Strata Title

Strata Title Lawyers Newcastle
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How we can assist you

Purchasing a property is exciting but it can also be quite confusing. That is especially so when you are trying to make sense of unfamiliar words in the contract of sale such as 
  • strata; 
  • common property; 
  • by-laws; 
  • owners’ corporation;
  • levies; and
  • sinking funds.

  • Strata title refers to a single lot of land having more than one owner. 
  • Each owner shares the ownership of the property as a whole and is entitled to vote on what should be done to insure, maintain and improve the property. 
  • Strata schemes may include:
  1. residential properties such as apartment blocks, townhouses, duplexes, multi-occupancy rural properties or gated estates;
  2. retirement villages;
  3. industrial complexes;
  4. hotel and resort schemes;
  5. commercial and retail schemes such as shopping malls or arcades; and
  6. mixed use schemes (combining residential and commercial lots).

  • In a typical residential apartment complex each individual apartment owner owns only the inside walls of that apartment and the floor space between them.
  • The “owners’ corporation” owns the outside of the walls of the apartment as well as the hallways, driveways and other “common areas” or “common property.”
  • All the owners of the property who vote to decide how the common areas should be maintained and improved are members of the owners’ corporation.
  • There may be benefits for strata title title holders such as the shared cost of expensive facilities like a pool or gym.
  • However there are also restrictions, obligations and the potential for social and legal complications with your neighbours and with strata scheme managers.
  • It is important to fully understand your obligations and responsibilities before purchasing into a strata title property so you can decide if it is the right choice for you.
  • Even if you are purchasing an investment property you will still need to ensure that your tenants are informed of and follow the by-laws (rules) that apply.
  • Newcastle Legal and Conveyancing can help you understand the obligations and responsibilities that come with living in the particular strata title development including any restrictions that by-laws may impose.
  • We can also obtain past records of the owners’ corporation and identify whether there are management or maintenance issues or concerns about the building or property you are interested in.
See our FAQ and Q&A below that will answer many questions commonly asked.

Disclaimer: The information on this site is not legal advice nor does it create a lawyer-client relationship. It is general in nature, may not be correct or apply in your case and should not be relied on. See our full Terms of Use.
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Our Newcastle Strata Title Team

FAQ

  • What are by-laws and where can I find them?
    • By-laws are rules that are made to facilitate the smooth running of a strata scheme. 
    • They apply to all residents in a strata scheme. They deal with a range of issues surrounding the use of common areas and behaviour of residents. 
    • Failure to observe these rules can lead to pecuniary penalties (fines) being issued by the NSW Civil & Administrative Tribunal. 
    • Strata schemes registered prior to 1 July 1997 you can find the applicable by-laws in Schedule 1 of the Strata Schemes Management Act 1996 (NSW). Any changes in these by-laws will be registered on the Certificate of Title for the common property. 
    • Strata schemes registered on or after 1 July 1997 the applicable by-laws will be noted on the Certificate of Title for the common property and on the strata plan. These may be custom by-laws or the strata plans may adopt the model by-laws listed in Schedule 1 of the Strata Schemes Management Act 1996 (NSW). 
  • What is the owners’ corporation and do I have to be part of it?

    All owners in a strata scheme are part of the owners’ corporation. 

    You cannot choose not to be part of an owners’ corporation. Every owner is automatically a member.

    Membership of the owners’ corporation gives you rights and responsibilities. You have the right to vote at meetings and you have the responsibility to pay your levies (financial contributions to the strata scheme).

    The duties of an owners’ corporation include maintaining and repairing all the common property in a strata scheme. 

    You can choose not to attend meetings of the owners’ corporation but you should carefully read the notices that advise you on the agenda for each meeting. If a motion concerns you then you may wish to attend the meeting or appoint a proxy.


  • How can I get my motion included on the AGM agenda?
    • Any person can request that a motion to be put on the agenda if they are entitled to vote.
    • The request should be in writing and given to the secretary.
    • Your motion should be provided to the owners’ corporation at least 7 days before the meeting so that it can be included on the agenda. 

  • Can I appoint my tenant as my proxy?
    • Proxy appointments can be for a specific meeting or for a certain time period such as one year.
    • An owner may appoint their tenant as proxy.
    • A tenant does not have the right to attend any meeting of the owners’ corporation unless they have been appointed as an owner’s proxy.

