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Strata schemes

Information about strata title properties, by-laws, repairs and disputes.

  • This topic covers

    Information for owners of units or lots within strata schemes about:​

    • living in a strata scheme
    • strata by-laws
    • the owners corporation
    • disputes with owners corporations
    • starting a case in the NSW Civil and Administrative Tribunal (NCAT).

Time limitAction
Claims by owners
Seven daysIf you have applied to the Consumer and Commercial division of the NSW Civil and Administrative Tribunal (NCAT) and your matter was dismissed because you missed a hearing date, you have seven days from the date of dismissal to apply to have the proceedings reinstated, if you have a reasonable excuse for not attending. It may be possible to get an extension of this time, but you should get legal advice about your circumstances.
Seven daysIn the Consumer and Commercial division of NCAT, you have seven days from when an order was made to apply for it to be set aside or varied. An order may be set aside or varied if you and the other party agree, or if a decision was made without you or the other party being present. It may be possible to get an extension of this time, but you should get legal advice about your circumstances.
28 daysYou have 28 days to make an internal appeal of a decision of NCAT. The 28 days starts from when you were notified of the decision or given reasons, orally or in writing, whichever is later. 
28 daysYou have 28 days to appeal a decision of the NCAT Appeals Panel to the Supreme Court or the Court of Appeal. 
Two yearsYou have two years to start a case against the owners corporation if they do not comply with their duty to maintain and repair common property or other personal property in their care.
Six yearsYou have six years to start a case in court for trespass or nuisance.
Claims by owners corporations
12 monthsThe owners corporation has 12 months after the Notice to Comply with By-Law to start a case in NCAT for an order for the owner to pay a monetary penalty.
12 monthsIf an owner breaches a by-law within 12 months of an NCAT order to pay a monetary penalty for an earlier breach of the same by-law, the owners corporation can apply to NCAT for a further penalty without issuing a notice to comply to the owner.
Six yearsThe owners corporation has six years to start a case in court for a strata debt.

Organisations

OrganisationResponsibilities
NSW Fair TradingIf you have a dispute with the owners corporation about your strata scheme you can apply for mediation at NSW Fair Trading. In some circumstances, mediation with NSW Fair Trading may not be suitable. For more information, see Applying for strata mediation on the NSW Fair Trading website.
NSW Civil and Administrative Tribunal (NCAT)You can apply to NCAT and they can decide a case about a strata scheme. Mediation is compulsory for certain types of strata applications.
NSW Civil and Administrative Tribunal (NCAT) Appeals PanelYou can seek leave to appeal an NCAT decision to the NCAT Appeals Panel.
NSW Local CourtAn owners corporation can start a case in the Local Court (or NCAT with some limitations) to recover contributions from owners who do not pay their strata levies.
NSW Supreme CourtCan accept some appeals from the NCAT Appeal Panel. 

Legislation

AuthorityCovers
Note: Each strata scheme has its own set of rules, known as by-laws, that govern how you live in the strata scheme.
Strata Schemes Management Act 2015 (NSW) and the Strata Schemes Management Regulations 2016 (NSW)Deals with the management of strata schemes and resolution of disputes arising from strata schemes.
Strata Schemes Development Act 2015 (NSW) and the Strata Schemes Development Regulations 2015 (NSW)

Sets out the rules for subdivision of land including:

  • buildings into freehold strata schemes
  • the way in which lots common property in strata schemes may be dealt with, and
  • the variation, termination and renewal of strata schemes.
Strata Schemes Management Act 2015 (NSW)Gives NSW Fair Trading and the NSW Civil and Administrative Tribunal (NCAT) the power to deal with disputes between you and the owners corporation about living in the strata scheme or the management of your strata scheme.
Uncollected Goods Act 1995 (NSW) and the Uncollected Goods Regulation 2017 (NSW)Deals with abandoned goods left on common property.

Common termDefinition
Administrative fundA fund set up by the owners corporation to cover the day to day expenses and management costs of the strata scheme.
By-laws

A set of rules that govern how you live in a strata scheme.

You can get a copy of the by-laws from the owners corporation or by a doing a search on the NSW Land Registry Services.

