This article discussing the changes to strata disputes under the Strata Title Act amendments has been supplied by Anthony Quahe, Civic Legal.
The resolution of strata disputes is one of the key areas for reform in the amendments to the Strata Titles Act 1985 (WA).
This article will look at how these changes will affect the resolution of strata disputes.
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Key Points
- The SAT will have sole jurisdiction for resolving strata disputes
- The SAT will have specialist strata expertise and powers to resolve strata disputes effectively
- The amendments are expected to come into effect in late 2019
Disputes in Strata Living
The occupants of strata properties tend to live in close proximity to one another, sharing common areas and services. A strata lot may comprise a private apartment as well as a share of rights and responsibilities in common property, such as stairwells, driveways and visitor car parking spaces.
As a result, strata living may give rise to disputes on issues such as noise, parking, use as short-term rental accommodation, or the costs of building maintenance.
Disagreements can arise:
- between neighbours, occupiers and owners;
- between lot owners and the strata council or strata managers (who act on directions of the strata council); or even
- between the strata council and the strata managers.
Strata by-laws provide an internal dispute resolution process. However, there are times when informal resolution is ineffective and a formal dispute resolution process is required.
Previous Problems With Dispute Resolution
The current Strata Titles Act 1985 contains complex provisions in relation to dispute resolution.
Until now, strata title disputes could be resolved in one of the three levels of courts in Western Australia, or in the State Administrative Tribunal (SAT). This availability of so many forums can cause confusion to those involved in a strata dispute.
What are the Changes Proposed to Dispute Resolution?
The main reforms propose to:
- give the SAT sole jurisdiction for the resolution of strata disputes; and
- strengthen the SAT’s powers to resolve strata disputes.
Giving the SAT sole jurisdiction will provide parties with a single clear pathway for resolving disputes”
What Does this Mean for Those Involved in Strata?
This means that parties involved in a strata dispute no longer have to agonise over which court to start legal action in. They can simply resort to the SAT. In this regard, the SAT is more approachable than the courts. It is also generally a quicker and more cost effective mechanism for resolving disputes than the courts.
The reforms will give the SAT enhanced powers to enable it to resolve strata disputes effectively, including making orders to:
- enforce by-laws;
- allow members to make an application on behalf of a strata company to act on behalf of all lot owners if the strata company unreasonably refuses to do so;
- make declarations about breaches of the Act, by-laws or lease;
- make declarations as to:
- the validity of by-laws, council decisions and resolutions, and appointments of strata council members
- whether there has been valid contract
- the avoidance of a contract of sale of a strata lot
- and a whole range of other matters relating to strata properties;
- make a party pay compensation to another in certain circumstances; and
- exempt a lot owner who wishes to make a structural alteration, from the need to obtain approval from the strata company.
In summary, whilst there are limitations on the SAT’s powers, the reforms will provide a more efficient and effective structure for resolving disputes than is currently in place.
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For more information please contact:
Anthony Quahe
Managing Principal
Civic Legal
T: 08 9200 4900
E: [email protected]
Disclaimer: This article contains references to and general summaries of the relevant law and does not constitute legal advice. The law may change and circumstances may differ from reader to reader. Therefore, you should seek legal advice for your specific circumstances. The law referred to in this publication is understood by Civic Legal as of publication date.
Read next:
- WA: Q&A Requirements for Evacuation Notices and Planning for Emergencies
- WA Insurance Terms with the Upcoming Strata Reforms
This post appears in Strata News #254
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Have a question about the resolution of strata disputes or something to add to the article? Leave a comment below.
Danny says
June 5, 2019 at 8:19 amThe new STAA provides for dispute resolution between scheme participants, and it considers an occupier a scheme participant (STAA 197(2e)).
This would mean a tenant would be an occupier under this categorisation.
My questions are:-
(1) Is there a clearer definition of an occupier? Are sublets not on tenancy agreement also considered occupiers? For that matter, air BnB are also occupiers?
(2) if the basis is to allow greater participation from tenants, would that not blur the lines of roles of property manager and strata manager?
Thank you for any insights,
Nikki Jovicic says
June 10, 2019 at 10:01 amHi Danny
Thanks for your comments. We have received the following response from Civic Legal:
The new definition of an occupier will be contained in section 3 of the amended Strata Title Act 1985 (WA) once the amendments come into effect. The definition of an occupier of a lot will mean a person who occupies the lot, whether on a temporary or permanent basis … and could potentially also include a person who is unlawfully in occupation of a lot.
This would mean that a tenant is likely to be considered an occupier, as it would do under the current legislation. Depending on the facts, it could in theory also include a sub-tenant or Airbnb guest. It may, however not be effective or practical to enforce an order, say against an Airbnb occupier who would only be an occupier for a short period of time. A more practical approach would be to take appropriate action against the owner of the strata lot.
Whether greater participation from tenants blurs the lines of the roles of property manager and strata manager will depend on the circumstances. In the end, the roles are different in nature from each other: the property manager manages the issues that arise as between a lot owner and their tenant whereas a strata manager manages the issues that affect all lot owners.
Disclaimer: This response is of a general nature only and is not to be taken as legal advice. You should seek legal advice for your specific circumstances.