Resolving Strata Disputes and How to Resolve Them: Key Strategies for Success

12 min read

Strata living involves shared spaces, which can sometimes lead to disagreements. From noisy animals to maintenance disputes with the owners corporation, various issues can disrupt community harmony. However, negotiation offers a powerful solution for resolving these conflicts peacefully. This guide explores typical strata disputes and provides practical negotiation techniques to restore harmony without resorting to the NSW Civil and Administrative Tribunal.

Common Strata Disputes and By-Law Enforcement

Dispute Type	Typical Issues
Noise Disturbances	Excessive music, late parties, disruptive renovations
Parking Conflicts	Disputes over unallocated spaces, visitor parking, exclusive use areas
Pet-Related Problems	Barking dogs, leash violations, unauthorised animals
Maintenance Disagreements	Debates on repair responsibilities, timing, and quality of common property work
Renovation Conflicts	Unapproved alterations, construction noise, damage to shared areas
Financial Disputes	Disagreements on levy amounts for common property upkeep
By-Law Enforcement	Perceived unfair or inconsistent rule application
Common Area Usage	Conflicts over shared spaces like pools, gyms, gardens; booking issues
Property Damage	Disputes about liability and repair costs for common or neighbouring property
Behavioural Issues	Smoking in prohibited areas, improper waste disposal, rule violations
Management Concerns	Debates over strata committee decisions, transparency, perceived mismanagement
Security Matters	Issues with locks, surveillance, access control effectiveness
Unit Alterations	Conflicts over modifications affecting common property or other units
Rental Disputes	Problems from subletting or short-term rentals causing disturbances

The Advantages of Negotiation in Resolving Strata Disputes

Negotiation, a key form of Alternative Dispute Resolution (ADR), offers a versatile and informal way to settle strata disputes. Its effectiveness in this context stems from several unique benefits, especially when compared to formal processes like NSW Fair Trading or NCAT hearings. Here’s why negotiation stands out as a valuable tool for addressing strata issues:

Key Benefits of Negotiation in Strata Disputes

1. Adaptability and Informality:
   • Negotiations can occur anytime via various channels like email, phone, or in-person meetings.
   • Parties have full control over the process, adapting it to their specific needs.
2. Privacy:
   • Discussions and outcomes remain confidential.
   • This privacy encourages frank and open dialogue, crucial for reaching agreements.
3. Efficiency in Time and Cost:
   • Generally faster and more cost-effective than formal legal processes.
   • Reduces expenses by avoiding legal representation and extensive paperwork.
4. Relationship Preservation:
   • Direct communication helps maintain and often improve ongoing relationships.
   • Vital in strata communities where long-term cooperation is essential.
5. Outcome Control:
   • Parties maintain decision-making power throughout the process.
   • Ensures solutions are customised to specific situations and needs.

Comparing Negotiation, Mediation, and Conciliation for Strata Disputes

While these ADR methods share similarities, they differ in key aspects. The table below highlights these differences:

Feature	Negotiation	Mediation	Conciliation
Third-Party Role	None	Facilitator (guides discussion)	Active participant (suggests solutions)
Formality Level	Informal	Semi-formal	Semi-formal
Outcome Control	Full (parties decide)	Shared (parties decide with guidance)	Shared (parties decide with suggestions)
Privacy	High	High	High
Expense	Low	Moderate	Moderate
Time Efficiency	High	Moderate	Moderate
Primary Focus	Direct party interaction	Facilitating dialogue and understanding	Suggesting outcomes and advising
Impact on Relationships	Can improve through direct communication	Can maintain with structured dialogue	Can maintain with structured dialogue
Process Flexibility	High (parties set terms)	Moderate (mediator guides)	Moderate (conciliator guides)

Each method has its strengths, and the best choice depends on the specific dispute and the parties involved.

Maximising Success in Strata Dispute Negotiations

Understanding Negotiation Structure

Negotiations typically follow a structured format to ensure all issues are addressed:

• Formalities: Set the tone with introductions and agenda outlining.
• Opening Statements: Each party presents their perspective.
• Interest Exploration: Identify underlying needs of both parties.
• Option Generation: Collaboratively brainstorm potential solutions.

Thorough Preparation

Proper preparation is crucial. Research issues, understand your rights and obligations, and gather relevant documents. This foundation enables clear and confident case presentation.

Effective Communication

Key to successful negotiations:

• Listen actively to understand other perspectives.
• Articulate points clearly and respectfully.
• Ask clarifying questions to avoid misunderstandings.
• Summarise discussions to ensure mutual understanding.

Building Rapport

Start by highlighting areas of agreement. This fosters collaboration and trust, setting a positive tone for resolving more contentious issues.

Documentation

Essential for clarity and enforceability:

• Record all agreements in writing.
• Carefully review documents before signing.
• Ensure all terms are clearly stated and understood.

Professional Assistance

Consider seeking help from mediators, lawyers, or strata managers. These experts can provide valuable insights, impartial mediation, and guidance on complex legal and procedural matters.

By following these steps, you can significantly improve your chances of a successful outcome in strata dispute negotiations.

