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In a win for owners corporations, the Supreme Court has just announced that the definition of “major building defects” in the legislation should be given a broad meaning.

Across strata there are many building defects which have previously been categorised as minor. These can now possibly be considered as major and covered by the 6 year warranty period.

As this is a complicated area of law, it is best to seek legal advise ASAP.

This recent case will provide you with more information Strata is your minor building defect now a major defect?

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.

There are many strata managers who are preparing and registering consolidated sets of by-laws for the strata schemes they manage.

We have recently come across several by-law consolidations prepared by strata managers that contain critical and costly errors.

In many cases, the professional indemnity insurance policies held by strata managers may not cover the negligent preparation of consolidated by-laws.

Here are some examples of mistakes we have seen… By-law Consolidations – When they go Wrong?

CLICK HERE FOR HELP WITH YOUR BY-LAW CONSOLIDATIONS!

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.

Pecuniary Interest Disclosures – When are they Required?

When does a strata committee member need to disclose a pecuniary interest they have concerning a decision to be made by the committee?

The position is clear when a committee member has a direct pecuniary interest in a matter to be decided by the committee. A disclosure of that interest must be made by the committee member.

But what about indirect pecuniary interests? What are they and when do they need to be disclosed?

An example is where a committee member wishes to engage a company to carry out work for an owners corporation and his or her relative is a director or shareholder of that company. Is that an indirect pecuniary interest which must be disclosed?

The most likely answer is “yes”. This is because a committee member will have an indirect pecuniary interest if a person connected with them (such as a relative) has a direct interest in the matter to be decided by the committee.

What are the Grey Areas?

There are some grey areas. For example, can it be said that an indirect pecuniary interest arises when the committee member’s relative is merely an employee of the company that will be engaged by the owners corporation? In those circumstances, does the relative (as an employee rather than director or shareholder of the company) stand to benefit from the company’s appointment by the owners corporation?

The answer to that question is also most likely “yes” because the legislation simply requires the relative to have a “direct interest” (not necessarily a direct pecuniary interest) in the matter in order for the committee member to fall under an obligation to make a pecuniary interest disclosure.

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.