Historically, with each of the individual states and territories throughout Australia having their own strata legislation, the downside has been that the lack of national uniformity has presented significant challenges with interpretation and enforcement of the relevant legislation across different jurisdictions.

There are currently three principal jurisdictions throughout Australia − New South Wales, Victoria and Queensland − each having introduced strata laws during the 1960s, with New South Wales leading the way in 1961. However, over the decades, each of the states has replaced and consolidated legislation at differing times, with regular, ongoing reviews of strata and community legislation taking place at a different pace across the country as governments endeavour to harmonise communal living environments and address issues which arise as communal living density increases.

Three law firms in these principal state-based jurisdictions have formed an alliance, aptly named Strata Lawyers Australia, comprising one law firm from each state which specialises in the practice of strata and community title law. The purpose of this alliance is to combine the local expertise of each firm in order to provide a quality, nation-wide legal service which will maximise the effectiveness of strata law services for stakeholders in the strata industry in each state.

Sydney-based firm, JS Mueller & Co, is an active member of this strategic alliance and draws on local expertise to provide industry-leading legal services and advice, enabling them to operate across state borders and provide the most relevant and comprehensive legal service possible.

Recent developments within the strata industry across the country have meant that the implementation of a national alliance of strata law firms will have a direct and meaningful impact on the efficiency and delivery of legal services in this industry. Indeed industry growth and consolidation have seen an emerging trend of strata management businesses operating across multiple jurisdictions.

A number of other states and territories, particularly the ACT, have recognised the need to modernise regulatory arrangements for the strata sector and are keen to see the various jurisdictions brought into line.

JS Mueller & Co strata lawyer, Adrian Mueller, says that, for example, “ACT strata laws are quite different from strata laws in other jurisdictions. The ACT Unit Titles Management Act has some unique provisions”.

Adrian’s extensive expertise has seen him deliver ground-breaking papers and seminars to strata lawyers and managers throughout the country − a definite asset to the services offered by the Strata Lawyers Australia alliance.

It is Adrian’s recommendation that comprehensive legal advice is always obtained from a specialist in the relevant jurisdiction when dealing with contentious strata issues, particularly in light of the significant variations nation-wide.

National consolidation in the strata industry will see growth in the number of strata management businesses and law firms operating across borders including through strategic alliances such as Strata Lawyers Australia. And consolidation of national licensing is expected to bolster confidence among strata managers and make strata communities a more viable option for our ever-expanding population density, but will almost certainly require continual monitoring and ongoing legislative reform well into the foreseeable future.

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

Traditionally, keeping animals in apartment or unit buildings have been sternly frowned upon.

Rigid by-laws (the rules governing the day-to-day ‘housekeeping’ of the strata scheme) imposed by owners corporations have tended to be rigid and often subject to change at very short notice − and often not generally in favour of the tenant − and have led to many unfortunate events occurring where ‘hidden’ pets have been revealed in the most unpleasant circumstances, resulting in hefty fines and/or fractured (or terminated) living arrangements.

And with an estimated one in five people in New South Wales living within a strata scheme, the chances of a potential (or current) tenant owning a pet are high.

Essentially, pets should not be kept in strata accommodation without owners being sure of the relevant pet by-laws and obtaining the necessary approvals.  Pet owners are affected by both their strata community’s by-laws and their state legislation (although owners corporation consent is not necessary to keep a guide dog in a strata scheme).

When renting in a strata building, the by-laws should be reviewed and the real estate agent should confirm with the landlord of the property whether a pet is allowed. When buying, the terms of the by-laws should be confirmed with the owners corporation, and those terms should be explained to the purchaser by an experienced strata lawyer prior to entering into a contract.

Under recent legislation reviews in New South Wales, the NSW Fair Trading Minister has confirmed that changes to the legislation include default by-laws being altered so that pets will be allowed, subject to ‘reasonable’ approvals and conditions set by executive committees, or owners corporations.

However, if an existing strata scheme has a by-law which bans pets that ban remains in place under the new legislation. Equally, if an existing strata scheme wishes to allow pets, a by-law will still need to be voted in. If a new strata scheme wishes to ban pets it can do so by introducing such a by-law, if a 75% majority vote is obtained.

Adrian Mueller,  specialist strata title lawyer with Sydney’s JS Mueller & Co, says “that the changes will have an impact on new strata buildings as the new laws will apply to them. But the new laws will not apply to existing buildings unless owners corporations choose to adopt them.”

A professional speaker at forums on strata law for strata managers state-wide, Adrian says, “often people do not bother to check the by-laws before moving into an apartment. This is foolish and can lead to significant and expensive problems for pet owners.”

With by-laws and state legislation being updated regularly, the advice from JS Mueller & Co is that pet owners should always obtain a copy of their strata by-laws from the owners corporation and legal advice should also be obtained. Should a dispute arise assistance is also available from the relevant state government department, NSW Fair Trading.

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

That’s the concept many strata unit and apartment owners in New South Wales will be faced with if controversial changes to strata laws, proposed by the NSW Government, go ahead in July 2015.

Under the proposal, the consent of only a 75% majority of strata unit owners in a block will be required to consent to its demolition.

This is in stark contrast to the current laws, which require agreement by 100% of strata unit owners for a block to be sold to a developer for demolition. This proposal will effectively enable that 75% to force their neighbours (the minority 25%) to sell their homes, whether they are willing or not. An unpleasant prospect for that minority, despite compensation and relocation assistance.

With many strata blocks within New South Wales becoming quite dated, ongoing maintenance and renovation is, without doubt, an extremely costly process, with the preferred option being to simply demolish the buildings and build more aesthetically appealing higher density buildings. Currently, the 100% agreement strata laws force apartment owners to maintain and repair their buildings, regardless of the cost, and irrespective of whether developers could potentially pay a fair price to demolish and replace the buildings with modern, more liveable apartments. This has been a contentious issue for some time.

There are several positives should this law come into effect. For example, some of Sydney’s trendiest suburbs are host to some of its oldest, and least sustainable, buildings. The reforms would allow for redevelopment rather than expensive maintenance, offering potential increases in tenancy numbers and far more energy efficient buildings. Local council height restrictions could be more effectively adhered to, and, of course, it opens the door for stimulation within the building industry.

There are, of course, anticipated negatives to the proposed reform. There is potential for a small number of developers to over or underpay strata owners for their properties, thereby affecting the property market, and potential for owners to lose their lifelong residence and be insufficiently compensated. However, some safeguards are apparently planned, such as the enforcement of independent valuations, and there is talk of an ”extinguishment commissioner” who will hear appeals against unfair payments.

Should the reforms come to fruition, developers could be encouraged to offer apartment owners options such as ‘first option to buy deals’ and assistance with temporary or permanent relocation.

In circumstances such as these, legal advice will be imperative for strata owners.

“The new strata laws will introduce novel concepts unfamiliar to apartment owners and other stakeholders in the strata industry. These will need to be explained in simple language to make sure all stakeholders know where they stand,” says Bruce Bentley, partner of Sydney strata law firm, JS Mueller & Co.

Bruce specialises in strata law and those areas of the law that particularly affect the development, management and administration of group title communities.

“An apartment is someone’s home and most valuable asset. That is something worth protecting. Knowing where you stand if there is a proposal to sell under the new laws will be vital said, Bruce.”

The focus of the strata reforms is on improving the lives of people living in strata communities by increasing transparency and engagement within strata developments. These are worthy goals. But the proof is in the eating, and time will tell if the Government is able to deliver on its promise to improve strata living through more modern strata laws.

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