Replacing an air conditioner in a NSW strata property might appear simple on the surface.

However, the replacement of air conditioners can often become a point of contention if not managed correctly under the existing strata framework. This is where clear, comprehensive by-laws play a crucial role.

We frequently assist strata communities across NSW in navigating the complexities of common property and individual lot responsibilities. One area that consistently presents challenges is the replacement of air conditioning units.

While the Strata Schemes Management Act 2015 and its regulations provide a baseline, they often lack the specific guidance needed to address the nuances of modern air conditioning systems and the evolving needs of strata schemes.

The Pitfalls of Outdated or Non-Existent By-laws

Without well-defined by-laws addressing air conditioner replacements, strata schemes can face several potential issues:

• Disputes over responsibility: Who is responsible for the cost of replacement – the individual owner or the owners corporation? This can be particularly unclear when the unit services only one lot but is affixed to common property.
• Inconsistency in replacements: Without guidelines, owners may install different types or sizes of units, potentially impacting the building’s aesthetics, energy efficiency, and common property infrastructure (e.g., electrical load, drainage).
• Noise and vibration concerns: Upgraded or poorly installed units can lead to noise complaints affecting neighbouring lots, creating disharmony within the community.
• Insurance implications: Lack of clarity on responsibility can complicate insurance claims related to damage or malfunction of air conditioning units.
• Approval processes: Without a clear by-law outlining the approval process for replacements, committees can be burdened with inconsistent requests and lack a framework for fair decision-making.

The Solution: Proactive By-law Updates

The key to mitigating these risks and fostering harmonious living within your strata scheme lies in having clear and up-to-date by-laws specifically addressing air conditioner replacements. These by-laws can provide crucial guidance on:

• Defining responsibility for replacement costs
• Setting standards for replacement units.
• Establishing a clear approval process
• Addressing common property impact
• Defining maintenance responsibilities

Our specialist strata lawyers can:

• Review your existing by-laws: Assessing their adequacy in addressing air conditioner replacements.
• Draft new or amended by-laws: Tailoring them to the specific needs and characteristics of your strata community, ensuring compliance with current legislation.
• Guide you through the by-law change process: Ensuring all legal requirements are met for the successful implementation of new or updated by-laws.

Investing in clear and comprehensive by-laws regarding air conditioner replacements is an investment in the smooth operation and harmonious living of your NSW strata scheme.

Don’t wait for a dispute to arise – proactive review and updates can save your strata scheme significant time, money, and stress in the long run.

AIR CONDITIONER REPLACEMENT: NEED A BY-LAW UPDATE OR A SPECIFIC NEW BY-LAW?

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.

Good renovation by-laws will protect all parties such as the owners corporation, the lot owner (and future owners) plus ensure any renovations to a lot, in particular structural, are safe for the building.

A good renovation by-law will outline items such as:

• A clear statement of the authorised work
• The time frame for completion
• Setting out any conditions that must be met
• All contractors details and their insurances
• Development consents
• Recording all works, including structural works
• Conditions that the lot owner and their contractor/s must adhere to
• How waste is to be dealt with
• Hours of work to minimise noise and disturbance to neighbours and the building
• Access and parking requirements to ensure minimal disturbance to other lot owners and common property areas
• Who is responsible for any ongoing maintenance
• Ensuring that all work complies with relevant standards and legislation such as the Building Code of Australia and the Design & Building Practitioners Act 2020
• Any nuances and more!

Why is it important to ensure that renovation by-laws are thorough?

Apart from wanting the renovation to run smoothly, the type of by-law to be used will depend on the renovation that is being undertaken. For example:

• Is the renovation a bathroom or kitchen renovation involving waterproofing or changes to floor coverings; and
• do you need a cosmetic, minor or major renovations by-law?

The tighter the renovation by-law the less likely there will be issues however in the event of an issue a well written by-law will more than likely get things back on track, minimising any disputes. A badly written renovation by-law may only exacerbate the situation and cause unwanted delays and disputes and may even end up in NCAT.

 Are you in need of a renovation by-law?

Our legal team has significant expertise developing renovation by-laws for strata, company, and community living.

• We have been developing renovation by-laws for 40+ years.
• We know whether you will require a by-law for renovations for owners corporation approval.
• We guarantee within 7 days you will receive the right renovation by-law.
• We also understand that you ‘may’ need your renovation by-law urgently for an upcoming strata meeting – just let us know, we will make it happen.

DO YOU NEED A RENOVATION BY-LAW? CLICK HERE 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.

Changes to pet laws – do you need to update your pets by-law?

As of July 1, 2024, the NSW Government introduced new regulations for cat and dog ownership. All cats and dogs residing in your strata building (and across NSW) must now be microchipped.

