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Unit	
  Titles	
  Law	
  –	
  What’s	
  New,	
  What’s	
  Next,	
  
What	
  Now?	
  
                                  About the presenter - Michael Teys is the Founder and Principal Lawyer of
                                  TEYS Lawyers. He has a Bachelor of Laws and practices exclusively in the
                                  area of strata title law. He is a Fellow of the Australian College of
                                  Community Association Lawyers. He was formerly an Adjunct Lecturer with
                                  Charles Sturt University. He appears weekly on SKY News Business
                                  Channel's Property Success with Margaret Lomas and is a regular panellist
                                  for the property edition of Your Money, Your Call for the same channel. You
                                  can read Michael’s blog at www.michaelteys.com and follow him on Twitter
                                  at @MichaelTeys.com


Teys Lawyers practice nationally in strata title law representing owners corporations, bodies
corporate and apartment owners. The firm’s practice groups include building defects, strata
community disputes, strata titles property law, by-laws and levy collection.
Subscribe for their free e-newsletter StrataSpace and find out more about them at
www.teyslawyers.com.au


  ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  
Unit	
  Titles	
  Law	
  ACT	
  –	
  What’s	
  New,	
  
What’s	
  Next,	
  What	
  Now?	
  
	
  
	
  
PresentaEon	
  April	
  2012	
  

©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  
What’s	
  New?	
  More	
  Personal	
  Responsibility	
  



                                                  Privacy	
  
                                                 Conduct	
  
                                              Health	
  &	
  Safety	
  




©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  
Privacy	
  Laws	
  Apply	
  to	
  Records	
  

                                                           Corporate	
  register	
  
                                                           contains	
  personal	
                              LimitaEons	
  on	
  
EC	
  members	
  have	
                                     informaEon	
  and	
                               human	
  rights	
  to	
  
 responsibility	
  for	
  
                                                           must	
  be	
  separately	
                            privacy	
  are	
  
privacy	
  compliance	
  
                                                          displayed,	
  printed	
  or	
                        proporEonate	
  
                                                                   emailed	
  




©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
         	
     	
     	
     	
       	
     	
     	
  www.teyslawyers.com.au	
  
Personal	
  InformaEon	
  Held	
  by	
  OC’s	
  and	
  
                 Managers	
  	
  
                                                                                                           Owners	
  credit	
  
             Names	
                                      Tenancy	
  details	
  	
  
                                                                                                            card	
  details	
  	
  



                                                              Property	
                                   Bank	
  account	
  
         Addresses	
  	
                                  descripEons	
  and	
                              details	
  for	
  
                                                             valuaEons	
                                     suppliers	
  


                                                                                                         SomeEmes	
  proof	
  
                                                                   Telephone	
  
  Email	
  addresses	
                                                                                      of	
  personal	
  
                                                                    numbers	
  
                                                                                                           idenEficaEon	
  	
  


©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
       	
        	
     	
     	
     	
     	
      	
  www.teyslawyers.com.au	
  
What	
  Do	
  Strata	
  Managers	
  Do	
  With	
  
                  This	
  InformaEon?	
  
What?	
  	
                                                               Allowed	
  or	
  not?	
  
	
  
Give	
  it	
  to	
  strata	
  inspectors	
  	
                            Required	
  by	
  strata	
  management	
  laws	
  
	
  
Give	
  it	
  to	
  the	
  execuEve	
  commiXee	
  	
                     Probably	
  not	
  allowed	
  under	
  NaEonal	
  	
  
                                                                          Privacy	
  Principles	
  	
  	
  
Give	
  it	
  to	
  web	
  hosEng	
  companies	
  	
                      Probably	
  not	
  allowed	
  under	
  NaEonal	
  
                                                                          Privacy	
  Principles	
  	
  
Give	
  it	
  to	
  strata	
  management	
  soYware	
  	
                 Probably	
  not	
  allowed	
  under	
  NaEonal	
  
providers	
                                                               Privacy	
  Principles	
  
Give	
  it	
  to	
  associated	
  suppliers	
  for	
  cross	
             Probably	
  not	
  allowed	
  under	
  NaEonal	
  
markeEng	
  (e.g.	
  banks	
  )	
  	
                                     Privacy	
  	
  Principles	
  	
  	
  
Throw	
  it	
  in	
  the	
  rubbish	
  (paper	
  and	
                    Not	
  allowed	
  under	
  NaEonal	
  	
  Privacy	
  
redundant	
  IT)	
  	
                                                    Principles	
  	
  


  ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
      	
      	
     	
     	
     	
  www.teyslawyers.com.au	
  
What	
  Should	
  Owners	
  Do	
  to	
  Manage	
  
                       Privacy?	
  


