In a recent decision, NCAT upheld a security fob by-law made by an owners corporation.  This is a good decision as it demonstrates that appropriately worded security fob and access key by-laws can be made by owners corporations.

Introduction

Many strata buildings contain security systems which restrict access to and egress from the buildings.  These systems often include security access keys or fobs which are distributed to owners and occupiers to enable them to get into and out of the building.

Did you know owners corporations are able to implement appropriately worded security fob and access key by-laws?

So, what was included in this particular by-law Security Access, NCAT and By-laws

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

Who is responsible for fixing a balcony on common property that has fallen into disrepair but was constructed without the approval of the owners corporation?

It’s not uncommon for owners to build structures on common property without the approval of their owners corporation.  But what happens when these structures fall into disrepair?

Who is responsible for fixing them?  And can the owners corporation insist on those structures being demolished?

A recent NCAT case decision may surprise you Balconies, Common Property and NCAT

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

Can the chairperson of an owners corporation disconnect the hot water supply to common property showers in a swimming pool area without the authority of his owners corporation?

A recent NCAT case grappled with this interesting issue.

So, how did they resolve it? Hot Showers, Common Property and NCAT

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.

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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.

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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
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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.

Is an owners corporation able to terminate the appointment of a caretaker with whom it is dissatisfied?

In some cases this is possible.

But in recent years, there have been several cases involving attempts by owners corporations to rid themselves of caretakers who they consider are underperforming and these attempts have been spectacularly unsuccessful.

In this article, we review one of those cases Strata Caretaker Agreements

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

An owners corporation will often approve an agreement at a general meeting. Sometimes the agreement is complex or lengthy and the cost to include a complete copy of the agreement in the meeting notice is prohibitive.

In those circumstances, does the agreement still need to be included in the meeting notice or can it be tabled at the meeting? Approving Agreements at General Meetings

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 case NCAT upheld a general meeting special resolution of an owners corporation that approved the installation of new rain water tanks in a strata scheme, despite there being:

• technical non-compliance with the Strata Schemes Management Act 2015 (SSMA) in the notice convening the general meeting
• an argument by a lot owner that the placement of the new rain water tanks near her lot devalued the lot

So, was the decision a victory for common sense?  Tribunal Upholds Validity of General Meeting

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