Section 140 - Strata Schemes Management Act 2015 - Restrictions on by-laws during initial period

140Restrictions on by-laws during initial period

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140 Restrictions on by-laws during initial period

(1) An owners corporation for a strata scheme must not, during the initial period, change the by-laws so 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 in the scheme.

(2) An owners corporation may recover from the original owner of the strata scheme, 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 of a lot in a strata scheme may recover, as damages for breach of statutory duty, any loss 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.