The recent changes to pet ownership regulations in NSW will impact residents living in strata schemes and NSW communities. 

Here’s what you need to know:

Microchipping and Registration

• All cats and dogs in your strata building (and across NSW), regardless of age, must be microchipped. They must be microchipped by 12 weeks old (or before selling or giving them away).
• Dogs and Cats must also be registered on the new NSW Pet Registry within 12 weeks of age or upon taking ownership. This is a one-time fee that transfers with the pet if ownership changes. They must register within 28 days to avoid late fees.

Keeping Information Up-to-Date

Residents with pets must:

• Create an account on the NSW pet registry website This online platform allows for paying fees, updating pet’s details, and report missing animals.
• Especially important for strata residents: Pet’s information on the registry must be updated whenever contact details or ownership changes. This ensures the pet can be easily returned if they get lost within the building or surrounding areas.

Benefits for Strata Communities

• These new regulations aim to improve overall pet management in strata buildings and the surrounding communities. Up-to-date pet registry information helps reunite lost pets with their owners quickly and minimises any inconvenience for fellow residents and the strata community.

Update your Pets By-law too!

It’s important to review your strata scheme’s pet by-laws alongside these new regulations. Speak to the experts at JS Mueller & Co Strata Lawyers today, we’re happy to assist.

CLICK NOW TO UPDATE YOUR PET BY-LAW

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. 

New laws will soon commence in New South Wales to increase transparency and accountability in the strata management industry.

Strata managing agents who engage in unethical practices, such as undisclosed kickbacks or failing to disclose conflicts of interest, will face harsher penalties.

The new laws aim to protect the interests of strata owners by giving them greater control over their buildings and common property.

The big changes are:

• Increased penalties: Maximum penalties and penalty infringement notice amounts for agents who fail to disclose information about commissions have been raised.
• Strengthened conflict-of-interest disclosure: Agents will be required to provide more detailed information about potential conflicts of interest.
• Ban on insurance commissions: Agents will no longer be allowed to receive commissions on insurance products unless they actively help residents find the best deals.
• Enhanced enforcement powers: NSW Fair Trading has been granted additional authority to investigate and prosecute breaches of strata laws.

Best Practice Guide

The new disclosure requirements are largely in line with the Strata Community Association’s best practice guide.

This means that strata managers who are already following the guide will not need to make significant changes to their practices.

The new laws will also ensure that all strata managers are subject to the same standards.

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.

It is predicted that the Australian home security market will grow by US$6.56 billion dollars by 2030, a 15.73% annual growth from 2024 to 2030*.

What is driving this growth?

This surge is driven by several factors:

• Increased crime rates are making people want to feel secure in their homes and communities.
• Technological advancements offer a wider range of affordable security options.
• The growing popularity of strata living has led to increased demand for communal security measures.

What about privacy?

While residents crave safety, privacy concerns are also on the rise.

The issue is what rights do strata lot owners and owners corporations have to install their own security? Security cameras, in particular, can create complex issues under differing legislation.

Owners corporations and residents should be mindful of their rights under the Surveillance Devices Act 2007 (NSW) to avoid committing any offence.

These two NCAT cases share some valuable lessons Strata, Owners Corporations Lot Owners and Security Cameras

Do you need a by-law?

A well-crafted CCTV by-law is essential for managing security while protecting privacy.

If you need help developing or updating your strata scheme’s CCTV by-law, our experts can assist you.

Contact us today for expert advice, we’re happy to help.

* Source: Research and Markets March 2024

DO YOU NEED TO DEVELOP OR UPDATE YOUR CCTV BY-LAW?

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 government has announced that it will introduce strata laws aimed at improving transparency in the industry.

Increasing the maximum penalties and penalty infringement notice amounts around strata managing agents’ obligations to disclose commission information are among some of the planned changes

In summary the NSW Government will implement new laws around:

• Stricter rules on matters such as commissions
• Tougher conflicts of interest disclosure requirements
• Increased penalties that can be imposed on strata agents
• The banning of agents from taking a commission when they do not play a role in finding the best deal for strata residents
• Strengthening NSW Fair Trading’s enforcement and compliance powers

The NSW government will consult with the industry ahead of introducing legislation in the coming weeks.

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.

Introduction

It is an unfortunate reality that many strata apartment buildings contain defects.  Many of those defects are widespread or systemic defects that affect most or all of the lots.  But how far does an owners corporation have to go to prove the existence of systemic defects?  Does the owners corporation have to organise for its experts to inspect each and every lot to prove that those systemic defects exist in each lot?  A recent Supreme Court case provides the answer to that question.

The Case

There is a strata complex containing 45 townhouses in Tweek Heads South.  The complex was built in about 2018 and 2019.  There are defects in the complex.

