Does an owners corporation have to enforce its by-laws?  If an owners corporation decides to ignore breaches of its by-laws, can NCAT force the owners corporation to take action and enforce its by-laws?  A recent NCAT case provides the answer to these questions.

Introduction

Almost every strata building is governed by a set of by-laws. Those by-laws set out rules that regulate behaviour, noise, the keeping of pets and, among other things, the performance of renovations.  The by-laws are binding on the owners corporation and the owners and occupiers of the lots.  An owners corporation has the power to enforce the by-laws if they are breached.  For example, an owners corporation can issue an owner or occupier of a lot with a notice to comply with a by-law or apply to NCAT for an order to require the owner or occupier to obey a by-law.  But what happens when an owners corporation decides to turn a blind eye to a breach of a by-law committed by an owner?  Can the owners corporation be forced to enforce the by-law against the culprit?  If so, by whom?  A recent NCAT case reveals the answers to these questions.

The Case

Suzanne Lyon owns a lot in a residential strata scheme in Wollstonecraft, Sydney.  In August 2020, the owners corporation created a common property rights by-law to give the owner of the lot beneath Ms Lyon’s lot, Mr Swanson, the right to build a pergola over his rear courtyard.  Subsequently, Mr Swanson built the pergola, but Ms Lyon claimed that the pergola did not comply with the by-law because it was too high.  The by-law had permitted the pergola to be 2.7m above the concrete floor of the courtyard but it was built about 3.21m above that concrete floor.  Ms Lyon wanted the pergola to be removed or modified but the owners corporation was not prepared to force Mr Swanson to change the pergola.  For that reason, Ms Lyon sued the owners corporation in NCAT and sought orders to require the owners corporation to remove Mr Swanson’s pergola or enforce the common property rights by-law by requiring the pergola to comply with it.

The Outcome

Ms Lyon’s claim was partially successful.  NCAT agreed with Ms Lyon that the pergola was too high and was not built in accordance with the by-law.  NCAT then considered whether it had power to make an order to force the owners corporation to enforce the by-law and require Mr Swanson to comply with it by changing the height of the pergola.  NCAT concluded that it did have that power because it could make an order, on the request of an owner, to settle a complaint or dispute about the failure of an owners corporation to exercise its functions including its power to enforce a by-law.  NCAT held that there would be a sufficient basis to make an order where an owners corporation has a discretion to exercise a function (such as its discretionary power to enforce a by-law) but decides not to do so.  NCAT considered that there was little point in the strata legislation creating a mechanism for an owners corporation to pass a common property rights by-law merely to have that by-law flouted and for the owners corporation to fail to act in the face of complaints from other owners and legal advice it had received.  Ultimately, NCAT concluded that the owners corporation’s failure to manage Mr Swanson’s non compliance with the by-law, or to make any attempt to require him to comply with the by-law, meant that an order should be made requiring the owners corporation to exercise its functions to administer the strata scheme for the benefit of the owners and in accordance with the by-laws.

The Orders

For those reasons, NCAT ordered the owners corporation to take all necessary steps to require Mr Swanson to comply with the by-law by requiring him to reduce the height of the pergola to 2.7m above the concrete surface of his courtyard.  However, NCAT gave the owners corporation 6 months to comply with that order to allow Mr Swanson sufficient time to apply to the owners corporation for approval to amend the by-law to permit the pergola to remain at a height of 3.21m above the courtyard floor and for that amendment to the by-law to be approved by the owners corporation.

Analysis

This case is one of the first times that NCAT has made an order to compel an owners corporation to enforce its by-laws.  The decision does break new ground because it was previously thought that because the Strata Schemes Management Act 2015 does not explicitly require an owners corporation to enforce its by-laws but rather gives an owners corporation a discretion to do so, it was not possible for NCAT to force an owners corporation to require owners and occupiers to comply with its by-laws.  The order made in the case begs the question: What does the owners corporation need to do to take “all necessary steps” to require an owner to comply with a by-law?  Does that require the owners corporation to issue a notice to comply with the by-law against the owner?  Or does it require the owners corporation to do more and, if necessary, take legal action against the owner to force him or her to comply with the by-law?  And what if the owners corporation is successful in that legal action, but the owner ignores orders that are made to require him or her to comply with the by-law?  What is the owners corporation required to do then?  It remains to be seen whether those questions will need to be answered by NCAT in the future.

Conclusion

The case sends a message that owners and occupiers of lots who are affected by breaches of the by-laws committed by other owners and occupiers are not helpless.  They can apply to NCAT for orders to force their owners corporation to enforce the by-laws against those in breach of them.  It remains to be seen whether the decision in Lyon v The Owners – Strata Plan No. 11045 [2023] NSWCATCD 31 will be followed in future cases.

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

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

Short-term rental accommodation (STRA) in strata properties will continue to be a highly contentious topic in 2023 with even more scrutiny and increasing backlash to the industry because of the current housing crisis.

