Short answer
Yes. A registered by-law is legally binding on the owners corporation, owners, tenants and occupiers, and it can be enforced — usually through a notice to comply and, if the breach continues, an application to the NSW Civil and Administrative Tribunal (NCAT), which can impose a penalty. A by-law that is harsh, unconscionable or oppressive can still be challenged and set aside, so being enforceable is not the same as being unlimited.
Who a by-law binds
A by-law is not a house-request or a polite notice — once it is properly made and registered, it binds everyone connected to the scheme: the owners corporation itself, every lot owner, their tenants, and any other occupier or visitor. A person does not have to have voted for a by-law, or even have owned their lot when it was made, to be bound by it. That is why a by-law can be relied on against a tenant even though the tenant was never a member of the owners corporation.
How it is enforced
Enforceability runs through a defined process rather than self-help. The owners corporation generally issues a notice to comply first, giving the person a chance to fix the breach. If the breach continues, the owners corporation can apply to NCAT, which can order a monetary penalty. Skipping the notice and going straight to a penalty generally will not work. (See how to enforce a by-law an owner is ignoring.)
The limits on enforceability
A by-law only stands if it is lawful. It must not be inconsistent with the Strata Schemes Management Act 2015 or any other law, and it must not be harsh, unconscionable or oppressive. Some blanket restrictions the law does not permit — for example, a by-law that unreasonably prohibits keeping an animal has no effect. An owner who believes a by-law crosses that line can ask NCAT to invalidate or change it.
Keeping enforceable by-laws in order
A by-law is only enforceable if it was made and registered properly and you can show that. For a self-managed scheme the work is record-keeping and process: knowing which by-laws are current, when each was registered, and that any notice to comply was issued correctly. A system such as Straita keeps the registered by-law set, the change history and the enforcement steps together, so the committee acts on rules it can actually stand behind.
Primary sources
- Strata Schemes Management Act 2015 (NSW) — by-laws bind owners and occupiers, the reasonableness limit, and enforcement by notice to comply and Tribunal penalty.
- NSW Government — Strata by-laws (Fair Trading) — enforceability, limits and the enforcement process.
- NSW Civil and Administrative Tribunal (NCAT) — strata disputes and by-law breach applications.