New building bond and building defect laws commence today, 1 July 2020.

The new laws are part of the NSW Government’s promise to “get tough” on building defects and form part of a suite of new laws that have recently been introduced to combat the spate of poorly built strata buildings.

These new laws will strengthen the rights of owners corporations to make claims against builders, developers and other to have defects repaired or obtain compensation to cover the cost of repairing defects.

That Act introduces new laws with respect to the rectification of building defects in new strata buildings. In this article we take a look at those new laws:

• The New Laws and the Buildings They Apply to
• Changing Due Dates for Payment of Building Bonds
• Consequences for Failing to Provide a Building Bond and Increased Penalties
• Offences for Developers Providing False/Misleading Information
• Using Building Bonds to Pay Other Costs
• Extending  the Time Frame for Building Bond Claims
• Cancelling a Building Bond
• Recovering of the Building Bond from Developers
• Investigation and Enforcement Powers
• Protection of Building Inspectors from Personal Liability
• Forcing Developers to Provide Information to Inspectors

Here we outline the new laws New Building Bond and Defect Laws.

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

New ‘duty of care’ laws makes all participants in building work responsible for fixing building defects!

Passed by the NSW Parliament in early June 2020, the new building laws will have a significant impact on people that own and live in strata buildings and any person involved in property development and construction in NSW.

The new laws apply to both existing buildings built in the last ten years and also to the construction of new buildings going forward.

Those laws will give many owners corporations rights they did not previously have.

Here we explain the Building Defects New Duty of Care Laws and what actions strata managers can take now!

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

On Friday, 5 June 2020 new COVID-19 strata regulations commenced.

These regulations introduce four key changes that will affect strata managers, owners corporations, community associations, precinct associations and neighbourhood associations across New South Wales.

The new regulations make it easier for strata managers to convene and hold general meetings and committee meetings.

The new regulations will also enable documents to be signed by strata managers remotely and without having the seal affixed to them.

The new regulations also extend certain time periods for things to be done.

Learn more about the new strata regulations here: New COVID-19 Strata Regulations

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

Do New Strata Laws Thwart Anti-Airbnb By-Laws?

On 10 April 2020, new strata laws commenced. These laws clarify that an owners corporation is able to make a by-law that can prohibit a lot being used for a short-term rental accommodation arrangement in certain circumstances.

However, the new laws may have unintended consequences that invalidate or limit the reach of existing by-laws that prohibit short-term rental accommodation arrangements.

In this article we take a closer look at the new laws and their unintended consequences that seem to have been overlooked… Are new Strata Laws Anti-Airbnb By-laws?

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

Government moves to help strata industry with further COVID-19 strata laws.

On 14 May 2020, new laws made by the NSW Parliament as a result of the COVID-19 pandemic commenced.  Those laws amended the Strata Schemes Management Act 2015 and the Community Land Management Act 1989 to enable new regulations to be created to deal with the impact of the COVID-19 Pandemic on the strata industry.

Electronic Voting and Meeting Notices

This means there will be power for new regulations to be released that will, for example, allow:

• Notices of meetings of a strata committee, owners corporation or community association to be served electronically even where there is presently no right to do so;
• Votes to be cast at meetings of a strata committee, owners corporation or community association electronically even if electronic voting has not been approved;
• The seal of an owners corporation or community association to be affixed to documents, and the witnessing of the affixing of the seal to be conducted, remotely;
• An extension of a time period in which a thing is required to be done under strata or community title laws.

The new regulations will be able to override a provision in the Strata Schemes Management Act or Community Land Management Act.  The new regulations have not yet been released.  It is expected that the regulations, once released, will remain in force for up to six months.

Electronic Signed and Sealed Documents

The regulations will provide a welcome relief to many strata managers, owners corporations and community associations.  Importantly, the regulations should allow meetings to be convened and held by electronic means and allow documents to be signed and sealed remotely.

The new regulations will enable strata committees, owners corporations and community associations to make legally enforceable decisions and continue to manage their affairs during the COVID-19 pandemic.

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

On 23 March 2020 changes to the laws that regulate strata managers will start.

In this article, we take a look at the key changes to the laws and how they will impact you. We also explain what you need to know about the new laws and what you need to do in order to be ready for them.

• New Licence Levels
• Transitional Arrangements
• Assistant Strata Managers
• Strata Managers
• Licensee in Charge
• Becoming a Licence in Charge
• CPD

What do you need to do? Strata Management Reform Changes 23.03.2020

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

Pecuniary Interest Disclosures – When are they Required?

When does a strata committee member need to disclose a pecuniary interest they have concerning a decision to be made by the committee?

The position is clear when a committee member has a direct pecuniary interest in a matter to be decided by the committee. A disclosure of that interest must be made by the committee member.

But what about indirect pecuniary interests? What are they and when do they need to be disclosed?

An example is where a committee member wishes to engage a company to carry out work for an owners corporation and his or her relative is a director or shareholder of that company. Is that an indirect pecuniary interest which must be disclosed?

The most likely answer is “yes”. This is because a committee member will have an indirect pecuniary interest if a person connected with them (such as a relative) has a direct interest in the matter to be decided by the committee.

What are the Grey Areas?

There are some grey areas. For example, can it be said that an indirect pecuniary interest arises when the committee member’s relative is merely an employee of the company that will be engaged by the owners corporation? In those circumstances, does the relative (as an employee rather than director or shareholder of the company) stand to benefit from the company’s appointment by the owners corporation?

The answer to that question is also most likely “yes” because the legislation simply requires the relative to have a “direct interest” (not necessarily a direct pecuniary interest) in the matter in order for the committee member to fall under an obligation to make a pecuniary interest disclosure.

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

The Land and Environment Court has recently approved a collective sale of a strata scheme.

This is the first time the Court has approved the collective sale of a strata building since the strata renewal laws commenced on 30 November 2016.

The case highlights the importance of ensuring each step in the collective sale process is followed to the letter of the law.

The case also provides guidance on how various problems created by the strata renewal laws will be resolved by the Court including problems determining the amount of compensation that should be payable to the owners.

In this article we take an in-depth look at the case and what lessons can be learned from the Court’s decision First Strata Collective Sale Approved by Court

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

The NSW Government proposes to change the laws regulating short term accommodation in NSW.

Recently, the key aspects of those new laws were published for public comment and submissions. The submission period has now closed.

In this article we take an in-depth look at those proposed changes to the laws regulating short term accommodation.

We consider the impact those changes will have on strata laws and planning laws (and strata living) and also review the key features of the Code of Conduct that will regulate participants in the short term accommodation industry.

What are the Proposed New Laws for Short Term Rental Accommodation?

For NSW strata legal 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.