Resolving Disputes in Strata and Community Groups

Disagreements are inevitable. How you handle them matters.

Unit living brings together people with different backgrounds, habits and expectations. Disputes happen. The question isn't whether they'll arise, but how they get resolved.

The good news is that most disagreements can be sorted out through straightforward conversation. Tolerance, understanding and clear communication go a long way in shared living.

A step-by-step approach to resolution

Step 1: Have a conversation

It sounds obvious, but many disputes escalate simply because the people involved never actually talked to each other about the problem. Before anything formal happens, make a genuine attempt to resolve things directly. If a one-on-one conversation feels too difficult, consider raising the issue at a corporation meeting where it can be discussed with others present.

Step 2: Issue a breach notice

If the corporation is satisfied that an owner or occupier has breached the Articles or by-laws, it can formally notify that person. The breach notice sets out what's gone wrong and requires the person to comply. This is the corporation's first formal step.

Step 3: Try mediation

Mediation is a structured process where a neutral, independent mediator helps the parties work toward their own resolution. It's voluntary, so both sides need to be willing to participate and either party can withdraw at any time.

Community mediation services exist in every state and territory to help settle neighbourhood and strata disputes, and in several jurisdictions mediation is a compulsory step before a tribunal will hear a strata matter at all. New South Wales requires it through NSW Fair Trading for most disputes, and Queensland requires conciliation through the Commissioner for Body Corporate and Community Management. Check whether yours is a precondition rather than an option. Trained mediators listen, ask questions and gather the facts without taking sides or assigning blame. If successful, the parties construct an agreement together. While not legally binding, these agreements are made in good faith and are often effective.

Why mediation works well for strata disputes:

• It avoids the cost of court and solicitors

• It's private, unlike court proceedings

• It helps resolve issues early, reducing stress

• Both parties take ownership of the outcome

What a mediator does:

• Helps everyone identify the actual issues in dispute

• Explains rights and responsibilities under the relevant Act where needed

• Suggests practical options and strategies to move forward

Step 4: Take it to the tribunal or court

If mediation doesn't resolve things, or if a member believes the corporation or management committee has acted unreasonably, unjustly or oppressively, there is a formal route. Where you go depends on where you are, and this is the single biggest difference between jurisdictions in this article.

• NSW. NCAT, the Civil and Administrative Tribunal, after mediation through NSW Fair Trading.

• VIC. VCAT, generally after conciliation through Consumer Affairs Victoria.

• QLD. The Commissioner for Body Corporate and Community Management, whose adjudicators decide most disputes, with appeals to QCAT.

• WA. The State Administrative Tribunal.

• SA. The Magistrates Court, treated as a minor civil action. South Australia has no strata commissioner, ombudsman or dedicated tribunal, which makes it unusual.

• TAS. The Recorder of Titles, with appeals to the Magistrates Court.

• ACT. ACAT, the Civil and Administrative Tribunal.

• NT. NTCAT, the Civil and Administrative Tribunal.

The corporation can usually be represented by its manager or a lawyer, subject to the tribunal's rules on representation, and the owner concerned should also attend.

The Court can:

• Order someone to stop doing something

• Order changes to the Articles of association

• Restructure or direct the management committee

• Order someone to take a specific action

• Award damages or compensation

• Require records or information to be produced

• Appoint an administrator to take over the corporation's powers

Failure to comply with a court order is a serious offence — penalties can include heavy fines and even imprisonment. If the matter is particularly complex or involves large sums, it may be transferred to the District or Supreme Court.

Dealing with problem tenants

If a tenant is using their unit for illegal purposes, causing a nuisance or interfering with the peace, comfort or privacy of other occupiers, the affected parties can apply to the Residential Tenancy Tribunal to have the tenancy terminated.

Whether you're at the conversation stage or considering formal action, we can help you understand your options and next steps. Get in touch with the Acacia Collective team today.