STRATA LFAQs

Yes, committee members can be held legally liable if they are found to have been negligent in their duties. This highlights the importance of proper documentation, following correct procedures, and making informed decisions in the best interest of the owners corporation.

As an owner, you have several practical options:

• Call for an extraordinary general meeting (requires 25% of unit entitlements)
• Work with your strata manager to address issues
• At the meeting, owners can vote to remove and replace them.
• If your scheme has a strata manager, they may be able to intervene and take necessary action.
• As a last resort, seek mediation through NSW Fair Trading.

The Strata Schemes Legislation Amendment Bill 2024 introduces key changes that may help address committee inactivity:

• Strata committee members must undergo training—failure to do so results in loss of membership.
• The chairperson must ensure meetings are run properly, discussions are fair, and agendas are followed.
• If a strata managing agent is involved, they must provide records every six months, improving transparency.
• Members must act with honesty, fairness, and diligence for the owners’ benefit, reinforcing their duty to the community.

The recommended steps are:

• Document the issue and communicate it formally to the strata committee.
• Request the matter be added to the next meeting agenda.
• Seek mediation through Fair Trading.
• If mediation fails, apply to NCAT for orders requiring the repairs to be carried out.
• Consider engaging expert reports to support your case.

The responsibility depends on the source and location of the damage:

• If the damage is to common property (e.g., external walls, shared pipes), the owners corporation is responsible
• If the damage is caused by a lot owner’s fixture (e.g., washing machine), the lot owner is responsible
• If the damage is caused by common property affecting an individual lot, the owners corporation is responsible for repairing the common property and may be responsible for consequential damage to the lot.
• If a lot owner’s fixture (e.g., washing machine, dishwasher, internal plumbing) causes water damage to neighbouring lots, the owners corporation’s strata insurance will typically cover the damage to the other lots. However, the responsible lot owner may still be required to cover the insurance excess or other costs depending on the strata scheme’s by-laws and insurance policy.

No, owners cannot be denied access to reports paid for by strata funds. Under Section 182 of the Strata Schemes Management Act 2015 (NSW), owners have a legal right to inspect strata records, including structural engineering reports funded by the owners corporation.

Even if a report primarily relates to specific lots, if strata funds were used, it forms part of the owners corporation’s records, and all owners can request access.

In the event a defects claim is before the courts some reports and advice may be considered privileged and withheld based on legal advice.

The strata committee can authorise the commission of an engineers report if the amount falls below the limit placed on the committee at an AGM.

If the cost exceeds the strata committee’s spending limit, a general meeting approval is required under Section 102 of the Act.

It should be noted that the strata committee can refer the decision to a general meeting even if the cost falls below the committee limit should they choose to do so.

If an urgent safety issue arises, the committee can authorise emergency repairs or reports under Section 122 without prior approval.

If a contractor hired by the owners corporation causes damage, liability depends on the circumstances:

• The contractor is primarily liable if their negligence caused the damage.
• The owners corporation may be vicariously liable if they failed to properly vet, supervise, or manage the contractor.
• The strata insurance policy may cover damages, but excess costs or exclusions may apply.
• Affected lot owners should document the damage with photos and reports and notify the strata committee immediately.
• The owners corporation has a duty to pursue the contractor for compensation and ensure repairs are completed.

Best practice: Before hiring contractors, the owners corporation should confirm that they hold adequate licences and insurance coverage.

No, installing a screen door on a unit entry door is a breach of fire regulations for two key reasons:

• Fire Safety Hazard – Screen doors are often installed to allow ventilation while the unit entry door remains open. However, unit entry doors are essential fire safety measures designed to slow the spread of fire from one lot to common areas and other units. Keeping them open compromises fire safety.
• Obstruction of Egress – Screen doors typically open outward into common foyers or stairwells, which can obstruct the safe evacuation of other residents during an emergency.

No, generally speaking, a colour specialist who only provides advice and does not physically paint or alter the building does not need a trade license under NSW law. However, whether they need insurance depends on your strata scheme’s by-laws.

License: Not required, as NSW Fair Trading does not regulate colour consultancy.

Insurance: Check your strata by-laws to see if they require all service providers—including consultants—to have insurance.

If so, the colour specialist may need professional indemnity insurance.

If the by-law only applies to tradespeople who perform physical work, then insurance may not be required for a colour consultant.

To confirm, review your strata by-laws or check with your strata committee to see if this rule applies to all service providers or just tradespeople.

