Put a group of people in one building and disagreements are inevitable. A barking dog. A car in the wrong spot. A renovation that started without a word to anyone. In a NSW strata scheme, the question is not whether disputes happen, it is how you handle them when they do.
The good news is that NSW has a clear pathway, and most disputes are resolved well before they reach a tribunal. This guide walks through that pathway, from the first conversation to NCAT, and explains how by-law breaches are dealt with along the way.
The steps here are described in general terms. The exact procedures, time limits and forms can change, so for anything specific, confirm the current process with NSW Fair Trading.
Step one: talk it out
The first step is the one people most want to skip, and the one that resolves the most disputes. Raise the issue directly. Speak to the neighbour, the committee, or the strata managing agent, and give them a genuine chance to put it right.
A surprising number of strata disputes are misunderstandings. The owner did not know about the by-law. The committee did not realise a repair had been reported. A calm conversation, followed up in writing, often ends the matter. It also matters for what comes next, because the later steps generally expect you to have tried to resolve things first.
Step two: NSW Fair Trading mediation
If a direct conversation does not work, the next step is usually mediation through NSW Fair Trading. Mediation brings in an independent person whose job is to help both sides reach an agreement. The mediator does not take sides and does not impose a decision. They help the parties find one themselves.
Mediation is less formal and lower-cost than a tribunal, and it keeps the parties in control of the outcome. For schemes, it is often the turning point: a dispute that felt stuck moves because a neutral third party is in the room. Check the current process and any requirements with NSW Fair Trading before you start.
Step three: NCAT
When earlier steps have not resolved the matter, the dispute can be taken to the NSW Civil and Administrative Tribunal, known as NCAT. This is the body that can make binding orders to settle a strata dispute.
NCAT is more formal than mediation, but it is generally more accessible and lower-cost than going to court. It can hear a wide range of strata matters and make orders to resolve them, with the exact orders depending on the type of dispute. By the time a matter reaches NCAT, the parties have usually already tried the earlier steps, which is part of why the pathway is structured the way it is.
How by-law breaches are handled
By-laws are the rules of the scheme, covering things like pets, parking, noise and renovations. We go deep on the most common ones in pets, parking and renovations. When someone breaches a by-law, there is a process for dealing with it rather than a free-for-all.
The usual first formal step is for the owners corporation to issue a notice to comply. This puts the breach in writing, identifies the by-law in question, and asks the owner or occupier to fix it. It is a formal warning that creates a clear record. If the breach continues after the notice, the matter can be escalated further. The exact procedure, and what can follow a notice to comply, should be confirmed with NSW Fair Trading. For more on the rules themselves, see our guide to NSW strata by-laws.
Why the pathway works in stages
The staged approach exists for a reason. Each step is cheaper, faster and less stressful than the one after it. Most disputes are resolved at the talking stage. Of the rest, most settle at mediation. Only a small share need a tribunal at all.
For a committee, understanding this means you do not panic at the first sign of conflict, and you do not jump straight to escalation. You work the steps in order, keep good records as you go, and let the process do its job. That calm, structured approach is part of the broader committee role we cover in our strata committee member guide.
Keep records throughout
Whatever stage a dispute reaches, records are your friend. Dates, what was said, what was agreed, copies of any notice issued. Good documentation protects the owners corporation, supports the committee if a matter escalates, and often defuses a dispute on its own, because it shows the scheme acted reasonably and fairly.
Your next step
Disputes are part of strata life, and the committees that handle them best are the ones that understand the pathway before they need it. Archer Institute's Strata Members CPD course covers dispute resolution, by-laws and the committee's duties under the Strata Schemes Management Act 2015. It is online, self-paced, and written for the volunteers who run NSW schemes.
