Forum: The shocking cost of saying ‘no’

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I’ve long been an advocate of a policy of “if in doubt, do nothing” but it seems there are situations in strata – especially in small schemes – where not getting involved can cost a motza.

We’ve been teasing out the detail of a long-running and confused issue on the Forum and the final picture has crystallised into a salutary tale for strata owners.

To paraphrase, one owner in a very small scheme of about four or six units wanted to officially take ownership of a piece of land that they’d been using as personal property for years – namely a chunk of garden they’d fenced off next to their ground floor unit.

The secretary of the scheme objected, either to the whole concept or the fine print in the proposed by-law, and our Flatchatter also voted against it, so the motion failed.

The annexing owner took the matter to NCAT and lost in the first instance, but prevailed on appeal, largely because no one from the scheme turned up to plead their case.

Okay, “small war, not many dead,” you might think.  But here’s the rub.  Not turning up for an NCAT hearing may be among the limited grounds on which a Tribunal Member can award legal costs against one side or the other.

Also, under strata law, the winning side in a dispute with the owners corp doesn’t have to pay their share of OC expenses in defending the case.

Suddenly, our Flatchatter friend is being hit with a special levy to cover one third of the costs and expenses, simply as a result of having objected to the terms of a common property by-law.

And while that might be a blip in the finances in a big scheme, the legal bills could easily be the same for a small block as a big one – there are just fewer people to share them.

What’s the lesson?  Maybe don’t support knee-jerk decisions to deny what may be reasonable requests and, more importantly, don’t let anyone start fights on your behalf who might then wander off halfway through.

Either way, it could cost you. You can catchup with the whole saga HERE.

Elsewhere on the Forum

  • Garage neighbour is a hoarder – should I put up a fence? That’s HERE.
  • Does installing a chairlift require a by-law? That’s HERE.
  • Neighbour says she doesn’t object to renos plan but won’t write the required letter to council. That’s HERE.
  • Can a non-owner be elected on to a strata committee? That’s HERE.
  • Short notice: levies due the day after the budget is up for approval – That’s HERE.

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  • #72005
    Jimmy-T
    Keymaster

      I’ve long been an advocate of a policy of “if in doubt, do nothing” but it seems there are situations in strata – especially in small schemes – where
      [See the full post at: Forum: The shocking cost of saying ‘no’]

      The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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