In many cases, owners need to pass a resolution at an owners corporation meeting before they can engage legal services or commence strata legal action.
The owners corporation or strata committee may obtain legal services without approval if:
- urgent action is needed to protect the owners’ interests
- the cost of the legal services is no more than $15,000.
Approval is not required to:
- obtain legal advice before starting legal action
- take legal action to recover unpaid contributions (that is, strata fees owed by a lot owner), interest on unpaid contributions or related expenses.
- If the owners corporation has received estimates of how much the legal services will cost, it must give a copy to each owner and the strata committee within 14 days.
Where legal action has been brought against one or more lot owners, or by lot owners against the owners corporation, the court may order for specific lots to be levied to pay costs. This would be based on what the court has determined, and which parties are liable for paying expenses.
© State of New South Wales (NSW Fair Trading). For current information go to fairtrading.gov.au