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Strata bylaws and the new fourth level of government “A law is something that must have a moral basis, so there is an inner compelling force for every citizen to obey.” Chaim Weizmann A TEYS Lawyers Webinar, 3 February 2011
The owners corporation is the new fourth level of government Housing policy and affordability Federal government State government Housing land release and zoning Local government Building approvals and standards Owners Corporation Bylaws about common property
Five things we will cover in the presentation Making bylaws Invalid bylaws Controversial bylaws Enforcing bylaws Improving bylaws
The model bylaws may be all you need! They are - Short and simple About things that matter Tried and tested so easier to interpret Note - the type of matters covered noise, nuisance, damage, behaviour, garbage, animals – all reasonable except the one about children playing on common property (which is discriminatory). Part 1 - Making bylaws
Developer imposed bylaws are often over the top ,[object Object]
    Written before built and often without 	consultation with designers
    Developers try to hold on to power too 	long via bylawsPart 1 - Making bylaws
Exclusive use bylaws are valuable and require great care Car parks, storage spaces, and courtyards created by exclusive use bylaws have capital value for owners - ,[object Object]
    Should provide for owner repair 	and maintenance
    Can be self executing so if 	conditions not observed they can 	be 	cancelled without owners written 	consent (Cairns Aquarius case) Part 1 - Making bylaws
Additional bylaws should be kept to a minimum Bylaws should be kept short and simple so they are easy for owners to refer to without lawyers.  ,[object Object]
    Stop trying to save people from 	themselves
    Don’t interfere with life and 	liberty when it doesn’t matter Founding Fathers of America Life, Liberty and Happiness Part 1 - Making bylaws
Revoking, reviving and repealing bylaws Orders will be made, ‘having regard to the interests of all owners of lots in a strata scheme in the use and enjoyment of their lots or the common property.’ ,[object Object]
   Not about ‘majority rule’
   Requires consideration of the individual Part 1 - Making bylaws
Bylaws outside owners  corporation scope are invalid Owners corporations are limited in scope to matters concerning common property and by laws must not step outside this power, for example – ,[object Object],     title shopping centre  ,[object Object],for lot owners  ,[object Object],Part 2 – Invalid bylaws
Bylaws inconsistent with legislation are invalid Bylaws are the lowest forms of law so to the extent of inconsistencies with other laws they are invalid  Assess Part 2 – Invalid bylaws
Unreasonable bylaws are invalid Assess Case study - ,[object Object]
   Original by law specify method of enclosing balconies
   23 of 30 owners do it this way over 30 years
Penthouse owner renovates and wants by law for his works with frameless glass
   Reasonable or unreasonable?Part 2 – Invalid bylaws
Imperfectly made bylaws are invalid Watch the technical rules for making bylaws Passed but not registered Not registered within two years Individual consents not given (valid after 2 years) Part 2 – Invalid bylaws
House rules are invalid If it’s not a registered bylaw, it can’t be enforced no matter how sensible ,[object Object]
   Don’t slam the doorPart 2 – Invalid bylaws
Children have rights too! Bylaws prohibiting or restricting children playing on common property are probably discriminatory and invalid    ,[object Object],     bylaw 7  ,[object Object],     and family status  ,[object Object],“You don’t have more liability because kids are playing outside. That’s like saying kids can’t live on the second or third floor of a high-rise because they might fall off a balcony. It’s just a pretext to regulate the conduct of kids.”  Joe Kollin, USA Human Rights Lawyer. Part 3 – Controversial bylaws
Absolute prohibitions of pets is unreasonable Remember, bylaws are not about majority rule; prohibition is not in the interests of all owners in the scheme -   ,[object Object]
  	Half the worlds population own 	pets
  	Sensible rules can be made about 	behaviour (of humans as well as 	their animals) “After consulting with Geoffrey, I have been advised that there are many cats loose in Piney Lakes and we are not at all certain that the cat ‘clawing at screen doors, doing damage and creating a nuisance’ is my client.” – 1977 letter from a cat’s attorney to a community association.  Part 3 – Controversial bylaws
Parking is always a problem Additional bylaws can usefully add to OC powers to - ,[object Object]

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By laws webinar conducted 3 february 2011

  • 1. Strata bylaws and the new fourth level of government “A law is something that must have a moral basis, so there is an inner compelling force for every citizen to obey.” Chaim Weizmann A TEYS Lawyers Webinar, 3 February 2011
  • 2. The owners corporation is the new fourth level of government Housing policy and affordability Federal government State government Housing land release and zoning Local government Building approvals and standards Owners Corporation Bylaws about common property
  • 3. Five things we will cover in the presentation Making bylaws Invalid bylaws Controversial bylaws Enforcing bylaws Improving bylaws
  • 4. The model bylaws may be all you need! They are - Short and simple About things that matter Tried and tested so easier to interpret Note - the type of matters covered noise, nuisance, damage, behaviour, garbage, animals – all reasonable except the one about children playing on common property (which is discriminatory). Part 1 - Making bylaws
  • 5.