•  Limit	
  informaEon	
                                            Protect	
  	
                          •  Audit	
  privacy	
  
   collected	
  to	
  that	
                                                                                  policies	
  
   which	
  is	
  absolutely	
                       •  Secure	
  info	
  
                                                        electronically	
  and	
                            •  Audit	
  strata	
  
   necessary	
  	
                                                                                            managers	
  document	
  
                                                        give	
  traceable	
  
                                                        access	
  only	
                                      security	
  processes	
  	
  
                                                     •  Use	
  privacy	
  policies	
  	
  
                Limit	
  	
                                                                                           Check	
  	
  

  ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
      	
       	
     	
      	
      	
     	
          	
  www.teyslawyers.com.au	
  
A	
  New	
  EC	
  Code	
  of	
  Conduct	
  
                                                                        1.  Understanding	
  of	
  Act	
  
                                                                        2.  Honesty	
  and	
  fairness	
  
                                                                        3.  Care	
  and	
  diligence	
  
                                                                        4.  Best	
  interest	
  
                                                                        5.  Compliance	
  
                                                                        6.  Nuisance	
  
                                                                        7.  Unconscionable	
  
                                                                            conduct	
  
                                                                        8.  Conflict	
  of	
  interest	
  

©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  
What	
  Is	
  Reasonable	
  Care	
  &	
  Diligence?	
  
                                                                          For	
  example:	
  
diligence	
  /	
  noun	
  constant	
  and	
  
earnest	
  effort	
  to	
  accomplish	
                                    •  Checking	
  references	
  and	
  
what	
  is	
  undertaken;	
  persistent	
                                    insurance	
  policy	
  of	
  a	
  new	
  
                                                                             strata	
  manager	
  
exerEon	
  of	
  body	
  or	
  mind	
  
                                                                          •  Considering	
  external	
  advice	
  
Macquarie	
  DicEonary	
  4th	
  EdiEon	
                                    and	
  only	
  acEng	
  otherwise	
  in	
  
                                                                             special	
  circumstances	
  
                                                                          •  Finding	
  out	
  about	
  
                                                                             responsibiliEes	
  and	
  Eme	
  
                                                                             limitaEons	
  in	
  building	
  defect	
  
                                                                             maXers	
  

  ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  
The	
  New	
  WHS	
  Approach	
  	
  



                                                  PCBU	
  
 ‘Work’	
  is	
  the	
                                                            PosiEve	
  duty	
                Significantly	
  
                                              concurrent	
  
  key	
  concept	
                                                                for	
  officers	
  to	
             increased	
  
                                            duEes	
  of	
  care,	
  
         not	
                                                                     exercise	
  due	
                 personal	
  
                                            consultaEon	
  &	
  
  ‘Workplace’	
                                                                      diligence	
                      liability	
  
                                             co-­‐operaEon	
  




©	
  Copyright	
  2012	
  Teys	
  Lawyers      	
     	
     	
     	
     	
          	
     	
     	
     	
  www.teyslawyers.com.au	
  
Work	
  Health	
  Safety	
  Stakes	
  Are	
  Higher	
  
                                                                        •  Recklessness	
  /	
  risk	
  
                                                                               –  OC	
  /	
  BC	
  $3million	
  
                                                                               –  CommiXee	
  $600,000	
  /	
  5	
  years	
  
                                                                                  jail	
  
                                                                               –  SM	
  $300,000	
  /	
  5	
  years	
  jail	
  
                                                                        •  Breach	
  /	
  risk	
  
                                                                               –  OC	
  /	
  BC	
  $1.5	
  million	
  
                                                                               –  CommiXee	
  	
  $300,000	
  
                                                                               –  SM	
  $150,000	
  
                                                                        •  Breach	
  
                                                                               –  OC	
  /	
  BC	
  $500,000	
  
                                                                               –  CommiXee	
  $100,000	
  
                                                                               –  SM	
  $50,000	
  

©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  
But	
  the	
  Defence	
  for	
  Personal	
  Liability	
  is	
  