  • Am I eligible for election to the executive committee?
    • All owners can be elected to the executive committee.
    • You can nominate yourself for election.
    • A non-owner such as your tenant can be nominated if you do not also nominate yourself.
    • Co-owners can both be elected to the executive committee if you nominate yourself and another lot owner nominates your co-owner.
    • All nominees for election to the executive committee have a duty of disclosure in relation to any business or personal connections they have with the original owner or caretaker. 
    • Once elected they must also disclose any connections that arise during their period of service on the executive committee.

  • How much power does the executive committee have?
    • Any decision made by the executive committee is treated as if it is a decision of the owners’ corporation.
    • However the executive committee do not have the power to make decisions about some matters such as the amount of levies.
    • Decisions of the owners’ corporation cannot be made by an individual committee member. 
    • Each committee member has one vote. Decisions are made by majority voting and the chairperson does not have a deciding vote. 
    • A decision of the owners’ corporation overrides that of the executive committee if there is a dispute.
    • Members of the owners’ corporation can attend meetings of the executive committee but can only speak if the executive committee allows them to speak by a majority vote.
    • Litigation cannot be commenced or legal advice obtained by the executive committee on behalf of the owner’s corporation unless it is first approved by the owners’ corporation or unless the expected cost is no more than $750 multiplied by the number of lots in the scheme or under $10,000 (whichever is lower).
    • For example in an 8-lot strata scheme the executive committee can commence legal action without approval from the owners’ corporation if the expected costs are less than $6,000. ($750 x 8).
  • What does a strata manager do?
    • A strata manager is required to be licensed under the Property, Stock and Business Agents Act 1941 (NSW).
    • An owners’ corporation can delegate many of their functions to a strata manager in return for payment of a management fee.
    • Delegated functions may include:
    • maintaining common property;
    • arranging building insurance;
    • raising levies;
    • keeping accounts; and 
    • enforcing compliance with the by-laws.
    • A strata manager is prohibited from delegating their powers, duties or functions to anybody else. They cannot transfer their role to another strata manager without approval from the owners’ corporation.
    • A strata manager cannot set levies or make any decision that requires a special or unanimous resolution by the owners’ corporation.
    • A strata manager must notify the owner’s corporation in writing what duties they are performing and how they are performing them.

  • Can a caretaker or building manager enforce the by-laws?
    • Caretakers are employed by the owners’ corporation to help them carry out their responsibilities such as
    • managing common property;
    • coordinating access to common property by tradespeople, suppliers and other people who do not live on the property; and
    • maintenance and repair of common property.
    • By-laws apply to all owners and tenants residing in the strata scheme.
    • Unlike a strata manager they do not have delegated authority. They may not enforce the by-laws or act outside the terms of their agreement.
    • If you are purchasing a lot in a strata scheme any caretaker’s agreement that is in place should be made available for your inspection.