Yes, you can request exclusive use of an unused common property area, but it requires a formal approval process through a special by-law.

Start by discussing your proposal with the strata committee to gauge initial support and address any concerns.

You’ll need to have the area professionally surveyed to establish exact boundaries, then draft a special by-law that clearly outlines how you’ll use the space, maintenance responsibilities, and any compensation to the owners corporation.

Have a strata lawyer review the by-law to ensure compliance with NSW strata laws. The by-law must then be presented at a general meeting where it needs to secure at least 75% of votes in favour (special resolution) to pass.

If approved, the final step is registering the by-law with NSW Land Registry Services to make it legally binding.

Keep in mind that other owners may object if they believe your proposed use will negatively impact property values or interfere with common property use, so it’s important to present a well-thought-out proposal that addresses potential concerns.

No, the strata committee cannot unilaterally apply for or obtain DA approval to change parking areas without the approval of the Owners Corporation. Any changes to common property, including parking allocations, require formal approval under the Strata Schemes Management Act 2015 (NSW).

In most strata schemes, parking spaces (unless individually owned as part of a lot) are considered common property, meaning any changes require a special resolution (75% majority approval) at a general meeting.

Any proposed change to parking areas must be disclosed to all lot owners, and they must be given the opportunity to vote on the decision.

No. Under Section 182 of the Strata Schemes Management Act 2015 (NSW), lot owners have the right to inspect strata records, which includes proxy forms submitted for a General Meeting. The Secretary cannot refuse reasonable access to these documents.

Yes. Any lot owner can request to inspect proxy forms as part of the records of the Owners Corporation.

The request should be made formally, and the Owners Corporation must comply within 14 days under the legislation.

Proxy forms must comply with Clause 26 of the Strata Schemes Management Regulation 2016 (NSW), which requires:

• The form to be in writing and signed by the owner.
• The proxy appointment to specify the meeting for which it is valid.
• Proxies to be submitted before the meeting starts.
• Compliance with proxy limits (i.e., no person can hold more than 5% of total lots or 1 proxy if the scheme has fewer than 20 lots).

If the management agreement states that the strata manager is delegated the powers of the chairperson, secretary, and treasurer, then they should be able to convene a general meeting if necessary to carry out their duties.

However, if the agreement does not explicitly include the power to call a general meeting, then the manager cannot do so without a resolution from the Owners Corporation.

Under Section 19(2) of the Strata Schemes Management Act 2015 (NSW), if no committee was elected at the AGM, a general meeting can be held to elect one.

A general meeting can be convened by lot owners if owners holding at least 25% of unit entitlements submit a request to the secretary or strata manager.

Not necessarily, but the Owners Corporation must ensure the deficit is covered through appropriate financial management.

There are two main ways to address an administrative fund shortfall under the Strata Schemes Management Act 2015 (NSW):

• Increase Regular Levies – The Owners Corporation can adjust the quarterly levies at the next AGM or through an EGM to ensure sufficient funds are available.
• Raise a Special Levy – Under Section 81(4) of the Strata Schemes Management Act 2015, a special levy can be imposed if the current levies are insufficient to meet administrative expenses. This requires a resolution passed at a general meeting.

Considerations

• The Owners Corporation must ensure it has enough funds to pay for essential expenses such as insurance, utilities, and maintenance.
• A budget review should be conducted to determine whether regular levy increases are sufficient or if a special levy is necessary.
• If the deficit is due to unexpected expenses, the committee may need to justify the need for a special levy.

In NSW, under the Strata Schemes Management Act 2015, two-lot schemes with only common property consisting of a shared driveway or similar minimal areas are exempt from maintaining a Capital Works Fund.

However, you are still required to maintain an Administrative Fund to cover shared expenses, such as insurance, maintenance, and any other common costs.

Increase transparency by sharing regular updates, holding well-publicised meetings, and inviting owners to join committees or working groups.

Organise social events, created sustainability initiatives, like recycling toys or books or create some shared spaces if possible.

Use newsletters, community boards, and online forums to keep owners informed and provide easy ways for them to share feedback.

No, lodging a DA with the council does not require Owners Corporation approval. However, the resulting works often do require approval.

• Councils may require amendments to the DA during the approval process.
• Generally, the strata committee approves the initial lodgement of the DA.
• Once the final DA is approved, motions are tabled at a general meeting to approve any necessary changes to common property and adopt any required by-laws to protect the Owners Corporation in relation to the works.