Once an Icon – Now a Pile of Rubble

Senior Lawyer, Adrian Mueller reminisces…

“In 1980 my parents took me to the Gold Coast for a holiday. It was my first adventure in Queensland. I was 2 years old. We stayed at the (in)famous Iluka hotel.

The Iluka was built in the 1970’s. It was an iconic building – one of the Gold Coast’s first high rises. It had 72 luxury apartments and was a stone’s throw from Cavill Avenue.

It held fond memories for me and, I imagine, many families who enjoyed wonderful times together at the Iluka.

You can imagine my horror when I recently discovered that the Iluka has been demolished. Why? Because of concrete cancer.

You see the owner of the building was faced with a dilemma. Repair the concrete spalling which had been left untreated for decades at exorbitant cost or demolish the building. The owner chose to demolish.

A leading architect Professor Holden, Head of Architecture at the Griffith University in Qld, has said that high rises built in the 1970’s have an average lifespan of 40 years.

That is a sobering thought for apartment owners many of whom cannot afford special levies to repair widespread concrete spalling.

So what is the solution? For some buildings, it may simply be too late. The Iluka is a case in point.

For other buildings, the key is preventative maintenance. As unpalatable as it might be, apartment owners need to realise that spending a little to detect and treat concrete spalling at an early stage saves money in the long run.”

Adrian Mueller also acknowledges that the challenge for strata managers and other stakeholders is to convince owners to invest in proactive maintenance to protect their investment by spending a little in the short term to save big money down the track.

Says  Adrian “Convincing owners to spend now to save later is no mean feat. But it is achievable. And doing so can avoid potential disasters.

I will miss the Iluka.”

Adrian specialises in strata law and those areas of the law that particularly deal with building defects.

“An apartment is someone’s home and most valuable asset. That is something worth protecting and knowing where you stand is vital” says Adrian.

For more information on concrete cancer, visit the following websites – Concrete Cancer or Remedia Structural Repairs

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




Further Delays to Strata Law Reforms

Strata law reforms in NSW will be further delayed with changes now not due to come into place until July 2016.

The plan to reform the state’s 50-year-old strata laws was first flagged in 2011 but a series of ministerial changes have hampered the process.

For further information see – SMH and Strata Law Reforms

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




Strata Managers Forum – Short Term Tenancies

Short term tenancies have long posed problems for community living.  The problem most commonly arises in communities where there is a mixture of permanent residents and short term tenants.  Issues of noise, damage to common property and inappropriate behaviour are often attributed to short term tenants.  Short term tenants vary from backpackers to holidaymakers to short term workers.

Strata schemes have tried to both regulate short term tenants and prohibit short term tenancies by use of by-laws.

Effectively regulating the behaviour of short term tenants has proved difficult.  Short term tenants are exactly that, short term, and are not generally around long enough to be effectively subjected to the laborious and lengthy procedures set out in the Strata Schemes Management Act 1996 (“the Act”) for enforcement of by-laws.

Click below to download the presentation and full paper on Short Term Tenancies from our April 2015 seminar:

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




Strata Managers Forum – Adjudcations and NCAT

How are most strata disputes resolved? What is the difference between strata mediation and strata adjudication? How long does the process take? How much does it cost?

The NSW Government wants most strata disputes to be resolved quickly, cheaply, and out of court. For this reason an entire Chapter of the Strata Schemes Management Act 1996 (“Strata Act”) outlines, in considerable detail, a process for resolving most types of strata disputes.

This process typically involves, first, strata mediation, followed by strata adjudication, and then an appeal to the NSW Civil and Administrative Tribunal.

Click below to download the presentation and full paper on Strata Adjudications and NCAT from our April 2015 seminar:

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




11 Steps to Combat Short Term Letting

As any Airbnb (and similar sites) convert will attest, where there’s a spare bed, there’s money to be made. But while the rise and rise of short-term letting sites have delivered a windfall to many apartment-owners for some, its days – or nights – may be numbered.

