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  • #10664
    Felix
    Flatchatter

      This concerns a 32 unit Strata in NSW.

      Over the past 5 years or so decisions were made by the EC on matters that should have been decided by an EGM and it has cost the OC around $ 50,000 or more.

      Also some Owners have installed air conditioners without following the strata by-laws.

      This enforcing of the by-laws was brought to the attention of the EC at the time but in their own judgment, they thought everything looked alright.

      Evidently the adherence to the by-law was not considered.

      The question from some Owners is whether or not the by-laws can be enforced now from a new EC and enforced since a period of time has elapsed and if they can, how far back in time can the EC go?

      The same question involves the decisions made without an EGM being held and the payment of the OC funds without approval from the Owners.

      One would have thought the EC would have been guided by the Managing Agent.

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    • #25526
      Sir Humphrey
      Strataguru

        If it is like in the ACT, the EC can prioritise enforcement of bylaws. In a recent matter I was involved with at the ACT Tribunal, the Tribunal member readily accepted that the EC could prioritise when the respondent argued that she should not have to comply with a rules infringement when other owners had unit alterations that had not been approved. In this instance it helped that nobody had done anything remotely like this alteration. 

        Decisions of the the EC are subordinate to decisions of the OC at a general meeting. If a general meeting were to resolve that a certain class of bylaw infringements should be enforced, then the EC would no longer have the discretion. I would recommend that the OC be mindful of the amount of work that it can take to deal with even one infringement if the owner wants to dig in heels, before imposing a burden on the EC to deal with every single matter. 

        I think it is reasonable for a current EC to decide to tackle matters that it deems to be achievable, or most serious, or current rather than historical, or the subject of a reasonable complaint, or uncomplicated by any other similar but long-standing alteration, or any other reasonable criteria by which it might decide what to tackle first. 

        Obviously the EC should try to be as fair and consistent as possible. A few years ago our EC addressed each of several instances of unapproved fences enclosing areas of common property. One was much worse than the others but we tackled all at once to be fair. To be manageable, other sorts of unapproved alterations were not addressed at that particular time. 

        I am aware of a published case in the ACT where an EC lost trying to enforce a rule limiting the installation of air conditioners. It had argued that the unit owner could instead insulate better within the unit area rather than install an air conditioner partially on common property to the detriment of the appearance of the common property. Their case was undermined to some extent by other instances of similar installations in the complex. 

        #25531
        Jimmy-T
        Keymaster

          @Felix said:
          The question from some Owners is whether or not the by-laws can be enforced now from a new EC and enforced since a period of time has elapsed and if they can, how far back in time can the EC go?

          By-laws are permanent (until they are changed) but ECs come and go. Any breach of a by-law can be challenged at any time and OCs can insist that common property be returned to its previous state or a special resolution by-law be agreed to cover the changes and the maintenance of the ares affected.

          That said, getting some of the numpties at NCAT to understand that strata law and by-laws actually count for something can be an uphill struggle.

          The same question involves the decisions made without an EGM being held and the payment of the OC funds without approval from the Owners.

          Decisions that should have been made at a general meeting but weren’t can be challenged by a request for orders at NCAT.

          One would have thought the EC would have been guided by the Managing Agent.  

          You’d think so but some strata managers take the view that they are supposed to be instructed by the owners and not the other way round – which is true but often unhelpful. 

          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.
          #25535
          Sir Humphrey
          Strataguru

            @JimmyT said:

            You’d think so but some strata managers take the view that they are supposed to be instructed by the owners and not the other way round – which is true but often unhelpful.   

            Ideally, the strata manager would not dictate but would advise the EC clearly and firmly if it thinks the EC is being unwise. Ultimately the buck stops with the EC’s decision. 

            #25540
            Jimmy-T
            Keymaster

              I agree.

              It depends very much on the individuals.  Some committees will say “tell us what to do” others will say “don’t tell us what we can and can’t do – tell us how we can do what we want to do and get away with it”.

              Some strata managers will understand what a strata scheme wants and needs, and advise them accordingly. Others will say “not my job – tell me what you want to do and I’ll tell you if you’re allowed to do it.”

              Some won’t even do that.

              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.
              #25543
              Sir Humphrey
              Strataguru

                I agree, too. And it helps to be on top of the legislation when something unusual crops up because the manager does not always know. Still, I try to be respectful when saying “What about section XX.X? Doesn’t that mean we have to do it like …?”

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