Must an Owners Corporation Repair Lot Property

In last week’s newsletter article, we reported on a recent NCAT case in which an owners corporation was ordered to repair damage to lot property caused by a common property roof leak.

Our article generated considerable interest. The NCAT decision begs the question: Is an owners corporation responsible for repairing lot property?

In this article, we take a closer look at that issue and consider whether the NCAT case we reported on last week (Mastellone v The Owners – Strata Plan No. 87110 [2021] NSWCATAP 188) was correctly decided.

Read the full article Is an Owners Corporation Responsible for Repairing Lot Property?

For all NSW strata legal advice including by-laws, building defects and levy collections contact us here or call 02 9562 1266, we’re happy to assist.




Owners Corporation Told to Repair Lot Property by NCAT

There is a common misconception that an owners corporation is not responsible for repainting a water damaged ceiling in a lot or repairing consequential water damage to a lot that is caused by a common property defect.

In a recent case, NCAT held that:

  • an owners corporation is responsible for carrying out those repairs;
  • the common property memorandum does not exempt an owners corporation from having to perform those repairs.

Here we discuss the case and explain why an owners corporation is not exempt from repairing damage to lot property NCAT Orders Owners Corporation to Repair Lot Property

For all NSW strata legal advice including by-laws, building defects and levy collections contact us here or call 02 9562 1266, we’re happy to assist.




Important Recent Changes to Strata Laws

The NSW Government has made a number of important changes to the Strata Schemes Management Act 2015 (Act).

Sustainability Infrastructure, Voting and Proxies

On 24 February 2021, changes to the Act commenced that:

  • Make it easier for a lot owner or owners corporation to install “sustainability infrastructure” on common property such as solar panels and electric vehicle charging stations. A lot owner or owners corporation will be able to install “sustainability infrastructure” on common property if a “sustainability infrastructure resolution” is passed by a simple majority (i.e. 50% or more) at a general meeting;
  • Prevent an owners corporation making available for inspection any record that would disclose how an owner voted in a secret ballot unless the owners corporation is directed to do so by NCAT or a court;
  • Enable a lot owner who owns more than one lot to nominate one individual to act as a proxy for all the lot owner’s lots.

Fines

Since 1 July 2021, NCAT has had the power to order a person to pay a penalty of up to $5,500 where the person has breached an order by NCAT.

Pets

From 24 August 2021, an owners corporation will not be able to have a by-law which unreasonably prohibits the keeping of an animal on a lot. Further, it will be deemed reasonable to keep an animal on a lot unless keeping the animal unreasonably interferes with another occupant’s use and enjoyment of the occupant’s lot or the common property. Those changes codify the decision of the NSW Court of Appeal in Cooper v The Owners – Strata Plan No 58068 [2020] NSWCA 250 in which it was held that a “no pets” by-law is unenforceable.

If you need any assistance with updating your by-laws or navigating the new laws please contact us here, we’re happy to assist.




Webinar Recording: Pets in NSW Strata

Pets by-law expert, Adrian Mueller, Strata Lawyer talks pets with LookUpStrata in this recent webinar, covering the recent ‘Cooper’ case:

  1. How will you respond to the recent decision of the Court of Appeal in the Cooper case which says that a by-law prohibiting pets is invalid?
  2. Will you wait for the dust to settle before deciding what you will do?
  3. Or will you act now and change any by-law that prohibits pets?

As well as delving into this recent case and what it means for you, Adrian has also covered Q&A’s specifically focused on the topic of pets in NSW strata buildings.



NEED A PETS BY-LAW REVIEW CLICK HERE NOW!

For all NSW strata legal advice including by-laws, building defects and levy collections contact us here or call 02 9562 1266, we’re happy to assist.




NCAT Dishes Out the Penalty for Order Breaches

In a recent case NCAT has penalized an owners corporation $6,600 for breaching an order to repair common property defects.

However, due to a quirk in the strata legislation, before NCAT could impose that penalty, the lot owners who sough the penalty had to obtain the consent of the NSW Attorney General to make the penalty application.

The case highlights the importance of new laws in the Strata Schemes Management Amendment (Sustainability Infrastructure) Bill 2021 that are expected to commence later this year that will give NCAT power to issue penalties of up to $5,500.00 (without the consent of the NSW Attorney General) for breaching orders made by NCAT.

Read on…NCAT dishes our punishment for order breaches

For all NSW strata legal including by-laws, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.




New Strata Legislation Will Soon Become Law

The Strata Schemes Management Amendment (Sustainability Infrastructure) Bill 2021 is expected to commence in mid-2021.

