Twenty Years in Business: What Have we Learnt?

I started Grace Lawyers on 1 November 2005. Apart from the trials and tribulations of being in business, what has changed in the strata industry since then?

Looking through my old notes, lecture materials and articles, strata hasn’t really moved that much in reality, which is a bit of a shame. In 2005 we had an acronym for strata: C.R.A.P. – Children, Renovations, Animals and Parking.

Whilst strata has become more complex with many legislative changes across the country, not much has improved. The only one from 2005 that’s dropped off is children – they’ve been replaced by construction defects. So now it’s D.R.A.P. and no more C.R.A.P.

Defects

The never-ending problems with defects continue to be the bane of existence in strata. I read recently about someone in the NT who had to sell after defects triggered a $1M levy on owners. Leaving aside minor scratches in new buildings, I still can’t believe we have major defect issues despite legislative reviews, insurance schemes, academic reports and a former building commissioner promising change (still waiting?).

Until there’s total accountability for builders and developers, with no more poor repairs, phoenix companies, or dragging things out for years, nothing will change. Good builders will keep doing good work. The rest will keep doing what they’ve always done.

Renovations

I blame those TV shows. Everyone’s a home renovator now and can’t believe there are rules in strata. (Just a hint, team – your home is not your castle in Strataland). Committees often struggle to balance approving renovations with managing the headstrong “I’ll do what I like” attitude.

We’ve all dealt with 10-page renovation by-laws, plan requirements and legislative changes that try to simplify but often confuse. Schemes need clarity on:

• What documents are needed
• Whether a specific by-law is required (minor vs major works)
• The process for works (timing, notices, clean-up, parking, noisy hours)
• Damage to common property (I love a good bond!)
• Liability after the fact (especially for minor works no record of who did what)

We need to empower Committees to stop illegal renovations immediately. The current NCAT process involving gathering evidence, waiting weeks or months, is too slow. By the time action is taken, the work is done and we’re playing catch-up.

What’s needed is a system where an NCAT application triggers an immediate order within two hours, like a court injunction. If the Owners Corporation gets it wrong, they bear liability at the final hearing. That would be far more effective than the current system, which is rarely used despite NCAT’s glowing self-assessments.

Animals

Let me start by saying I love animals. We had a dog until he passed away last Christmas (and yes, I live in strata). But the debate over animals is contentious and emotionally charged.

But the pendulum has swung too far. These days, you basically can’t refuse an animal. (There, I said it.) All you can do is try to remove it after it arrives, through a breach process that costs $$$ and rarely works.

Why can’t we have pet-friendly and pet-unfriendly buildings? Academics may disagree, but they don’t live there. They don’t deal with barking all day, cat hair in common areas or snakes on the loose.

There needs to be balance. If the Owners Corporation says no, that should be the end of it. Isn’t that democracy? Too often, 99 say no and one person drags them through endless disputes and costs. Maybe we need a higher threshold for by-law changes again, like unanimous vs special resolution.

Parking

I love a good parking by-law, containing rules, timeframes, and requirements, but they have no teeth. You can write all you like, but if you need witnesses, photos, proof of ownership (and Service NSW won’t give you that without a subpoena), and then go to NCAT for a fine and some costs…why bother?

Bring back wheel clamping! Problem solved in 10 minutes. But everyone’s too scared of retribution, and personal liability. If not clamping, then something with teeth that lets Owners Corporations act immediately.

We don’t have enough parking in most buildings and planning laws are part of the problem. One-bedders with no parking, two-bedders with one space, three-bedders with two – there’s your issue. Everyone has a car these days (except maybe in the inner city). Councils need to consider their market. More parking and proper visitor spaces would help. But that means fewer apartments, less profit for developers and less revenue for Councils.

Conclusion

So there you have it, 20 years and not much has changed. Two decades on, strata’s core issues persist. Real change needs swift renovation enforcement, builder accountability, pet policy balance and parking laws with teeth. Until real accountability and reform arrive, we’ll keep calling it D.R.A.P. for a reason.

Strata is the fourth tier of government – so let it govern.