What is a By-Law?

Everything you need to know about By-Laws, breach of By-Laws, Management Statements, and House Rules

Summary

  • By-Laws are a set of duties, obligations, procedural matters and behavioural rules for owners, occupiers and visitors of a Strata property.
  • All Strata complexes have By-Laws - some of which will be default By-Laws (as seen in the Strata Titles Act), others may have been amended or added over time. 
  • By-Laws differ from "House Rules" as by-laws are enforceable.
  • If owners, occupiers or visitors do not comply with the strata company By-Laws, they can be issued a breach notice or be taken to the State Administrative Tribunal (SAT).

 

What are By-Laws

By-laws are grouped into two sections - Governance & Conduct:

  • Schedule 1: the Governance of the strata scheme
  • Schedule 2: the rules of Conduct within the scheme

Schedule 1 by-laws outline the Governance of the Strata Company, as well as duties and procedures that are required of owners and the Strata Company.

Schedule 2 by-laws are intended to manage the Conduct of all residents, to ensure that residents within the complex can live harmoniously. Negative behaviours for example; excessive noise, littering or parking in ways that cause a nuisance to others - are all breaches of these by-laws.

For more information on the Standard Amended By-Laws please see the PDF below.
Standard by-laws.pdf

 
 

What is a Management Statement?

These are a set of by-laws lodged at the time the strata plan was originally lodged at Landgate, usually by the developer (Form 25). The by-laws within the Management Statement may have added, amended or repealed any of the default Schedule 1 or 2 by-laws.

The Amendments in May 2020, replaced that process by introducing the lodgement of consolidated scheme by-laws, now known as Scheme Documents.

If a Strata Scheme had a Management Statement, this is usually indicated on the front page of the strata plan.  If the bylaws have been consolidated, all the bylaws will now be found in that one document.

 
 

What are House Rules?

House rules assist in the control and management of common property for the benefit of all owners - e.g. they may impose requirements for such things as to times that tradespeople may carry out work at a lot, or where visitors may park, or opening times of the swimming pool etc.

House rules serve as a guide, and cannot be enforced unless they are registered as a by-law on the Strata Plan.
Alternatively, House Rules may be used to give Residents and Owners clarity on how the Council of the Strata Company have interpreted and will enforce the Strata Company bylaws. Since some by-laws may be ambiguous, House Rules are an opportunity to provide some much-needed clarity.

Example: House Rules standard.pdf

 
 

What is a "Breach of By-Laws"?

Summary

A breach of by-laws notice may be issued by the Council of the Strata Company to an owner when an owner, occupier or visitor is engaging in behaviour that contravenes the registered by-laws of the complex.

If you feel that a resident or owner is acting in a manner that breaches the by-laws of the strata company, you may submit a formal complaint identifying the person(s) breaching the by-law to the strata manager, who will pass this on to the Council of the Strata Company for their consideration.

The breach notice will include details of the alleged by-law breach and details of the actions that caused the Council of the Strata Company to send you the breach notice.

One of the duties of the Council of the Strata Company is to enforce the by-laws. If a legitimate complaint has been made to the Strata Company, and the Council of the Strata Company deem it necessary, a breach notice will be issued.

If an owner is seen to be wilfully and consistently breaching the by-laws (or their tenants), the Council of the Strata Company may need to escalate the matter by submitting an application to the State Administrative Tribunal.

Examples of by-law breaches may be:

  • Parking a vehicle incorrectly on common property.
  • Obstructing common property by leaving a bike in a walkway, e.g. in a corridor.
  • Damage to the lawns/gardens.
  • Making excessive noise late at night.
  • Hanging washing on the balcony.
 
 

I've received a Breach Notice, now what?

If you have received a Breach Notice from the Strata Manager, it will have been sent at the request of the Council of the Strata Company. The process of sending a Breach Notice allows the strata company (all owners) to document a point in time when the person in question was sent a formal notice and this may be submitted as evidence if the breach persists and the strata company decide to pursue the case via the State Administrative Tribunal (SAT). 

The Breach Notice will include details of the alleged By-Law breach.  It may be that you did not know that you were in breach of a particular by-law - e.g. hanging laundry on an airer on your balcony, for example.

All you need to do is to cease the breaching action, and the matter is over. If you dispute the allegations e.g. you have been accused of making a noise at a specific date and time - and you were not in residence, please respond and give details of the inaccuracy, as it may have been a case that the lot number is mistaken.

If you are in breach of the By-Laws, and you do not desist from the behaviour upon formal request, then the Strata Company may lodge a case at SAT to force your compliance. A member will listen to both sides and view any evidence presented and a decision will be made. This could include imposing a financial penalty against the lot.

 
 

Someone else is Breaching the By-Laws

If you believe a Resident or Owner is in breach of the Strata Scheme by-laws, you can submit a written complaint to the Strata Company here - https://knowledgebase.esmstrata.com.au/en_US/forms/complaints

The Strata Company will require some specific information in order to take action against the offending Resident/Owner.  

It is important to understand that ultimately, the Strata Company should be aiming at compliance, not enforcement. If a by-law breach can be rectified by a friendly conversation, that outcome is usually much more positive, than having received a formal letter over what might be considered a trivial matter.

 
 
 
 

Adding, Amending or Repealing By-Laws

Summary

Strata Companies can propose changes to their by-laws at General Meetings via two different Resolutions depending on the proposed changes.
Governance By-laws require a Resolution without Dissent, and Conduct by-laws require a Special Resolution to be passed, in order to add, amend or repeal.

Any member of the Strata Company can propose a new by-law but it is highly recommended that the by-law be drafted by a legal specialist.  

The proposed by-law would need to be included on the Notice and Agenda pack to enable it to be voted on. 

 
 

Resolution Without Dissent

A RWD can only be achieved at a General Meeting, if at that meeting - or the subsequent 28 days - there are no recorded objections to the Resolution either personally or by proxy.  It only requires a single objection to fail the motion.

Owners do not need to be financial for their objection to be valid.

 
 

Special Resolution

A Special Resolution is only passed when there are more than 50% of owners or their proxies voting FOR the motion, and no more than 25% of owners or their proxies voting AGAINST the motion.  Votes can be recorded at the Meeting where the motion is proposed or during the following 28-day period.

Owners do need to be financial for their vote to be valid.

 
 
 
 

Disputes within Strata Companies

At ESM Strata, we assist many strata companies with disputes between residents commonly arising over issues including unauthorised parking of vehicles on common property, general maintenance issues, unauthorised pets which are causing a nuisance, loud noise complaints (including construction noise), and other issues. 

It is important to recognise that most situations are not personal. Good communication with neighbours is crucial. Sit down together at a mutual location to calmly discuss both sides and find an amicable solution. Resolve the problem before it escalates. If issues persist, then you can write a formal complaint to the strata company for assessment and possible resolution.

The Strata Titles Act Schedule 2 Conduct by-laws determine acceptable behaviour. Compliance with these by-laws is mandatory for all proprietors and residents. The elected Council manages and enforces these By-Laws. If you notice a breach, contact your Strata Manager or council member. The Council may send a letter seeking compliance with the by-law(s). Often, parties in breach are unaware of the by-law. If the breach persists, a formal breach notice may be sent.

 
 

Legislation changes to By-Laws

Changes have been made to the current standard by-laws under the Strata Titles Act. The reforms provide more clarity and guidance surrounding the making of scheme by-laws and the invalidity of By-Laws. The changes include a clear distinction between the two sets of By-Laws (now called Governance and Conduct by-laws) as well as a number of By-Laws being moved or deleted.

More information can be found here.