  • How do I resolve a dispute in my strata scheme?
    • There are many different types of dispute that can arise in a strata scheme. Some of the most common involve breaches of a by-law.
    • If a by-law has been breached the steps to resolving the dispute are:
    • the disputing parties should try to talk to each other face-to-face;
    1. the executive committee or strata manager can send a polite letter outlining the breach and describing in detail what needs to be done to comply with the relevant by-law. The letter should also explain what will happen if the conditions are not met.
    • if the breach is not remedied it needs to be listed on the agenda for the next meeting of the executive committee or the owners’ corporation. A resolution must be passed approving the issue of a formal notice to the owner or occupier in breach (if you have a strata manager this step is not necessary).
    • A formal notice must be served on the owner or occupier in breach requiring them to comply with the by-law. This is the form of notice approved by the Director-General under s45 Strata Schemes Management Act 1996 (NSW).
    • If the owner or occupier is still in breach you need to attempt mediation through a neutral third party mediator from the NSW Office of Fair Trading or a Community Justice Centre. 
    • Mediation is appropriate for all kinds of strata scheme disputes with the exception of:
    1. allocation of unit entitlements; 
    2. compensation;
    3. appointment of a compulsory strata management agent; and 
    4. penalty disputes.
    • Each party to the mediation pays their own costs.
    • Either party can make an application for an order by an Adjudicator at the NSW Civil and Administrative Tribunal (NCAT). An Adjudicator is like a judge but their decision does not require a hearing. You must attempt mediation before you can apply for an adjudicated decision.
    • Submissions to the Adjudicator are made in writing. Newcastle Legal & Conveyancing may be useful in helping you prepare your submissions.
    • An Adjudicator can make orders about:
    1. appointment of a strata manager;
    2. enforcement of by-laws;
    3. validity of meetings;
    4. repairs to common property; and 
    5. variation of insurance.
    • The Adjudicator’s order can be appealed to NCAT within 21 days of an the order coming into effect. If you have a good reason this may be extended to 90 days unless the Adjudicator dismissed your application. NCAT will conduct a public hearing of your dispute.
    • The Tribunal can make orders about:
    1. appeals from an Adjudicator’s decision;
    2. disputes arising in the “initial period”;
    3. changes to the management statement; and 
    4. changes to unit entitlements.
    • You may represent yourself at the Tribunal hearing or have a lawyer represent you;
    • If you are representing yourself you may find it useful to ask a lawyer to help you prepare your case; and
    • An appeal from an NCAT decision must be made in the District Court. You will need legal advice before taking this step. 
  • How are strata levies determined?
    • Strata levies are determined based on the unit entitlement of each lot.
    • Unit entitlements are set by a licenced valuer when the strata plan is registered. They are based on calculating the market value of each lot as a percentage of the overall value of the property.
    • You can find your unit entitlement on the strata plan.
    • As a general rule larger apartments have larger unit entitlement and therefore have to pay higher levies.
    • Unit entitlements also regulate how much voting power you hold at a meeting when certain types of votes are called (such as poll voting). 
    • Example of how levies are calculated using unit entitlements:
    1. The annual levy for an 8-lot strata scheme is $40,000 (or $10,000 per quarter); 
    2. The total unit entitlement for the scheme is 100. This is divided amongst the lots as follows:
    • lots 1-6 have a unit entitlement of 10 (or 10% of the total); and
    • lots 7-8 have a unit entitlement of 20 (or 20% of the total).
    1. applying the unit entitlements to the levy means that:
    • lots 1-6 will pay $1000 per quarter; and
    • lots 7-8 will pay $2000 per quarter.

    • Example of voting using unit entitlement following from the above example:
    1. Because lots 7 and 8 pay double the levy paid by the other lot owners they have twice the voting power (two votes) if a poll vote is called. 
  • I am having some financial difficulties and cannot pay my strata levies this quarter. Can I defer my payment?
    • The owners’ corporation has the power to charge 10% interest for levies that are not paid within one month of the due date. 
    • It can also initiate a debt recovery claim in the local court. 
    • Any costs (including legal fees) associated with recovering your unpaid levies are charged to you as the defaulting owner. 
    • If you do not pay your levies you lose your voting rights unless the vote calls for an unanimous decision. 
    • Generally speaking you cannot defer your levy payments but you may be allowed to negotiate an instalment payment plan. If you are not a confident negotiator you may seek assistance from a lawyer to explain your situation and negotiate a solution.
    • You should speak to your strata manager or treasurer immediately. 
    • Make sure you make a note of every conversation you have with anyone in the owners’ corporation about this. Write down what you said and what they said.
    • If you come to an arrangement about payments make sure that it is in writing and signed. A lawyer may be able to help you draft up the agreement.
    • Do not leave the matter unresolved. Interest on unpaid levies can add up very quickly and if legal fees and recovery costs are added on you may find yourself owing a huge debt. 
    • When you enter into a strata scheme as an owner you make a commitment to share with all the other owners in the continuing costs of maintaining the scheme.
    • Unpaid levies are taken very seriously. If you do not pay your levies on time it may result in a deficiency in the strata scheme’s accounts. This might mean that the strata scheme is unable to carry out necessary repairs without raising a special levy on the other owners. 

