Leasehold Strata Schemes and Building Defects

A recent decision of the NSW Court of Appeal has found that the owners corporation of a leasehold strata scheme located in Manly, Sydney and owned by the Roman Catholic Church, had no right to make a claim against the builder or developer of its scheme for building defects.

Are owners corporations of leasehold strata schemes required to foot the bill for the costs to repair building defects?   Leasehold Strata Schemes and Building Defects

Do you need advice on building defects and/or leasehold strata schemes, speak to the experts?

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




NCAT says Landlords are not responsible for Tenants’ Noise

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.




Short Term Lettings & Airbnb – Hot Topics in Strata.

Short term accommodation, can it be stopped?

Does short term accommodation require Council approval or is it prohibited in most local government areas in NSW?

Is a by-law still an effective way to prohibit short term accommodation in a strata scheme?

We’ve prepared a short paper to help you understand the ins and outs of this area of strata law Short Term Accommodation.

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




NCAT Confirms that it Cannot Impose Penalties

In a recent decision, NCAT has confirmed that it does not have power to impose monetary penalties on persons who breach orders made by NCAT.

This decision highlights an important flaw in the new strata legislation which needs to be fixed.

Read on to find out more – NCAT Strata Disputes Floors and By-laws.docx

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




Disabled Residents – Do You Need to Provide Access?

Can an owners corporation be forced to make modifications for disabled residents in its strata scheme?

Does it depend on the specific circumstances of each strata scheme?

Read on to find out: Strata Disabled Access

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




To Vote or Not to Vote – That is the Question?

Does a strata committee have the power to make decisions on behalf of an owners corporation?

Should you save yourselves a vote next time a clause in a by-law or a condition in an agreement refers to the approval of the owners corporation?

To vote or not to vote read on to find out Strata Voting and Meetings

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




You May Have Heard There’s Been a Delay!

The NSW Government recently announced the delay of the strata building bond and inspection scheme.

Originally announced to start 1 July 2017 the commencement date has now been revised to 1 January 2018.

The delay is to allow for issues arising from the consultation phase to be addressed.

Please refer to the Building Defect Bond Scheme for further information.

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




Are House Rules Binding? This will Surprise You!

 House rules are not binding right?  You might be surprised.

The rules which govern participation in a strata scheme are called by-laws.  By-laws are made by a developer on registration of a strata plan or by an owners corporation by special resolution passed at a general meeting. By-laws are registered on the title of the common property and are binding on the owners corporation and owners and occupiers of the lots.  If by-laws are breached, they are able to be enforced.

By-laws are registered on the title of the common property and are binding on the owners corporation and owners and occupiers of the lots.  If by-laws are breached, they are able to be enforced.

But…what about rules that are made by a strata committee and placed on a notice board? Strata Rules 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.

 




NCAT Clarifies Appeal Rights Against Adjudicators

In a recent decision, NCAT has confirmed that it is business as usual and that appeals against decisions of Strata Adjudicators will continue to be dealt with by NCAT in the same manner, even though strata adjudications have been abolished under the Strata Schemes Management Act 2015.

Introduction

The Strata Schemes Management Act 1996 (old Act) allowed Strata Adjudicators to make orders to resolve strata disputes. On 30 November 2016, the old Act was repealed and replaced by the Strata Schemes Management Act 2015 (new Act).  The new Act abolished strata adjudications.

However, there were still strata adjudications pending at the time the old Act was repealed and decisions of Strata Adjudicators under the old Act continued to be made up until recently. This created uncertainty as to whether or not a party dissatisfied with a decision made by an Adjudicator could appeal against the decision after 30 November 2016.

To read the full article – NCAT Clarifies Appeal Rights Against Decisions of Strata Adjudicators

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




Are Explanatory Notes Required?

Do explanatory notes need to be included in the agenda of a general meeting of an owners corporation?  The answer might surprise you.

Since the commencement of the Strata Schemes Management Act 2015 on 30 November 2016, a practice has arisen for explanatory notes to be included in an agenda of a general meeting of an owners corporation.  The purpose of the explanatory notes is to provide a brief explanation of the purpose of each motion that appears on the meeting agenda.

But are these explanatory notes necessary? Click here to find out – Are Strata Meeting Explanatory Notes Required

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