The NSW Government is working to increase confidence in the NSW building industry by creating a new foundation for construction, by looking at improvement of laws and consumers/workers protection.

How to Have Your Say!

To have your say on the proposed building laws reform in NSW you can:

• Complete the all-in-one survey which allows you to skip through all topics to those that are of interest to you or;
• If you are only interested in a single topic, you may complete one or more of the 7 individual survey topics
• You may also make a submission which allows you to give detailed feedback or respond directly to the questions in the regulatory impact statements

Deadline for Your Feedback

To provide feedback please Friday 25 November 2022.

For more information, please refer to the NSW Government here.

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

An owners corporations duty to maintain and repair defective common property in NSW is likely to undergo a major change if the proposed Building Compliance and Enforcement Bill 2022,NSW is passed by the NSW Parliament and becomes law.

The major changes are designed to give the NSW Building Commissioner Mr David Chandler draconian powers to force owners corporations to fix common property defects.

What are the New Powers Under the Bill?

The new powers under the Bill includes:

• A right to enter a strata scheme to inspect and investigate defects
• Organise and undertake destructive testing
• Forcing people associated with strata schemes to answer questions in writing
• Issue compliance notices
• Accept compliance undertakings
• Issue search warrants
• Applying to the Land and Environment court for restraining or remedial orders

The proposed changes will allow fines to be issued to owners corporations who are in breach of the Commissioner’s orders to a maximum of $22,000 and $2,000 per day for any continuing breach.

Consultation on the proposed bill ends on 25 November 2022 and if the bill is passed it will give the Building Commissioner more muscle against those owners corporations who fail to recognise that the duty to maintain and repair defective common property is an immediate duty that cannot be delayed or suspended.

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

Tenants, Building Defects, NCAT and Rent Relief

In a recent case, a property manager failed to inform a landlord of defects in the common property of a strata building and take any steps to investigate issues that a tenant had complained about.

The tenant applied to NCAT for a rent reduction as the landlord had breached their obligation to keep the rented premises in a reasonable state of repair as water leaked into the premises. The tenant was successful.

Who Could be Liable?

If a tenant claims rent relief from NCAT due to defects in a strata building, it’s important to note that NCAT could deem that it is the responsibility of the:

• Landlord who could lose rent (or worse) if they do nothing;
• Property manager if they fail to fix defects in the premises that they are authorised to repair following a tenant’s complaint in a timely manner;
• Property manager if they have not advised the landlord of defects (where they are not authorised organise repairs) following a tenant’s complaint;
• Owners corporation who could also be held liable for a landlord’s loss of rent.

A Timely Reminder for Managing Agents!

Ensure your professional indemnity insurance is current;

• Ensure your professional indemnity insurance is current
• Obtain landlord consent on a minimum amount for repair works which can be dealt with without the landlord’s approval;
• Allocate sufficient resources to attend to repair requests in a timely manner to avoid issues which could lead to court proceedings;
• Request that any common property defects are promptly repaired by the owners corporation;
• Ensure that the relevant strata by-laws for the apartment block are up to date to minimise your risk

Here we share some cases…

• https://www.caselaw.nsw.gov.au/decision/18261da0208ae3ceaf03173b
• http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/nsw/NSWDC/2019/9.html

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

For the first time, all strata schemes across NSW are now required to report key information each year using the new Strata Hub portal.

To help strata schemes navigate this change, the NSW Department of Customer Service is hosting a special strata sector event.

Strata Scheme Reporting Lunchtime Online Q&A Event

The lunch hour event features a Q&A panel discussion on what the new reporting requirements will mean for NSW strata communities. Expert panellists will answer your questions and share insights about the new strata scheme reporting.

When: Wednesday 20 July 2022 from 12 noon – 1pm.

The panel includes:

• John Minns – NSW Property Services Commissioner
• David Chandler OAM – NSW Building Commissioner
• Kerrie Burgess – Director, Digital & Program Delivery, Department of Customer Service
• Karen Stiles – Executive Officer, the Owners Corporation Network
• Stephen Brell – President, the Strata Community Association (NSW)

If you’d like to submit any questions to the panel in advance, please email: stratasystem@customerservice.nsw.gov.au

TO ATTEND REGISTER ONLINE BY 15 JULY 2022

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

As you’re aware, recent changes to strata laws mean that all NSW strata schemes must, for the first time, complete online reporting.

The new strata portal will go live 1 July 2022 allowing strata committee members and strata managers responsible for reporting to register on the portal.

Communication Toolkit

This means that your networks will need to be advised of the reporting requirements. To assist with these communications NSW Fair Trading has developed a ‘Communication Toolkit’.

This ‘Communication Toolkit’ includes suggested wording for:

• Newsletters
• Websites
• Emails
• Social Media
• FAQs

To access the ‘Communication Toolkit’ please click here.

CLICK HERE FOR THE ‘COMMUNICATION TOOLKIT’

Further Information

• Visit: NSW Fair Trading Website
• Email: NSW Fair Trading
• Read Article: JS Mueller & Co Lawyers
• View: Strata Schemes Management Act 2015

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

Strata NSW Covid-19 Laws Extended

To help strata and community associations to continue to manage their responsibilities of COVID-19 the NSW Government has extended the timeline for these laws to remain in place.

