Owners Corporations - Do you have adequate rules?

This article is about the rules in your strata scheme.

Owners Corporations may either use the Model Rules or make and register their own rules.

Section 138 of the Owners Corporations Act gives the power to the Owners Corporation to make rules by special resolution in respect to particular matters set out in schedule 1 of the Act providing that they are for the purpose of the control, management, administration, use or enjoyment of the common property or of a lot.

Section 140 of the Owners Corporations Act provides that a rule of an owners corporation is of no effect if it:

• unfairly discriminates against a lot owner or an occupier of a lot; or
• is inconsistent with or limits a right or avoids an obligation under the Act or any other Act or regulation.

So what rules do you have?

You can find out if the model rules apply or if there are registered rules by obtaining a copy of the Owners Corporation Plan of Subdivision.

Whilst the model rules deal with a number of matters, they are inadequate for most Owners Corporations with more than a handful of lots, particularly apartment buildings.

Some Owners Corporations have registered rules prepared by original developers that are either outdated or include unlawful rules. Registered rules should be updated regularly.

As expert owners corporations lawyers we are able to review and update registered rules and provide Owners Corporations with a set of recommended rules where they don’t have any registered rules and just rely on the model rules.

We can provide a fixed fee services for an initial review or drafting new rules.

We can also help Owners Corporations get the rules registered with Land Victoria. Rules are only valid and enforceable after they are registered.

You have rules but are they enforced?

It is important for Owners Corporations to enforce the rules they have so that all lot owners can equally enjoy their lots and common property.

Owners Corporations can take action against a lot owner by a simple majority vote of the committee or Owners Corporation. The first step is giving the lot owner a breach notice and providing 28 days to rectify the breach. If the breach is not rectified a final breach notice should be issued and then orders sought at the Victorian Civil and Administrative Tribunal.

This article has been republished with permission from the author and first appeared on the Tisher Liner FC Law website.