The new strata legislation is set to commence on 30 November 2016.  Will you be ready?  Why not be ahead of the pack!

Introduction

The Strata Schemes Management Act 2015 will introduce new laws dealing with meetings, building works, electronic voting and proxy farming.  We have developed meeting notice and by-law templates that deal with each of these new areas:

AGMs

The new Act contains additional requirements for AGMs. This means notices for AGMs need to contain additional motions and further information. And some of the motions you already include in an AGM notice will change. We have developed a template AGM notice which covers the matters required under the new Act. Our AGM notice also includes explanatory notes and information that will need to accompany the meeting notice such as the strata manager’s report as to commissions and a call for nominations for members of the strata committee.

Building Works

The new legislation deals with three different types of building works that will affect common property: cosmetic work, minor renovations and major renovations.

Cosmetic Work

Under the new laws, owners will not need to obtain the approval of an owners corporation to carry out cosmetic work. And an owners corporation will be able to make a by-law identifying additional work that is able to be considered cosmetic work which does not require approval.  We have prepared a by-law that identifies the additional types of cosmetic work and lays down rules owners will need to follow when carrying out that work.

Minor Renovations

The new laws will also allow owners to carry out minor renovations that affect the common property. Minor renovations will only require the approval of an owners corporation to be given by ordinary resolution. A special resolution will no longer be required for minor renovations. The new laws also allow an owners corporation to identify types of minor renovations and delegate to the strata committee the power to approve minor renovations.  We have developed a by-law that does just that and sets out clear rules for owners to follow before, during and after minor renovations.

Major Renovations

The new legislation also deals with major renovations.  We have developed a by-law that comprehensively deals with major renovations. That by-law contains all of the bells and whistles that are required to regulate major renovations in a strata building.  Using that by‑law takes the hard work out of the approval process and allows you and the owners corporations you manage to focus on the key decision of whether it is appropriate to approve an application for permission to carry out major renovations and not have to worry about the conditions of approval.

Electronic Voting

The new legislation will permit an owners corporation and strata committee to allow votes to be cast by electronic means whilst owners and committee members participate in meetings remotely.  But the legislation does not set out the rules that will apply to e-voting.  Nor does the legislation make clear whether or not an owners corporation and strata committee will need to pass a resolution each year to approve e-voting.  We have prepared a by-law that lays down clear rules concerning e-voting during meetings so that stakeholders will know where they stand.  Our by-law will make it easier to facilitate e-voting during meetings of an owners corporation and strata committee.

Proxies

The new legislation contains anti-proxy farming laws. These laws will prohibit a person holding more than one proxy (for a strata scheme containing up to 20 lots) and from holding proxies greater than 5% of the total number of lots (for schemes that have more than 20 lots).  But the legislation does not say what will happen when a person holds more than the maximum number of proxies.  Which proxies will be used and discarded?  And who gets to make that decision?  We have developed a by-law that will answer these questions.  Our by‑law lays down clear rules that will need to be followed by stakeholders where a person holds too many proxies and a decision needs to be made as to which proxies will be used and which proxies will be jettisoned.

Act Now

Be ready for the new legislation.  Act now.  We are offering the AGM notice and by-laws we have developed that deal with these new topics at competitive prices.  We invite you to contact us to discuss the by-laws and obtain pricing information.

Click here for pricing on Strata By-law and Meeting Notice Templates.

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

There has been considerable recent media coverage concerning proposed changes to laws regulating short term lettings in apartment buildings in NSW.

Many in the media are saying that owners corporations are going to lose the right to prohibit short term lettings in their buildings. Is that right? What does the NSW Government really have in store for short term lettings?

To read the full article – Short Term Lettings – Changes in the Air

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

Is the NSW Parliament about to legalise short term holiday lettings?

It’s proposed that some types of short term holiday lettings should become legal in NSW without needing the approval of the local council or the owners corporation if the City of Sydney has its way.

View the full article here now – Short Term Letting Changes

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

Current Position

Under the current law there are no legal rights for lot owners to request an instalment payment plan from an owners corporation should they fall behind in their levy payments – although an instalment plan is sometimes agreed to by an owners corporation in an appropriate case.

New Position

As of 1 December 2016 the new laws will give a lot owner the right to request an owners corporation to agree to a payment plan for any levies in arrears. Before the owners corporation can accept a payment plan they will need to have such a request properly approved at a general meeting.

The lot owner will have to do the following:

1. Make a request to the owners corporation to hold an EGM at which the owners corporation will consider the request of the lot owner to enter into a payment plan.
2. The lot owner may be required to pay the costs of holding the EGM at which the owner wants the payment plan to be approved.
3. The owners corporation will then consider the payment plan at the EGM.
4. Alternatively, an owners corporation can approve a plan at an AGM.