Overview of New Laws

The key features of the Bill are as follows:

1. An owners corporation will be able to authorise the installation of sustainability infrastructure (such as solar panels) on common property by passing an ordinary resolution.

2. Any decision by an owners corporation that would unreasonably prohibit the keeping of an animal on a lot will have no force or effect.

3. It will be possible for a by-law to prohibit the keeping of an animal (such as a dangerous dog) on a lot if that prohibition is reasonable.

4. An owners corporation will need to keep voting records regarding a secret ballot confidential unless directed to make those records available for inspection by a court or NCAT.

5. NCAT will need to provide a copy of any strata application that is lodged by any person to the owners corporation of the strata scheme concerned.

6. An owners corporation will need to serve a copy of any NCAT application it receives on each owner instead of just placing a copy of the application on the noticeboard.

7. NCAT will have the power to require a person to pay a penalty of up to $5,500.00 for breaching an order made by NCAT.

8. A person who owns more than one lot in a strata scheme will be able to appoint a single proxy in respect of all of the lots (to prevent the limitation on the number of proxies a person can hold stopping this from occurring).

9. A proxy appointment form for a meeting will still be valid even if the meeting is adjourned to a later date.

Conclusion

These new laws will make it easier for owners corporations and owners to install solar panels and implement other “green” initiatives, clarify the validity of “no pets” by-laws and close a loop hole in the strata legislation that prevented NCAT imposing penalties on people who breach orders.

For all NSW strata legal including by-laws, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.




Considering Mediation – Get the Right Advice!

How should your owners corporation deal with a request from a lot owner to attend at Mediation?

Mediation is an important part of the dispute resolution processes for strata schemes pursuant to the Strata Schemes Management Act 2015.

A recent decision of the Appeal Panel of NCAT  has underlined the need for agreements reached at Mediation to be sufficiently certain if they are to be capable of being enforced under the strata legislation.

This in turn raises questions about how owners corporations should approach Mediation, particularly the most common form of Mediation for strata matters, under the auspices of Fair Trading NSW.

In this recent case we explain how getting the wrong advice can stop you from enforcement.

Where ever possible an owners corporation should take the following steps Mediation and the Right Advice.

For all NSW strata legal including by-laws, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.




Strata Management Agency Agreements Lessons Learnt

A recent decision by NCAT reinforces the need for strata managers to dot their I’s and cross their T’s if they want to be paid for work they do for owners corporations.

The case sends an important message for strata managers to ensure that they have a strata management agency agreement signed by the owners corporation before providing any services to the owners corporation.

Here we share this case including some valuable lessons to be learnt with Strata Management Agency Agreements.

For all NSW strata legal including by-laws, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.




Owners Corporations and Discrimination Legislation

Is your owners corporation likely to be subject to claims that it is discriminating against disabled persons?

A recent decision of the Administrative and Equal Opportunity Division of NCAT has determined that an owners corporation “provides services” to owners and occupiers within a strata scheme. As a result, owners corporations are potentially subject to the provisions of the Anti Discrimination Act 1977, in relation to the way that owners corporations manage and control common property and the finances of the strata scheme.

This raises the prospect that owners corporations may face increasing burdens to manage common property with the needs of disabled persons in mind.

Potential Implications for Discrimination in Strata Schemes

Potentially, this decision widens the possibility that claims under the Anti Discrimination Act can be brought against owners corporations for issues such as:

  • providing alternatives to stairs
  • installation of lifts
  • installation of other lifting mechanisms
  • broadening of doorways to enable wheelchair access
  • providing non-slip devices
  • providing access ramps
  • accessibility of garbage facilities
  • accessibility of recreational facilities

Owners corporations would be well advised to take great care, and even to seek advice, when issues of discrimination are raised by lot owners and residents .

Read the full article here: Owners Corporation and Discrimination Legislation.

For all NSW strata legal including by-laws, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.




Get Your Renovation Approvals Right!

A recent decision by NCAT has provided guidance on what needs to be done for an owners corporation to approve renovations done by an owner.

This case involved a dispute between the owners corporation of a large mixed use building in Milsons Point and the owner of a commercial lot in the building who wanted to fit-out his lot as an office involving alterations to common property.

The case produced a surprising outcome and is likely to change the practice that is followed by owners who seek owners corporation approval to renovate.

So, does a common property rights by-law authorise an owner to carry out works affecting the common property?

Here we share the case and outcomes: Get Your Renovations Approvals Right

For all NSW strata legal including by-laws, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.