In a recent decision, NCAT has confirmed that it is business as usual and that appeals against decisions of Strata Adjudicators will continue to be dealt with by NCAT in the same manner, even though strata adjudications have been abolished under the Strata Schemes Management Act 2015.

Introduction

The Strata Schemes Management Act 1996 (old Act) allowed Strata Adjudicators to make orders to resolve strata disputes. On 30 November 2016, the old Act was repealed and replaced by the Strata Schemes Management Act 2015 (new Act).  The new Act abolished strata adjudications.

However, there were still strata adjudications pending at the time the old Act was repealed and decisions of Strata Adjudicators under the old Act continued to be made up until recently. This created uncertainty as to whether or not a party dissatisfied with a decision made by an Adjudicator could appeal against the decision after 30 November 2016.

To read the full article – NCAT Clarifies Appeal Rights Against Decisions of Strata Adjudicators

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Do explanatory notes need to be included in the agenda of a general meeting of an owners corporation?  The answer might surprise you.

Since the commencement of the Strata Schemes Management Act 2015 on 30 November 2016, a practice has arisen for explanatory notes to be included in an agenda of a general meeting of an owners corporation.  The purpose of the explanatory notes is to provide a brief explanation of the purpose of each motion that appears on the meeting agenda.

But are these explanatory notes necessary? Click here to find out – Are Strata Meeting Explanatory Notes Required

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Can the strata committee approve repairs which alter, add to or improve common property?

The strata committee is generally able to organise maintenance and repairs to the common property. But what happens when maintenance or repairs alter, add to or improve the common property? Can the strata committee approve work of that type without the authority of a special resolution passed at a general meeting?

Read the full legal analysis here – Common Property Maintenance / Alterations

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

In a recent case a residential apartment building in Rhodes, Sydney claimed damages against Walker Group Constructions, inferring they had breached statutory warranties.

However, after a five day hearing, the referee came to this surprising conclusion –  Were Statutory Warranties Breached?

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Adrian Mueller, partner, recently presented a paper about the most significant strata cases in NSW over the last 12 months, at the 12th annual conference of the ‘Australian College of Community Association Lawyers’ (ACCAL) – the peak body of strata lawyers in Australia.

To view Adrian’s presentation and strata cases click here 2017 Strata Case Presentation and 2017 Strata Case Papers.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Great news!

LPI NSW has updated the Registrar-General’s directions concerning the requirements to register a Consolidation/Change of By-Laws.

The Registrar-General’s directions now state as follows:

A consolidated version of the by-laws affecting the strata scheme must be included as an annexure, incorporate the change that is referred to at panel (E) and include any model by-laws.

Note: It is not acceptable to annex previously registered Change of By-laws forms as if it is a consolidated version.

It is suggested that a consolidated version:

• omit all by-laws that have been previously repealed,
• include all by-laws that have been previously added, and
• include all other by-laws as previously amended, or
• set out in some other way that lists the by-laws that currently affect the strata scheme.

For further information please refer to – LPI NSW Government

A separate Registrar-General’s direction for ‘Consolidated By-Laws’ now says the following:

The following requirements must be complied with:

• The new change of by-law must be made in accordance with a resolution of the owners corporation and a completed Consolidation/Change of By-Laws dealing form (Form 15CH) must be lodged at LPI not more than 6 months after the passing of the resolution to make the by-law  (See section 141 Strata Schemes Management Act 2015).
• A consolidated version of by-laws, which incorporates the new change of by-laws, must form an annexure to the Consolidation/Change of By-Laws dealing form (Form 15CH).
• The consolidated version must include those by-laws lodged with (referred to as ‘developer by-laws’ or ‘strata by-laws’) or adopted (Model By-laws)  by the scheme on the registration of the strata plan together with any changes to those by-laws made since the registration of the strata plan. The text of the by-laws must be fully set out.
• Where the Common Property Memorandum prescribed by the Strata Schemes Management Regulation  is adopted:
  – it may be included by reference only if the Common Property Memorandum is adopted in full and without any modifications as follows: “The Common Property Memorandum prescribed under clause 27 Strata Schemes Management Regulation 2016 has been adopted as a by-law”; or
  – where the Common Property Memorandum has been modified as provided in s. 107(3) Strata Schemes Management Act 2015,  the full text of the Common Property Memorandum as modified must be included.
• Every subsequent change of by-laws will require a new consolidated list incorporating the change to accompany the Consolidation/Change of By -Laws form.
• The Registrar General may waive the requirement to lodge a consolidated version (see clause 24(3) Strata Schemes Development Regulation 2016). A letter setting out the circumstances for assessment by the Registrar General must accompany the dealing.

For further information please refer to – LPI NSW Government

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Frustrated with the current challenge to register your by-laws?

The good news is that JS Mueller & Co has been in communication with Land and Property Information NSW (LPI) regarding the current backlog. We‘ve been advised that LPI is fully aware of the issue and are currently working on a solution which will be announced soon.

In the meantime, if you require any assistance with the registration of by-laws, please do not hesitate to contact us on the details below, and we’ll assist you through this process.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Thank you Strata for your support in 2016, we loved sharing our knowledge on all things Strata Law.

As a wrap up here are some useful links from 2016…

• We shared our knowledge at Forums throughout the year
• We tweeted, 107 times sharing the latest in strata law
• We developed Strata By-law Templates for the new strata laws making it easier for you
• We posted, 30 times on LinkedIn with the latest updates
• We improved our Levy Collection App, thanks to your feedback
• We shared our knowledge through 54 newsletters
• We expanded our team to better service the strata industry

We’re taking a break from 23 December 2016 and returning on 9 January 2017.

We wish you and your families a safe and happy ‘Festive Season’ and look forward to working with you in 2017.

For more information check out muellers.com.au or send an email to enquiries@muellers.com.au and we’ll get back to you on our return.

There are new rules an owners corporation must follow before appointing a lawyer or taking legal action (legal services).

If legal services:

• will not cost more than $3,000, or
• are urgent and will not cost more than $15,000, or
• relate to obtaining legal advice before taking legal action, or
• concern the collection of overdue levies,

the strata committee is able to approve those legal services: see section 103 Strata Schemes Management Act 2015 and cl 26 Strata Schemes Management Regulation 2016.

If the above applies, there is no need for an owners corporation or strata manager to send a lawyer’s costs agreement or costs disclosure to owners and committee members under section 105 Strata Schemes Management Act 2015.

The above assumes the power of the strata committee to obtain legal services or spend money has not been restricted at a general meeting and owners who hold 1/3 of the unit entitlements do not block a proposed decision of a strata committee to obtain legal services.

In all other cases, the owners corporation must approve of the legal services by passing a resolution at a general meeting in accordance with s 103(1) Strata Schemes Management Act 2015.

The new rules will reduce the scope for a strata committee to approve legal services as a result of the threshold amount to avoid general meeting approval reducing from $12,500 to $3,000 in most cases.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Current NSW strata laws can make it challenging for owners to carry out minor renovations to their lot, however, come 30 November 2016, there’s good news as the new reforms will provide clearer, common sense approvals for owner renovations.

The new laws will recognise three kinds of renovations:

1. Cosmetic – strata owners will be able to carry out cosmetic work with no approval
2. Minor – a simple majority resolution will be required to approve minor renovations
3. Major – a special resolution and approval is required for major work

Read the Works By-laws and NCAT paper here or purchase your Strata By-law and Meeting Notice Templates now!

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.