Don’t let the lack of a Pet Ownership Policy cause disputes and conflicts in your company title building. Well run Company Title Buildings have ‘House Rules’ that regulate the management of the building and the conduct of its residents on a day-to-day basis, including pet ownership. What are some of the things you need to think about when implementing a Pet Ownership Policy?
From Toto to Lassie, people love their animal companions and want to have them in their home. However, as a Home Unit Owner (Owner) or Manager of a Company Title Building, you no doubt know that pet ownership can be a polarising topic in shared spaces like Company Title buildings. For this reason, it is important for Company Title buildings to include a clear and well-considered Pet Ownership Policy in their governance documents to ensure that all Owners and other occupants understand the rules about pet ownership in their building.
Pet Ownership Policies are usually found in the building’s House Rules. These are a set of regulations or by-laws that govern the management of the building and conduct of the residents. The Board can (usually) enforce the House Rules pursuant to their Articles of Association (or Constitution). We provide a broad overview below of the issues that should be addressed in a well-balanced pet policy. If you have a Pet Ownership Policy, we recommend that you review your current Company governance documents to see whether these common issues are effectively considered.
Approval Process
It is common for Company Title Buildings to require Members to receive approval from the Board to own or keep a pet in the building. However, this process is often unclear and fraught with issues due to vague governance documents or clauses. We recommend the approval process include the following information:
- Who can make a request? An Owner or an occupant? Both?
- What form should the request take? For e.g. can it be an oral request or must it be in writing?
- To whom should the request be made?
- How long will a decision take?
- What must the pet owner do after receiving approval?
- Is the pet owner entitled to receive reasons if their request has been denied?
- Is there an appeal process?
Ensuring that these issues are clearly addressed will mean that all Owners and Occupants understand the process and may also prevent any angry exchanges or disputes.
Binding on tenants and visitors
Something that can be often overlooked is that a pet owner in a Company Title building may not be the Owner of the Home Unit. So, how do you enforce the Rules and regulations against a tenant Occupant with an animal?
The Articles (Constitution) are only enforceable against the Member as a shareholder. Since the House Rules usually derive their power from the Articles, this means that a tenant under a lease may not be bound by these rules.
We recommend that anyone applying to live in a Home Unit agree to comply with all House Rules. We find that a Pet Approval Deed between the Company, the Owner and the Occupant is a comprehensive way of ensuring that you create a binding connection between the pet owner and the House Rules.
Liability
Pets can cause all manner of mischief, and that mischief can incur hefty costs and consequences. Who is liable if an approved pet injures someone or causes property damage? If there is no waiver and indemnity clause protecting the Company and its Board from liability, then they might be in trouble.
We recommend including a waiver and indemnity clause in the Pet Approval Deed to ensure that the Company and its Board are not liable for any loss or damages, such as:
- Injury caused by the animal to another person or animal;
- Property damage by the animal; and/or
- Fees incurred to clean the common property or Home Units.
Types of Animals
While Tiger King may have left some people thinking they could become the next Joe Exotic, not every Member in their building may think the same. It is important for the Board to acknowledge that all the Members want to enjoy and feel comfortable in their homes. Creating a list of uncontroversial prohibited animals can assist the Board in their decision-making process.
Common prohibited animals may include:
- Certain species of animals;
- Certain breeds of dogs;
- Animals exceeding certain parameters (e.g. weight or size); or
- Animals labelled as ‘dangerous’ under the Companion Animals Act 1998 (NSW).
The Board should also retain the discretion to reject any animal not specifically prohibited. For example, the Board might also need to consider how disruptive an animal may be to other residents in the building (e.g. noise or other nuisances).
Dealing with complaints
Noise, smell, and property damage are the most common complaints concerning animals in shared buildings. If you don’t have clear rules and procedures for Members to follow when making a complaint, then arguments can escalate.
Putting in place a Pet Ownership Policy detailing how complaints will be managed mean that Members will feel more confident knowing how the complaint will be investigated.
Disability and Assistance Animals
While the Board has discretion to refuse permission to keep a pet, they should be careful if the Member is a person living with a disability. If the Member has claimed that the animal is an ‘assistance animal’ that provides support or otherwise helps alleviate their disability, then denying their application may expose the Company to expensive disability discrimination claims.
You should consider the relevant discrimination provisions and ensure that your Rules do not fail to take proper precautions. The Rules should consider what evidence the Member can be required to provide to demonstrate the animal’s status. For example, under the Disability Discrimination Act 1992 (Cth), ‘assistance animal’ is an animal that is either:
- accredited under a law of a State or Territory to assist a person with a disability to alleviate the effect of that disability; or
- accredited by an animal training organisation prescribed by the Commonwealth; or
- trained to assist a person with a disability to alleviate the effect of that disability, and, to meet certain standards of hygiene and behaviour appropriate for an animal.
How we can help you
Unlike strata title buildings there is no hard and fast requirement that company title buildings must allow pet ownership, but for reasons discussed in this article, your grounds for refusal of pet ownership must be well considered. Our Pet Ownership Policy documents have been developed through our extensive experience as Company Title specialists to ensure that all the major issues are tackled in a clear and fair way.
We know that navigating these issues can be difficult. You want to ensure that your rules are comprehensive and clear but are also well-balanced and considerate. We have decades of knowledge and experience in implementing thorough rules and regulations for Company Title buildings that balance the interests of stakeholders and any potential issues.
Contact JFM Law on (02) 9199 8597 if you believe that your Company Title Building requires a Pet Ownership Policy or needs to update their existing policy in respect of pets. If you would rather get in contact through email, send your question through or by email at wehelp@jfmlaw.com.au.
The information contained in this post is current at the date of editing – 14 August 2024.