Since February 2023 there has been a significant rise in complaints about short term letting guests impacting strata blocks due to noisy parties, visitors coming and going, rubbish not being disposed of properly or at all and common property damage, among many other complaints.

Since 2021 the number of New South Wales properties listed as short-term rentals has surged by 42% with over 45,000 listed STRA properties, causing the State’s Planning Minister to review proposed annual caps later this year.

Councils Take Action to Regulate STRA

Many local councils are beginning to take action to regulate short-term letting in their areas introducing a raft of regulations for short-term letting with some councils increasing their council rates for property owners who short-term let for more than 60 days.

The Independent Planning Commission in early May 2023 advised that councils ‘should’ be allowed to impose a 60-day cap on short-term rentals after Byron Shire last year attempted to introduce a 90-day cap.

The NSW government is expecting 12 councils to call for strict caps on short-term rentals.

A decision is yet to be made regarding the capping of STRA properties however this trend is expected to continue in 2023, with more local councils introducing more controls to regulate the STRA letting sector.

STRA By-Law

In NSW, an owners corporation can introduce a by-law that restricts STRA. Many strata building have introduced STRA by-laws that prohibit unlawful STRA and regulate permissible STRA. Anecdotal evidence is that these by-laws have proven effective in reducing problems associated with STRA.

Is it time to review your Short Term Rental Accommodation (STRA) by-laws?

DOES YOUR STRA BY-LAW NEED TO BE REVIEWED? CLICK NOW!

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

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

The NSW Department of Fair Trading have published information on the ‘fire safety regulations 2022′ with a fact sheet and FAQs explaining reforms in more detail. 

A timely reminder as the nights and days start to get cooler, winter will soon be here and as owners and tenants use heaters and other electrical items to warm apartments it increases the risk of fires in strata buildings as they choose to stay indoors and out of the cold.

What are the most common causes of fire?

According to Fire and Rescue NSW the most common causes of fires, especially in winter, are:

• Faulty electric and gas heaters
• Items placed too close to heaters
• Children knocking over heaters
• Portable outdoor heaters
• Overloaded powerboards
• Kitchen cooktops and appliances
• Wheat bags kept in bed
• Electric blankets
• Smoking and candles
• Electric bikes and scooters
• Buildings at risk with flammable cladding

Is your building fire safe?

Now is the ideal time to ensure you are familiar and up to date with the fire safety requirements for your strata building and to ensure:

• Your building has had its annual fire safety inspection by an accredited Fire Protection Association Australia (FPAA) inspector, and everything is in working order and in line with the NSW fire safety laws
• Your annual fire safety statement, which is mandatory for most buildings, is lodged with the local council and Fire and Rescue NSW

How do you help ensure your building is fire safe?

A ‘Fire Safety By-law’ can help ensure all tenants and lot owners are fully aware of the fire safety requirements they must obey and to not do anything that create’s a fire safety risk. 

This type of by-Law can also make tenants and owners liable for false fire alarm call out fees or for any damage they cause to the building. 

A ‘Fire Safety By-Law’ can greatly enhance the fire safety of your building, reducing your fire risk.

DO YOU NEED A FIRE SAFETY BY-LAW? CLICK HERE NOW!


DOWNLOAD YOUR FIRE SAFETY FACT SHEET HERE.

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

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

As the financial pressure heightens with rising interest rates and cost of living increases we’re seeing more and more people default on their levy payments.

We all know that raising and collecting strata levies for building maintenance and scheme administration is fundamental to an efficiently run strata complex.

When owners corporations allow owners to fall behind in their levy payments it leads to cash flow problems for an owners corporation which could lead to critical building works not being addressed and many other issues.

Recovering Overdue Levies

The recovery of strata levies is unique and requires a detailed understanding of the various strata laws as they apply in NSW.

So, when it does become a legal issue, recovering overdue levies is highly technical with a number of steps that must be taken before commencing legal action to recover the overdue levies from an owner.

Muellers WINS Huge Levy Debt Case and Rewrites the Law!

Sale of Apartment Owned by Monk who Disappeared Overseas Sets Legal Precedent!

Owners Corporations and strata managers in NSW sometimes wonder how they can recover outstanding strata levies from owners of strata units who’ve disappeared and are nowhere to be found. Well, do not be disillusioned JS Mueller & Co Lawyers has now given hope to owners corporations and strata managers.

Read on…Sydney Morning Herald (SMH) Domain

Overwhelmed and Need Assistance with Levy Debt Recovery?

We are expert collectors and negotiators highly skilled in all essential aspects of levy debt collection.

• We have been collecting overdue levies for 30+ years.
• Our dedicated team of paralegals do nothing but levy debt collection.
• We do levy debt collection across regional and metropolitan NSW.
• We will get results.

Now you can, sit back, relax and let us collect those overdue levies for you!

Contact Us

Speak to the specialist NSW levy collections experts here, we’d be happy to assist.

Can a by-law prohibit the cooking of food including toasting bread in a lot?

In short, the answer is “no” according to NCAT.  However, there is a silver lining in NCAT’s ruling.

