What is the impact of COVID-19 on remedial works contracts?

Does the COVID-19 Pandemic entitle an owners corporation to cancel or delay a contract for remedial work to common property?

What if an owners corporation allows work to proceed? Could it be liable if a resident contracts the COVID-19 virus from a contractor performing that work?

In this article we discuss the impact of COVID-19 on remedial works contracts and answers to these questions:

• Can an owners corporation cancel or delay a remedial works contract due to COVID-19?
• Has a remedial works contract become frustrated due to COVID-19?
• What role does a force majeure clause have to play?
• Is an owners corporation liable if a resident contracts COVID-19 from a contractor?

Our article Remedial Works Contracts and COVID-19 Pandemic will answer these questions and more.

Owners corporations and strata managers should monitor Government announcements and, where necessary, obtain legal advice about whether or not contracts they have entered have become frustrated or are able to be cancelled or delayed due to any change in circumstances or the law.

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

On 22 March 2020, the Australian Government announced a further economic response to the Coronavirus that will effect levy recoveries.

That response includes changes to personal and corporate insolvency laws which will have a dramatic impact on the way overdue strata levies are recovered.

In this paper we provide we explain:

• A Snapshot of the Changes to Levy Recovery Practice
• An Overview of those Changes
• Details of the Ramifications of the Changes
• Information about Payment Plans
• Information about Template Payment Plan Documents

After reading this paper Levy Recovery Practice Changes Due to Coronavirus if you would like a copy of our ‘template payment plan documents’ and/or would like assistance with managing your levy recovery payment plans please email jsmmarketing@muellers.com.au

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

The Coronavirus has presented new and fundamentally different challenges to strata managers and owners corporations.

The most dramatic and short-term impact of Coronavirus on the strata industry is the affect it has had on the ability of strata managers to engage in face to face meetings with strata committees and lot owners and work from their office.

But there are other impacts the Coronavirus has had and will be likely to have on the strata industry. 

In this article we take a look at some of those impacts:

• General Meetings
• Strata Committee Meetings
• By-laws
• Health and Safety
• Service Contracts
• Public Relations
• And more…

What can you do? Strata Managers and the Coronavirus: Here’s What You Can Do

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

We value your business, but even more importantly, your health and wellbeing.

For that reason, and in an effort to prevent spreading the Coronavirus (COVID-19), we have decided to postpone our upcoming Strata Managers’ Forum ‘Strata 2020 and Beyond’.

The event which was due to be held on Monday 23 March 2020 will be rescheduled at an appropriate time in the future.

All amounts paid for tickets for the event will be refunded.

The Coronavirus has presented new and fundamentally different challenges to strata managers and owners corporations and these will be the subject of a newsletter we will send you shortly.

Thank you for your understanding in these challenging times.

Adrian Mueller I Partner I JS Mueller & Co Lawyers

If you have any questions regarding the Forum you may contact our office.

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

The marvels of modern technology: Consolidated Strata By-Laws will soon be ready for electronic registration.

The Office of the Registrar-General has updated its guidelines on the dealings that will be able to be lodged for registration electronically.

The updated guidelines reveal that by the end of April 2020 it is anticipated that Consolidation/Change of By-Laws and Change of Address of Owners Corporation forms will be able to be lodged for registration electronically.

These dealings will only be able to be lodged electronically through an Electronic Lodgement Network Operator (ELNO).

Our firm has arrangements with an ELNO which will enable us to lodge Consolidated Sets of Strata By-Laws and Change of Address of Owners Corporation forms electronically with NSW Land Registry Services from the end of April onwards.

The Registrar-General’s updated guidelines indicate that it is expected that all strata dealings will be able to be lodged for registration electronically by the end of 2020.

The ability to register these documents electronically will streamline and speed up the registration process and is a welcome development.

If you want to know more about our by-law registration services, please do not hesitate to get in touch with us.

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

Finally there has been a conclusive decision from NCAT regarding lot owner compensations.

The President and Deputy President of NCAT have recently handed down an important decision. They have concluded that NCAT does not have power to award a lot owner compensation. This is a result of a failure by an owners corporation to repair defects in the common property.

This decision around NCAT and lot owner compensations is likely to be followed by NCAT in the future and resolves a longstanding controversy about this issue.

What does this mean? Read our recent cases regarding NCAT’s decision around Lot Owner Compensations

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

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.

Thank you Strata for your support during 2019.
To contact us during this period please leave a message and we’ll get back to you on our return.

In a win for owners corporations, the Supreme Court has just announced that the definition of “major building defects” in the legislation should be given a broad meaning.

Across strata there are many building defects which have previously been categorised as minor. These can now possibly be considered as major and covered by the 6 year warranty period.

As this is a complicated area of law, it is best to seek legal advise ASAP.

This recent case will provide you with more information Strata is your minor building defect now a major defect?

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

In a major development for the strata industry, NCAT has recently held that Biowood cladding installed externally on a Sydney building is combustible and must be removed as it is a major building defect.

There are a number of multi-storey buildings in NSW with Biowood panels that are combustible and pose a risk of fire spreading from one part of these buildings to another.

Faiyaaz Shafiq, Senior Lawyer, said, “it is now up to owners corporations and strata managers to ensure these panels are removed and lives are not put in danger.”

Owners corporations of buildings which have Biowood cladding require urgent assessment of the risks involved and their rights in light of this new decision.

For more information… Biowood Cladding NCAT Rules Combustible and also refer to media coverage in the Sydney Morning Herald (SMH) and news.com.au.

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