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ARTICLE · 03 AUGUST 2022

Compulsory strata management and strata scheme dysfunction – Recent trends in New South Wales

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What can be done if the strata scheme is mismanaged, and a lot owner does not have the voting ability to change things?

AustraliaReal Estate and Construction
Bede Haines
Bede Haines
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Residential strata has benefits – close neighbours, sharing in maintenance and management costs, voting on by-laws, and peace of mind with competent strata management.

There is also an important further element, sometimes necessary in achieving the above outcomes – specific statutory rights given to lot owners. These rights can curtail unfair or oppressive by-laws and also deal with strata mismanagement.1

Without these safeguards, lot owners could find themselves living in the equivalent of undemocratic mini-municipalities where voting blocs of lot owners can oppressively control strata schemes. For example, by passing unfair by-laws, neglecting proper strata management, or not performing required maintenance. Besides making life needlessly stressful, if such conduct remains unchecked lot owners could see their lots devalued – often a person's home or primary investment.

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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