strata schemes
📖 What is strata schemes? Meaning and definition
In Australia, strata schemes are a common way to own property, particularly in apartment buildings, townhouses, and some commercial complexes. This type of ownership involves individual ownership of a 'lot' (e.g., an apartment) and shared ownership of 'common property' (e.g., hallways, gardens, roofs). The management and maintenance of this common property are typically handled by a body corporate or owners corporation, which is made up of all the lot owners.
Disputes within strata schemes often revolve around the duty to maintain and repair common property, as seen in cases concerning liability for foreseeable losses due to a failure to maintain. These schemes are governed by specific legislation, such as the Strata Schemes Management Act in New South Wales, which outlines the rights and responsibilities of lot owners and the owners corporation.
Decisions related to strata schemes, including challenges to fund payments or the repeal of by-laws, are often heard by tribunals like the New South Wales Civil and Administrative Tribunal (NCAT). These tribunals interpret the relevant legislation and by-laws to resolve disputes, ensuring that obligations, such as those related to financial management and disclosure of pecuniary interests, are met.
Understanding the framework of strata schemes is crucial for self-represented litigants, as it defines their rights regarding their lot, their shared responsibilities for common property, and the processes for resolving disputes within the scheme.
📋 Requirements
- Existence of common property that requires maintenance and repair.
- A dispute concerning the maintenance of common property or other management issues.
- Application of specific strata management legislation, such as the Strata Schemes Management Act.
- Decisions or actions by an owners corporation (or similar body) that are being challenged.
📝 Procedure
- A dispute arises, often concerning common property maintenance or by-laws.
- Parties may engage in mediation to resolve the dispute.
- If unresolved, an application may be made to a relevant tribunal, such as the Civil and Administrative Tribunal.
- The tribunal hears the matter, considering submissions and relevant legislation.
- The tribunal makes a decision, which may include orders regarding costs or the application itself.
💡 Examples
- A resident in a strata scheme might take action against the owners corporation for failing to repair a leaking roof, which is common property, causing damage to their apartment.
- An owners corporation might face a challenge from a lot owner regarding a payment made from the strata fund, arguing it was not properly authorised or disclosed.
- A group of residents in a strata scheme might seek to repeal a by-law that grants exclusive rights over a common area, leading to a tribunal hearing.
- A dispute over legal costs incurred during pre-litigation mediation concerning common property maintenance could be brought before a tribunal for determination.
📚 Legal basis
- Civil and Administrative Tribunal Act 2013 (NSW)
- Strata Schemes Management Act 1996 (NSW)
- Strata Schemes Management Act 2015 (NSW)
❓ Frequently asked questions
What is 'common property' in a strata scheme?
Common property refers to the parts of a strata scheme that are not part of any individual lot and are shared by all lot owners, such as hallways, gardens, and the building's exterior. The owners corporation is responsible for its maintenance and repair.
Who is responsible for maintaining common property?
The owners corporation (or similar body) is responsible for the maintenance and repair of common property within a strata scheme. Failure to do so can lead to disputes and potential liability for damages.
Can I challenge a decision made by my strata committee?
Yes, decisions made by a strata committee or owners corporation can be challenged, often through an application to a relevant tribunal like the NSW Civil and Administrative Tribunal, especially if they relate to management, by-laws, or financial matters.
What is the Strata Schemes Management Act?
The Strata Schemes Management Act (e.g., 1996 or 2015 in NSW) is key legislation that governs how strata schemes are managed, outlining the duties and obligations of owners corporations and the rights of individual lot owners.
Are legal costs for mediation in a strata dispute recoverable?
Based on some cases, parties may be required to pay their own costs associated with a mediation seeking to resolve a dispute concerning common property maintenance, meaning these costs might not be recoverable as damages.
Where are strata disputes heard in New South Wales?
In New South Wales, disputes related to strata schemes are frequently heard by the Consumer and Commercial Division of the Civil and Administrative Tribunal (NCAT).