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By-laws & Dispute Resolution
Strata reform in
focus
strata.wa.gov.au
Presenter:
Kelly Whitfield
Landgate
Timing:
30 minute presentation
20 minutes for questions
Topics:
• By-laws and dispute
resolution
• Challenges under the
current act
• What’s changing
• How to find out more and
have your say
Today’s session
strata.wa.gov.au
Amended and new
Community
Titles Act 2018
Strata Titles
Act 1985
(amended 2018)
strata.wa.gov.au
Strata Titles Act (General) Regulations 2019
RegulationsThe Act
+
• We need your feedback on the consultation draft regulations.
• When the regulations are completed, the reforms ‘go live’
=The Law
Timeline for change 2019 Regulations
September Public consultation on strata regulations
2 to 17 September Community information sessions – Perth and regional
October / NovemberReview feedback and deliver final regulations - the
Strata Titles (General) Regulations 2019 - to Parliament
TBC - November
onwards
New strata law is proclaimed and comes into operation -
after the regulations have progressed through Parliament
strata.wa.gov.au
Key reforms on the way
Better information for
buyers
Improvements to
scheme management
By-laws and
simplifying
dispute resolution
Introducing safeguards for
scheme terminations
New - leasehold schemes
Enable more flexible
staged strata subdivision
The Act
By-laws
strata.wa.gov.au
What is a by-law?
• By-laws are the rules that everyone
in the strata scheme must follow.
• Who must follow them? The strata
company itself, all lot owners and all
tenants.
• It is as if each of these parties had
signed an agreement to do what is
set out in the by-laws.
strata.wa.gov.au
Challenges under the current Act
• The strata company can make, amend and repeal by-laws -
however sometimes this happens using the wrong standard of vote.
• The current Act provides no guidance around when a by-law is
invalid.
• The strata company has a duty to enforce by-laws – but very little
power to do so.
strata.wa.gov.au
Currently, enforcing by-laws is hard
• A penalty cannot be imposed unless the by-law specifically states that there
is a penalty
• The default by-laws do not mention a penalty
• Proving a breach is difficult as it must be established that the person has
wilfully and persistently breached the by-law
strata.wa.gov.au
strata.wa.gov.au
Changes made to by-laws
• Schedule 1 by-laws are now called ‘Governance by-laws’. They need a resolution without dissent to create, amend, or repeal.
• Schedule 2 by-laws are ‘Conduct’ by-laws. To create, amend or repeal these takes a special resolution.
• If a strata company makes, amends or repeals a by-law, they must indicate whether it is a Governance or Conduct by-law.
strata.wa.gov.au
Changes to default by-laws
• Some default by-laws have been deleted or moved into a different schedule.
• Some by-laws have been deleted. Some have been put into the Act instead: voting and appointing proxies.
• Due to these amendments, it’s possible that a strata company has a by-law in the wrong schedule: the by-law is still enforceable.
• If the strata company makes a new by-law, or amends or repeals an old one, then they should review their by-laws and lodge a consolidated set.
strata.wa.gov.au
When are by-laws invalid?
By-laws are invalid if:
• There was no power to make them
• They are inconsistent with the Act, or any other law
• They limit the right of an owner to vote on a resolution (except as set out in the Act)
• They prohibit or restrict someone selling their lot
• They prohibit the use of an assistance animal
• They are unfair, discriminatory, oppressive or unreasonable.
strata.wa.gov.au
Summary: by-laws
• We have provided more clarification and guidance around the nature
of by-laws and the type of vote that must be achieved to change them.
• The strata reforms provide that by-laws must not be unfair,
discriminatory, oppressive or unreasonable. These criteria will be
important if a dispute arises.
Dispute Resolution
strata.wa.gov.au
Challenges under the current Act
Multiple forums for dispute resolution
• Currently, strata disputes in WA are heard in four different
forums – three different courts and the State Administrative
Tribunal (SAT).
