Strata By-Law Breaches in NSW: Comprehensive Guide + Free Action Planner Tool

Introduction

Living in a strata scheme in New South Wales means following a unique set of by-laws designed to support fair and harmonious community living. These by-laws set out clear expectations for residents, owners, and occupiers, helping to manage daily life and the use of common property within the strata.

When a strata by-law is breached, it can lead to strata disputes and may require formal steps to resolve the issue. Understanding how these by-laws work, the legal framework behind them, and the processes for addressing breaches is essential for anyone involved in a strata community.

Interactive Tool: Are You Ready for NCAT?

Understanding NSW Strata By-Laws

What Are Strata By-Laws & What Do They Cover?

Strata by-laws are the rules set by the owners corporation or strata company that all residents and owners in a strata scheme must follow. Their main purpose is to ensure everyone can live together harmoniously and that common property is used and managed properly.

Key areas commonly covered by strata by-laws include:

• Noise and Quiet Hours:
  By-laws often set specific quiet hours and place limits on noise levels to prevent disturbances between neighbours.
• Pet Ownership:
  Rules may outline the specific regulations for pets in NSW strata buildings, including the types and sizes permitted, requirements for keeping pets on leashes, and how pet waste should be managed.
• Parking Arrangements:
  By-laws typically state where residents and visitors can park, allocate parking spaces, and set rules for guest parking and use of common property for vehicles.
• Use of Shared Facilities:
  These rules govern access to and use of shared spaces such as pools, gyms, gardens, and recreational areas, including any booking systems or restrictions.
• Renovations and Alterations:
  By-laws may specify what types of renovations are allowed, which require approval, and the process for seeking permission.
• Short-Term Rentals:
  Some by-laws address whether short-term accommodation (like Airbnb) is permitted and under what conditions.
• Smoking:
  Restrictions may apply to smoking in private lots, balconies, or common areas to protect the comfort and health of all residents.
• Home Businesses:
  There may be limits on the type and scale of business activities that can be run from a lot.

Each strata scheme can adopt the model by-laws provided by the NSW Government, create its own, or use a mix of both. This means the specific rules can vary widely from one building or complex to another.

To put this into perspective, imagine a scenario where a resident wants to install new flooring. The by-laws might require approval from the owners corporation before any work begins, especially if the renovation could affect noise levels or common property. Or, if a resident wishes to keep a dog, the by-laws might require an application process and set conditions to ensure the pet does not disturb others.

How to Find Your Strata Scheme’s By-Laws

Knowing where to access your strata scheme’s by-laws is essential for both current and prospective residents.

For Current Owners and Residents:

• Most people receive a copy of the by-laws when they move in.
• If you do not have a copy, you can:
  • Ask the strata committee secretary or strata manager for a copy.
  • Purchase a copy from an NSW Land Registry Services–approved information broker.

For Tenants:

• Your landlord or real estate agent must give you a copy of the by-laws before you sign your rental contract.
• In mixed-use buildings, you should also receive a management statement outlining shared facility rules.
• If by-laws or the management statement change, you must be given an updated copy within 14 days.

For Potential Buyers:

• Ask the seller or their real estate agent for the contract of sale, which must include the current by-laws and, if relevant, the management statement.

Quick Reference Checklist:

• Always check with your strata committee or manager if you are unsure which by-laws apply.
• By-laws can vary significantly between schemes, so do not assume the rules are the same as in another building.
• Keeping an up-to-date copy of your scheme’s by-laws helps you understand your rights and responsibilities and avoid accidental breaches.

This approach ensures that everyone—owners, tenants, and buyers—knows where to find the rules that apply to their strata community, making it easier to comply and resolve any questions that may arise.

The Legal Framework for NSW Strata By-Laws

The Role of the Strata Schemes Management Act 2015

The Strata Schemes Management Act 2015 (NSW) is the primary legislation guiding the management of strata schemes in New South Wales.

It sets out how schemes are run, governs the creation and enforcement of by-laws, and provides a framework for resolving disputes within strata communities.

Key aspects of the Act include:

• Outlining the responsibilities and powers of the owners corporation, strata committee and strata manager, so every party understands its role.
• Providing 18 model by-laws that owners corporations can adopt or tailor to suit their community.
• Detailing procedures for enforcing by-laws, such as issuing a Notice to Comply and escalating if compliance is not achieved.
• Establishing financial reporting and record-keeping requirements that promote transparency and accountability.
• Enabling NCAT to resolve disputes and impose penalties for breaches of by-laws.

Consider a resident who repeatedly breaches noise restrictions. The owners corporation can issue a Notice to Comply under Section 146, and—if the conduct continues—apply to NCAT for further enforcement. This structured process maintains order and fairness in strata living.

The Role of the Strata Schemes Development Act 2015

While the Management Act deals with day-to-day governance, the Strata Schemes Development Act 2015 (NSW) focuses on the physical and structural aspects of strata schemes.

