Disputes can occur within a community and owners corporations are no exception. At times, owners corporations can experience an increased number of disputes, given the number of lot owners with diverse interests and the complexity of managing common property. Disputes in owners corporations can range from minor issues such as noise complaints to significant conflicts over registered rules, structural issues or repairs and maintenance matters of lots and common property.
It is, therefore, crucial to have effective dispute resolution mechanisms in place. Our Founder, Michael Darby had the opportunity to sit down with Anton Block, principal at KCL Law and an accredited mediator, about dispute resolution in owners corporations.
Here are some key highlights from their conversation:
Who Can Access the Dispute Resolution Process?
One of the first questions to consider when dealing with disputes in owners corporations is who can access the dispute resolution process. The dispute resolution process is generally available to owners and occupiers of a lot in the owners corporation.
However, it is worth noting that the Owners Corporation Act 2006 clearly indicates that a proper and equitable notification process must be followed, using the prescribed form.
VCAT, Magistrates or County Court?
When it comes to resolving disputes, owners corporations have several options. They can choose to resolve disputes through the Victorian Civil and Administrative Tribunal (VCAT), the Magistrates Court, or the County Court.
While VCAT does not have exclusive jurisdiction over owners corporation matters, it is the most commonly used option, primarily due to its efficiency, cost-effectiveness and tribunal members who are across owners corporation matters.
However, there may be situations where disputes are too complex or significant to be resolved through VCAT. In such cases, owners corporations may choose to take the matter to the Magistrates or County Court.
The Importance of Appointing a Grievance Committee
An important step in the dispute resolution process is appointing a Grievance Committee. A Grievance Committee is a group of owners within the owners corporation who are appointed to resolve disputes. The committee is responsible for hearing and investigating and mediating disputes and making recommendations for resolution.
Proactively appointing a Grievance Committee at the Annual General Meeting can help to ensure that the committee is made up of individuals who are experienced and knowledgeable about the owners corporation’s rules and regulations. This can help to ensure that disputes are resolved efficiently and effectively, as the committee members are already familiar with the by-laws and the process for resolving disputes.
Appointing a Grievance Committee beforehand can also help to promote transparency and accountability within the owners corporation. By acknowledging that disputes do occur within an owners corporation, but also providing a solution to address them, the post communicates that owners corporations exercise preparedness and proactive management to foster a peaceful and harmonious community.
Tips for a Good Dispute Resolution Process
Anton Block provides some useful tips for ensuring a good dispute resolution process. One of the most crucial tips is to ensure that all parties involved have a clear understanding of the dispute resolution process. This means providing information on the steps involved, timelines, and the role of each party.
Another key tip is to ensure that the dispute resolution process is unbiased and impartial. This means ensuring that the Grievance Committee is made up of individuals who are not involved in the dispute and who can act objectively.
The Role of an Owners Corporation Manager in the Dispute Resolution Process Owners corporation managers play a critical role in the dispute resolution process. They are responsible for ensuring that the dispute resolution process is followed in accordance with the Owners Corporation Act. This means providing support and guidance to the Grievance Committee and ensuring that all parties are aware of their roles and responsibilities.
Owners corporation managers can also provide valuable and objective insights into the dispute resolution process, given their experience in managing shared property. They can identify common sources of disputes and provide recommendations for preventing future conflicts.
Disputes in owners corporations can be challenging to resolve, but with effective dispute resolution mechanisms in place, they can be managed in a timely and cost-effective manner. The key to a successful dispute resolution process is ensuring that all parties involved have a clear understanding of the process, and that the process is unbiased and impartial. Appointing a Grievance Committee and working closely with an owners corporation manager can help to ensure that disputes are resolved effectively, allowing for more harmonious and connected communities.