In 2021, the owners corporation of the complex sued the builder for damages to (among other things) cover the cost to rectify defects throughout the complex.  In the case, the owners corporation claimed that several defects were systemic and present in numerous townhouses.  One of those defects related to waterproofing defects at the outer edge of balconies above garage doors of many townhouses.

The parties’ experts agreed that the beam which spans the outer edge of the balconies on two of the townhouses suffered moisture damage due to the same waterproofing defect on the balconies of those townhouses.  However, the owners corporation’s expert did not inspect any of the other townhouses or carry out any investigations to prove that those defects existed in them.  The builder denied that those same defects existed in the other townhouses and claimed that the owners corporation had not proved its case in that regard.

Proving the Existence of Systemic Defects

The Court agreed with the builder and concluded that the owners corporation had not proven, on the balance of probabilities, that the waterproofing defects and moisture damage to the beams on the outer edge of the balconies existed in any of the other townhouses.  In other words, the Court concluded that the owners corporation had not proven that those defects were systemic.

The Court relied heavily on an earlier decision in The Owners – Strata Plan No. 62930 v Kell & Rigby Holdings Pty Ltd [2010] NSWSC 612.  In that case, the owners corporation of a block of 14 units argued that no water stops had been installed by the builder in the bathrooms of all 14 units.  The owners corporation’s expert evidence only proved that there were no water stops in the bathrooms of three units.  But the owners corporation claimed that the lack of water stops was a systemic defect present in all of the bathrooms.

The Court held that it could not be inferred from the evidence that established that there were no water stops in three bathrooms that waterproofing work was incorrectly performed in other units and observed that the fact that the waterproofing contractor defectively performed work in a small number of units did not warrant a conclusion that it did so everywhere else.  Importantly, the Court concluded that the burden of proof lay on the owners corporation and that it had chosen to carry out limited destructive testing in three bathrooms only when there was no reason why it could not had done so in all of the units.

In the case involving the townhouse complex in Tweed Head South, the Supreme Court followed the reasoning in Kell & Rigby and concluded that there was insufficient evidence available to support the inference that the balcony waterproofing defect in two townhouses provided a basis for finding that the same defect existed in all 26 townhouses which have front first floor balconies.

Importantly, the Court held that it could not rely on the opinion of the owners corporation’s expert that the defect was systemic due to similar construction details being present in all townhouses because it was not known whether the waterproofing defects that had been identified in two of the townhouses were caused by faulty design or shoddy workmanship.  For all of these reasons, the Court rejected the owners corporation’s claim that the defect on the outer edge of the balconies was a systemic one that affected all such balconies and instead only accepted that the defect existed in two of the balconies that had actually been inspected and tested by the owners corporation’s experts.

Conclusion

The case provides a salutary lesson for owners corporations who wish to pursue a claim against a builder, developer or subcontractor for systemic defects.  Typically, the owners corporation will need to go the extra mile and pay its expert to inspect more than just a handful of lots to ensure that adequate testing and investigations are undertaken to enable the expert to form an opinion that will allow the owners corporation to prove, on the balance of probabilities, that the defect in question is widespread and systemic.  In some cases, this will require the expert to inspect and undertake testing and investigations in all of the lots, which in a large strata building, can be expensive.  But that is the unfortunate price an owners corporation must sometimes pay in order to succeed in a claim with respect to systemic defects.

Case: The Owners – Strata Plan 99960 v SPS Building Contractors Pty Ltd [2024] NSWSC 687

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.

Restricting or Banning Smoking in Strata

As of 1 May 2024 body corporate’s in Queensland are permitted to introduce by-laws that specifically prohibit or restrict smoking or inhaling of smoking products on common property of strata buildings.

As Queensland grapples with these changes, in NSW there are still many buildings that do not have a by-law concerning smoking, even though they are permitted to do so. This has raised questions such as:

• Is it possible to stop people smoking in a strata building without a by-law that bans smoking?
• If it is possible to stop smoking without a by-law, is it still necessary or desirable to have a by-law that bans or restricts smoking and, if so, why?

Banning Smoking without a By-Law

Somewhat surprisingly, it is possible to stop residents of a strata building smoking in their lots or on common property without a specific by-law that prohibits smoking.  Section 153 of the Strata Schemes Management Act 2015 prohibits residents from using or enjoying their lots in a manner or for a purpose that causes a nuisance or hazard to another resident. There have been several cases over the past years in which NCAT has made orders prohibiting residents in strata buildings from smoking on the basis that smoke caused by smoking constituted a nuisance to other residents in contravention of section 153.

