Article: the difficulty of repealing an exclusive use by-law

In order for an owners corporation to repeal an exclusive use by-law that confers on the owner of a lot, or the owners of several lots, certain rights or privileges to use a part of the common property, section 52 of the Strata Schemes Management Act 1996 (“SSMA”) requires the written consent of the owner(s) of the lot(s) concerned. In general, this means the written consent of the owners receiving the benefit of the common property in question.

Article: court of appeal finds strata schemes may retrospectively 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 […]

Article: strata levy recovery and 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 of the Local Court. In the Local Court proceedings, the Owners Corporation claimed against a lot owner:-