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"Strata living can often lead to disputes between the various strata owners. These should be addressed in a calm and proper manner and dealt with as quickly as possible before they have a chance to unecessarily escalate into something more serious. Here are a few ideas and some information resources to assist you in dealing with disputes."
RESOLVING STRATA DISPUTES
- The different forms
- A by-law issue....
- Other types of disputes
- Somewhat stronger actions
- Some helpful sources
- What types of disputes can arise?
- Extra information resources
The different forms
Disputes in a strata scheme can take on many forms. Sometimes they can arise between owners because they live in such close proximity to one another. At other times disputes can start because some owners default on their responsibility to pay the levies. And then there can be disagreements between owners and the Executive Committee over the way some aspects of the scheme are being handled.
But, whatever the reason, the harmony of the strata scheme is negatively impacted and a resolution needs to be found before the problem escalates into something it shouldn't. From experience, it would seem that most disputes have to do with the breaking of a scheme's by-laws but, obviously, this is not always the case.
A by-law issue....
If the dispute involves a breach of a by-law, the best (and sometimes quickest) way to resolve most differences is for the warring parties to talk through the problem with each other 'face-to-face'. If this isn't possible then the sending of a polite letter from the Executive Committee or the strata manager (if you have one) to the offender might be enough to make some of them realise they've actually done the wrong thing.
The letter should outline the breach & seek compliance with the relevant by-law by describing, in detail, what needs to be done to rectify the situation and what will happen if the expected conditions are not met. In this way, there is no doubt in anybody's mind as to what the next step will be. In many cases, the offender wouldn't have been aware the by-law even existed let alone that they were in breach of it.
NOTE - While the techniques described above can be used for most disputes (and not just by-law breaches), you must comply with the NSW Strata Schemes Management Act 1996 - Section 45: How can an OC enforce the by-laws? before a letter or notice to comply can be issued.
Other types of disputes
Disputes arising from situations other than by-laws can tend to be a little more complex and while the 'face-to-face' approach should always be tried in the first instance, be quite prepared for it not to be either practical or successful. For the more stubborn cases, you may find the only way to solve the impasse is via some sort of 3rd-party intervention as discussed below.
Somewhat stronger actions
Only after the 'friendly' avenues have been tried, and the parties still cannot come to an amicable solution or they simply refuse to comply or agree, should the 'more serious and less friendly' alternatives be looked at. However, it's amazing what can be achieved if the warring parties can actually get together and talk out the issues. Don't underestimate the power of this and every attempt should be made to arrange a meeting before taking the next step.
Even so, if a dispute cannot be resolved between the owners by the simpler methods, mediation via a 3rd-party may be the answer. Such a service is available through the NSW Office of Fair Trading (DFT) and more details can be found on its Strata and Community Mediation Fact Sheet.
If mediation is not successful, an application may be made to the NSW Consumer, Trader & Tenancy Tribunal's Strata Schemes Adjudicator run by the NSW Dept of Commerce. For detailed information about the adjudication process, see the Department's section on Strata and Community schemes Tribunal.
Some helpful sources
To get a few ideas, have a look at the NSW Office of Fair Trading's Strata and Community Disputes Fact Sheet or their information page on Resolving Issues in a Strata Scheme. There's also a section entitled "A Guide to solving disputes in a strata scheme" starting around page 23 of their Strata Living booklet.
The Inner City Legal Centre (ICLC) has a great Fact Sheet on Disputes and while it's not specifically only about strata it does provide some really worthwhile 'generic' advice on how to handle certain situations, what to do, who to contact and so on. Make sure you have a read of this one...
TIP - As the mediation and adjudication process can be quite involved, lengthy and often very time-consuming, it may be best to seek assistance from a strata law specialist who can guide you through the maze especially if the dispute is a serious one. The cost might just be worth it in the long run.
What types of disputes can arise?
As varied as the world of Strata is, so are the types of disputes. So, here are just a few of the more common ones.
- Parking on common property without approval
- Keeping pets without approval
- Excessive Noise
- Enforcement of by-laws
- Exclusive use by-laws
- Storage and collection of garbage issues
- Alterations or repairs to common property
- Damage to ceilings or walls due to water penetration
- Internal fencing & boundary issues
- Validity of meetings or procedures
- Variation of Insurance and Unit Entitlement allocations
- Contribution and Levy issues
- Enforcing restrictions on use of common property
- Appointment/Dismissal of a strata managing agent
- Appointment/Dismissal of an Executive Committee member
Extra information resources
Here are a few extra resources to help you learn and understand a bit more about what's involved in handling disputes.
NSW Office of Fair Trading links
NSW legislation
- NSW Strata Schemes Management Act 1996 - Disputes And Orders Of Adjudicators And Tribunal (legislation - Chapter 5)
NSW Consumer, Trader and Tenancy Tribunal links
- Fees & Charges
- Conciliation Process
- 10 Top Tips for Conciliation
- Application process
- Adjudicator's Order / Request for interim Order
- Application for Tribunal orders
(including penalty orders, amending or revoking a Tribunal order & appealing against an Adjudicator's order)Strata Title Terms and Jargon
- Strata Terms and Jargon (to find out what everything means)
DISCLAIMER: All information on this website is of a general nature and is intended as a guide only. Readers should check all information obtained from this website for accuracy from other sources and seek professional legal advice before taking any action based on any information obtained from this website. Information on this website should not be substituted for proper legal advice. The owners of this website will not be held responsible for any action taken as a consequence of same.
EXTERNAL SOURCES: The owners of this website do not make any warranty or representations regarding the information, products, services provided by or qualifications of any external sources listed on this website. Readers should make their own appropriate enquiries regarding accuracy, qualifications, licences, etc. The owners of this website will not be responsible or liable in any way for any representations made by any external sources listed on this website.
IMPORTANT NOTE: This website deals with strata matters in NSW, Australia only. Legislation varies in different states and territories and in other countries. For information pertaining to places outside of NSW, Australia please refer to the appropriate legislation for your region.
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