  • What records does the owners’ corporation have to keep?
    • Full details of the records which the owners’ corporation are required to keep can be found in Part 5 of the Strata Schemes Management Act 1996 (NSW). More details are found in regulations 5 - 8 of the Strata Schemes Management Regulation 2010 (NSW). Some of the most important records are outlined below.
    • Minutes of meetings have to be kept by the owners’ corporation for at least 5 years including details of all motions passed.
    • The owners’ corporation must also keep for at least 5 years:
    1. copies of all correspondence sent and received;
    2. notices of all owners’ corporation and executive committee meetings; and
    3. proxies given to the owners’ corporation for at least five years after the proxy expires.
    • Record must be made and kept for 5 years of all notices given or orders made:
    1. under the Strata Schemes Management Act (such as a notice to comply with a by-law);
    2. under any other Act;
    3. by a public authority;
    4. by a local council; or
    5. by a court or Tribunal.
    • Accounting records and financial statements must be kept for at least 5 years including:
    1. consecutively numbered receipts;
    2. a record of deposits and withdrawals such as a passbook or bank statements;
    3. detailed accounting records for both the administrative and the sinking funds;
    4. a cash book;
    5. a levy register; and
    6. annual financial statements (these must be completed at least 2 months prior to the next AGM).
    • The owners’ corporation must maintain a strata roll. This can be hand written or kept on a computer:
    1. it should record for each lot:
    2. the owner’s name and an Australian address for serving notices (can be an agent’s address); and
    • details of any mortgagee or covenant charge.
    1. the strata roll should record for common property and the strata scheme:
    2. the strata plan number and the address of the property;
    3. the name of the original owner and an Australian address;
    4. the name of the strata manager (if applicable) and an Australian address;
    5. the total unit entitlements for the scheme and for each lot;
    6. insurance details; and
    7. the scheme’s by-laws.
    • The owners’ corporation must also have a 10-year sinking fund plan that is kept with their records. This needs to be reviewed every 5 years and replaced every 10 years.

  • Can I inspect the records of the owners’ corporation?
    • Under s108 Strata Schemes Management Act 1996 (NSW) a request to inspect the records and accounts of an owners’ corporation is known as a strata search.
    • Strata search requests must be in writing and include the fee specified in Schedule 1 of the Strata Schemes Management Regulation 2010 (NSW). 
    • You will then be provided with written permission authorising your inspection.
    • If there is a strata manager the inspection will usually take place at the premises of the strata management company.

  • What insurances are compulsory for a strata scheme?
    • The compulsory insurance requirements for a strata scheme are set out in Part 4 Strata Schemes Management Act 1996 (NSW).
    • The main types of insurance which the owners’ corporation is responsible for obtaining are:
    • building cover for all buildings in the strata scheme. This insurance must also cover fixtures and fittings of the common property. The amount of insurance must be sufficient to cover the full replacement costs of the building including removal of any debris and the professional services of architects, engineers and other necessary consultations;
    • public liability insurance to cover accidents resulting in death or injury which may occur in the common property to a minimum of $10,000,000;
    • workers compensation insurance (which protects the owners’ corporation from claims made against them by gardeners, caretakers, the strata manager or any other person they may employ); and
    • voluntary workers insurance (which covers claims by anyone who is injured while working on the property if they were working without expecting or receiving any fee or reward.)
    • The owners’ corporation may also consider taking out office bearer’s liability insurance that protects the executive committee from claims of negligence or other claims made against them when they have performed their duties in good faith.
    • Information about all insurance policies must be provided in the agenda for each AGM.

Q&A

  • Can I look after a pet for a short time?

    Question

    I want to give a dog to my daughter for her birthday. Do I need to seek permission to do this before purchasing the dog and keeping it in my unit before her birthday?


    Answer

    • You should first look in your building’s by-laws. The by-laws can be found as an annexure to your contract of sale. 
    • If you cannot find a copy of the by-laws you may ask the strata manager to provide you with one. 
    • Some strata schemes allow you to keep pets with the written permission of the owners’ corporation. 
    • If your by-law allows you to keep pets you must first lodge a request in writing with the owners’ corporation: 
    • your request can be sent to the secretary of the executive committee or the strata manager;
    • include your reasons for keeping the pet and details about how you would look after it in your application; and
    •  the owners’ corporation cannot unreasonably withhold its approval. 
    • Never purchase a pet without first obtaining written permission from the owners’ corporation. It will save you a lot of heartbreak!
    • The exception is guide dogs or hearing dogs that are automatically allowed to be kept and cannot be excluded under the by-laws.
  • How can I stop a barking dog?

    Question

    My neighbour’s dog keeps barking all day and it’s getting quite annoying. What can I do about this?