Many residential committees are hitting back at apartment owners who sublet their lot’s, blaming loud parties and bad behaviour for the move to stamp out the unofficial ‘bed-and-breakfast’ businesses.

It’s apparent that many Australians are fed up with the issues surrounding short term letting and are looking for solutions.

Bruce Bentley, expert Strata Lawyer provides ‘eleven steps to combat short term living’ inclusive of case studies and a podcast. Click below to download his paper inclusive of case studies.

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




Apartment Living in Sydney Set to Skyrocket

Owning a home once remained a priority within the hearts of Australians, recent societal findings reveal that it is no longer a requirement for many.

Demanding lifestyles including raising children, working, studying and fulfilling many other daily routines has created a culture where time is of the essence.

As the shift to apartment living increases, strata title developers are increasingly creating convenient, cost-effective and aesthetically pleasing designs for consumers. With developments such as Barangaroo and the Toga Group apartments within Chatswood and West Ryde, increased apartment style living is inevitable. 

Please click here to read the full article – Satellite Cities will be the Future for Metropolitan Areas

Owners Corporations’ Rights Vindicated

Last week the NSW Court of Appeal delivered two victories for owners corporations and in the process clarified the operation of important areas of the strata legislation.

The two victories involved:

  • Access Rights Being Confirmed – The Connaught Case
  • The Right to Start Legal Action Being Confirmed – The Gazebo Apartments Case

Click here to read these strata legal cases – Owners Corporation Rights Vindicated

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




Owners Corporations be Warned!

Today, 8 October 2014, the High Court of Australia in the case of Brookfield Multiplex Limited –v- Owners Corporation Strata Plan 61288 & Anor [2014] HCA36 unanimously allowed an appeal by Brookfield Multiplex Limited from a decision of the Court of Appeal of the Supreme Court of NSW holding that Brookfield, the builder of a strata title apartment complex, did not owe a duty of care to the owners corporation of the complex to avoid causing financial loss resulting from latent defects in the common property.

The judgment of the High Court now confirms once and for all that generally the only claim available to an owners corporation for building defects is a claim for breach of statutory warranties under the NSW Home Building Act 1989.

Prior to this High Court decision, owners corporations were entitled to sue for breach of statutory warranties under the Home Building Act and also for breach of duty of care, i.e. in negligence at law.

Unfortunately, the High Court has now held that in general an owners corporation can only sue for breach of statutory warranties, but cannot sue a builder in negligence for a breach of duty of care because the builder does not owe a duty of care to the owners corporation.

For further commentary on this recent judgment of the High Court of Australia please view the following links:

1. Brookfield Multiplex Ltd v Owners Corporation Strata Plan 61288 & ANOR
2. Brookfield Multiplex Ltd v Owners Corporation Strata Plan 61288 [2014] HCA 36 (8 October 2014)

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




Trading Within Your Strata Management Agreement

Bruce Bentley, Partner JS Mueller & Co presented this week at the REINSW Conference on ‘Trading Within your Strata Management Agency Agreement‘.

To view the presentation please click here – Trading within your Strata Management Agency Agreement

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




Strata Renovations and Applications

Does an owners corporation have to approve development applications and renovations?

Strata buildings are becoming older. This has given rise to an increasing number of renovations that are carried out in strata buildings. This, in turn, has resulted in more owners corporations and strata managers being asked to approve development applications, and building works associated with renovations.

Often requests for development applications or building works to be approved are made urgently and owners corporations and strata managers are threatened with legal action if approval is not given promptly. But does an owners corporation have to approve a development application or allow an owner to renovate his or her unit?

What happens if the owners corporation refuses to approve a development application or permit renovations? Can the owners corporation’s decision be overturned? If so, how? This paper will provide the answers to these questions.

Click here for the full paper – Strata Applications and Renovations

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