NCAT Smoking Cases

In May 2019, a lot owner, Martin Gisks, succeeded in obtaining an order from NCAT prohibiting the resident of another lot in his building smoking on her balcony or in her bedrooms and requiring that resident to close all exterior doors and bedroom and bathroom windows when smoking inside her lot (Gisks v The Owners – Strata Plan No. 6743 [2019] NSWCATCD 44).

In October 2022, lot owners in a different building, Mr Pittman and Ms Cartwright, obtained orders from NCAT prohibiting the owners of another lot smoking or permitting any other person to smoke tobacco products on the balcony of their lot, and prohibiting them from permitting smoke from any tobacco product to be emitted from the interior of their lot into the lot of Mr Pittman and Ms Cartwright (Pittman v Newport [2022] NSWCATCD 173).

More recently, in June 2023, an owner in a strata building, Haydn Shaw, obtained an NCAT order prohibiting the owner and resident of another lot permitting the smoking of tobacco products in the courtyard of their lot (Shaw v Euen [2023] NSWCATCD 68).

In each case, NCAT concluded that the smoke caused by the smoking of cigarettes or tobacco products by residents constituted a nuisance which interfered with the amenity of other residents in contravention of section 153 of the Act.  It was on that basis that NCAT made orders prohibiting or restricting smoking in each of these cases.

Is a By-Law Banning Smoking Desirable?

These NCAT cases beg the obvious question:  does an owners corporation need to bother introducing a by-law prohibiting or restricting smoking?  The answer is “Yes” if the owners corporation wants to make it easier to ban or restrict smoking in its building.

This is because without a by-law that bans or restricts smoking:

• the owners corporation may not have standing to apply to NCAT for orders to prohibit residents smoking in a way that causes a nuisance to other residents because the owners corporation itself has not suffered from that nuisance (The Owners – Strata Plan No. 2245 v Veney [2020] NSWSC 134); and
• there is a need to prove that not only particular residents are smoking but also that the smoke from cigarettes or tobacco products has caused a nuisance to other residents by unreasonably and substantially interfering with the use and enjoyment of their lots (something which may be difficult to do).

In other words, if a by-law exists that bans smoking the owners corporation is able to enforce that by-law and to succeed it does not need to show that smoke from cigarettes constitutes a nuisance to other residents.  The owners corporation just needs to prove that particular residents are smoking in breach of the by-law.  That is much easier to do.

Conclusion

It is possible to stop residents smoking without a by-law that bans smoking.  However, it is much more difficult to do so because it requires proof that the smoking causes a nuisance to other residents.  And, there is real doubt that an owners corporation can apply to NCAT for an order to stop residents smoking in those circumstances.

Introducing a by-law prohibiting or restricting smoking overcomes those problems, gives the owners corporation the right to take steps through NCAT to prevent residents smoking and makes it easier for the owners corporation to win the case and put an end to smoking in its building.

DO YOU NEED A BY-LAW THAT PROHIBITS OR RESTRICTS SMOKING? CLICK HERE 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.

Who is Responsible for Common Property Repairs Caused by Rain?

Sydney smashes another record rainfall in May 2024 (to date) with a deluge of rain over the past weeks across metropolitan and regional areas of New South Wales.

Extensive rainfall events test the patience of every strata manager resulting in numerous complaints about water leaks into strata lots.

Faced with endless demands, owners corporations need to be very clear about their responsibilities, so it’s timely to revisit some of the “fundamentals”.

In the article below we discuss…

Step 1 – Is it the owners corporation’s responsibility?

Step 2 – If it leaks has the common property failed?

Step 3 – Are damages payable by the owners corporation for common property failures?

For more information: Rain and Common Property Damage – Who is Responsible?

Warwick van Ede I BEc LLM I Lawyer

Since 1990, Warwick has specialised in strata law, property law and litigation. Recognised for his expertise, he is also a NSW Law Society Accredited Specialist in Property Law. In 2021 he was selected to serve on the Property Law Committee of the Law Society of NSW. Profile I LinkedIn

Contact Us

For all expert 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.

Pets, By-laws and New Legislation

In December 2023 new strata laws commenced that changed the rules regarding pet ownership, including assistance animals, in strata buildings.

What do the new pet rules mean?

• Any fees, bonds and insurances imposed by the owners corporation are now banned under the new legislation.
• It’s also now easier for lot owners and tenants with assistance animals to prove their animal’s ‘assistance’ status with less loopholes to jump through.
• Those new rules will result in some existing pets by-laws (or parts of them) being invalid and will need to be reviewed.

Pet By-laws will Need to be Reviewed!

 Therefore, it is time to get all pet by-laws reviewed to ensure they comply with the new laws.

CLICK NOW FOR A PET BY-LAW REVIEW IN LINE WITH THE NEW LAWS

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.