    Answer

    • Most disputes are easily resolved through communication. First you should try and talk to your neighbour about the dog’s persistent barking. You may be surprised at the number of times owners are not aware of their dogs barking issues as the problem may only occur when they are not at home.
    • Written correspondence is a good idea as you can keep a record of your communications with the neighbour to use as evidence if the matter escalates. If the noise is regular you should also try and keep a diary of the incidents. 
    • If no action is taken to alleviate the noise after you have spoken to your neighbour you have two options:
    • make a formal complaint to the owners’ corporation and ask them to issue a Notice to Comply with a by-law or 
    • ask for mediation. 
    • If the noise continues after mediation you can contact your local council as they have statutory power to issue a nuisance order (if substantiated) to the dog owner or the local court for a noise abatement order. This process is by no means simple and you should seek legal advice prior to commencing any action with the council or the court. 
  • Who is responsible for cleaning windows?

    Question

    My apartment windows are very dirty. Who is responsible for cleaning them? 


    Answer

    • Although windows on the external walls are part of the common property it is the owner’s responsibility for making sure they are clean. 
    • However the owners’ corporation must ensure that professional cleaning services are hired to maintain the cleanliness of the windows if the windows cannot be accessed safely by the owner. 
    • Payments for such services are made through the strata scheme’s administrative fund.
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  • Can I use a visitor’s car space?

    Question

    Can I use a visitor’s car space?


    Answer

    • Visitor parking spaces are part of the common property of a strata scheme. They are usually subject to time restrictions (for example a maximum of 4 hours) and covered under the scheme’s by-laws.
    • You cannot park in these spots without first obtaining written permission from the owners’ corporation. 
    • You should submit a written request to either the secretary of the executive committee or the strata manager that will be voted on at a general meeting. 
    • Disobeying strata by-laws by parking in visitor parking spaces without an exclusive use by-law being made in your favour may lead to you incurring infringement notices and fines.
  • How do I know what is common property?

    Question

    I recently purchased an apartment and am a little confused about what is common property and what belongs to me.


    Answer

    • Determining what is common property and what is not can be difficult. 
    • When you purchase a lot or unit in a residential apartment strata scheme you effectively become the owner of a block of airspace and anything included in that airspace. 
    • The situation becomes more confusing with other types of strata scheme.
    • The best way to identify the common property in a strata scheme is to look at the strata plan and then the most current Certificate of Title for the common property. These can be easily obtained for a fee from the NSW Land and Property Information (LPI) website. 
    • The floor plan in the registered strata plan legally defines the boundaries of all lots in a strata scheme. 
    • You should obtain legal advice regarding your specific strata plan. However generally speaking, anything that is not part of a lot is common property. 
    • A thick black line indicating a structural feature such as a wall defines lot boundaries. External walls, floors and ceilings are common property. Internal walls such as the wall that separates your kitchen and the bedroom, fixtures such as bench tops and built-in cupboards and floor coverings such as carpet are part of your lot. 
  • Is my property common property?

    Question

    The only access to the roof top terrace in our building is through my property. Is that still common property even though only I can use it? 


    Answer

    • Yes. The roof top terrace remains common property even though only you have access to it. 
    • Such privileges are legalised through an exclusive use by-law. 
    • These by-laws are made under s 51 and 52 of the Strata Schemes Management Act 1996 (NSW). They can give a lot owner (or a group of lot owners) special and exclusive rights over common property. 
    • Exclusive use by-laws are registered on the Certificate of Title making them transferable from one owner to another (such as when you sell your property). 
    • Exclusive use by-laws can be made, amended or repealed by the owners’ corporation.
    • This occurs with the written consent of the owner or owners of the lots concerned and in accordance with a special resolution. 
  • Who is responsible for the ongoing maintenance?

    Question

    I have an exclusive use by-law allowing me to use a storage room in the basement of our building. The lock on the door isn’t working properly. Who is responsible for the ongoing maintenance and repair of common property that is under an exclusive use by-law?


    Answer

    • Historically this has been a difficult legal question. Quite commonly older exclusive use by-laws are silent on this issue. 
    • Generally speaking if a by-law does not address the issue of maintenance and repair the responsibility will remain with the owners’ corporation. 
    • This may be considered unfair particularly for owners who have to pay for repairs to an area that they do not have access to. 
    • Section 54 of the Strata Schemes Management Act 1996 (NSW) now states that all exclusive use by-laws must provide for the maintenance of the property. This means any exclusive use by-law must clearly set out responsibility for the ongoing repair, maintenance, replacement and renewal of common property concerned. 
    • If your exclusive use by-law does not contain this information it may need to be discussed at an owners meeting and the by-law amended as appropriate.
  • What can I do about new charges?

