On 22 March 2020, the Australian Government announced a further economic response to the Coronavirus that will effect levy recoveries.

That response includes changes to personal and corporate insolvency laws which will have a dramatic impact on the way overdue strata levies are recovered.

In this paper we provide we explain:

• A Snapshot of the Changes to Levy Recovery Practice
• An Overview of those Changes
• Details of the Ramifications of the Changes
• Information about Payment Plans
• Information about Template Payment Plan Documents

After reading this paper Levy Recovery Practice Changes Due to Coronavirus if you would like a copy of our ‘template payment plan documents’ and/or would like assistance with managing your levy recovery payment plans please email jsmmarketing@muellers.com.au

For NSW strata legal, building defect or 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.

The current NSW home building legislation states that buildings must be at risk of collapse or be uninhabitable to reap the benefit of a full 6 year warranty.

It seems absurd to provide warranties only for defects (major) at this extreme end of the spectrum, which, as is now being acknowledged, should not be occurring at all in a properly regulated building industry.

So, what about all the other defects?

Before your building defects warranty period expires we strongly suggest that the following 3 points be considered: BUILDING DEFECTS – Top 3 Tips Before your Home Warranty Period Expires

Have you or your client recently purchased a new strata home? Do you have a building defect issue (or you’re not sure)? Talk to our building defect experts before your warranty period expires.

For all strata legal and building defects contact us here or call 02 9562 1266 we would be happy to assist.

The use of surveillance cameras in both private and public spaces is increasing significantly.

Security cameras are installed by local councils and private enterprise, and you can expect to be digitally recorded walking into a shopping centre, travelling on public transport, and even taking the dog for a walk in a local park.

An often vexed issue is what rights do strata lot owners and owners corporations have to install their own security cameras?

Owners corporations and lot owners should be aware of the Surveillance Devices Act 2007 (NSW). Do you need a by-law?

These two recent NCAT cases share some lessons Strata, Owners Corporations Lot Owners and Security Cameras

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

The five most useful by-Laws inclusive of factsheets.

Muellers has drafted 1000’s of by-laws over the course of 40 years.

During that time we have learnt what does and does not work.

So what are the five most useful by-laws?

We have come up with the following shortlist:

1. Cost Recovery By-Law
2. Master Renovations By-Law
3. Parking By-Law
4. Proxy By-Law
5. Repairs By-Law

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

One of the big ticket items introduced as part of the new strata laws that commenced in November 2016 was strata renewal or collective sales. These laws allow a strata building to be sold or redeveloped with the approval of at least 75% of owners.

However, many stakeholders in the strata industry including strata managers have needed clarification and clearer guidance in regards to the strata renewal and collective sale process.

Indeed, the industry has been looking for more practical and specific guidance from regulatory bodies on the implementation of strata renewal reforms.

In late 2018 new guidelines and resources were published by the Office of the Registrar General and can be found on their website.

If you’re looking for some guidance it’s a great first step. The website includes information about:

• preparation of a strata renewal plan
• strata renewal information sheet
• support notice relating to a strata renewal plan and withdrawal

The website also confirms that strata managers should now be making all inquiries with the Office of the Registrar General in relation to strata renewal (or collective sales) and NSW Fair Trading is no longer able to assist.

The Office of the Registrar General website outlines 6 steps for the strata renewal process as follows:

1. Vote to opt into the process
2. Initiate the collective sale/renewal process
3. Form a strata renewal committee
4. Develop a strata renewal plan
5. Consider the plan
6. Approval of the plan

For more information visit Office of the Registrar General or for more detailed legal advice please contact us here or call 02 9562 1266, we’re happy to assist.

Earlier this week, the NSW Government announced plans to make new laws to improve the building and construction industry.

The Government intends to introduce laws that will make builders liable for defects in a wider variety of circumstances.

One of the key announcements is the Government’s plan to impose on builders a duty of care to enable owners corporations of commercial and mixed use buildings to take action against builders for defects.

The Government also proposes to: require builders and designers to be registered; require designers and engineers to declare that building plans comply with the Building Code of Australia; and force builders to declare that buildings have been built according to their plans.

There is also a proposal to appoint a Building Commissioner to take over part of NSW Fair Trading’s role in the building and construction industry.

The Government’s announcement comes hard on the heels of the public outcry following the recent problems experienced by owners in Sydney’s Opal Tower.

The announcement acknowledges that there are significant problems in the building and construction industry and indicates that the Government proposes to adopt most of the key recommendations made in the Shergold Weir Report.

With a State election just around the corner, it remains to be seen if anything comes from the Government’s announcement. We will certainly watch on with interest.

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

Strata apartment living is the fastest growing form of property ownership across Australia with more than half of these apartments located in the greater Sydney area.

Alarmingly, recent and extensive research* has found that up to 85% of these buildings built in NSW since the year 2000 have some form of building defects.

Sydney Olympic Park Opal Tower

The recent controversy surrounding the Opal Tower located in the Sydney Olympic Park precinct highlights the seriousness of some of these defects, leaving home owners lives turned upside down. So, what are their rights?

Statutory Warranty Scheme

Under NSW law all residential buildings:

• Less than 6 years old are covered by a ‘statutory warranty scheme’ for major defects
• Major defects claims can be made for up to 6 years
• Any non-major defects can be claimed for up to 2 years
• Buildings older than 6 years may have different warranty periods and it is recommended to seek legal advice

All owners who are still covered by these warranties have the right to pursue the developer and builder for rectification of building defects.

How do building defects affect strata levies?

Strata levies are a critical and essential part of ensuring the value of a property is protected.

The owners corporation has the statutory duty to ensure common property is safe and kept in good repair, therefore apartment owners in structurally unsafe buildings could face increased special levies.

When a building defect is on common property the owners corporation should add the repair of the defect to the agenda of a general meeting for consideration and resolution.

The good news is that Opal Tower home owners are covered under the statutory warranty scheme however the not so good news is that it leaves home owners forced to find alternative accommodation or perhaps live in unsafe conditions with the possibility of facing a hefty special levies bill whilst the situation is being resolved.

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

*University of NSW City Futures Research Centre.

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.