It regulates how land is subdivided to create strata lots and common property, and it sets the rules for varying, renewing or terminating a scheme.

Key functions of the Development Act include:

• Regulating the subdivision of land into lots and common property—the foundation of any strata scheme.
• Setting out procedures for creating both leasehold and freehold strata schemes, allowing flexibility in ownership structures.
• Providing guidelines for the variation, renewal, and termination of strata schemes, ensuring changes occur lawfully and consistently.
• Addressing how lots and common property are dealt with, including the allocation or reallocation of spaces within a development.

For instance, if an owners corporation wishes to alter the boundaries of common property or subdivide an existing lot, the Act prescribes the legal steps required to register those changes. This protects the interests of all lot owners and residents, ensuring modifications are properly documented.

What Restrictions Apply to Strata By-Laws

Identifying Harsh Unconscionable or Oppressive By-Laws

Section 139(1) of the Strata Schemes Management Act 2015 (NSW) sets clear boundaries on what strata by-laws can require of residents. Importantly, by-laws must not be unfair, overly severe, morally unacceptable, or oppressive.

These legal limitations are designed to ensure that all residents in a strata scheme are treated fairly, and that the rules do not go beyond what is reasonable for community living.

The New South Wales Civil and Administrative Tribunal (NCAT) can invalidate any by-law that breaches these standards. If a by-law is found to be harsh, unconscionable, or oppressive, NCAT has the power to declare it invalid.

Examples of what by-laws cannot do include:

• Conflict with existing laws, regardless of when they were made.
• Prevent someone from selling or leasing their lot, except in limited situations like short-term rental accommodation.
• Ban children or assistance animals, nor stop a resident from owning a pet unless the pet causes unreasonable interference, such as being dangerous.
• Prevent sustainability infrastructure solely due to its appearance, unless the property is heritage-listed.

Consider a case where a by-law attempts to ban all forms of home cooking except using an electric kettle.

Such a rule would likely be considered overly severe and oppressive, and NCAT can step in to protect residents’ rights and keep by-laws fair and reasonable for everyone in the strata community.

Case Study on Invalid Pet By-Laws: The Cooper Case

The 2020 decision in Cooper v The Owners – Strata Plan No 580068 [2020] NSWCA 250 is a leading example of a blanket ban on animals being tested in court.

Despite the ban, several residents kept pets, which led to legal proceedings.

The New South Wales Court of Appeal declared the by-law invalid. A valid by-law must be rational, non-oppressive, and aimed at preventing disturbances to other owners’ enjoyment of their property. The ban failed because it was not based on any evidence of actual problems caused by animals and was unnecessarily restrictive.

This decision confirmed that by-laws must be reasonable and proportionate. For instance, a by-law may restrict pets that are dangerous or cause significant nuisance, but it cannot impose a complete ban without justification. The Cooper case underscores the need for balancing the interests of all residents to maintain harmony in a strata scheme.

Case Study on Unfair Cooking & Liability By-Laws: The Franklin Case

In Franklin v The Owners – Strata Plan No. 87497 [2022] NSWCATCD 210, NCAT reviewed a by-law that prohibited all cooking methods except using an electric kettle within individual lots. The rule also made lot owners financially responsible for fire-brigade costs whenever alarms were triggered, regardless of fault, placing a heavy financial burden on owners.

The applicant argued the by-law was overly unfair and oppressive. NCAT agreed, finding the blanket ban on cooking methods an unreasonable restriction on how residents could use their own lots; the financial liability clause was likewise excessive.

Imagine a resident who is unable to prepare meals in any way except boiling water. This would make daily living unreasonably difficult and could not be justified by any genuine need to protect others. The Tribunal confirmed that by-laws must remain reasonable, proportionate, and free of unnecessary burdens on residents.

The Formal Process for a Strata By-Law Breach

Issuing a Notice to Comply

When a strata by-law is breached, the first formal step is for the owners corporation or strata committee to issue a Notice to Comply.

This notice formally alerts the person responsible for the breach and requires them to stop the offending behaviour. The notice must clearly identify the specific by-law that has been breached and explain what needs to be rectified.

The method of serving the notice depends on the recipient:

• For owner-occupiers, the notice is delivered directly to the owner, either by post or email.
• For tenants, the notice is sent to both the landlord and the property manager to ensure all responsible parties are informed.

Issuing a Notice to Comply is a critical step, as it provides the person with an opportunity to address the breach before further action is taken. If multiple by-laws are breached, separate notices should be issued for each breach to maintain clarity.

Seeking Resolution Through Mediation

If the breach continues after a Notice to Comply has been issued, the next step may involve mediation.

Mediation, facilitated by NSW Fair Trading, is designed to help parties resolve disputes, and preparing for strata dispute mediation is a key step in reaching a structured, impartial outcome.

Before applying for mediation, the strata committee must:

• Hold a meeting to pass a resolution confirming that a by-law has been breached.
• Authorise the application for mediation with NSW Fair Trading.

