Local Courts to determine company title disputes

Local Courts will soon be able to hear and determine proceedings concerning certain company title home unit disputes under the NSW Government’s Local Court Amendment (Company Title Home Unit Disputes) Bill 2013, recently introduced by the Attorney-General, Greg Smith.

In company title buildings, the block of units is owned by a company, and residents acquire their entitlment to own or rent out a unit through purchasing shares in the company

The Bill amends the Local Court Act 2007 to confer jurisdiction on Local Courts hear disputes and make a wide range of orders, including allowing the court to fit a resolution more appropriately for disputes involving company title home units. Disputes may arise between shareholders, residents or the corporation and can include disagreements about parking on the common property and the repair or maintenance of common property, the units’ exterior appearance, the keeping of pets and administrative issues such as levies.

The move is an attempt to simplify the dispute resolution process between residents in company title home units. Currently, disputes are adjudicated in the Supreme Court which can be complex, costly and time consuming. 

A similar Bill, The Company Titles (Home Units) Bill 2013, has recently been introduced in Victoria. Under this Bill, neighbourhood disputes in company title buildings will be resolved at the Victorian Civil and Administrative Tribunal (VCAT), rather than the Supreme Court.

The Bill and explanatory notes are available here.

Track Draft Legislation using TimeBase’s LawOne Service, which provides Australian Legislation in a consistent and reliable format. Contact us for a free trial.