The biggest difference between rules and bylaws, is that rules can only govern common assets and property of the strata corporation, NOT individual strata lots. Only bylaws can govern strata lots.
As an example, you would require a bylaw to ban smoking in individual strata lots, but a rule can be set to ban smoking in hallways, balconies, etc.
If a rule conflicts with a bylaw of the strata corporation, the bylaw supercedes the rule.
Rules can be created by the strata council without owner consultation, but MUST be ratified by a majority vote at the AGM or it ceases to exist.
Once a rule has been ratified at a general meeting by majority vote it is effective until it is repealed, replaced or altered, without the need for further ratification.
The maximum penalty for a rule infraction is only $50, and can only be repeated every 7 days, whereas bylaws have more teeth with a legislated maximum of $200.
When Strata Council creates a rule, they must do the following:
• set out all rules in a written document that can be photocopied and
• inform owners and tenants of any new rules as soon as feasible. We usually recommend this to be noted in the minutes.
It is important to note that a user fee rule MUST be been ratified by majority vote by owners before it can be charged to any owners.
Sections can also create bylaws to govern matters within the section.
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