Legal costs

Owners corporations engaging lawyers under the new NSW law

Until 30 November 2016, owners corporations in NSW could not engage a lawyer or commence any legal action unless the engagement and the legal action was approved at a general meeting of the owners. There was an exception to that requirement if the lawyer’s costs were quoted at less than $12,500 or $1,000 per lot […]

016. How To Increase Your Lot’s Value Via Extensions (Into Common Property)

Savina Yang and I discuss two ways you can use part of the common property to increase the value and amenity of your unit. Link mentioned: Get the transcript here! Key Points/Timestamps 00:27 – Introduction and Overview 01:07 – How to increase the value of your Strata unit by extending into common property 02:27 – […]

Strata levy recovery: the requirement for expenses to be reasonable, but not proportionate

The NSW Supreme Court has reminded us of the requirement for section 80 levy recovery expenses to be ‘reasonably incurred’ and ‘reasonable in amount’. If there is any doubt, costs will be referred for assessment. IIB Australia Pty Ltd v Owners Strata Plan 76024 (No 2) [2015] NSWSC 929 (16 July 2015) was an appeal from a decision […]

Failing to be clear is fatal in litigation

In APX Projects Pty Limited v The Owners Strata Plan No. 64025, a lot owner attempted to:- argue that a large payment made to settle debt recovery proceedings should have been allocated to sinking fund levies rather than outstanding legal fees; and bring an action against the treasurer, on behalf of the owners corporation. The owner failed […]

Court of Appeal finds strata schemes may restrospectively approve legal action

December 2014 saw two decisions of the NSW Court of Appeal confirm the effect of section 80D of the Strata Schemes Management Act. This is the section that requires legal action to be approved by the general meeting if the reasonably estimated costs of taking that action exceed the amounts stipulated in the Regulation (currently $1000 per lot or $12,500 […]

Recovering unpaid strata levies

For those involved in strata living in NSW, the legal regime for the collection of unpaid strata levies can be confusing. That confusion is made worse when strata managers, lot owners and committee members receive conflicting advice from lawyers experienced in this area of the law. Some common questions include:- is an owners corporation entitled […]