​Capital works fund​The fund set up by the owners corporation to cover the costs of future expenses, for example painting the building, replacing carpets in common areas and fixing the driveway. Previously known as the 'sinking fund'.
Common propertyThe parts of the strata scheme that are owned by the owners corporation.
CorporationA legal entity, such as a company, association or owners corporation, that has a separate legal personality from its members.​
LevyAn amount of money paid in contribution to the capital works fund, administrative fund or special levy.
​LotA unit or part of the strata scheme premises that is owned by an individual member of the owners corporation.
MediationA structured negotiation process in which a neutral and independent person called a mediator assists you to resolve a dispute.
Model by-lawsA sample set of by-laws for strata schemes contained in the Strata Scheme Management Regulation 2016 (NSW). The model rules have been adopted as the by-laws of many strata schemes in NSW.
Occupant (or occupier)A person who lives in a strata scheme. An occupant may be an owner or a tenant.
Owners corporationThe body that is made up of the owners of individual lots in the strata scheme.
​Short-term rental accommodation​From 10 April 2020, owners corporation can adopt by-laws that prohibit short-term rental accommodation in strata schemes, but only where the lot is not the host’s principal place of residence. 
​Special levy​Extra funds requested from each lot owner if there is not enough funds to cover large capital works or unforeseen works, for example, to carry out major repairs to the common property.
Special levies are calculated according to the lot entitlement of each lot owner.
Special resolutionA vote taken at a meeting of the owners corporation that needs 75% of votes to pass.
​Strata committeeAn elected body of members of the owners corporation that make day to day management decisions relating to the strata scheme. Previously known as the 'Executive committee'.
Strata levyThe amount an owner pays to the administrative fund and capital works fund.
Strata managing agent (also called a strata manager or a strata agent)A person or organisation appointed by the owners corporation to manage the day to day affairs of the strata scheme.
Strata schemeResidential premises where individual owners each own one or more separate units (called lots) but where all owners together share ownership of and responsibility for common property.
​Sustainability infrastructure

Changes to the common property including installation, removal, modification or replacement of anything on or forming part of the property for the purpose of:

  • increasing the efficiency of the consumption of energy or water
  • reducing or preventing pollution
  • reducing the amount of waste sent to landfill
  • increasing the recovery or recycling of materials
  • reducing greenhouse gas emissions
  • facilitating the use of sustainable forms of transport, for example, the installation of electric vehicle charging stations.

 

OrganisationFee
NSW Fair TradingYou don't have to pay a fee for mediation at NSW Fair Trading.
NSW Civil and Administrative Tribunal (NCAT) 

You have to pay a fee if you are:

  • making a general strata application
  • making an application for an interim order
  • appealing a decision of NCAT
  • applying to reinstate NCAT proceedings
  • applying to renew proceedings
  • applying to set aside or vary NCAT orders. 

See Fees at NCAT on the NCAT website.

If you can't afford to pay the fee, you may be able to apply for an exemption, reduction or waiver. See Reduced fees and fee waivers on the NCAT website.

OrganisationForms
NSW Civil and Administrative Tribunal (NCAT) 

Strata and community schemes application form

General forms:

  • Notice of appeal
  • Application for stay of original decision pending appeal
  • Application to set aside or vary Tribunal decision
  • Application to reinstate proceedings

 

OrganisationTypeCosts
NSW Civil and Administrative Tribunal (NCAT)Legal costs

NCAT will not usually make costs orders in a strata scheme dispute unless it dismisses your application or appeal because:

  • it is frivolous, vexatious, misconceived or lacking in substance, or
  • a decision in your favour is not within the jurisdiction of NCAT.
​Local Court, District Court and Supreme Court of NSW Legal costs

You can claim some of your lawyer's costs if you are successful in court proceedings.

If you are unsuccessful, the Court may make a costs order against you for some or all of the other party's costs.

If the owners corporation has started court action against you to recover strata levies, you may be ordered to pay their legal costs if a judgment is made against you. These costs are not capped, even for small claims (matters under $20,000). This means that if a judgment is made against you, you will usually have to pay all of the legal costs of the owners corporation.  

Frequently Asked Questions

Strata schemes FAQs

Frequently Asked Questions about strata schemes.

More services

NCAT

NSW Civil and Administrative Tribunal (NCAT) can hear disputes about a strata scheme, community scheme or neighbourhood scheme in NSW.

NSW Fair Trading

NSW Fair Trading provides a free mediation service to resolve strata disputes.

Solicitor Referral Service

If you need legal help and are looking for a law firm, the Law Society of NSW Solicitor Referral Service (SRS) can provide you with a referral.

Tenant Advice & Advocacy Service

The Tenants’ Union of NSW provides high quality legal advice, assistance, and information to tenants in strata schemes.

Last updated: December 2024