Preparing for Strata Dispute Negotiations

Effective preparation is crucial for successful strata dispute negotiations. By gathering information, understanding your position, and considering potential outcomes, you’ll be better equipped to navigate the negotiation process.

Collect Key Documents and Information

Before negotiations, gather all relevant materials:

• Contracts and written agreements
• Email and text message exchanges
• Notes from conversations

For ongoing disputes, create a timeline of events. This organisation helps you discuss the issue’s history confidently, even in disputes with neighbours or friends.

Know Your Legal Standing

For disputes involving legal matters, consider seeking professional advice. A lawyer can provide insights on:

• Applicable laws and their relevance to your case
• Potential outcomes if the dispute reaches court
• Time and cost estimates for legal proceedings
• Legal action deadlines

Understanding your legal position empowers you to make informed decisions during negotiations.

Define Your Objectives

Clearly identify your goals for the negotiation:

• Receiving an apology
• Obtaining financial compensation
• Negotiating debt or repayment terms
• Recovering property
• Resolving the conflict
• Establishing respectful future interactions

Having clear objectives helps you stay focused during negotiations and evaluate potential compromises.

Prepare to Listen

Consider the other party’s perspective and needs. Be open to new information that might emerge during negotiations, as it could change your viewpoint or reveal common ground.

Consider Possible Solutions

Start with your ideal outcome, but also:

• Assess the realism of your expectations
• Consider the other party’s desires
• Identify potential areas of agreement
• Be prepared to compromise
• Determine your minimum acceptable terms

Both sides may need to make concessions to reach an agreement.

Evaluate Potential Outcomes

Consider the implications of failing to reach an agreement. If the dispute goes to court:

• You may not receive everything you want (e.g., an apology)
• Financial outcomes may be less favourable than negotiated settlements
• You could be responsible for legal costs

Identify your “must-haves” and “nice-to-haves” to guide your negotiation strategy.

By thoroughly preparing in these areas, you’ll enter strata dispute negotiations with confidence, clarity, and a strategic approach. This preparation increases your chances of achieving a favourable resolution.

Negotiation Techniques for Effectively Resolving Strata Disputes

BATNA Approach

BATNA, or “Best Alternative to a Negotiated Agreement,” is a crucial concept in negotiations. It represents the most favourable option available if negotiations fail. Understanding your BATNA sets a minimum threshold for accepting a deal.

Consider a dispute between a strata committee and a resident over common area use. The resident wants a personal garden, while the committee fears this would limit access for others.

Key aspects of using BATNA in this scenario:

1. Preparation: Analyse your BATNA before negotiating.
   • Resident: Consider alternative locations, a smaller garden, or off-site options.
   • Committee: Think about rotating garden spaces, community beds, or strict no-private-use policies.
2. Strengthening BATNA: Improve your position to gain leverage.
   • Resident: Gather support from other residents or highlight garden benefits.
   • Committee: Seek legal advice or demonstrate shared access benefits.
3. Assessing Opponent’s BATNA: Understanding the other party’s alternatives provides strategic insight.
   • Resident: Recognize the committee might strictly enforce existing rules.
   • Committee: Consider that the resident may propose compromises or rally community support.
4. Using BATNA as Benchmark: Compare offers to your BATNA during negotiations.
   • Resident: Evaluate if a small garden offers alternatives.
   • Committee: Assess if allowing a small garden is preferable to strict enforcement.
5. Decision Making: Use BATNA to make informed choices and avoid unfavourable agreements.
   • Resident: Accept compromise if better than alternatives.
   • Committee: Agree to proposal if it prevents potential resident unrest.

By applying the BATNA approach, both parties can navigate the negotiation more effectively, leading to mutually beneficial outcomes.

Interest-based Approach

The interest-based approach, also known as integrative or principled negotiation, focuses on addressing underlying interests rather than fixed positions. It aims for win-win solutions that benefit all parties.

Applying this to our strata dispute example:

1. Focus on Interests, Not Positions:
   • Resident’s Interests: Fresh vegetables, gardening hobby, improved quality of life.
   • Committee’s Interests: Fair access, property aesthetics, avoiding precedents.
2. Generate Options for Mutual Gain:
   • Option 1: Designate a community garden area.
   • Option 2: Allow a small garden in a less-used area with guidelines.
   • Option 3: Organise communal gardening activities.
3. Use Objective Criteria:
   • Establish guidelines based on regulations and best practices.
   • Conduct a resident survey for feedback.
4. Separate People from the Problem:
   • Engage in respectful dialogue without personal attacks.
   • Consider using a neutral mediator.
5. Build Collaborative Relationships:
   • Involve more residents in the decision-making process.
   • Encourage ongoing communication and feedback.

By using this approach, both parties can move beyond initial positions and work towards a solution addressing everyone’s interests. This could lead to a more satisfying agreement, such as a community garden that benefits all while ensuring fair access to common areas.

Anchoring Approach

The anchoring technique in negotiation involves setting an initial reference point that influences the entire negotiation process. This initial offer can significantly shape perceptions and potential outcomes.