Important

It’s important to note that by holding an EGM it is not guaranteed that the request for the payment plan will be approved as the entry into a payment plan is a discretionary matter for the owners corporation and it is not a mandatory requirement that such a plan will have to be accepted.

Conversely, an owners corporation in a deserving and genuine case may decide to accept a request for a payment plan provided the owners corporation is of the view that the plan is more likely to be adhered to.

An owners corporation will have to be aware that if a request for a payment plan is unreasonably refused the lot owner may decide to take legal action against a refusal and seek orders from a Court of Law or Tribunal forcing the owners corporation to enter into a payment plan.

Click here for the full details of the new Levy Collection laws – Levy Collection New Laws

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

Trial Our FREE Time Saving LevyCollect App…

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To trial our FREE LevyCollect online portal and app service contact jsmmarketing@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.

It’s the Gold Coasts crumbly ‘faulty tower’ with almost 1,000 building defects. Building experts have described the building as life threatening.

Only seven years old and the apartment block may have to be demolished. Literally sick of living with leaks, rust and mould the long-suffering residents of the Silverstone apartment complex are taking ASX-listed property developer Villa World, seeking $20 million in damages.

View the full article here Silverstone Apartment Defects

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

In a surprising move, the Supreme Court has just upheld a decision made at an informal executive committee meeting.

Click here to read the full article – Supreme Court Rules Executive Committee has Power

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

The new strata laws will commence on 30 November 2016. Will you be ready?

To help you get ready, the team at Muellers will be running training seminars across Sydney in September and November 2016.

We will explain the most important aspects of the new strata laws and tell you what you need to know to be ready come 30 November.

We will review the new laws concerning strata managers, by-laws, renovations, NCAT, building bonds, collective sales and more.

Look out for the invitations to our training seminars as places are limited and will book out quickly.

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

Approved and commencing on 30 November 2016 the new strata laws will come into play.

The final Strata Schemes Management Regulation 2016 will be published on the NSW Government Legislation Website.

You may also read the final Strata Schemes Management Regulation 2016 here.

These new laws will give strata communities the tools to effectively run their scheme and shape their own by-laws.

Complying with the laws
Some of the new requirements have a transition period, giving strata schemes time to comply. An example includes strata managing agent appointments, which continue for a period after the laws commence (for the duration of the term of appointment (up to a maximum of 3 years), or 6 months after the new laws start – whichever is the later).

The new building defects bond requirements will start on 1 July 2017 (and only applies to new strata schemes). This will allow for the new Australian Standard for inspecting group title buildings to be adopted as the standard for the defects inspections.

Next steps
If you own, rent or manage strata, become informed and help your strata scheme or clients to prepare by sharing the link to ‘Major Changes to Strata Laws‘ information. You can also read the media release –  A New Era for Strata.

NSW Land and Property Information (LPI) is due to release the final Strata Schemes Development Regulation 2016 later this year.

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

Come November 2016, throwing a snag on the barbie or having a puff on a ciggie could be considered a ‘nuisance or hazard’.

Under the new strata reforms owners corporations will be able to enforce a ban by issuing a notice to comply with smoke drift, such as that from tobacco and barbecues, under the by-law changes.

Fines

If the barbequer or smoker fanatic fails to comply the matter could be taken to NCAT, who has the power to issue fines of up to $1,100 (double that of the old laws) and if the offender repeats the offense within 12 months, double it again – $2,200.

The owners corporation will be able to take action against offenders rather than leaving this to individual owners.

By-laws

The proposed model by-law provides 3 options:

1. Smoking in a lot is permitted but there must be no smoke penetration into any other lot or the common property.

2. Smoking in a lot is permitted but there must be no smoke penetration into any other lot or the common property. Smoking on the common property is also permitted but only in either designated smoking areas or with the written permission of the owners corporation.

3. Smoking in a lot is permitted but there must be no smoke penetration into any other lot or the common property. Smoking on common property is expressly prohibited.

It’s also important to note that there are currently no options in regards to the complete ban on smoking in schemes.

Also, any new model by-laws generally do not apply to existing schemes. They’ll only apply to strata schemes registered after the commencement of the 2015 Act if and that’s if the developer chose the option to go with model-by-laws.

For more information visit NSW Government Fair Trading.

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 here to assist you every step of the way.

Nikki Jovicic, LookUpStrata interviews Adrian for the ‘Strata Snapshot Series’.

In this interview, Adrian addresses the NSW Strata Reforms and the new strata laws, looking at how the top five ways the new laws and the changes to body corporate fines will affect you.

For more information visit New Strata Laws and How Fines will Affect Body Corporates

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.

JS Mueller & Co Headquarters
Level 1, 240 Princes Highway
Arncliffe Sydney Australia 2205
www.muellers.com.au

Media inquiries: Contact Julie Schoneveld on 02 9562 1266 or 0435 939 491

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