Special Arrangements made with NSW Land Registry Services to register consolidated by-laws.

 The Strata Schemes Management Act 2015 requires every owners corporation to keep a consolidated up to date copy of the by-laws for its strata scheme.  However, there is nothing in the Act which requires an owners corporation to register the consolidated set of its by-laws.

The only time an owners corporation needs to register a consolidated set of by-laws is when it resolves to make a change to its by-laws.  In those circumstances, the consolidated set of by-laws incorporating any changes to the by-laws must be lodged for registration within six months of the meeting at which the changes are approved.

The requirement for every owners corporation to keep a consolidated up to date copy of its by-laws was introduced on 30 November 2016 on the commencement of the Strata Schemes Management Act 2015.  Since then, most owners corporations have not made any changes to their by-laws as a result of which they have not registered their consolidated by-laws.  This means there is no public record of a consolidated set of by-laws for most owners corporations.

Up until recently, NSW Land Registry Services was reluctant to register a consolidated set of by-laws where it did not record any changes to the by-laws.  In other words, NSW Land Registry Services often would not permit an owners corporations to register a consolidated set of by-laws unless it had made changes to those by-laws within the last six months.  This has made it more difficult for owners corporations to register consolidated by-laws to ensure there is a public record of those by-laws in a consolidated form.

We have recently made arrangements with NSW Land Registry Services to allow an owners corporation which wants to register a consolidated set of its by-laws (even though it has not made any changes to its by-laws) to do so.  This will enable many owners corporations to register their consolidated by-laws to ensure there is a public record of them even though they have not made any recent changes to their by-laws.  If you would like to know more about these special arrangements, please do not hesitate to contact us.

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

There are many strata managers who are preparing and registering consolidated sets of by-laws for the strata schemes they manage.

We have recently come across several by-law consolidations prepared by strata managers that contain critical and costly errors.

In many cases, the professional indemnity insurance policies held by strata managers may not cover the negligent preparation of consolidated by-laws.

Here are some examples of mistakes we have seen… By-law Consolidations – When they go Wrong?

CLICK HERE FOR HELP WITH YOUR BY-LAW CONSOLIDATIONS!

Does NCAT have power to make an order for the payment of money?

In a recent case, NCAT decided that it did not. The outcome of this case has created doubt about NCAT’s power to make money orders in strata matters.

The case touches on a broader controversy that is currently playing out in NCAT. That controversy relates to the fundamental question as to whether or not NCAT has power in strata matters to make money orders at all whether for payment of damages or the recovery of a debt.

So, how did this matter play out, does NCAT have the power in strata matters to make money orders?

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 decision that has produced a confusing outcome, the Appeal Panel of NCAT has decided that NCAT does not have power to award damages (but might be able to order payment of compensation) where there are defects in common property that an owners corporation does not repair.

The outcome of this case has added further uncertainty to an already uncertain area of law concerning NCAT’s power to order payment of money in strata disputes.

So, what power does NCAT have to order payment of compensation according to this recent case? Common Property, Strata Disputes, NCAT and Compensation Payments

For NSW strata legal 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.