There have been two recent court cases involving “squatter’s rights” over parcels of land in Sydney.

In both of those cases, people have acquired ownership of parcels of land they did not own through adverse possession by exercising “squatter’s rights”.

Both of these cases raise interesting questions for strata schemes:

• What are “squatter’s rights”?
• Can “squatter’s rights” exist in a strata scheme?
• Do the rules for “squatter’s rights” make it impossible for a person to claim ownership of part of the common property in strata scheme?
• Do those rules make it difficult for an owners corporation to claim ownership of a lot even if it has been abandoned?

Abandoned houses, “dunny lanes”, car spaces, storerooms and more: here we explain this complex area of law and share some recent cases – Squatters Rights in Strata Schemes.

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

In a surprising decision, the Supreme Court has recently held that lot owners are able to start legal action in NCAT to force an owners corporation to grant them a licence to use common property before the owners corporation has rejected their proposal for a licence.

This decision will alter the strategy of some owners who want to obtain special rights over areas of common property and may result in the commencement of litigation to gain leverage over an owners corporation.

Ultimately this case gives NCAT a mandate to attempt to resolve strata disputes in a more flexible way.

Read the full case here Supreme Court, NCAT and A Load of Rubbish

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

Get Your By-Laws Checked: New Rules for Abandoned Goods and Vehicles on Strata Properties

On 1 July 2020, the NSW legislation for abandoned goods on strata properties moved to the Uncollected Goods Act 1995 and will therefore no longer be regulated under the Strata Schemes Management Act 2015 and strata regulations.

This means what can be done to dispose of or sell abandoned goods on common property in NSW strata buildings has changed.

A Quick Summary of the New Rules for Abandoned Goods

1.The Uncollected Goods Act 1995 (Act) is the law that now governs goods and vehicles abandoned on common property within strata properties in NSW.

2. The Act divides abandoned goods into six categories with different rules and procedure applying to each category. The six categories are:

• • Perishable
  • Low Value
  • Medium Value
  • High Value
  • Personal Documents and Memorabilia
  • Motor Vehicles (an owners corporation can move vehicles that it reasonably believes have been abandoned on common property)

3. A person disposing of the abandoned goods will not be liable for doing so if they follow the procedures set out in the Act. This includes disposing of abandoned goods in accordance with an order made by the NSW Civil and Administrative Tribunal (NCAT) as NCAT has the power to order the disposal and management of the goods.

4. Under the Act, uncollected goods including any goods that owners reasonably believe to be abandoned or left behind on common property.

5. Appropriate records of the sale or disposal of the abandoned goods must be kept by the party disposing the goods and who it went to as follows:

• • Low value items documentation must be kept for at least 12 months
  • Higher value items plus their records must be kept for at least 12 years

6. If you don’t know the person who owns the abandon goods, you should make a reasonable effort to identify the owner of the goods and communicate with them.

7. The strata committee can request that additional expenses for removing, storing, maintaining or insuring the goods are covered.

8. A person cannot confiscate and refuse to return the goods because the owner owes money for other debts, such as rent or levies.

9. For more information visit Fair Trading NSW ‘uncollected goods and vehicles in strata schemes’.

10. You will need to update your abandoned goods and vehicle by-laws to ensure they are in line with these new laws.

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

Finally there has been a conclusive decision from NCAT regarding lot owner compensations.

The President and Deputy President of NCAT have recently handed down an important decision. They have concluded that NCAT does not have power to award a lot owner compensation. This is a result of a failure by an owners corporation to repair defects in the common property.

This decision around NCAT and lot owner compensations is likely to be followed by NCAT in the future and resolves a longstanding controversy about this issue.

What does this mean? Read our recent cases regarding NCAT’s decision around Lot Owner Compensations

For NSW strata legal, building defect 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.

A recent newspaper article concerning a Sydney residential complex where children have been banned from using a swimming pool within that complex, got us interested in taking a look at the extent to which the by-laws of a strata scheme or community scheme can be used to exclude children from using certain shared facilities in that scheme.

In the attached paper we reviewed the following areas concerning children, by-laws and shared facilities:

• Can children be excluded from shared facilities in a strata building or community scheme?
• For what matters can a strata by-law be made?
• Limitations on the matters of which a strata by-law can be made
• Model by-laws restricting children
• The position in NSW, Qld and Vic
• Community Scheme by-laws – A different position?
• Where a by-law is inconsistent with Anti-Discrimination legislation and discriminates against children on the grounds of age – Are these principles applicable to owners corporations?

So, can children be excluded from shared facilities? Children and By-laws in Strata and Community Schemes

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

The NSW Supreme Court has recently handed down a decision in regards to common property that will have a considerable impact on the practice of strata managers across the State. The Court’s decision answers the following often asked questions:

• What type of resolution does an owners corporation need to pass in order to replace an item of common property?
• Is the replacement of an item of common property a repair that can be authorised by an ordinary resolution?
• Or does a decision to replace an item of common property need to be made by special resolution because the replacement of the item will improve or enhance the common property?

What was the outcome of this recent case that involved a dispute between the owners of an apartment building on a waterfront in Sydney’s Eastern Suburbs… Replacing Items of Common Property in Strata?

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

A common property rights by-law is a special type of by-law that confers on the owner of a lot special privileges over common property such as exclusive use of part of common property.

While a by-law normally can be made, amended or repealed by a special resolution passed by an owners corporation’s general meeting, a common property rights by-law can only be made, amended or repealed with the prior written consent of the owner of the lot benefited by that by-law.

However, there is one exception to the need to obtain that consent.

So, what is that one exception Common Property Rights By-law

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