners to install window safety devices by making a new by-law?

Can the owners corporation force lot owners to maintain and repair window safety devices after they are installed if there is no by-law in place?

If there is no by-law in place, who is responsible for the installation, maintenance and repair of window safety devices?

And if there is no by-law in place, who is responsible for the costs associated with deliberate damage and /or removal of the window safety devices?

Be prepared!

A window safety devices by-law will ensure the rules are clear should any of the above circumstances and more arise.

For NSW by-laws advice please contact us here or call 02 9562 1266, we’re happy to assist.

Read the full Sydney Morning Herald (SMH) article here.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

To contact us during this period please leave a message and we’ll get back to you on our return.

Thanks Strata, as a wrap up here are some useful links from 2017…

• We shared our strata knowledge through our new resource library
• We listened to you and launched our new brand and website
• We developed strata by-law and meeting templates for the new strata laws
• We tweeted, 54 times sharing the latest in strata law
• We posted, 45 times on LinkedIn with the latest updates
• We collected for over 600 new levy debt recovery matters plus our regulars
• We expanded our team to better service the strata industry

We’re taking a break from 5.30pm 21 December 2017 and returning on 15 January 2018.

We wish you and your families a safe and happy ‘Festive Season’ and look forward to working with you in 2018.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.