Strata living in New South Wales offers a unique community environment with shared amenities like pools, gyms, and BBQ areas. However, the enjoyment of these facilities relies on owners contributing to their upkeep through regular levy payments. But what happens when an owner falls behind on their levies? Can they be denied access to these common facilities?

The Legal Position in NSW

In New South Wales, the Strata Schemes Management Act 2015 (SSMA) governs the rights and responsibilities of lot owners, including the implications of unpaid levies. An owner who has not paid their levies (including any interest and recovery costs) is considered an “unfinancial owner.”

The SSMA does impose some restrictions on unfinancial owners. Specifically, the Act restricts their participation in certain strata matters such as being restricted from voting at general meetings (except on motions requiring a unanimous resolution) and being elected to the strata committee.

However, it’s crucial to understand that the SSMA does not grant an automatic right to an owners corporation to deny an unfinancial owner access to common property facilities.

The Critical Role of By-Laws

The ability to restrict an owner’s access to common property facilities hinges on the existence and validity of specific by-laws within the strata scheme.

• By-laws and Restrictions: If a strata scheme’s registered by-laws explicitly include provisions restricting access to common facilities for lot owners with unpaid levies, then the owners corporation may have grounds to enforce those restrictions.
• Validity of By-laws: Even when such by-laws exist, their enforceability is not guaranteed. Section 150 of the SSMA empowers the NSW Civil and Administrative Tribunal (NCAT) to deem by-laws “harsh, unconscionable, or oppressive,” which can render them invalid.
• Legal advice is essential: Given the complexities of the legislation and the potential for legal challenges, owners corporations should always seek updated legal advice to determine the enforceability of any by-laws that restrict facility access. What might have been considered enforceable in the past may not be today.

Important Considerations for Owners Corporations

Owners corporations need to proceed cautiously and ensure they are acting within the boundaries of the law. Here are some key considerations:

• Check the by-laws: The first step is to verify that the strata scheme has a by-law that specifically addresses the issue of restricting access to common property facilities for unfinancial owners. If no such by-law exists, the owners corporation cannot legally enforce such a restriction.
• Assess the enforceability of the by-law: Even if a relevant by-law is in place, it is essential to assess its enforceability as a by-law that is deemed harsh, unconscionable, or oppressive is unlikely to be upheld.
• Seek updated legal advice: Strata law is subject to change, and legal interpretations can evolve over time. Owners corporations should obtain current legal advice to ensure that their by-laws and enforcement actions comply with the latest legal standards.
• Apply to NCAT if necessary: If an enforceable by-law exists and an owner refuses to comply with it, the owners corporation may need to apply to NCAT for an order to enforce the by-law.

Proactive Measures: Promoting By-Laws and Levy Collections

To minimize disputes and ensure the smooth functioning of the strata scheme, owners corporations should adopt a proactive approach:

• Clear and comprehensive by-laws: Develop and maintain by-laws that are clear, unambiguous, and consistent with the SSMA. Ensure that all owners have easy access to these by-laws.
• Effective levy collection: Implement a robust system for collecting levies, including:
  • Issuing levy notices promptly.
  • Offering a range of payment options.
  • Following up on overdue payments in a timely and consistent manner.
  • Establishing a clear policy for handling levy arrears.
• Dispute resolution: Establish clear and fair procedures for resolving disputes related to levy payments and access to facilities.
• Professional guidance: Seek legal advice as needed to ensure compliance and best practices.

In NSW, the ability of an owners corporation to restrict an unfinancial owner’s access to common property facilities is not automatic. It depends on the specific by-laws of the strata scheme.

ACCESS TO FACILITIES: DO YOU NEED TO UPDATE YOUR BY-LAWS FOR UNFINANCIAL OWNERS?

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.

Back in 2018, NCAT decided that a landlord is not responsible for ensuring that his or her tenants comply with the by-laws that apply to a strata building.  That decision was confirmed by the Appeal Panel of NCAT in Feletti -v- Eales [2019] NSWCATAP 100.

Therefore, if a tenant is breaching a by-law, the owners corporation of the building is not normally entitled to take action against the landlord to require the landlord to ensure that his or her tenant complies with the by-law.

This means that the owners corporation needs to take action against the tenant instead of the landlord which it may not want to do because tenants come and go and it can be difficult to enforce NCAT orders against them.

How to Make Landlords Accountable for Tenants in Strata?

There is, however, a solution to the problem.

• An owners corporation can make a by-law that requires landlords to ensure that their tenants comply with the by-laws.
• That by-law will give the owners corporation the right to take action against a landlord when his or her tenants breach the by-laws.
• The by-law goes one step further and will also allow an owners corporation to take action against both landlords and tenants whose guests and invitees breach the by-laws.

Tenancy Laws are Changing in NSW in 2025

More recently the NSW Government has committed to ending ‘no grounds’ evictions. This means that the landlord will need a valid reason to end a tenancy, making it even more challenging for owners corporations if they’re a bad tenant – new laws are expected to be passed in 2025.

It’s now even more important that strata schemes consider introducing the following by-law to ensure a thriving and a well-run scheme.

We have drafted a by-law and a number of strata managers have introduced the by-law into the strata schemes they manage.

We expect that the by-law will prove very useful for owners corporations who introduce it because it will allow those owners corporations to take action against landlords whose tenants are breaching the by-laws.

ORDER YOUR BY-LAW NOW: ENFORCE LANDLORDS TO BE RESPONSIBLE FOR THEIR TENANTS

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.

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.

