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.

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.

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.

The procedure for registering by-laws under the new strata legislation is completely new. Land and Property Information (LPI) NSW will no longer allow by-laws to be registered unless a consolidated version of all by-laws including any new by-laws is lodged for registration.

What Has Changed?

The new strata legislation requires any change in the by-laws for a strata scheme that are lodged for registration to be in the form of a consolidated version of all of the existing by-laws that incorporates the changes to the by-laws as well. The consolidated version of the by-laws must include any relevant model by-laws.

What Does the Change Mean?

If you attempt to register a change in the by-laws without the consolidated version of the by‑laws, Land and Property Information will reject the document you lodge.

Do I Have to Comply?

There is a limited exemption to the requirement to lodge a consolidated version of the by-laws each time you need to register a change to the by-laws.  Land and Property Information may permit a change in the by-laws for a strata scheme to be lodged separately, and not in a consolidated version, if satisfied that it would be too onerous for a consolidated version to be lodged and there are no more than five separate change of by-laws recorded on the title of the common property.

Can you get an Exemption?

The new procedure for registering changes to the by-laws for a strata scheme at Land and Property Information is untested. However, we expect that it may prove difficult to secure an exemption from the need to lodge a consolidated version of the by-laws when registering a change to the by-laws. Where that occurs, every change of by-laws will require a new consolidated list of by-laws.

Why the Change?

The rationale for the change is to ensure that a consolidated set of all of the by-laws for a strata scheme is recorded on title much like the by-laws in a management statement for a community scheme or neighbourhood scheme.

What Happens to the Existing Registered By-Laws?

Once the consolidated version of the by-laws is registered, all current notifications of by-laws appearing on the common property title will be removed and the common property title will be updated to refer to the consolidated version only.

What Happens if I Get it Wrong?

When the consolidated list of by-laws is prepared, care will need to be taken to ensure that the list is complete and accurate. Land and Property Information will not examine the consolidated set of by-laws against any existing change of by-laws recorded on the common property title to ensure that the consolidated set is complete and accurate. If the consolidated set of by-laws is wrong, for example, an existing by-law is not included in the consolidated set; a person aggrieved by the error may make a claim against the owners corporation or strata manager who registered the incorrect consolidated set of by-laws.

Where is the Change Found and What does it Mean?

The new requirement concerning the registration of changes to by-laws for strata schemes is contained in clause 24 of the Strata Schemes Development Regulation 2016.  We expect that this new requirement will create significant problems for strata managers and others who attempt to register changes to the by-laws without a consolidated version of the by-laws.

How Can we Help?

Muellers are able to prepare a consolidated version of the by-laws for a strata scheme for a fee of $750 plus GST where there are no more than two changes of by-laws dealings registered on the title of the common property.  For strata schemes which have more than two change of by-laws registered, please contact us to obtain a price to prepare a consolidated set of by-laws for that scheme.

There is Still Hope!

We will continue to provide a cost effective and efficient by-law registration service under the new regime. If you encounter difficulty registering changes to the by-laws for any strata scheme that you manage, please do not hesitate to get in contact with us so that we are able to help you.

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

Under the new strata regulations, proxy voting will prevent any individual attempting to control owners’ decisions by obtaining a majority of proxy votes.

The number of proxy votes able to be held by one person will be limited to:

1. Schemes – 20 lots or less

For schemes with up to 20 lots, a person will be permitted one proxy vote.

2. Schemes – more than 20 lots

For schemes with more than 20 lots, a person will not be able to hold proxies for more than 5% of the total number of lots in that scheme (rounded down to the nearest whole number).

There is also an introduction of remote voting meaning owners need not be in the same country, let alone the same room, to cast a vote.

Telephone, video conferencing, email voting and even a voting website will all be permissible, with the approval of the owners corporation or strata committee.

Click here to read the full article – New Rules on Meetings and Voting

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

Late last Friday the NSW Government released consultation drafts of the Strata Schemes Management Regulation 2016 and Strata Schemes Development Regulation 2016, with their accompanying Regulatory Impact Statements (RIS).

To read the new proposed draft regulation please click below:

1. Consultation draft – Strata Schemes Management Regulation 2016
2. RIS – Strata Schemes Development Regulation 2016
3. RIS – Strata Schemes Management Regulation 2016

To read the current legislation please click below:

1. Strata Schemes Management Act 1996
2. Strata Schemes Management Regulation 2010

If you have any comments after you’ve read through the regulations, please send them directly to SCA’s General Manager, Rachel Lynn (rachel.lynn@stratacommunity.org.au) by Monday 11 May 2016.

Rachel will ensure a response is sent to meet the Government deadline of 27 May 2016.

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

New strata by-laws allowing pets in units, managing illegal parking and curbing smoking on apartment balconies are part of the biggest overhaul of strata laws in more than 50 years. Set to come into play 1 July this year, what do they mean?

 Pets

The new changes to pet strata by-laws will have an impact on people living with pets. Under the current model there are 3 options and these will change come 1 July. The current options are:

1. Owners corporation to approve pets (except fish), but approval cannot be unreasonably refused.
2. Owners corporation to approve pets, some pets are allowed without approval, the owner must advise the owners corporation if they are keeping a cat, dog, caged bird or fish, but approval cannot be unreasonably refused.
3. No pets allowed.

Note: Currently if the owners corporation chooses no option it will default to option 1.

What happens post 1 July?

The new strata by-laws will not remove a scheme’s ability to make its own rules about pets. However, if the new model by-law is adopted, the request to keep a pet cannot be unreasonably refused. If the owners believe approval was unreasonably withheld, they can apply to the Tribunal.

For more information – Fair Trading Strata Law Reforms

Parking

Drivers who illegally park in visitor bays of strata communities could soon be slapped with $550 fines by the City of Sydney Rangers if a plan to crack down on non-approved parking takes hold.

This strata reform will assist to reduce one of the most common disputes concerning unauthorised parking by residents misusing visitor parking spots, or outsiders with no connection to the strata scheme parking on common property without prior approval.

So, how will it work?

A scheme will need to enter into an agreement with an authorised council which will allow them to enter the property, erect signage and issue fines. It’s not mandatory; schemes have a choice as to whether they wish to enter into such arrangements.

For more information read – Better Parking Control

Support for smoke-free multiunit living is on the rise, particularly with people living with children and it’s predicted that it’s only a matter of time before most strata buildings go smoke-free.

The NSW Government has said that the new strata laws would make clear that smoking and second-hand smoke exposure could constitute a nuisance that could be outlawed.

How can it be imposed?

Simply, an owners corporation can make a strata by-law banning smoking throughout an entire strata building. Orders can also be made against residents who smoke or allow their cigarette smoke to drift into other units, and landlords can be held liable to their tenants for second hand smoke exposure.

To read the full article written by partner, Adrian Mueller click here – Wake up and Smell the Smoke

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

About JS Mueller & Co

JS Mueller & Co has been servicing the strata industry across NSW for almost 40 years. We are a specialist firm of strata lawyers with in depth and unmatched experience in, and comprehensive knowledge of strata law and levy collection. We are there to assist you every step of the way.