22 JANUARY 2024
OCN wrote to Federal, State and Territory Consumer Affairs Ministers, asking them to identify and address gaps in the Australian Consumer Law (ACL) insofar as they apply to owners corporations.
Gaps in the ACL leave owners corporations, lot owners and tenants at a significant disadvantage in their dealings with businesses, including developers and strata/owners corporation managers.
The ACL provides that unfair terms of a consumer or a small business contract are void. Terms are unfair if they cause a significant imbalance in the parties’ rights and obligations, the term is not reasonably necessary to protect the legitimate interests of the party advantaged by the term, and the term would cause detriment should it be relied upon. However, this regime does not apply to contracts entered into by owners corporations.
Beyond unfair terms, the consumer guarantee provisions of the ACL are not well-adapted to owners corporations. These provisions include the guarantee that services are provided with due care and skill, are fit for purpose, and are provided within a reasonable time.
Read our submission:> OCN Submission – Australian Consumer Law & Owners Corporations January 2024 Commonwealth
See our Strata Management Agreement guide:> https://ocn.org.au/member-portal/strata-guides/