By-laws for BBQs, Pools and Gyms

Hot summer weather and the festive season is upon us and what a better time for lot owners and tenants to get fit, have a dip and pull out the barbie on a balmy summers day.

As the weather warms up to higher temperatures, so does the festive cheer. We recommend that reviewing and updating the following by-laws to help ensure that your strata blocks have clear rules and a stress free summer festive season.

BBQs – Fire Safety and Smoke Drift

For safety and smoke drift purposes it is highly recommended that a comprehensive by-law regulating (sometimes prohibiting) the use of BBQs on balconies.

Regulations on the type of BBQs such as

• Smokers
• Open fires
• Storage of LPG bottles, inflammable liquids and other substances and materials

All of these items should be considered as part of your by-laws.

Pools – Don’t Ignore the Potential Risks

A communal pool in strata has its benefits, but the risks cannot be ignored that’s why it’s important to have a clear set of communal rules in the form of a by-law to ensure everyone stays safe.

A by-law with clear communal rules such as:

• ‘No running’, ‘no diving (in shallow water)’ and ‘no bringing of glass’ at the pool are all great ways to help ensure everyone’s safety.
• Electricity and water do not mix well, so it’s important to minimise the risk of accidents by limiting electrical use around pools.
• And…who can and cannot use the pool.

Gyms – Reduce your Risks

Like pools, gyms in strata complexes have many benefits however come with safety risks and that’s why it’s critical to have a set of by-law rules to ensure everyone’s safety.

• Keeping noise to a minimum
• Hours of gym operation
• Safety rules
• Use and cleaning of equipment and more

Our specialist team of strata lawyers have been developing and reviewing by-laws for over 40 years. So, if you’re looking for a by-law or a review, we’d be happy to assist.

Get your by-laws right – speak to the experts!

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.

Do your strata by-laws keep pace with strata law changes?

In Nov 2016, every owners corporation was required to review its by-laws within 12 months.

Most owners corporations completed their by-law review by 2018.

Since then, there have been numerous changes to the laws affecting strata buildings.

Strata law changes affecting strata buildings

They include substantial changes to the laws regulating:

• Short term rental accommodation arrangements – a by-law can now ban short term lettings in certain circumstances;
• Pets – a by-law can no longer ban pets and by-laws that do are not enforceable;
• Renovations – the Design and Building Practitioners Act 2020 now applies to many renovations – do your renovations by-laws require owners to comply with the Act?;
• Fire Safety – news fire safety laws will be introduced to increase fire safety standards for strata buildings – do your by-laws allow your owners corporations to recover fire safety upgrade costs from owners?;
• Sustainability Infrastructure – new strata laws relax the requirement for approval of sustainability infrastructure such as solar panels and electric vehicle charging stations;
• Levy Recovery – there remains controversy about recovery of debt collection costs – do your by-laws allow these costs to be recorded in an owner’s ledger and recovered by the owners corporation?

Do your by-laws take into account these changes to the law?

If not, they might not be enforceable or they might simply be outdated.

So is it time to again review your by-laws? We have conducted 100’s of by-law reviews for owners corporations across NSW.

DO YOU NEED A REVIEW OF YOUR BY-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.

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.

Tenants, Building Defects, NCAT and Rent Relief

In a recent case, a property manager failed to inform a landlord of defects in the common property of a strata building and take any steps to investigate issues that a tenant had complained about.

The tenant applied to NCAT for a rent reduction as the landlord had breached their obligation to keep the rented premises in a reasonable state of repair as water leaked into the premises. The tenant was successful.

Who Could be Liable?

If a tenant claims rent relief from NCAT due to defects in a strata building, it’s important to note that NCAT could deem that it is the responsibility of the:

• Landlord who could lose rent (or worse) if they do nothing;
• Property manager if they fail to fix defects in the premises that they are authorised to repair following a tenant’s complaint in a timely manner;
• Property manager if they have not advised the landlord of defects (where they are not authorised organise repairs) following a tenant’s complaint;
• Owners corporation who could also be held liable for a landlord’s loss of rent.

A Timely Reminder for Managing Agents!

Ensure your professional indemnity insurance is current;

• Ensure your professional indemnity insurance is current
• Obtain landlord consent on a minimum amount for repair works which can be dealt with without the landlord’s approval;
• Allocate sufficient resources to attend to repair requests in a timely manner to avoid issues which could lead to court proceedings;
• Request that any common property defects are promptly repaired by the owners corporation;
• Ensure that the relevant strata by-laws for the apartment block are up to date to minimise your risk

Here we share some cases…

• https://www.caselaw.nsw.gov.au/decision/18261da0208ae3ceaf03173b
• http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/nsw/NSWDC/2019/9.html

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 decision of the Appeal Panel of the NSW Civil & Administrative Tribunal (NCAT) has highlighted the potential risks for owners corporations seeking to impose penalties and other sanctions on lot owners in connection with non-compliance with by-laws.

Careful attention will need to be paid by owners corporations to “cost recovery” aspects of their by-laws to ensure that an otherwise well constructed by-law is not rendered completely invalid.

Here we share a recent case where NCAT Tightens the Screws on Strata By-laws.

Owners corporations who have these by-laws should give consideration to having them reviewed.

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.

In at least two recent cases, NCAT has decided that “no pets” by-laws are invalid.

Are strata pet by-laws banning the keeping of pets no longer worth the paper they are written on?

What about the basic habitation rights of owners who want to live in a “pet free” building?

Where does this leave “no pets” buildings?  Pet By-laws – Is it the End of No Pets By-laws?

Need a pet by-law or some advice contact us now!

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