The Background

There is a large residential strata building located in Newcastle, New South Wales.  The building contains 87 residential lots.  The building was previously an aged care facility.

The building contains a commercial kitchen for shared use by the building’s occupants.  Some of the lot’s also contain a kitchenette, other smaller lot’s do not and rely on the shared kitchen.

The By-law

The buildings cooking by-law prohibited the cooking of food in any lot without kitchen facilities. However, a lot owner objected to the by-law and applied to NCAT for an order to invalidate the by-law.

Here we share the case and outcome… NCAT Invalidates No Cooking By-law

Contact Us

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

From October 2023, a new federal policy will come into place for electric vehicles (EV’s) relating to EV charging in apartment blocks.

The new policy states that it is mandatory for all apartment buildings to be built allowing for EV charging infrastructure.

But… what about existing older strata buildings and the growing demand for EV’s and EV charging facilities?

Electric Vehicle Chargers in Older Strata Blocks

Is there a risk for older apartment buildings and their market value if they don’t find a solution for installing the necessary EV charging infrastructure, particularly as these new rules come into place?

Perhaps, just as strata committees have adjusted to retrofitting solar, they must now adjust to retrofitting EV charging solutions for tenants and lot owners.

The NSW Government has developed this guide to assist with getting your building ‘EV ready’.

Do you Need an Electric Vehicle (EV) By-law?

Our specialist team of strata lawyers have drafted many by-laws permitting owners to install electric vehicle chargers in strata buildings. Our EV by-law considers and covers all essentials including these key issues:

• Who’s responsible for paying the cost of electricity used to charge electric vehicles
• Any necessary upgrades to the electricity infrastructure in the building

DO YOU NEED AN ELECTRIC VEHICLE BY-LAW?

Contact Us

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

The NSW government deadline for annual reporting for strata schemes must be completed by 31 December 2022. This also includes 2-lot schemes.

Here we share the following:

• What do your strata schemes need to do?
• Who can access the information and privacy?
• Why is it mandatory for your strata schemes to complete reporting?

For specific information visit NSW Government strata schemes online Annual Reporting

Contact Us

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

A recent hot topic has been the width of the powers given to NCAT to resolve strata disputes.

In particular, can NCAT resolve any strata dispute or just some disputes?

This interesting issue was considered in a recent decision of the Appeal Panel of NCAT.

The Strata Schemes Management Act 2015 gives NCAT power to make orders to settle complaints or disputes about the operation, administration or management of strata schemes or the exercise of functions of an owners corporation.  But the width of that power is not entirely clear.

For example, does the power allow NCAT to make an order to resolve any strata dispute?

Here we share a recent case outcome Can NCAT Resolve Any Strata Dispute or Just Some Disputes?

Contact Us

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

Updated Rules for Strata and Residential Property Managers

Updated rules for strata managing agents and real estate agents including assistant agents commenced on 1 September 2022.

The laws incorporated feedback from the public consultation in June and July this year on the Property and Stock Agents Regulation 2022.

The new Regulation will keep existing rules plus provide further consumer protection and a reduced administrative load for agents.

There is also a new additional rule that applies to strata managing agents and their assistant agents.

NSW Fair Trading is giving agents a six-month transition period to adjust to the changes from 1 September 2022 to 1 March 2023

What are the New Rules?

Here we explain some changes for strata and residential property managers under the Regulation:

Strata Managing Agents

• Strata managing agents are now required to cooperate when transferring functions to a strata scheme or community land scheme
• This applies in situations where the agent’s contract has ended, and the scheme has decided to self-manage.
• Clarifying the duties of assistant agents performing business agent or on-site residential property manager functions

Residential Property Managers

• Changing the disclosure of material facts requirements –when dealing with residential tenancy agreements, agents only need to disclose the material facts outlined in the Residential Tenancies Regulation 2019
• Clarifying the duties of assistant agents performing business agent or on-site residential property manager functions

For more information about the changes and what this means for you, visit NSW Fair Trading Property and Stock here or call Fair Trading on 13 32 20.

Contact Us

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

The Australian Building Codes Board (ABCB) has announced the following in relation to the recent launch of the National Construction Code (NCC) 2022:

• As of 1 May 2023, NCC 2022 will be adopted with a transition period until 1 October 2023
• The transition period is for the modern homes provisions for energy efficiency, condensation mitigation and liveable (accessible) housing
• While the transition dates from 1 May to 1 October 2023 are in place NCC 2019 will remain in force
• Following 1 October 2023, NCC 2022 is to be adopted

How Different is NCC 2022?

• Consistency improvements have been implemented across all volumes with a new structure and number convention
• It is more web accessible with a significantly improved user experience and reorganised code’s
• As part of the transition old clause numbers will be listed to the right of documents
• You will be able to save a PDF version directly to your device or purchase a printed copy of NCC 2022
• You will no longer need to sign in to NCC Online but you will need to register to ensure you stay up to date with notifications

For more information the National Building Code 2022 is available here NCC 2022

Contact Us

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