107Effect of rules

107 Effect of rules (1) There are taken to be agreements under seal between an owners corporation and each of its members, and between each member and each other member, under which the corporation and its members agree to be bound by the rules of the corporation. (2) An occupier of a unit (who is not the owner of the unit) is bound by each rule of the corporation as if the occupier were the owner of the unit except to the extent that— (a) the rule requires payments to be made to the general fund or a sinking fund; or (b) the rule provides otherwise. (3) If the unit owner does not occupy the unit, the owner is liable separately and together with an occupier of the unit for any breach of the rules of the owners corporation by the occupier, unless the owner proves that the owner took reasonable precautions and exercised appropriate care to prevent the breach. (4) An occupier of a unit who occupies the unit under a residential tenancy agreement is not bound by any rule of the owners corporation to the extent that the rule is inconsistent with the standard residential tenancy terms, other than a pet friendly rule. residential tenancy agreement means a residential tenancy agreement under the Residential Tenancies Act 1997. standard residential tenancy terms—see the Residential Tenancies Act 1997, dictionary.