What is the impact of COVID-19 on remedial works contracts?

Does the COVID-19 Pandemic entitle an owners corporation to cancel or delay a contract for remedial work to common property?

What if an owners corporation allows work to proceed? Could it be liable if a resident contracts the COVID-19 virus from a contractor performing that work?

In this article we discuss the impact of COVID-19 on remedial works contracts and answers to these questions:

• Can an owners corporation cancel or delay a remedial works contract due to COVID-19?
• Has a remedial works contract become frustrated due to COVID-19?
• What role does a force majeure clause have to play?
• Is an owners corporation liable if a resident contracts COVID-19 from a contractor?

Our article Remedial Works Contracts and COVID-19 Pandemic will answer these questions and more.

Owners corporations and strata managers should monitor Government announcements and, where necessary, obtain legal advice about whether or not contracts they have entered have become frustrated or are able to be cancelled or delayed due to any change in circumstances or the law.

For NSW strata legal, building defect or levy collection advice please 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.

Special Arrangements made with NSW Land Registry Services to register consolidated by-laws.

 The Strata Schemes Management Act 2015 requires every owners corporation to keep a consolidated up to date copy of the by-laws for its strata scheme.  However, there is nothing in the Act which requires an owners corporation to register the consolidated set of its by-laws.

The only time an owners corporation needs to register a consolidated set of by-laws is when it resolves to make a change to its by-laws.  In those circumstances, the consolidated set of by-laws incorporating any changes to the by-laws must be lodged for registration within six months of the meeting at which the changes are approved.

The requirement for every owners corporation to keep a consolidated up to date copy of its by-laws was introduced on 30 November 2016 on the commencement of the Strata Schemes Management Act 2015.  Since then, most owners corporations have not made any changes to their by-laws as a result of which they have not registered their consolidated by-laws.  This means there is no public record of a consolidated set of by-laws for most owners corporations.

Up until recently, NSW Land Registry Services was reluctant to register a consolidated set of by-laws where it did not record any changes to the by-laws.  In other words, NSW Land Registry Services often would not permit an owners corporations to register a consolidated set of by-laws unless it had made changes to those by-laws within the last six months.  This has made it more difficult for owners corporations to register consolidated by-laws to ensure there is a public record of those by-laws in a consolidated form.

We have recently made arrangements with NSW Land Registry Services to allow an owners corporation which wants to register a consolidated set of its by-laws (even though it has not made any changes to its by-laws) to do so.  This will enable many owners corporations to register their consolidated by-laws to ensure there is a public record of them even though they have not made any recent changes to their by-laws.  If you would like to know more about these special arrangements, please do not hesitate to contact us.

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

Thank you Strata for your support during 2019.
To contact us during this period please leave a message and we’ll get back to you on our return.

In a win for owners corporations, the Supreme Court has just announced that the definition of “major building defects” in the legislation should be given a broad meaning.

Across strata there are many building defects which have previously been categorised as minor. These can now possibly be considered as major and covered by the 6 year warranty period.

As this is a complicated area of law, it is best to seek legal advise ASAP.

This recent case will provide you with more information Strata is your minor building defect now a major defect?

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

In a major development for the strata industry, NCAT has recently held that Biowood cladding installed externally on a Sydney building is combustible and must be removed as it is a major building defect.

There are a number of multi-storey buildings in NSW with Biowood panels that are combustible and pose a risk of fire spreading from one part of these buildings to another.

Faiyaaz Shafiq, Senior Lawyer, said, “it is now up to owners corporations and strata managers to ensure these panels are removed and lives are not put in danger.”

Owners corporations of buildings which have Biowood cladding require urgent assessment of the risks involved and their rights in light of this new decision.

For more information… Biowood Cladding NCAT Rules Combustible and also refer to media coverage in the Sydney Morning Herald (SMH) and news.com.au.

For NSW strata legal 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.

Pecuniary Interest Disclosures – When are they Required?

When does a strata committee member need to disclose a pecuniary interest they have concerning a decision to be made by the committee?

The position is clear when a committee member has a direct pecuniary interest in a matter to be decided by the committee. A disclosure of that interest must be made by the committee member.

But what about indirect pecuniary interests? What are they and when do they need to be disclosed?

An example is where a committee member wishes to engage a company to carry out work for an owners corporation and his or her relative is a director or shareholder of that company. Is that an indirect pecuniary interest which must be disclosed?

The most likely answer is “yes”. This is because a committee member will have an indirect pecuniary interest if a person connected with them (such as a relative) has a direct interest in the matter to be decided by the committee.

What are the Grey Areas?

There are some grey areas. For example, can it be said that an indirect pecuniary interest arises when the committee member’s relative is merely an employee of the company that will be engaged by the owners corporation? In those circumstances, does the relative (as an employee rather than director or shareholder of the company) stand to benefit from the company’s appointment by the owners corporation?

The answer to that question is also most likely “yes” because the legislation simply requires the relative to have a “direct interest” (not necessarily a direct pecuniary interest) in the matter in order for the committee member to fall under an obligation to make a pecuniary interest disclosure.

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