New South Wales Consolidated Acts

STRATA SCHEMES MANAGEMENT ACT 1996 - SECT 50

50 Restrictions on by-laws during initial period

(1) An owners corporation must not, during the initial period, make, amend or repeal a by-law in such a manner that a right is conferred or an obligation is imposed on one or more, but not all, owners or in respect of one or more, but not all, lots.

(2) An owners corporation may recover from the original owner, as damages for breach of statutory duty, any loss suffered by the owners corporation as a result of a contravention of this section.

(3) An owner may recover, as damages for breach of statutory duty, any loss that has been suffered by the owner as a result of a contravention of this section.

(4) It is a defence to an action under this section for damages if it is proved that the original owner:

(a) did not know of the contravention on which the action is based, or

(b) was not in a position to influence the conduct of the owners corporation in relation to the contravention, or

(c) used due diligence to prevent the contravention.

(5) A remedy available under this section does not affect any other remedy.