After learning that NSW #stratatitle mediations submitted to NSW Fair Trading have increased by almost 50% over the last 5 years, I started to look at the more detailed data about the increase.
This chart displays the number of strata mediation applications over a five-year span, broken down by applicant type.
My observations and insights about that data are as follows.
1. A consistent increase over time: There’s a clear upward trend in the total number of mediation applications from 2018 to 2022 which suggests steadily increasing numbers of strata disputes and, as a result, an increasing need for mediation of strata disputes in NSW.
2. Less internal dispute resolution: As a corollary, the consistent increase in mediation applications also suggests that internal processes to resolve disputes in strata buildings are not working better and may, in fact, be achieving worse results.
3. Strata corporations dominate: The ‘Owners Corporation’ applicant category consistently constitutes the largest proportion of applicants every year as it always has. This suggests that the majority of the disputes are initiated by strata building corporations rather than strata owners.
4. A steady proportion of other applicants: The ‘Other’ applicant category, which includes solicitors, property managers, and those with power of attorney [who are typically representing strata owners] has stayed relatively steady as a proportion of the total applications. So, disputes that lead to mediation applications by strata owners do not appear to have increased as a proportion to the total strata disputes and/or mediations.
5. Strata owner applications are steady: There seems to be a slight, but not significant increase in the applications from ‘Lot Owners’ over the years. That suggests that strata owners are no more [or less] involved in strata disputes than before, and, are not the cause of the increased number of mediation applications in NSW.
6. Minimal tenant applications: The ‘Tenant’ applicant category continues to be the smallest proportion of mediation applications. Whilst that suggests that strata tenants are less frequently involved in disputes that’s not the case. Rather, it’s because strata tenants have very very limited rights to make applications about strata issues.
So, while strata mediation applications have been on the rise over the past five years, the distribution among applicant types has remained relatively consistent, except for strata corporations, who have predominantly driven that increase.