As combustible cladding is fast becoming a major focus for multi-storied buildings in New South Wales, lot owners and owners corporations are now facing a major bill and headache to replace combustible cladding.

The problem with combustible cladding has been further exacerbated by the current pandemic as a number of lot owners are unable to afford a special levy due to having lost employment. Some are even facing bankruptcy.

Despite these difficulties, some relief for combustible cladding costs has now arrived from the Australian Tax Office (ATO).

In this document we explain the recent ATO ruling to assist in rectifying combustible cladding defects… ATO Provides Relief for Combustible Cladding Costs

For all NSW strata legal including by-laws, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.

With overdue strata levies on the rise due to the COVID-19 situation many strata schemes will soon find out how many of their owners are struggling to meet their levy commitments.

Also, recent Government announcements to personal and corporate insolvency laws will have a dramatic impact on the way overdue strata levies are recovered.

In this paper we provide:

• A Snapshot of the Changes to Levy Recovery Practice
• An Overview of those Changes
• Details of the Ramifications of the Changes
• Information about Payment Plans for Overdue Levies
• Information about Template Payment Plan Documents

After reading this paper Levy Recovery Practice Changes Due to Coronavirus if you would like a copy of our ‘template payment plan documents’ and/or would like assistance with managing your levy recovery payment plans please email jsmmarketing@muellers.com.au

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

On 22 March 2020, the Australian Government announced a further economic response to the Coronavirus that will effect levy recoveries.

That response includes changes to personal and corporate insolvency laws which will have a dramatic impact on the way overdue strata levies are recovered.

In this paper we provide we explain:

• A Snapshot of the Changes to Levy Recovery Practice
• An Overview of those Changes
• Details of the Ramifications of the Changes
• Information about Payment Plans
• Information about Template Payment Plan Documents

After reading this paper Levy Recovery Practice Changes Due to Coronavirus if you would like a copy of our ‘template payment plan documents’ and/or would like assistance with managing your levy recovery payment plans please email jsmmarketing@muellers.com.au

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

We value your business, but even more importantly, your health and wellbeing.

For that reason, and in an effort to prevent spreading the Coronavirus (COVID-19), we have decided to postpone our upcoming Strata Managers’ Forum ‘Strata 2020 and Beyond’.

The event which was due to be held on Monday 23 March 2020 will be rescheduled at an appropriate time in the future.

All amounts paid for tickets for the event will be refunded.

The Coronavirus has presented new and fundamentally different challenges to strata managers and owners corporations and these will be the subject of a newsletter we will send you shortly.

Thank you for your understanding in these challenging times.

Adrian Mueller I Partner I JS Mueller & Co Lawyers

If you have any questions regarding the Forum you may contact our office.

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

From sunset clauses to cooling-off periods, changes to the strata laws are being considered all over Australia.

The first cab off the rank will be modifications to the Victorian strata laws, due to be implemented in the next couple of months. These changes will bring some of those laws into line with NSW strata laws.

Some proposed changes include:

1: Sunset Clause

The new laws will clean up the ‘sunset clawback’ regulations. The laws will  prevent property developers from deliberately delaying the completion of buildings, in order to invoke the sunset clause.

No longer allowed will be the cancelling of contracts and the readvertising of properties on the market, at a much higher price.

Get out clauses will also be introduced for people who’ve bought properties off the plan, and discovered their completed apartment is substantially different from what they’d agreed to buy.

2: Cooling Off Period

The cooling off period will be extended from five to 10 business days with limitations on the vendor’s ability to get purchasers to sign those rights away.

3: Proxy Farming

Committees will be reduced from 12 to seven members with restrictions on proxy farming and committee proxies.

 4: Voting Rights

Lot owners voting rights on contractual limitations will be banned. It’s also yet to be seen if this will affect the vetos on short term letting often pre imposed on purchasers of new buildings.

 5: Levies

Lot owners who default in paying their levies will incur more debt recovery costs but, on the other hand, for those people suffering hardship payment plans can be arranged.

 6: Renovations

Owners corporations will be able to set conditions under which renovations must be conducted, clamping down on rogue renovators, while rules that unreasonably prohibit the installation of sustainability measures will be invalid.

7: Smoke Drift

Rules to combat cigarette smoke drift will be allowed and residents made responsible for their guests’ behaviour, including being fined for any breaches.

 8: Penalties

Maximum penalties for rule breaches will be increased to $1,100, with the fines paid to the owners corporation. Voting thresholds for legal action will vary, depending on the level of courts involved.

If these laws are accepted,  we’ll see a huge step closer to a uniform set of national strata laws.

More Information

You’ll find more information (and proposed laws) at consumer.vic.gov.au/OCBill. These regulations reflect many of the NSW laws in place and how they’ll roll out nationally.

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

In a recent NSW Supreme Court case the builder brought an application to the Court seeking an order that the owners corporation provide security for costs to protect the costs of the builder in the litigation in the event the builder was successful and unable to recover his costs from the owners corporation.

So, did the court grant with the builder’s application? Owners Corporation Litigation Security for Costs

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

To contact us during this period please leave a message and we’ll get back to you on our return.

Thank you for your continued support. We’re looking for a new team member and reaching out to our strata community to help find one.

We’ve been servicing the strata industry for almost 40 years and as our business and the strata industry continue to grow, so does our team of strata experts.

We’re Hiring!

Do you know of a Strata Lawyer looking for a new opportunity who would love to:

• Work with an established and highly regarded law firm
• Learn from leading lawyers who are making new law
• Work across a wide variety of matters
• Progress their career
• Enjoy flexible working conditions
• Enjoy a great salary package

Confidential

If you know of a strata lawyer looking for a new opportunity please contact partner, Adrian Mueller, direct on adrianmueller@muellers.com.au

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 Law case JS Mueller & Co Lawyers acted for the successful owners corporation for a levy recovery matter from an owner who had disappeared.

Did you know that in NSW a court judgment obtained against a lot owner for outstanding levies, interest and costs can be enforced in several ways? This will depend on the amount involved and what assets, if any, the owner holds.

One way of enforcing a judgment for at least $10,000 is by issuing a writ against the owner’s property.

So, what was the outcome of the levy recovery Law case? Levy Recovery and Writ of Execution

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

The strata legislation contains a number of requirements which must be met for any AGM.

These include requirements for the AGM agenda to contain certain motions and for the AGM notice to be accompanied by various documents.

So, what happens if these requirements are not met? Is the AGM invalid?

A recent decision of the Supreme Court provides helpful guidance on this issue – Supreme Court Strata AGM Guidance.

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