When a dispute between a unit owner and Owners Corporation arises, it is easy for the Strata Committee to cease communicating with the unit owner once they have made their decision. After all, it’s a painful task to continue to talk about a ‘resolved’ (in the eyes if the OC) issue.

From the unit owner’s perspective however, getting stonewalled by the Committee doesn’t mean the issue goes away. It’ll usually bring forward the realisation that they have little option other than to take legal action.

In NSW, NCAT requires that mediation first takes place through Fair Trading. Mediation usually takes up three or so hours of time and if the Strata Manager attends, the Owners Corporation will see a bill in excess of $500.

If that fails and the Unit Owner seeks to be heard by NCAT, this is where the real bills start rolling in. The Strata Managers time will usually be in the vicinity of $200/hour and Solicitor representation will be $400+/hour.

Starting with conciliation and all the way through to final orders it isn’t uncommon to see the Owners Corporation incurring fees in excess of $10,000. Even if orders are in the favour of the OC, NCAT is unable to make costs orders against the unit owner.

The outcome? Whilst victorious, it’s doubtful members of the OC will be thrilled at paying the bills.

Fortunately, there is usually cover under the insurance policy to protect the OC from these types of fees, and in some circumstances any liability it is encumbered by.

An insurer will however take into consideration the most economic way of settling the matter and if that means paying the owner the amount they want, then that’s what will happen.

Rather than getting too hung up on who is right, it is best for all to try to resolve the matter in an amicable manner. After all, this will usually be the method that yields the best financial outcome.

Want to know which policies have the best legal protection? Head to our Ratings page to see which policies you should read into further.