#55803
Jimmy-T
Keymaster

    Someone correct me if I am wrong, but as I understand it, owners of lots cannot be restricted in their short term (AB&B) rentals by the OC.

    In NSW, Section 137A of the Act allows owners corps to pass by-laws forbidding apartments from being let as short-term rentals when they are not the principal place of residence of the owner.  Whether or not that allows the owners corporation to impose conditions on the lets that they do allow is another matter that will doubtless be thrashed out at the Tribunal at some future date.

    In this case, bear in mind that we have only now learned that this is a block entirely given over to short-term lets.

    … there is nothing compelling a Strata Committee (SC) from enforcing any by law.

    Not so. The owners corporation has a duty to enforce its by-laws. This was confirmed to me by the former Fair Trading Minister Victor Dominello who quoted his Second Reading of the current Act, in which he said “Members of the strata committee will now have a statutory duty to act for the benefit of all owners and to exercise due care and diligence in their role.” He said that implied a duty of care to enforce their by-laws.

    If the owners corp didn’t have a duty to enforce by-laws, why does section 232(2) (below) even exist?

    Section 232 (2) Failure to exercise a function 

    For the purposes of this section, an owners corporation, strata committee or building management committee is taken not to have exercised a function if—

    (a)  it decides not to exercise the function, or

    (b)  application is made to it to exercise the function and it fails for 2 months after the making of the application to exercise the function in accordance with the application or to inform the applicant that it has decided not to exercise the function in accordance with the application.

     

     

    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.