    Question

    New levies are being charged every couple of months for repairs in the building but I can see no renovations and have no idea where all the money is going. 


    Answer

    • Levies (usually collected quarterly) are an important part of a strata scheme and help towards running and maintaining the building. 
    • Generally speaking there should always be enough money in your scheme’s administrative fund or the sinking fund to pay for necessary renovations. 
    • Occasionally a strata scheme may need to impose a special levy to cover costs of unexpected repairs or renovations for which no funds have been allocated.
    • Before levies can be imposed or altered they must be discussed and accepted at a general meeting by majority vote. 
    • You have the right to ask why levies are being charged and request details from the secretary of the executive committee or your strata manager about where the money is being spent. 
    • The strata manager or the executive committee is obligated under the law to keep financial records and statements about the scheme’s trust account. 
    • If you are unsatisfied with the response you receive you may need to resolve your dispute through mediation. 
  • Can I be forced to sell?

    Question

    Other owners in my building are planning on selling their units to this new developer in town. Everyone is going on about how he is offering great deals but he will only buy if everyone sells their units. I am the only one who doesn't wish to sell. 


    Answer

    • Presently in NSW every owner in a strata building has to agree to sell their unit before the building can be demolished or sold to developers. 
    • You may be bullied or threatened with a forced sell but remember that you are legally entitled to decide how and when you dispose of your property. 
    • If you feel you are under excessive pressure you should seek legal advice.
    • New legislative changes are under consideration. If these changes are approved some owners may be forced to sell their units if 75% of the owners in a strata scheme agree to sell. 
  • Who covers the costs of damage?

    Question

    Last night my neighbour had a party during which her guests extensively damaged our building's front foyer. The estimated cost of repair is around $10,000 and it has come to my notice that the owners’ corporation will be paying for this damage. Why do we have to pay for this damage? 


    Answer

    • As a general rule the owners’ corporation must repair all damage (whether accidental or negligent) to the common property. 
    • This is because under the law an owners’ corporation must properly maintain and keep in a state of good and serviceable repair the common property in a strata scheme. 
    • The owners’ corporation must also repair the damage as soon as possible to mitigate any potential insurance claims from accidents such as someone tripping over the damaged part of the front foyer and injuring themselves. 
    • The owners’ corporation can take legal action against the responsible owner to recover the costs of repair. The recovered money will be put back into the strata scheme's trust fund for future use. 
  • I don’t trust our manager. What can I do?

    Question

    I suspect that our strata manager is expropriating the money in the fund. He shows excessive amounts paid for simple renovations and I think he employs his friends and not professionals to do the renovations around the block. 


    Answer

    • Strata managers are a pivotal part of a strata scheme. 
    • Strata managers are entrusted with an enormous amount of responsibility including:
    1. handling the scheme’s finances; 
    2. keeping records; 
    3. ensuring compliance with by-laws; and
    4. managing day-to-day activities in the strata scheme. 
    • In performing their duties strata managers will necessarily form commercial relationships with suppliers of goods and services to the scheme. However there may be occasions when these relationships cross the line of legality. This can happen where the strata manager is taking a kickback or secret commission.
    • Such conduct can amount to a serious criminal offence and you should always seek legal advice and be certain of your facts before accusing your strata manager of corruption either to their face or in conversations with the other owners. 
    • Always remember that the strata manager is an employee of the owners’ corporation. It is a good idea for the strata manager’s contract to stipulate that:
    1. the executive committee must authorise works and the strata managers should obtain a minimum of two quotes for all proposed work; and
    2. major work requires a meeting of all owners and majority consent.
    • You may also want your strata manager’s contract to state that they will be personally liable for their actions and will not be permitted to use the strata scheme’s funds to pay legal expenses if they are sued for mismanagement.
    • If you are concerned about how your strata manager is handling the scheme’s finances you should first try and discuss your questions with them:
    1. strata managers are obligated to keep all financial records of the scheme including any relevant invoices; and
    2. they should also be able to prove to you that all work has been carried out by professional fully qualified and insured tradespeople.
    • If you are still unhappy with the strata manager you may:
    1. resolve your dispute through adjudication; or 
    2. consider dismissing the strata manager at a general meeting through a majority vote. 
    • If dismissal of the strata manager is being considered by the executive committee they should:
    1. seek legal advice on the contractual issues including any relevant grounds for dismissal and notice periods;
    2. obtain at least two quotes from new strata managers;
    3. communicate with all owners about the reasons for the change (legal advice may be advisable to avoid making defamatory comments in this correspondence);
    4. call a general meeting in the absence of the outgoing strata manager;
    5. include the termination of the outgoing strata manager and the appointment of a new strata manager on the agenda; and
    6. if the majority of the owners’ corporation agree to the change provide written notice to the decision to the outgoing strata manager.
  • Do I need permission before I can do this?

