This document summarizes a presentation about owners corporations and strata by-laws. It discusses owners corporations as the "fourth level of government" and covers topics like making valid by-laws, enforcing by-laws, and improving existing by-laws. The presentation provides examples of both reasonable and unreasonable/invalid by-laws and emphasizes the importance of transparency, consistency, and reasonableness when creating and enforcing by-laws.

1. Strata by-laws 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 Presentation for Bright & Duggan, 11 May 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 By-laws about common property

3. Five things we will cover in the presentation Making by-laws Invalid by-laws Controversial by-laws Enforcing by-laws Improving by-laws

4. The model by-laws 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 by-laws

6. Written before built and often without consultation with designers

7. Developers try to hold on to power too long via by-lawsPart 1 - Making by-laws

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 by-laws

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 by-laws

15. Not about ‘majority rule’

16. Requires consideration of the individual Part 1 - Making by-laws

18. By-laws inconsistent with legislation are invalid By-laws are the lowest forms of law so to the extent of inconsistencies with other laws they are invalid Assess Part 2 – Invalid by-laws

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 by-laws

24. Imperfectly made by-laws are invalid Watch the technical rules for making by-laws Passed but not registered Not registered within two years Individual consents not given (valid after 2 years) Part 2 – Invalid by-laws

26. Don’t slam the doorPart 2 – Invalid by-laws

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 by-laws

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 by-laws

35. Inline with social norms and community standards

36. Case law authority supports total banPart 3 – Controversial by-laws

38. Flags and flagpoles

39. Reflective colours

40. Political signs

41. Politically incorrect signs Part 3 – Controversial by-laws

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 by-laws

43. Written enforcement policies help Avoid by-law disputes arising from ignorance with a simple written policy Part 4 – Enforcing by-laws

45. Do not treat owners differently from tenants

46. Committee members can’t have special treatment Part 4 – Enforcing by-laws

48. State arguments with clarity and without emotion

49. Look for common ground

50. Narrow the issues

51. Document outcomesPart 4 – Enforcing by-laws

52. Legal remedies are cumbersome and should be your last resort There are five ways to legally enforce a by-law: Part 4 – Enforcing by-laws

53. A legal audit is useful This will eliminate: Inconsistent by-laws Outside powers by-laws Out of date by-laws Unnecessary by-laws Unreasonable by-laws Part 5 – Improving by-laws

55. Reassure people exclusive use by-laws and approvals will remain intact

56. Seek views on the real issues for the communityPart 5 – Improving by-laws

57. The art and science of writing reasonable by-laws Follow these five questions Part 5 – Improving by-laws

59. Occasional newsletters can profile by-laws and process

60. Speak about them at annual general meetings Part 5 – Improving by-laws

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 by-laws

63. Avoid invalid by-laws

64. Temper controversial by-laws

65. Transparently enforce by-laws

68. Explanatory memo

69. All necessary consents Fixed fee $550 incl GST Legal audit of existing by-laws Fixed fee $ 950 incl GST Excludes registration fees 48 hour turn around or it’s free

70. Coming webinars To enrol now go to www.teyslawyers.com.au/strata-sessions/ For further information email at service@teyslawyers.com.au

71. About the presenter Michael Teys is the Founder and Principal Lawyer of TEYS Lawyers. He has a Bachelor of Laws and practices exclusively in the area of strata title law. He is a Fellow of the Australian College of Community Association Lawyers. He was formerly an Adjunct Lecturer with Charles Sturt University. He appears weekly on SKY News Business Channel's Property Success with Margaret Lomas and is a regular panellist for the property edition of Your Money, Your Call for the same channel. You can find out more about Michael at www.michaelteys.com Teys Lawyers practice nationally in strata title law representing owners corporations, bodies corporate and apartment owners. The firms practice groups include building defects, strata community disputes, strata titles property law, by-laws and levy collection. Subscribe for their free e-newsletter StrataSpace and find out more about them at www.teyslawyers.com.au © Copyright 2011 Teys Lawyerswww.teyslawyers.com.au