Question: Is a house rule based on a 70% decision model valid under the Act?
Under the banner of “harmony”, at last year’s AGM our strata company voted to have a house rule based on a 70% decision model. It has not been contested by anyone, but is this house rule compliant with the Strata Titles Act 1985, and therefore valid?
Answer: House rules have no legal force unless they’re formally registered as a by-law, regardless of the vote they received.
Based on the information provided, the house rule is not enforceable.
House rules are generally intended to guide residents and owners, but they do not have legal force unless they are formally registered as a by-law under the Strata Titles Act (the Act). An unregistered house rule cannot be enforced by the strata company, a tribunal, or a court.
Therefore, even if the AGM voted by a 70% majority to adopt a “harmony” rule, the key question is whether that rule was properly registered as a by-law. If it was not registered, it remains only a house rule and is not legally enforceable.
In addition, if the rule attempts to create a decision-making process that is inconsistent with the requirements of the Act, it may be invalid even if owners voted in favour of it. A strata company cannot override the Act by adopting a house rule or by-law that conflicts with statutory requirements.
This post appears in Strata News #805.
Jamie Horner
Empire Estate Agents
E: JHorner@empireestateagents.com
P: (08) 9262 0400
Leave a Reply