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WHY AREN’T BY-LAWS AND RULES REGISTERED ON THE STRATA LOT TITLE TOO?

July 22, 2024

Virtually all strata buildings have by laws or rules that bind strata owners and other people who have a property interest in strata lots like renters, financiers, etc.

Whether the by laws or rules are just the standard or default set, they are completely customised, or they’re a hybrid of standard and extras, they are registered on the common property title [and have to be to have legal effect].

But, why aren’t the by laws or rules also registered on the strata lot titles generally and specifically where the strata lot is specially affected?  We do that for other property dealings like easements, covenants, charges, etc.

Theoretically, all strata owners and others are on notice of the by laws and rules that apply in their strata buildings and can find them by search.  Plus, in most Australian states, strata buildings must also give new strata owners and renters copies of the by laws and rules.

But practically many strata owners don’t have details of the strata by laws and rules, are not aware of them [or later changes to by laws or rules], and cannot easily find them. That’s an operational problem that should be easy to fix.

I’m more interested in the formality of by law and rule notification on strata lot titles for a few reasons.

First, it reflects the legal reality that strata lot owners and others are bound by their strata buildings by laws and rules. 

Second, anyone looking at a strata lot title doesn’t also need to know to look at the common property title to know about the by laws or rules that affect the strata lot.

Third, since some by laws and rules confer special rights on strata lots [like exclusive use over and/or special privileges in relation to common property or lots] they should be specifically identified on the title of the benefitted strata lots for transparency and strata owner awareness of the rights.

Fourth, since some by laws and rules impose specific restrictions or burdens on strata lots [like common property maintenance conditions, specific payment obligations, or liability indemnities] they should also be specifically identified on the title of the benefitted strata lots for transparency and strata owner awareness of the obligations.  Perhaps, even more so.

Firth, it’s not always easy for even diligent strata owners to find by laws and rules that specifically apply to their strata lot because they’re buried in long sets of strata building by laws or rules, they aren’t always clearly named, referenced or expressed, and/or how they apply to strata lots is unclear without strata or legal expertise.

I suspect it’s never happened for historical and practical reasons in Land Registries related to the old system of paper titles.  Plus, it’s only in the last 10-20 years that we’re seeing more and more strata lot specific by laws and rules

So, let’s register strata by laws and rules on strata lot titles [as well as the common property title] with specific reference to by laws and rules that specifically affect the strata lot.

It should be much easier now with electronic land titles, it’s appropriate and transparent and it would improve strata owner and other stakeholder awareness levels.

This article was contributed by Francesco Andreone, GoStrata

The post WHY AREN’T BY-LAWS AND RULES REGISTERED ON THE STRATA LOT TITLE TOO? appeared first on Smart Strata | Body Corporate Management.

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