  • 6. Written before built and often without consultation with designers
  • 7. Developers try to hold on to power too long via bylawsPart 1 - Making bylaws
  • 8.
  • 9. Should provide for owner repair and maintenance
  • 10. Can be self executing so if conditions not observed they can be cancelled without owners written consent (Cairns Aquarius case) Part 1 - Making bylaws
  • 11.
  • 12. Stop trying to save people from themselves
  • 13. Don’t interfere with life and liberty when it doesn’t matter Founding Fathers of America Life, Liberty and Happiness Part 1 - Making bylaws
  • 14.
  • 15. Not about ‘majority rule’
  • 16. Requires consideration of the individual Part 1 - Making bylaws
  • 17.
  • 18. Bylaws inconsistent with legislation are invalid Bylaws are the lowest forms of law so to the extent of inconsistencies with other laws they are invalid Assess Part 2 – Invalid bylaws
  • 19.
  • 20. Original by law specify method of enclosing balconies
  • 21. 23 of 30 owners do it this way over 30 years
  • 22. Penthouse owner renovates and wants by law for his works with frameless glass
  • 23. Reasonable or unreasonable?Part 2 – Invalid bylaws
  • 24. Imperfectly made bylaws are invalid Watch the technical rules for making bylaws Passed but not registered Not registered within two years Individual consents not given (valid after 2 years) Part 2 – Invalid bylaws
  • 25.
  • 26. Don’t slam the doorPart 2 – Invalid bylaws
  • 27.
  • 28.
  • 29. Half the worlds population own pets
  • 30. Sensible rules can be made about behaviour (of humans as well as their animals) “After consulting with Geoffrey, I have been advised that there are many cats loose in Piney Lakes and we are not at all certain that the cat ‘clawing at screen doors, doing damage and creating a nuisance’ is my client.” – 1977 letter from a cat’s attorney to a community association. Part 3 – Controversial bylaws
  • 31.
  • 32. Regulate oversized vehicles
  • 33. Authorise removal and impounding of owners cars but not visitors   Owners with titled car spaces or exclusive use can remove cars for trespass. Part 3 – Controversial bylaws
  • 34.
  • 35. Inline with social norms and community standards
  • 36. Case law authority supports total banPart 3 – Controversial bylaws
  • 37.
  • 38. Flags and flagpoles
  • 41.   Politically incorrect signs Part 3 – Controversial bylaws
  • 42. Taking the yin and yang approach to enforcement Proactively enforce by laws requiring committee approval or consent Reactively enforce by laws about behaviour Part 4 – Enforcing bylaws
  • 43. Written enforcement policies help Avoid bylaw disputes arising from ignorance with a simple written policy Part 4 – Enforcing bylaws
  • 44.
  • 45. Do not treat owners differently from tenants
  • 46. Committee members can’t have special treatment Part 4 – Enforcing bylaws
  • 47.
  • 48. State arguments with clarity and without emotion
  • 49. Look for common ground
  • 50. Narrow the issues
  • 51. Document outcomesPart 4 – Enforcing bylaws
  • 52. Legal remedies are cumbersome and should be your last resort There are five ways to legally enforce a bylaw -   Part 4 – Enforcing bylaws
  • 53. A legal audit is useful This will eliminate - Inconsistent bylaws Outside powers bylaws Out of date bylaws Unnecessary bylaws Unreasonable bylaws Part 5 – Improving bylaws
  • 54.
  • 55. Reassure people exclusive use bylaws and approvals will remain intact
  • 56. Seek views on the real issues for the communityPart 5 – Improving bylaws
  • 57. The art and science of writing reasonable bylaws Follow these five questions Part 5 – Improving bylaws
  • 58.
  • 59. Occasional newsletters can profile bylaws and process
  • 60. Speak about them at annual general meetings Part 5 – Improving bylaws
  • 61. It’s time to be reasonable “ It’s time for associations to write responsible rules and review existing restrictions, to eliminate restrictions that are outdated and illogical, and to address specific problems with clear, specific solutions, to realize overzealous, unreasonable (committees) can be more damaging to property values than the violations they so rigorously try to prevent. It’s time to be reasonable.   Author, Kenneth Budd, ‘Be Reasonable! How Community Associations can Enforce Rules Without Antagonizing Residents, Going to Court, or Starting World War III’ ” Part 5 – Improving bylaws
  • 62.
  • 66.
  • 67.
  • 69. All necessary consents. Fixed fee $550 incl. GST  Legal audit of existing bylaws Fixed fee $ 950 incl. GST Excludes registration fees  48 hour turn around or it’s free
  • 70. Future webinars To enrol now go to www.teyslawyers.com.au/strata-sessions/ For further information email at service@teyslawyers.com.au