                     Clearer	
  
1.  Keep	
  up	
  to	
  date	
  
2.  Understand	
  operaEons	
  
3.  Eliminate	
  or	
  minimise	
  risks	
  
4.  Process	
  informaEon	
  
5.  Supply	
  resources	
  and	
  
    processes	
  	
  
6.  Verify	
  provision	
  and	
  use	
  of	
  
    resources	
  and	
  processes	
  
(Due	
  diligence	
  defence	
  S.27(5)	
  
WHS	
  2011)	
  


 ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  
Persons	
  Who	
  Are	
  Not	
  A	
  PCBU	
  	
  




                                                                         A	
  strata	
  body	
  that	
  is	
  
                                                                  responsible	
  for	
  any	
  common	
  
                                                                 areas	
  used	
  only	
  for	
  residenEal	
  
                                                                 purposes	
  is	
  not	
  a	
  PCBU	
  so	
  long	
  
                                                                 as	
  no	
  worker	
  is	
  engaged	
  as	
  an	
  
                                                                 employee	
  (s.7	
  WHS	
  Act	
  2011)	
  



©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
         	
     	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  
Not	
  Only	
  For	
  ResidenEal	
  Purposes	
  
•  OC	
  /	
  BC	
  employees	
  
•  Common	
  property	
  with	
  
   commercial	
  lots	
  
•  On-­‐site	
  lepng	
  agent	
  
•  Lots	
  used	
  as	
  home	
  businesses	
  
•  Nannies	
  employed	
  in	
  lots	
  
•  Lots	
  for	
  short	
  term	
  
   accommodaEon	
  
•  CommunicaEon	
  towers	
  /	
  
   satellite	
  dish	
  /	
  adverEsing	
  
   signs	
  

   ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  
The	
  Basic	
  WHS	
  Duty	
  of	
  Care	
  
                                                                        “To	
  ensure,	
  so	
  far	
  as	
  is	
  
                                                                        reasonably	
  pracEcable,	
  
                                                                        the	
  health	
  and	
  safety	
  of	
  
                                                                        workers	
  and	
  other	
  
                                                                        persons”	
  
                                                                        	
  
                                                                        Hargreaves	
  v	
  Telstra	
  Corp	
  
                                                                        Ltd	
  [2011]	
  AATA	
  417	
  (17	
  
                                                                        June	
  2011)	
  is	
  the	
  high	
  water	
  
                                                                        mark	
  

©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  
The	
  Latest	
  From	
  the	
  High	
  Court	
  on	
  
                       Safe	
  Systems	
  
•  Amputee	
  slipped	
  on	
  chip	
  
•  “Reasonable	
  care	
  
     requires	
  the	
  inspecEon	
  
     and	
  removal	
  of	
  slipping	
  
     hazards	
  at	
  intervals	
  not	
  
     greater	
  than	
  20	
  minutes”	
  
•  Damages	
  awarded	
  
     $580,299.12	
  +	
  costs	
  
Strong	
  v	
  Woolworths	
  [2012]	
  
HCA	
  5,	
  7	
  March	
  2012	
  	
  
	
  
  ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  
A	
  Strata	
  Body’s	
  General	
  DuEes	
  About	
  Asbestos	
  

                                                                         •  To	
  ensure	
  that	
  
                                                                            exposure	
  to	
  airborne	
  
                                                                            asbestos	
  is	
  eliminated	
  
                                                                            or	
  minimised	
  so	
  far	
  as	
  
                                                                            reasonably	
  pracEcal	
  
                                                                         •  To	
  ensure	
  that	
  
                                                                            exposure	
  standards	
  for	
  
                                                                            asbestos	
  are	
  not	
  
                                                                            exceeded	
  	
  
                                                                         s.420	
  WHS	
  RegulaEons	
  
                                                                         2011	
  

 ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  
Your	
  Insurance	
  Does	
  Not	
  Cover	
  This	
  Risk	
  




  ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  
Strata	
  Bodies	
  Have	
  Unlimited	
  Liability	
  	
  
•  An	
  uninsured	
  owners	
  
   corporaEon	
  or	
  body	
  
   corporate	
  must	
  sEll	
  pay	
  a	
  
   damages	
  award	
  
•  Unlike	
  shareholders	
  and	
  
   club	
  members,	
  lot	
  owners	
  
   do	
  not	
  have	
  limited	
  liability	
  
•  An	
  administrator	
  will	
  be	
  
   appointed	
  to	
  strike	
  a	
  levy	
  to	
  
   cover	
  damages	
  and	
  costs	
  

 ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  
What’s	
  Next?	
  