During mediation, a neutral mediator assists the parties in discussing the breach and exploring possible solutions. The aim is to reach a mutually acceptable outcome without escalating the matter further.

Mediation is not mandatory if the owners corporation intends to apply directly to the Tribunal for a civil penalty, but it is often a useful step for resolving disputes amicably.

Applying to the NSW Civil & Administrative Tribunal (NCAT)

If mediation does not resolve the issue, or if it is bypassed, the owners corporation or strata committee can apply to the NSW Civil and Administrative Tribunal (NCAT). The Tribunal has the authority to determine whether a by-law has been breached and can make legally binding orders.

When applying to NCAT, it is important to provide evidence of the breach, such as:

• Copies of the Notice to Comply.
• Records of communication between the parties.
• Any relevant documentation or photographs.

The Tribunal process is formal and may take some time to resolve.

NCAT can:

• Make orders requiring the person to comply with the by-law.
• Impose financial penalties for breaches, with the amount depending on the nature and frequency of the offence.
• Issue further orders or fines if the breach continues or if previous orders are not followed.

Penalties for Breaching Strata By-Laws

Understanding NCAT’s Power to Impose Fines

The New South Wales Civil and Administrative Tribunal (NCAT) can order financial penalties when a strata by-law is breached. Under Section 147 of the Strata Schemes Management Act 2015 (NSW), an owners corporation may apply for a civil penalty if a person ignores a Notice to Comply.

NCAT may impose the following penalties:

• 10 penalty units ($1,100) for a first breach.
• 20 penalty units ($2,200) if the same by-law is breached again within 12 months.

Before deciding on a penalty, NCAT reviews the application—lodged within 12 months of the Notice to Comply—and considers:

• nature and seriousness of the breach, and
• supporting evidence supplied by the parties.

If a breach continues or a prior order is ignored, NCAT can issue further orders or increase fines to ensure by-law compliance.

Case Study on Penalties for Damaging Common Property: The Purcell Case

In The Owners-Strata Plan No 84716 v Purcell [2023] NSWCATCD 97, the Tribunal found the lot owner had breached several by-laws. The proven breaches were:

• Damaging common property.
• Inappropriate behaviour on common property.
• Depositing rubbish without approval.

Key evidence included:

• Video footage of the respondent removing bolts from common-property bins.
• Photographs of graffiti on common-property walls.
• Witness testimony describing offensive conduct toward other residents.

NCAT treated the conduct as serious and deliberate, ordering:

• 8 penalty units ($880) for damaging common property.
• 4 penalty units ($440) for inappropriate behaviour.

The respondent therefore paid $1,320 in penalties plus the owners corporation’s legal costs.

Practical Steps for Owners & Strata Committees

The Importance of Direct Communication & Strata Assistance

Starting with respectful, direct dialogue can often resolve a strata by-law breach before it escalates. Approach the neighbour, explain how their conduct affects others and, where possible, suggest a simple solution.

If a calm discussion about issues like parking in the wrong spot or an unsupervised pet does not work, the next step is to involve the strata manager or committee.

The strata committee (or manager) can act as a neutral mediator, clarifying the by-law’s purpose and outlining communal-living principles. Their involvement may also:

• De-escalate tensions by offering impartial guidance.
• Propose practical solutions that encourage voluntary compliance and ongoing cooperation.

How to Effectively Collect Evidence of a Breach

When informal efforts fail, keep a thorough log because clear, detailed evidence is critical if formal action is required. The log should include:

• Names or descriptions of those involved.
• A brief extract of the specific by-law breached.
• Contextual details of where and how the breach occurred.
• The date and exact time of every incident.
• The duration of the breach, noting whether it is ongoing.

Supporting evidence such as photographs, videos, or documents will further strengthen the case.

For example, if rubbish is repeatedly left in common areas, dated photos quickly illustrate the ongoing nature of the problem—evidence that becomes invaluable when issuing a formal notice or applying to the Tribunal.

Updating Invalid or Outdated Strata By-Laws

If NCAT declares a by-law harsh, oppressive or outdated, the strata committee must act. This process involves:

• Passing a special resolution at a general meeting of the owners corporation.
• Registering the change with NSW Land Registry Services within six months.

Updating outdated strata by-laws keeps the rules fair, relevant and enforceable for all residents. For instance, if a by-law unfairly restricts pet ownership, revising and registering the amendment maintains harmony and ensures it can be legally enforced.

Conclusion

Strata by-laws play a crucial role in maintaining order, safety, and fairness within New South Wales strata communities. Understanding these rules, the legal framework behind them, and the steps for addressing breaches helps owners, residents, and committees foster harmonious living and ensure that by-laws remain valid and enforceable.

If you need guidance on interpreting, enforcing, or updating strata by-laws, or if you are facing a dispute, now is the time to contact the strata by-law lawyers at PBL Law Group for specialised services tailored to your needs and achieve peace of mind in your strata community.

Frequently Asked Questions