Late 2019 a major development occurred for the strata industry when the New South Wales Civil and Administrative Tribunal (NCAT) held that Biowood cladding is combustible, poses an undue risk of fire spreading and is a major building defect.

As of yesterday 4 August, 2020…

In a first for Australia, NCAT’s Appeal Panel upheld a 2019 finding by NCAT that Biowood cladding installed on the facade of a multi-storey building in Sydney is combustible and must be removed.

The owners corporation of the building was successfully represented by Mueller’s and is the first reported case where a Court or Tribunal has upheld a finding that a particular type of cladding is combustible.

The outcome of the case represents a win for owners corporations and sends another timely warning to builders and developers that use of combustible cladding is fraught with risk and carries with it substantial consequences.

The first case in Australia (and globally) the decision in this case sets a precedent A Win for Owners Corporation – Biowood Cladding Confirmed Combustible

For NSW strata legal, by-law, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.

Where do we now stand when it comes to strata living and pet by-laws?

Pet ownership in strata is a contentious issue, especially in strata schemes where a majority of owners do not support the keeping of pets.

But can the majority of owners decide to make a by-law banning pets?

NCAT has recently weighed in on the debate and provided clear guidance on the validity of “no pets” by-laws.

In this paper we discuss:

• Ownership of Pets in Strata Living
• NCAT’s Decisions
• Harsh, Oppressive or Unconscionable By-laws
• What Does it all Mean – the Broader Implications

Strata living and pet by-laws –  Where do we Now Stand?

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

Finally there has been a conclusive decision from NCAT regarding lot owner compensations.

The President and Deputy President of NCAT have recently handed down an important decision. They have concluded that NCAT does not have power to award a lot owner compensation. This is a result of a failure by an owners corporation to repair defects in the common property.

This decision around NCAT and lot owner compensations is likely to be followed by NCAT in the future and resolves a longstanding controversy about this issue.

What does this mean? Read our recent cases regarding NCAT’s decision around Lot Owner Compensations

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

In a major development for the strata industry, NCAT has recently held that Biowood cladding installed externally on a Sydney building is combustible and must be removed as it is a major building defect.

There are a number of multi-storey buildings in NSW with Biowood panels that are combustible and pose a risk of fire spreading from one part of these buildings to another.

Faiyaaz Shafiq, Senior Lawyer, said, “it is now up to owners corporations and strata managers to ensure these panels are removed and lives are not put in danger.”

Owners corporations of buildings which have Biowood cladding require urgent assessment of the risks involved and their rights in light of this new decision.

For more information… Biowood Cladding NCAT Rules Combustible and also refer to media coverage in the Sydney Morning Herald (SMH) and news.com.au.

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

Does NCAT have power to make an order for the payment of money?

In a recent case, NCAT decided that it did not. The outcome of this case has created doubt about NCAT’s power to make money orders in strata matters.

The case touches on a broader controversy that is currently playing out in NCAT. That controversy relates to the fundamental question as to whether or not NCAT has power in strata matters to make money orders at all whether for payment of damages or the recovery of a debt.

So, how did this matter play out, does NCAT have the power in strata matters to make money orders?

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

In a recent decision that has produced a confusing outcome, the Appeal Panel of NCAT has decided that NCAT does not have power to award damages (but might be able to order payment of compensation) where there are defects in common property that an owners corporation does not repair.

The outcome of this case has added further uncertainty to an already uncertain area of law concerning NCAT’s power to order payment of money in strata disputes.

So, what power does NCAT have to order payment of compensation according to this recent case? Common Property, Strata Disputes, NCAT and Compensation Payments

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

Getting Your By-Laws Right: Making Landlords Accountable

In 2018, NCAT decided that a landlord is not responsible for ensuring that his or her tenants comply with the by-laws that apply to a strata building.  That decision was confirmed by the Appeal Panel of NCAT in Feletti -v- Eales [2019] NSWCATAP 100.

Therefore, if a tenant is breaching a by-law, the owners corporation of the building is not normally entitled to take action against the landlord to require the landlord to ensure that his or her tenant complies with the by-law.

This means that the owners corporation needs to take action against the tenant instead of the landlord which it may not want to do because tenants come and go and it can be difficult to enforce NCAT orders against them.

So, what is the solution to this problem for owners corporations?

There is, however, a solution to the problem.  An owners corporation can make a by-law that requires landlords to ensure that their tenants comply with the by-laws.  That by-law will give the owners corporation the right to take action against a landlord when his or her tenants breach the by-laws.

We have drafted that by-law and a number of strata managers have introduced the by-law into the strata schemes they manage.

We expect that the by-law will prove very useful for owners corporations who introduce it because it will allow those owners corporations to take action against landlords whose tenants are breaching the by-laws.

The by-law goes one step further and will also allow an owners corporation to take action against both landlords and tenants whose guests and invitees breach the by-laws.

Order Your By-law Here!

If you would like to find out more about the by-law, or you are interested in purchasing the by-law from us, please email us here or call 9562 1266 now.

Did you know that an owners corporation can be served with legal documents at the address recorded on the common property certificate of title? Do you know if your common property certificate of title contains the proper address for service of legal documents on your owners corporation?

You want to make sure the proper address is recorded. In a recent case we saw, an owners corporation had not updated its address for service. Legal documents were sent to the old address and never passed on to the owners corporation. The NSW Civil & Administrative Tribunal (NCAT) made orders against the owners corporation in default of its appearance. The owners corporation only found out about the orders made against it after the orders were made!

So, how do you avoid this embarrassing situation? Common Property Certificate of Title Address

Read on to learn why you should make sure your current address is registered on your common property certificate of title as your address for service. Your current address may be either the address of your building or your strata manager’s address.

If you require help to update your address on your certificate of title please contact us.

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

In 2018 the High Court concluded that NCAT did not have jurisdiction to resolve disputes between residents of different states.

This meant that NCAT could not resolve disputes between strata owners who lived in different states such as NSW and QLD.

A recent decision of the Appeal Panel of NCAT clarifies that NCAT can decide a dispute between an owners corporation and a lot owner or occupier who is resident in another state. This is a sensible decision and clarifies uncertainty as to the extent of NCAT’s jurisdiction to resolve strata disputes.

What was the case that led to this decision and why? NCAT Clarifies the Extent of its Jurisdiction

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

Strata Managers are often unfairly the focus of criticism by lot owners, when something happens which those owners don’t like.

In some instances a dysfunctional owners corporation will have a compulsory strata manager appointed to try and get things back on track.

When a strata manager receives a request to put their name forward to be appointed as a compulsory strata manager it can be a difficult decision to make, as to whether to agree to put yourself forward.

The good news is that a recent NCAT Appeal Panel decision has provided some Helpful Guidance for Appointment of Compulsory Strata Managers.

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