Laws were previously added to the Strata Schemes Management Regulation 2016 and the Community Land Management Regulation 2021 in response to the NSW COVID-19 outbreak.

These laws included allowing voting at remote meetings to be held electronically by tele or video conferencing, email or other electronic means. It is important to note that these laws will still apply even if a motion has not been passed.

New COVID-19 Strata Law Deadlines

Initially these temporary laws were to end on 31 May 2022 however they will now remain in place until 30 September 2022.

For further information visit: Strata Schemes Management Amendment (COVID-19) Regulation 2022 and the Community Land Management Amendment (COVID-19) Regulation 2022.

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

What type of resolution must an owners corporation pass in order to authorise a change to common property?

The strata legislation allows an owners corporation to replace common property with the authority of an ordinary resolution.

But the legislation also says that an owners corporation cannot upgrade common property unless it first passes a special resolution.

Where is the line drawn between replacing and improving common property?

In this article we take a closer look at this much vexed issue: Changing Common Property_ An Ordinary or Special Resolution?

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

Commencing 30 June 2022, the NSW Government will launch phase 2 of the ‘Strata Hub’, revolutionising strata management which means new reporting requirements for all strata schemes.

The ‘Strata Hub’ phase 1 initially went live on 31 July 2021 launching the Strata Building Bond and Inspections Scheme (IBBIS) functions to be dealt with through the ‘Strata Hub’.

What is ‘Strata Hub’ phase 2?

• ‘Strata Hub’ is a central point of information for all NSW’s strata schemes
• Information held on the ‘Strata Hub’ will increase transparency and access to information for Strata Schemes
• Purchasers will be able to obtain information about Strata Schemes for the purpose of potential purchases
• Current owners will be able to obtain documents/information such as fire inspection and environmental building reports
• Regulators will be able to monitor a scheme’s maintenance and building defects
• People working in strata related industries will now have easier access to much needed information

When does ‘Strata Hub’ phase 2 commence?

• ‘Strata Hub’ commences 30 June 2022
• Your Strata Schemes must be registered on the portal by 30 September 2022

What are the new reporting requirements for strata schemes?

• Within 3 months of an AGM, strata schemes will be required to lodge a return with the Office of Fair Trading (OFT), providing key details about the scheme
• Payable to the OFT annually, a fee of $3 per lot is required to cover administration costs
• For any updates/corrections to existing information you are obliged to update that information within 28 days from the date the secretary or managing agent became aware of the change
• If you do not comply fines of up to $2,200 can be imposed

The information stored on ‘Strata Hub’ will be divided into 2 categories:

• Publicly available information
• Other information available to limited groups

Would you like further information and assistance?

• Strata Schemes Management Amendment (Information) Regulation 2021 (the Information Regulation) on the NSW Legislation website
• A full list of the information required for the report to lodge with the OFT, and recommendations for where it can be sourced, is available here
• For any further assistance you may also contact specialist strata lawyers, JS Mueller & Co Lawyers here

‘Strata Hub’ is intended to be a central access point for residential strata buildings that will make it easier for buyers, owners, regulators, and those working in strata related industries to get the required information they need.

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

Important Changes to CLMA 2021

The commencement of the Community Land Management Act 2021 (CLMA 2021) on 1 December 2021 has introduced a number of important changes to the laws regulating by-laws in Community Management Statements and Neighbourhood Management Statements.

Are Your By-laws up to Date?

As a result of these changes a number of by-laws contained in Management Statements are no longer valid or enforceable and many by-laws in Management Statements are now redundant.

This means there is a need for community associations and neighbourhood associations to review their Management Statements to ensure compliance with the CLMA 2021.

By-law Reviews – What Lessons Have Been Learned?

In the article below, we share some of the lessons that have been learned from those by-law reviews following the commencement of CLMA 2021. We look at:

• Harsh By-laws
• Pet By-laws
• Leasing
• By-laws Regarding Association Committees and Insurance
• Old Terminology
• Changes to Part 1 By-laws

Read article hear – CLMA 2021 Lessons Learned

Are You Compliant – Need a Review?

Our specialist strata lawyers have reviewed dozens of Management Statements for community and neighbourhood schemes. Need a review – click here now

ARE YOU COMPLIANT? – CLICK NOW FOR A REVIEW!

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

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Did you know that a new Bill Is currently before the NSW Parliament to permanently implement COVID-19 measures for the strata industry?

In the last 24 months, temporary reforms were made to the Strata Schemes Management Act 2015 and the Community Land Management Act 2021 in response to the COVID-19 pandemic.

The COVID-19 and Other Legislation Amendment (Regulatory Reforms) Bill 2022 proposes to make those reforms permanent.

The reforms include:

The New Reforms

The reforms include allowing:

• • strata owners corporations, strata committees and community associations, to meet and vote electronically without passing a resolution to do so;
  • owners corporations and community associations to validly execute documents by affixing the common seal electronically or by not affixing the seal at all; and
  • service of a document on an owner or occupier of a lot to be by email to an address nominated by the owner or occupier for the service of documents.

More Information 

Source: Explanatory note for the COVID-19 and Other Legislation Amendment (Regulatory Reforms) Bill 2022, accessed 17 February 2022.

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

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