                                                                          •  Increased	
  focus	
  on	
  sinking	
  
                                                                             funds	
  (ACT	
  Greens)	
  
                                                                          •  Forcing	
  faster	
  unit	
  owner	
  
                                                                             acEon	
  on	
  building	
  defects	
  
                                                                             	
  (NSW	
  lead)	
  
                                                                          •  Building	
  quality	
  reforms	
  
                                                                             (ACT	
  Building	
  Act	
  review)	
  



©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
       	
     	
     	
      	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  
5	
  Things	
  Owners	
  Should	
  Do	
  Now	
  
1.  Adopt	
  a	
  privacy	
  policy	
  
2.  Demonstrate	
  reasonable	
  
    care	
  and	
  diligence	
  
3.  Commission	
  health	
  and	
  
    safety	
  audit	
  
4.  AXend	
  to	
  asbestos	
  	
  
5.  Develop	
  governance	
  
    principles	
  
    ©	
  Copyright	
  2012	
  Teys	
  Lawyers   	
     	
     	
     	
     	
     	
     	
     	
     	
  www.teyslawyers.com.au	
  

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ACT OCN - Unit Titles Law - What's New, What's Next, What Now?

  • 1. Unit  Titles  Law  –  What’s  New,  What’s  Next,   What  Now?   About the presenter - Michael Teys is the Founder and Principal Lawyer of TEYS Lawyers. He has a Bachelor of Laws and practices exclusively in the area of strata title law. He is a Fellow of the Australian College of Community Association Lawyers. He was formerly an Adjunct Lecturer with Charles Sturt University. He appears weekly on SKY News Business Channel's Property Success with Margaret Lomas and is a regular panellist for the property edition of Your Money, Your Call for the same channel. You can read Michael’s blog at www.michaelteys.com and follow him on Twitter at @MichaelTeys.com Teys Lawyers practice nationally in strata title law representing owners corporations, bodies corporate and apartment owners. The firm’s practice groups include building defects, strata community disputes, strata titles property law, by-laws and levy collection. Subscribe for their free e-newsletter StrataSpace and find out more about them at www.teyslawyers.com.au ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 2. Unit  Titles  Law  ACT  –  What’s  New,   What’s  Next,  What  Now?       PresentaEon  April  2012   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 3. What’s  New?  More  Personal  Responsibility   Privacy   Conduct   Health  &  Safety   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 4. Privacy  Laws  Apply  to  Records   Corporate  register   contains  personal   LimitaEons  on   EC  members  have   informaEon  and   human  rights  to   responsibility  for   must  be  separately   privacy  are   privacy  compliance   displayed,  printed  or   proporEonate   emailed   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 5. Personal  InformaEon  Held  by  OC’s  and   Managers     Owners  credit   Names   Tenancy  details     card  details     Property   Bank  account   Addresses     descripEons  and   details  for   valuaEons   suppliers   SomeEmes  proof   Telephone   Email  addresses   of  personal   numbers   idenEficaEon     ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 6. What  Do  Strata  Managers  Do  With   This  InformaEon?   What?     Allowed  or  not?     Give  it  to  strata  inspectors     Required  by  strata  management  laws     Give  it  to  the  execuEve  commiXee     Probably  not  allowed  under  NaEonal     Privacy  Principles       Give  it  to  web  hosEng  companies     Probably  not  allowed  under  NaEonal   Privacy  Principles     Give  it  to  strata  management  soYware     Probably  not  allowed  under  NaEonal   providers   Privacy  Principles   Give  it  to  associated  suppliers  for  cross   Probably  not  allowed  under  NaEonal   markeEng  (e.g.  banks  )     Privacy    Principles       Throw  it  in  the  rubbish  (paper  and   Not  allowed  under  NaEonal    Privacy   redundant  IT)     Principles     ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 7. What  Should  Owners  Do  to  Manage   Privacy?   •  Limit  informaEon   Protect     •  Audit  privacy   collected  to  that   policies   which  is  absolutely   •  Secure  info   electronically  and   •  Audit  strata   necessary     managers  document   give  traceable   access  only   security  processes     •  Use  privacy  policies     Limit     Check     ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 8. A  New  EC  Code  of  Conduct   1.  