    Question

    I want to enclose my balcony with weatherproof clear glass windows to make a sunroom. 


    Answer

    • Occasionally owners in a strata scheme wish to renovate their apartments and add features that will increase the value of their property and allow for more comfortable living. 
    • Enclosing a balcony is a major structural change and may affect the appearance of the building.
    • If your strata plan was registered after 1 July 1974 the balcony wall including windows and door is common property unless otherwise stated in the strata plan.
    • Written permission from the owners’ corporation must be sought prior to commencing any alterations to the common property. 
    • Under s65A of the Strata Schemes Management Act 1996 (NSW) the owners’ corporation authorise or make changes to common property. 
    • Renovations may also require council approval particularly if the renovation affects the exterior appearance of a building. 
    • It is good practice to check with the local council prior to requesting permission from the owners’ corporation.
    • Once you submit a written proposal to the owners’ corporation your proposal will be discussed at a general meeting and dealt with through a special resolution. 
    • An exclusive use by-law may be made that will require you to be responsible for the instalment, maintenance and repair of the additions to the balcony. 
  • Can I sue the owners’ corporation?

    Question

    My mother who was visiting me tripped over a hole in the common stairwell and injured herself. 


    Answer

    • Along with building insurance the owners’ corporation must also take out public liability insurance to a minimum of $10,000,000. This covers the owners’ corporation against claims of death or injury or damage to property for which the owners’ corporation is liable. 
    • Since your mother tripped over a hole in the common area it is likely that the owners’ corporation will be responsible. 
    • The owners’ corporation has an obligation to ensure that the common area is maintained and in a good condition. 
    • It is possible that the insurance company will pay out the claim for your mother's injury. 
    • If the owner’s corporation do not have insurance or if the insurer refuses to pay you might bring a negligence claim directly against the owners’ corporation for damages sustained as a result of the injury. Legal advice should be sought before commencing this step.
  • How do I deal with noisy neighbours?

    Question

    My neighbour always has loud music blaring through their door. I can’t concentrate on my work. 


    Answer

    • You should first look at your scheme’s by-laws. 
    • Usually limitations on noise are specifically listed and all residents are required to comply with these restrictions.
    • The by-law is commonly drafted along the following terms: “An owner or occupier must not make noise at any time within their lot or on common property that is likely to disturb the peaceful enjoyment of another resident or anyone using the common property.” 
    • There may also be time restrictions when noise should not be heard in a habitable room in a neighbour’s residence. 
    • A habitable room is any room other than:
    1. storage;
    2. garage;
    3. laundry;
    4. toilet; or 
    5. pantry. 
    • Time restrictions are commonly:
    1. before 8am and after midnight on any Friday, Saturday or the day immediately before a public holiday; and 
    2. before 8am and after 10pm on any other day.
    • You should try to communicate with your neighbour regarding the excessive noise issue. 
    • If they are not willing to cooperate you can complain to your strata manager or the executive committee. They may issue a ‘Notice to comply with a by-law’ to the offending resident. 
    • Repeated infringement can lead to pecuniary penalties (fines) and destroy the harmonious relationship necessary in community living. 
    • If your neighbour continues to violate the noise by-laws you may need to initiate the formal dispute resolution process beginning with mediation. 
    • If mediation fails you might need to seek a noise abatement order. 
    • The police generally deal with one-off urgent occurrences such as a late night party.
    • The local council may issue noise control notices prevention notices if the noise is a continuing problem.
    • If all else fails you can apply for a noise abatement order pursuant to the Protection of the Environment Operations Act 1997 (NSW). You may wish to seek legal advice before taking this step as it could result in a costs order against you if you lose.

