In a significant decision delivered in September 2025, the NCAT Appeal Panel provided important guidance for lot owners in New South Wales in Shah v The Owners – Strata Plan No. 7655. The case confirms that while Owners Corporations (OCs) can regulate common property and protect amenity, they cannot impose blanket bans that ignore individual circumstances. Julian and Renee at Flash Conveyancing regularly see clients affected by overly restrictive by-laws, and Shah provides a clear pathway to challenge them.
The dispute arose when Ms Bianca Shah sought to renovate her three-bedroom, one-bathroom unit in a 26-lot scheme in Kirribilli into a two-bedroom, two-bathroom layout. The proposed new bathroom was to be built above a habitable room in the unit below. In response, the OC introduced Special By-Law 19 in March 2024, prohibiting the construction of any bathroom, laundry, or toilet above a habitable room of another lot.
Ms Shah challenged the by-law under Section 150 of the Strata Schemes Management Act 2015 (NSW), arguing it was harsh, unconscionable, or oppressive. The Appeal Panel agreed and overturned the original Tribunal decision.
Key findings included:
- No blanket prohibitions: By-laws that impose absolute bans without discretion are invalid.
- Case-by-case assessment required: Owners must be given the opportunity to demonstrate that modern building methods—such as improved waterproofing and soundproofing—can mitigate impacts.
- Unreasonable restrictions: Blanket bans can improperly interfere with a lot owner’s right to use and improve their property.
This decision provides practical guidance for 2026:
- Registered by-laws are not absolute and can be challenged if they are overly restrictive.
- Advances in construction technology mean historical concerns (noise and leaks) are no longer automatic grounds for refusal.
- Due diligence before purchase is critical—reviewing strata by-laws can identify restrictions that may affect future renovation plans.
Flash Conveyancing Advice:
Always review strata by-laws carefully before purchasing, especially for restrictions on wet areas or structural changes. Where blanket bans exist, expert evidence and the Shah decision may provide strong grounds to challenge their validity.
Flash Conveyancing, led by Julian & Renee, specialise in property transactions across New South Wales. With extensive experience working with councils including Blacktown, Hawkesbury, Blue Mountains, The Hills, Hornsby, and Parramatta, they deliver a personalised, secure approach to every settlement. Whether you’re buying or selling in Acacia Gardens, Blacktown, Kellyville Ridge, Schofields, The Ponds, Castle Hill, Rouse Hill, or across Greater Western Sydney, your transaction is handled clearly, confidently, and with care.