This article and video explores the important discussion about unfair contracts, consumer protection and the impact on lot owners within the strata industry. We ask Todd Garsden, Partner at Mahoneys and Gerard Brody, an independent consultant working in the Consumer Advocacy, governance and public policy space for their thoughts.
We explore the complexities surrounding consumer protection and whether a body corporate or owners corporation qualifies as a consumer under the Australian Consumer Law (ACL).
Recent concerns about unethical practices in the strata industry highlight the need for clarity and potential reform in this area.
Gerard explains the legalities of unfair contract terms and how the legislative framework applies (or doesn't apply) to owners corporations. He'll also explore solutions implemented in specific jurisdictions like Victoria and discuss potential reforms, both for contract terms and broader consumer protection measures.
Todd sheds light on how these issues might unfold in everyday strata management scenarios. He offers valuable insights for committee members who may encounter unfair contracts or be pressured to enter into them.
During the interview, we cover the following questions:
- What are the specific types of unfair contract terms prohibited by the ACL?
- Why is there a current lack of protection for owners corporations under the ACL, even though they may enter into contracts for essential services?
- Building on the Victorian example, what’s happening in other jurisdictions? Who is addressing this issue?
- Looking towards the future, what reforms do you see as essential, not just for unfair contract terms, but also for broader unfair trading practices under the ACL?
- Can you walk us through some practical scenarios where unfair contract terms might arise in the context of a body corporate?
- What steps can a committee take if they suspect a contract might be unfair or are pressured to accept one?
- Given the current legal landscape, what proactive measures can committees implement to safeguard themselves and their owners from potentially unfair contracts?
- Is there a measure of hope for lot owners navigating potentially unfair contracts within the strata system?
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- Webinar slidepack
- Transcript
Todd is an experienced property lawyer who heads up Mahoneys body corporate team.
Todd specialises in body corporate law and predominantly acts for bodies corporate, body corporate managers and lot owners on all matters affecting bodies corporate.
Todd is an active member of the Strata Community Association (Qld). In 2019 he was appointed to the Strata Community Association (Qld) legislation committee and assists in making submissions on behalf of the Strata Community Association (Qld) on issues such as legislative reform in body corporate law.
As Todd is also a body corporate committee member, he understands the day to day requirements of administering a body corporate.
Todd has a focus on achieving practical and commercial results for his clients and understands the market in which bodies corporate operate within.
Todd also provides body corporate managers, and other industry stakeholders, with presentations and training on matters affecting the body corporate industry.
