Key Takeaways
- Strata disputes can be time-consuming and expensive, with the potential to cause significant stress and trauma for those involved
- The most common disputes in strata properties include disagreements over maintenance, breaches of bylaws, and disputes over building damage and repairs
- The complexities of strata law and high-density living environments can heighten the potential for conflicts between owners with differing expectations
- Streamlining the dispute resolution process, including the use of binding orders in mediation, could help reduce the time and cost of resolving disputes
- Reforms aimed at reducing mediation wait times and introducing mandatory training for strata committee members are due to come into effect
Introduction to Strata Disputes
The story of Coogee resident Lisa Brown is a prime example of the challenges and frustrations that can arise when strata disputes occur. Brown was involved in a long and expensive dispute with her building corporation over the installation of an air-conditioning unit, which the corporation claimed would "diminish the peaceful enjoyment" of the property. Despite there being no building rule prohibiting the installation of air-conditioners, the corporation took the matter to the tribunal, resulting in a costly and time-consuming process that took almost a year to resolve. This experience is not unique, with many strata owners facing similar challenges when disputes arise.
Common Causes of Strata Disputes
According to a Fair Trading NSW spokesman, the most common disputes in the past year have included disagreements over maintenance of common property, breaches of bylaws, and disputes over building damage and repairs. These types of disputes can be particularly challenging to resolve, especially when emotions are involved. Sydney lawyer Allison Benson, who specializes in strata and community title law, notes that the high-density living environments of strata properties can heighten the potential for conflicts between owners with differing expectations. When disagreements are driven by emotions, rather than straightforward issues, the process of resolving them can become much more complex.
The Challenges of Strata Law
The complexities of strata law can make it difficult for owners to navigate the dispute resolution process. Benson notes that while some disputes may be straightforward to resolve, others can be much more challenging, particularly when emotions are involved. In many cases, disagreements may have been simmering for long periods of time, with tensions between neighbors building over time. This can make it harder to find a resolution through mediation, as the parties involved may be more entrenched in their positions. Furthermore, the lack of clear guidelines and procedures can add to the confusion and frustration experienced by owners.
Streamlining the Dispute Resolution Process
David Glover, managing director of the Owners Corporation Network, believes that the dispute resolution process could be streamlined if binding orders could be issued as part of the mediation process. This would negate the need for disputes to be heard by the Civil and Administrative Tribunal, which can be a time-consuming and expensive process. Glover notes that there is a big gap between the mediation service and the tribunal, and that this can be particularly challenging for building corporations, especially when disputes are vexatious or taken to the tribunal by intractable owners. By introducing binding orders in mediation, the process could be made more efficient and effective, reducing the time and cost of resolving disputes.
Reforms and Future Directions
The NSW government is finalizing reforms aimed at reducing mediation wait times, which is expected to help streamline the dispute resolution process. Additionally, a new mandatory training system for members of strata committees is due to come into effect next year, which should help improve the management of strata properties and reduce the potential for disputes. With recent planning reforms aimed at boosting housing density, the number of registered strata dwellings in NSW is expected to increase, with 50 per cent of Sydneysiders forecast to live in strata homes by 2040. As the strata sector continues to grow, it is essential that the dispute resolution process is efficient and effective, to minimize the stress and trauma experienced by owners and to ensure that disputes are resolved in a fair and timely manner.
