Question: How should an owners corporation process a payment ordered by NCAT to a lot owner?
Our owners corporation was involved in an NCAT matter with a lot owner. The tribunal found in favour of the lot owner and ordered the owners corporation to pay them a specified amount.
What is the correct process for making this payment? Should we pay it directly from the owners corporation’s general account, or treat it as a separate special payment that requires specific authorisation?
Answer: A special levy needs to be raised for the amount of the costs and levied to all owners, with the exclusion of that owner.
No, the payment cannot be simply paid out of regular funds held in the owners corporation administrative or capital works fund because, in effect, the successful owner would be contributing to the costs in an action that they were successful.
Section 104 of the Strata Schemes Management Act 2015 requires that a special levy be raised for the amount of the costs and levied to all owners, with the exclusion of that owner. Like any levy, the special levy must be passed at a general meeting of the owners.
This post appears in the September 2025 edition of The NSW Strata Magazine.
Hugh McCormack
McCormacks Strata Management
E: Hugh.McCormack@mccormacks.com.au
P: 1300 991 825
I have been searching for this answer for weeks, seems like the answer I isn’t easy.
So I’ll use a dummy situation to help paint the picture .
NSW tribunal hearing where the applicant is a lot owner vs strata committee whom hide behind every bi Law and SSA minimum requirement it is extremely difficult to prove . Have jumped down many rabbit holes acts,I have demonstrated nothing but good intention .
For what should be a very simple case, where they have repeatedly found different ways to lawfully refuse different instances and advised they were completely confident they had acted correctly .
Thought best way to keep everyone honest was at tribunal.
Now they have hired a lawyer ( which smells instantly) so now I’m up against another law manipulator .
I have spent weeks 18 hr days no breaks to ensure my understanding is well above average.
Biggest fear : whilst I can not be found liable for any unlawful behaviour , I am concerned they may try to have the legal costs awarded to me .
Whilst I understand this is a risk I am trying to get a gauge for when this generally happens. Bring up against a lawyer is where the doubt stems.
They were not forced to get a lawyer and the orders are so basic it seems quite strange is the comments I’ve gathered.
They intention is to claim legal costs through insurance .
Idea I’m considering is making this part of my first submission – not sure if it’s worth exploring or how to position the intention with costs .
Is there anything I can request in my statement of orders that would allow me to confirm and cover myself in the document swapping process before the hearing ? Allowing me to withdraw if need be.
Sorry for the long question- have been up 48 hrs finalising this document . Thank you
I have same problem in vict with vcat
Individuals can lodge applications personally without use of a lawyer
help available from vcat particularly on their very strong procedural issues is difficult to get they mostly reply by saying to get a. Lawyer
Oc engages lawyer with their large financial resources so part of your money is used to fight you
Use of lawyer Very expensive if matter not significant
We have received the following question/comment from one of our readers:
In reading your article in Strata Life I got the distinct impression that your solution was to punish the strata managing agent, but as an agent, the strata managing agent has no power to comply with an NCAT order when the owners corporation strata committee directs him not to comply. I would like to have seen your article canvas that scenario as it is more the norm than a strata managing agent failing to comply with an NCAT order.
Leanne Habib, Premium Strata replied:
In our view the strata manager would be duty bound to attempt to implement Orders made, but, of course, the strata manager could not act against the express wishes of its principal. It should, however, take reasonable steps to advise the Owners Corporation of its obligations to comply with such orders or take steps to appeal an order where there are grounds for appeal. But not taking any action in relation to orders in our view does not address the issues.
I have read that if I am taking Body Corp to mediation , if they intend bring a Lawyer along , to speak I can object , also if the Body Corp wants the Strata Manager as their representative that is also a no,
no ,
Hi David
Leanne Habib, Premium Strata has responded to your question in the article above.
We have received the following question from one of our readers:
Could you please include in your article if the Owners Corporation is allowed to decide to use the Owners Corporation’s funds to employ a lawyer for the Tribunal? Or is the default presumption parties can’t have a lawyer and they have to seek leave from the Tribunal if they want one and have a good reason.
Allison Benson, Kerin Benson Lawyers replies:
The provisions of section 103 of the Strata Schemes Management Act 2015 apply as does regulation 26 of the Strata Schemes Management Regulation 2016. Even after these are complied with anyone representing another entity must seek leave in NCAT.