  • What can I do about clutter?

    Question

    My neighbour is storing items like their shoe rack and umbrella rack outside their front door and it is unpleasant to look at. 


    Answer

    • Residents must first obtain written permission from the owners’ corporation before storing items of any description on the common property. 
    • This includes storing prams and bicycles under the stairwell.
    • It is unlikely that your neighbour would receive permission to store personal items such as shoes and umbrellas on common property. 
    • It always advisable to speak to your neighbour personally first. However if you are not comfortable in doing so you can ask your strata manager or executive committee member to speak or write to them.
    • If you have tried speaking to them but the behaviour continues you might request that a ‘Notice to comply with a by-law’ be issued by the executive committee or strata manager requiring your neighbour to remove their items from the common property. 

  • What can I do about smoke?

    Question

    My neighbours are always smoking in their balcony and throwing cigarette butts down onto my balcony. They also regularly cook wood-fire barbeque on their balcony and the smoke makes it very difficult for me to stand in my balcony and/or leave its door open. 


    Answer

    • Smoke from barbeques and cigarettes is not only frustrating but may also be an exacerbating cause of breathing difficulties. 
    • Section 117 of the Strata Schemes Management Act 1996 (NSW) provides that “an occupier of a lot must not use or enjoy the lot in such a manner as to cause a nuisance or hazard to the occupier of any other lot”. 
    • It always advisable to speak to your neighbour personally first. However if you are not comfortable in doing so you can ask your strata manager or executive committee member to speak or write to them.
    • If you have tried speaking to them but the behaviour continues you might request that a ‘Notice to comply with a by-law’ be issued by the executive committee or strata manager requiring your neighbour to cease the offending behaviour.
    • If that does not resolve the issue you can commence formal dispute resolution proceedings beginning with mediation.
    • If the dispute remains unresolved you might consider adjudication followed by an appeal to the NSW Civil and Administrative Tribunal (NCAT). 
    • Alternatively you could raise a motion for consideration at a general meeting asking for a new by-law prohibiting smoking cigarettes and the use of wood-fire barbecues on common property including balconies.

  • Do I need to obtain permission?

    Question

    I want to upgrade the flooring in my apartment and am thinking about removing the carpet and installing either floorboards or tiles. 


    Answer

    • Yes. In NSW you must provide the owners’ corporation with a detailed notice in writing at least 14 days before you commence any renovation. If you also seek their consent you reduce the chance of misunderstandings or disagreements arising from your activities.
    • You should also check your strata scheme’s by-laws to see if there are any specific restrictions about removing carpet inside your apartment. 
    • If you are replacing your carpet with floorboards or tiles you must ensure that they will not carry noise down to your neighbours. 
    • It is always a good idea to ensure that you get professionals to cover your floor with sound proofing before laying tiles or floorboards to avoid any conflict. 
    • If your new floors are too noisy and disruptive for your neighbours you may be served with an order from the NSW Civil and Administrative Tribunal (NCAT) to cover your floors with carpet. 

  • Do I have to pay for the repair?

    Question

    A heavy rainstorm has damaged the roof of my apartment building and water has started leaking through to my top floor unit damaging the ceiling and carpet in my apartment. 


    Answer

    • The owners’ corporation must repair the roof to prevent water from leaking through.
    • They will also need to repair the ceiling of the apartment so that it is suitable for painting.
    • As the owner you are responsible for repainting the ceiling and replacing the carpet. 
  • Who pays for what?

    Question

    A sewerage pipe burst inside the external walls of my laundry ruining the walls, floors and ceilings. My washing machine and the dryer were also damaged beyond repair. 


    Answer

    • The owners’ corporation is responsible for:
    1. repairing the sewerage pipe; 
    2. getting the area professionally cleaned; and 
    3. fixing the walls, floors and ceilings. 
    • However the insurance on the strata scheme only covers the structure and fixtures of the building. 
    • As the owner you will be responsible for repainting the walls and ceilings after they are repaired.
    • Unfortunately the owners’ corporation will not replace your washing machine and dryer. 
    • It is always a good idea to take out contents insurance to cover yourself from any major loss.
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