• The dispute resolution provisions are complex, too specific and
limit the power the SAT has to resolve strata disputes.
strata.wa.gov.au
Simplified dispute resolution
Under the reforms, disputes will be resolved efficiently and at less cost
with SAT becoming the ‘one-stop-shop’ for strata disputes.
• SAT is an independent tribunal
• Less formal and has more flexible
procedures than those used in
traditional courts
• Provide an appropriate and quick way
for people to get disputes resolved.
strata.wa.gov.au
What will be changing?
SAT will:
• Provide parties with access to a cost-effective dispute
resolution forum.
• Be given broader powers to resolve scheme disputes.
• Be empowered to more easily enforce by-laws.
Note - if action is taken to recover unpaid levies, this is still to be
taken via civil courts.
strata.wa.gov.au
What will be changing?
The amended Act clearly sets out that SAT may resolve disputes between scheme participants.
The Act sets out:
• What a scheme dispute is
• Who scheme participants are
The Act gives the SAT broad powers to make:
• Declarations
• Orders
strata.wa.gov.au
Enforcing by-laws
• The strata company, owners and occupiers can apply to the SAT for an order
to enforce a by-law
• The SAT will have the power to make an order that a person :
- stop breaching a by-law
- fix the breach of the by-law.
strata.wa.gov.au
strata.wa.gov.au
Enforcement of an order to act
The SAT may make an order that a person take a particular action - for
example, repairing common property they damaged.
If the person doesn’t take that action, the SAT may:
• Make an order for them to pay money to compensate for their failure to act.
For example, this could be for enough money for a builder to repair the
damaged common property.
strata.wa.gov.au
strata.wa.gov.au
Enforcing by-laws
SAT can order a person breaching a by-law to pay a penalty in any of the
following circumstances:
• The strata company serves notice and breach continues
• The breach is serious
• The breach occurs 3 times
strata.wa.gov.au
strata.wa.gov.au
SAT’s powers broadened
Some examples - the SAT will have the power to resolve disputes between:
• Lot owners about bylaws, resolutions, the appointment or election of council members.
• A buyer and seller of a strata lot about the information which should have been given before the contract was signed.
• A strata manager and the strata company about the strata management contract.
strata.wa.gov.au
Amending and repealing by-laws
The SAT will be given the power to amend or repeal a by-law on the
basis that it is:
• Oppressive or unreasonable
• Unfairly prejudicial or discriminatory against one or more owners
strata.wa.gov.au
strata.wa.gov.au
Effectively resolving strata disputes
• The limit on SAT monetary orders – which was $1,000 – has
been removed.
• The SAT will be able to award costs in strata disputes.
• The SAT will resolve disputes between the strata company and
strata manager.
strata.wa.gov.au
strata.wa.gov.au
Resolving strata disputes quickly
• The SAT will be able to make a final decision in proceedings at
a directions hearing if it considers that appropriate
• Owners can go straight to SAT without having to go through
other more expensive procedures.
strata.wa.gov.au
strata.wa.gov.au
Summary: dispute resolution
• As part of the strata reforms we have made extensive changes to
help people living in strata to deal with disputes when they arise.
• Most of these changes relate to the broadening of the State
Administrative Tribunal’s powers to deal with disputes that arise.
strata.wa.gov.au
The proposed regulations are
now available to comment on.
Visit strata.wa.gov.au
Public consultation period
strata.wa.gov.au
Visit strata.wa.gov.au
Share or re-watch the overview
information session or any of the in
focus sessions once they’ve been held.
Subscribe for updates on
key developments.
For more information
strata.wa.gov.au
Disclaimer
This presentation has been prepared for the purposes of informing stakeholders
on the proposed strata title reforms to legislation in WA. Every effort has been
made to ensure the information presented is accurate at the time of
publication. Because it avoids the use of legal language, information about the
law may have been summarised or expressed in general statements. Legislation
is subject to government consideration and Parliamentary processes. This
information should not be relied upon as a substitute for professional legal
advice, nor relied upon as a guide for future legislation relating to strata in WA or
in relation to current or future subdivision or development proposals, commercial
transactions or dealings in strata title.
Questions?
Thank you