Strata Regulatory Watch
April 2024
Dear clients, friends and industry colleagues,
Welcome to our April edition of Strata Regulatory Watch.
As we head into the second quarter of the year (wait, what?!), we reflect on what has been a challenging and thought-provoking few weeks in the Australian strata industry after the ABC published a story into the practices of a leading strata management firm in NSW.
We have also summarised any property-related legislative updates, important case law and interesting articles across our key markets of NSW, QLD, VIC and WA.
Please let us know if there is anything of interest you would like more detail on.
NSW UPDATES
💡 Case Update : Diaspora Holding Pty Limited & Anor v The Owners Strata Plan No. 68608 [2024] NSWDC 46
This recent case involved the unlawful use of carparks in a strata scheme. Novel tort was pleaded as a means of pursuing a claim against the owners corporation and utilisation of s106 as a defence to the claim of nuisance.
💡 E-bikes and E-scooters – The potential implications for owners corporations
With the surge in fires linked to rechargeable modes of transport like e-bikes and e-scooters, it's crucial for owners corporations to address potential risks and liabilities. Learn how adopting by-laws and guidelines can safeguard against damage and insurance excess.
QLD UPDATES
💡Reforms to BCCMA legislation to commence 1 May
With the upcoming implementation of the Body Corporate and Community Management and Other Legislation Amendment Act 2023 on May 1, 2024, significant reforms are set to transform community living in Queensland.
💡 Q&A -"Can our executive committee force lot owners to de-sex pets?"
Featured in the March issue of LookUpStrata's QLD Strata magazine, our Queensland Partner, Michael Kleinschmidt, delves into the intricacies of pet by-laws.
VIC Updates
⚖️ Change to VCAT Rule 4.11A - service of documents
From February 16, 2024, VCAT Regulation 4.11A was updated, enabling electronic communication for document service via the digital portal.
⚖️ The decision in Owners Corporation 1 PS No. 834726V v Melbourne Owners Corporation Services Pty Ltd (Owners Corporations) [2024]
VCAT 199 examines the potential consequence(s) of a breach of the Owners Corporations Act 2006 (Vic), particularly in relation to the mandatory 14-day notice period for inaugural annual general meetings, as well as annual general meetings and the strict disclosure requirements regarding beneficial relationships between OC Managers and service providers.
⚖️ Case Note: Plunkett v Portier Pacific Pty Ltd (Civil Claims) [2024] VCAT 205
In this recent decision, Justice Woodward provided clarity on when VCAT has the authority to strike out all or part of a proceeding so that it may be referred to another tribunal or court. This case may be used as authority by parties seeking to have matters referred to the County Court or Supreme Court in circumstances where they are, for example, more appropriately resourced to determine matters.
WA Updates
💡 Workplace Health and Safety Obligations “To be, or not to be”…. a PCBU
This article by our WA Special Counsel Carolyn Meighan navigates the PCBU conundrum in strata companies under work health and safety legislation.
⚖️ Stay compliant with WA's Strata Titles Act by completing your annual Strata Manager Return before March 31st.
Under the Strata Titles (General) Regulations 2019, strata manager’s annual returns are required to be submitted to Landgate by 31 March each year.
INDUSTRY NEWS
📣 On 21 March 2024, the ABC's 7.30 report published a story on the practices of Netstrata, a leading strata management firm in Sydney. These alleged practices of charging excessive insurance commissions and secret kick-backs have sent shockwaves through the industry. The ABC has now launched a national investigation into the industry, so regrettably, this is likely to be just the beginning of this story. A follow up story has now been published by the ABC today (2 April).
In the wake of the Netstrata story, our Queensland partner Michael Kleinschmidt has written an article where he challenges the strata management sector to consider changing their business models and prioritising client interests over commission-driven practices.
In April 2021, Gary Bugden OAM presented a paper to the Australian College of Strata Title Lawyers (ACSL) titled "Strata Managers as Fiducaries". This important paper addresses the important question of what is a fiduciary, why strata managers are in a fiduciary relationship with their OC clients, and what this all means. Some of the "risky" practices Gary referred to years ago are now exposed to the public.
TEAM UPDATES
✨ Career opportunities
In Sydney, we are currently recruiting for a Litigation/Commercial lawyer and a Paralegal.
In Melbourne, we are also recruiting for a Property Litigation Lawyer, ideally someone with around 3 PAE.
Our Queensland office will soon be welcome three new lawyers to the team, but they are still looking for a senior Paralegal or legal secretary. For more information, please contact us via the Careers page on our website or email info@bagl.com.au.
📱 Get in Touch
If you have any questions in relation to this newsletter, or you would like to know more, please do not hesitate to contact a member of our team on 02 9199 1055, visit our web site or contact us via email at: info@bagl.com.au
Disclaimer: Nothing in this newsletter is intended to be legal advice. You should seek legal advice tailored to your property's specific circumstances. The information in this newsletter and on our web site are of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this newsletter is accurate at the date it is received or that it will continue to be accurate in the future.