Let’s apply this to our strata dispute example:

1. Setting the Anchor:
   • Resident’s Anchor: Propose using 50% of the common area for their garden.
   • Committee’s Anchor: Suggest no personal use of common areas allowed.
2. Psychological Impact:
   • Anchoring leverages cognitive biases, as people tend to rely heavily on the first piece of information received.
3. Strategic Considerations:
   • High Anchors: Resident’s high demand aims to set expectations for a substantial garden area.
   • Low Anchors: Committee’s strict stance signals a strong position against personal use.
4. Counter-Anchoring:
   
   
   • Reject unreasonable anchors explicitly.
   • Reframe the negotiation by introducing new criteria or values.
   • Prepare clear goals and limits to resist anchor influence.
5. Example:
   
   
   • Resident: Counter a low anchor by proposing a smaller garden or shared plots, emphasising community benefits.
   • Committee: Counter a high anchor by highlighting fair access needs and proposing objective allocation criteria.

By using anchoring techniques, both parties can strategically influence the negotiation. The resident can establish room for negotiation with a high initial demand, while the committee can protect all residents’ interests through counter-anchoring. This approach can lead to a balanced agreement, such as a community garden that benefits everyone while ensuring fair common area access.

Concessions Approach

The concessions approach involves strategically giving up certain demands to reach a mutually acceptable agreement. It’s based on reciprocity, where one party’s concession encourages the other to reciprocate.

Applying this to our strata dispute example:

1. Strategic Concessions:
   • Resident’s Concessions: Start with a request for a large garden, but be prepared to reduce size or propose a less central location.
   • Committee’s Concessions: Initially reject personal use of common areas, but later agree to a smaller, well-defined garden space that doesn’t impede access.

This approach allows both parties to show flexibility while maintaining their core interests. The resident’s willingness to reduce demands can be met with the committee’s openness to allow some personal use under specific conditions.

The back-and-forth of concessions helps build a collaborative environment, potentially leading to an agreement that respects both the resident’s desire for a garden and the committee’s need to maintain fair access to common areas.

Managing Emotions During Negotiation

Negotiating can evoke various emotions. Here’s how to manage them effectively:

1. Stay calm: Avoid speaking in anger to prevent escalation.
2. Use calm language: Choose words carefully to foster constructive conversation.
3. Avoid criticism: Focus on the problem, not the person, to prevent defensiveness.
4. Prioritise problem-solving: Keep attention on finding solutions rather than emotional reactions.
5. Listen actively: Show genuine interest in understanding the other party’s perspective.
6. Ask clarifying questions: Ensure mutual understanding for productive negotiation.

If direct conversations are challenging, consider these alternatives:

1. Written communication: Use letters, emails, or texts to express thoughts clearly.
2. Take time when writing: Compose messages at your own pace for clear articulation.
3. Seek feedback: Have someone review your communications before sending.
4. Prepare notes: Bring key points to stay focused during discussions.
5. Bring support: Have someone accompany you for emotional support and focus.
6. Request breaks: Take time to regain composure if feeling overwhelmed.

These strategies can help manage emotions, leading to more productive and amicable negotiation outcomes.

Asking Effective Questions in Negotiation

Understanding the other party’s interests is crucial for successful negotiation. Here’s a guide to different types of questions that can help:

Question Type	Purpose	Examples
Open-ended	Encourage detailed responses	“Why do you hold that position?” “What are your main concerns?”
Leading	Guide conversation direction	“Do you believe our proposal is fair?” “Would you agree this benefits both parties?”
Cool	Maintain calm discussion	“What additional fees should we anticipate?” “Can you specify problematic parts of the agreement?”
Treat	Build rapport	“Given your expertise, what solution do you suggest?” “Considering your experience, what’s the best course of action?”
Window	Understand reasoning	“Can you explain how you reached that conclusion?” “What factors influenced your decision?”
Directive	Obtain specific information	“What’s the rental rate per square foot with these improvements?” “How long will it take to implement these changes?”
Gauging	Assess feelings and thoughts	“What are your thoughts on our proposal?” “How do you feel about our negotiation progress?”

Using these question types strategically can help clarify interests, maintain productive dialogue, and lead to mutually beneficial agreements.

Resolving Strata Disputes: Finding Common Ground

Navigating disagreements in strata schemes doesn’t have to be intimidating. By employing effective negotiation techniques, you can reach solutions that benefit all parties, maintaining harmony within your community.

Remember, successful negotiation goes beyond problem-solving. It’s an opportunity to strengthen relationships with neighbours and foster a supportive living environment through amicable dispute resolution.

Negotiation strategies can help you:

1. Understand underlying interests
2. Explore mutually beneficial solutions
3. Manage emotions effectively
4. Ask the right questions to gain clarity
5. Make strategic concessions

If you ever feel overwhelmed by a strata dispute, remember that professional help is available. Seeking advice from experienced professionals can provide valuable support and guidance, helping to keep your strata experience positive and conflict-free.

By approaching disputes with a spirit of cooperation and using these negotiation techniques, you can maintain a peaceful and pleasant strata community for all residents.