Understanding  of  Act   2.  Honesty  and  fairness   3.  Care  and  diligence   4.  Best  interest   5.  Compliance   6.  Nuisance   7.  Unconscionable   conduct   8.  Conflict  of  interest   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 9. What  Is  Reasonable  Care  &  Diligence?   For  example:   diligence  /  noun  constant  and   earnest  effort  to  accomplish   •  Checking  references  and   what  is  undertaken;  persistent   insurance  policy  of  a  new   strata  manager   exerEon  of  body  or  mind   •  Considering  external  advice   Macquarie  DicEonary  4th  EdiEon   and  only  acEng  otherwise  in   special  circumstances   •  Finding  out  about   responsibiliEes  and  Eme   limitaEons  in  building  defect   maXers   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 10. The  New  WHS  Approach     PCBU   ‘Work’  is  the   PosiEve  duty   Significantly   concurrent   key  concept   for  officers  to   increased   duEes  of  care,   not   exercise  due   personal   consultaEon  &   ‘Workplace’   diligence   liability   co-­‐operaEon   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 11. Work  Health  Safety  Stakes  Are  Higher   •  Recklessness  /  risk   –  OC  /  BC  $3million   –  CommiXee  $600,000  /  5  years   jail   –  SM  $300,000  /  5  years  jail   •  Breach  /  risk   –  OC  /  BC  $1.5  million   –  CommiXee    $300,000   –  SM  $150,000   •  Breach   –  OC  /  BC  $500,000   –  CommiXee  $100,000   –  SM  $50,000   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 12. But  the  Defence  for  Personal  Liability  is   Clearer   1.  Keep  up  to  date   2.  Understand  operaEons   3.  Eliminate  or  minimise  risks   4.  Process  informaEon   5.  Supply  resources  and   processes     6.  Verify  provision  and  use  of   resources  and  processes   (Due  diligence  defence  S.27(5)   WHS  2011)   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 13. Persons  Who  Are  Not  A  PCBU     A  strata  body  that  is   responsible  for  any  common   areas  used  only  for  residenEal   purposes  is  not  a  PCBU  so  long   as  no  worker  is  engaged  as  an   employee  (s.7  WHS  Act  2011)   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 14. Not  Only  For  ResidenEal  Purposes   •  OC  /  BC  employees   •  Common  property  with   commercial  lots   •  On-­‐site  lepng  agent   •  Lots  used  as  home  businesses   •  Nannies  employed  in  lots   •  Lots  for  short  term   accommodaEon   •  CommunicaEon  towers  /   satellite  dish  /  adverEsing   signs   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 15. The  Basic  WHS  Duty  of  Care   “To  ensure,  so  far  as  is   reasonably  pracEcable,   the  health  and  safety  of   workers  and  other   persons”     Hargreaves  v  Telstra  Corp   Ltd  [2011]  AATA  417  (17   June  2011)  is  the  high  water   mark   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 16. The  Latest  From  the  High  Court  on   Safe  Systems   •  Amputee  slipped  on  chip   •  “Reasonable  care   requires  the  inspecEon   and  removal  of  slipping   hazards  at  intervals  not   greater  than  20  minutes”   •  Damages  awarded   $580,299.12  +  costs   Strong  v  Woolworths  [2012]   HCA  5,  7  March  2012       ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 17. A  Strata  Body’s  General  DuEes  About  Asbestos   •  To  ensure  that   exposure  to  airborne   asbestos  is  eliminated   or  minimised  so  far  as   reasonably  pracEcal   •  To  ensure  that   exposure  standards  for   asbestos  are  not   exceeded     s.420  WHS  RegulaEons   2011   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 18. Your  Insurance  Does  Not  Cover  This  Risk   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 19. Strata  Bodies  Have  Unlimited  Liability     •  An  uninsured  owners   corporaEon  or  body   corporate  must  sEll  pay  a   damages  award   •  Unlike  shareholders  and   club  members,  lot  owners   do  not  have  limited  liability   •  An  administrator  will  be   appointed  to  strike  a  levy  to   cover  damages  and  costs   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 20. What’s  Next?   •  Increased  focus  on  sinking   funds  (ACT  Greens)   •  Forcing  faster  unit  owner   acEon  on  building  defects    (NSW  lead)   •  Building  quality  reforms   (ACT  Building  Act  review)   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au  
  • 21. 5  Things  Owners  Should  Do  Now   1.  Adopt  a  privacy  policy   2.  Demonstrate  reasonable   care  and  diligence   3.  Commission  health  and   safety  audit   4.  AXend  to  asbestos     5.  Develop  governance   principles   ©  Copyright  2012  Teys  Lawyers                  www.teyslawyers.com.au