As combustible cladding is fast becoming a major focus for multi-storied buildings in New South Wales, lot owners and owners corporations are now facing a major bill and headache to replace combustible cladding.

The problem with combustible cladding has been further exacerbated by the current pandemic as a number of lot owners are unable to afford a special levy due to having lost employment. Some are even facing bankruptcy.

Despite these difficulties, some relief for combustible cladding costs has now arrived from the Australian Tax Office (ATO).

In this document we explain the recent ATO ruling to assist in rectifying combustible cladding defects… ATO Provides Relief for Combustible Cladding Costs

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

From sunset clauses to cooling-off periods, changes to the strata laws are being considered all over Australia.

The first cab off the rank will be modifications to the Victorian strata laws, due to be implemented in the next couple of months. These changes will bring some of those laws into line with NSW strata laws.

Some proposed changes include:

1: Sunset Clause

The new laws will clean up the ‘sunset clawback’ regulations. The laws will  prevent property developers from deliberately delaying the completion of buildings, in order to invoke the sunset clause.

No longer allowed will be the cancelling of contracts and the readvertising of properties on the market, at a much higher price.

Get out clauses will also be introduced for people who’ve bought properties off the plan, and discovered their completed apartment is substantially different from what they’d agreed to buy.

2: Cooling Off Period

The cooling off period will be extended from five to 10 business days with limitations on the vendor’s ability to get purchasers to sign those rights away.

3: Proxy Farming

Committees will be reduced from 12 to seven members with restrictions on proxy farming and committee proxies.

 4: Voting Rights

Lot owners voting rights on contractual limitations will be banned. It’s also yet to be seen if this will affect the vetos on short term letting often pre imposed on purchasers of new buildings.

 5: Levies

Lot owners who default in paying their levies will incur more debt recovery costs but, on the other hand, for those people suffering hardship payment plans can be arranged.

 6: Renovations

Owners corporations will be able to set conditions under which renovations must be conducted, clamping down on rogue renovators, while rules that unreasonably prohibit the installation of sustainability measures will be invalid.

7: Smoke Drift

Rules to combat cigarette smoke drift will be allowed and residents made responsible for their guests’ behaviour, including being fined for any breaches.

 8: Penalties

Maximum penalties for rule breaches will be increased to $1,100, with the fines paid to the owners corporation. Voting thresholds for legal action will vary, depending on the level of courts involved.

If these laws are accepted,  we’ll see a huge step closer to a uniform set of national strata laws.

More Information

You’ll find more information (and proposed laws) at consumer.vic.gov.au/OCBill. These regulations reflect many of the NSW laws in place and how they’ll roll out nationally.

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

The strata legislation contains a number of requirements which must be met for any AGM.

These include requirements for the AGM agenda to contain certain motions and for the AGM notice to be accompanied by various documents.

So, what happens if these requirements are not met? Is the AGM invalid?

A recent decision of the Supreme Court provides helpful guidance on this issue – Supreme Court Strata AGM Guidance.

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

Thanks strata for attending our recent forum. In the busy and hectic world of strata, we appreciate you taking the time and effort to join us.

We hope you enjoyed the forum as much as we did presenting and sharing our knowledge.

As promised, please find below copies of all presentations and papers.

If there is anything we can assist you with please do not hesitate to contact us here or one of our lawyers below.

How have the New Laws Shaped Up?

Warwick van Ede 
The Dawn of a New Era  I  Strata Renewals  and Collective Sales  Presentation and  Paper

Daniela Terruso 
How to Avoid the Pitfalls and Correct the Mistakes  I  By-law Reviews  Presentation and Paper

Faiyaaz Shafiq
The New Procedures and Traps for Young Players  I   Levy Recovery  Presentation and Paper

Adrian Mueller
Goodbye, Thoo  I  Novel Compensation Claims Against Owners Corporations Presentation and Paper

Adrian Mueller
How to Make You Look Good  I  The 5 Most Useful By-laws Presentation and Paper

Helen Amanatiadis
The New Regime  I  Building Bonds and Inspection Reports  Presentation and Paper

Adrian Mueller
The Good, Bad and Ugly  I  The New Strata Laws Presentation and Paper

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

We’ve been receiving a few enquiries in regards to the rules for levy recovery and payment plans under the new strata legislation.

You may recall late 2016 the new laws came into play giving lot owners the specific right to request an owners corporation to agree to a payment plan for any levies in arrears.

However, before a levy recovery payment plan can be put into place,  the owners corporation must accept the payment plan at a general meeting.

Therefore any lot owner who wants to pay their levies by instalments through a payment plan has to do the following:

1. Make a request (supported by owners who hold at least 25% of the unit entitlements) 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. Pay the costs of holding the EGM at which the owner wants the payment plan to be approved.
3. Explain to the owners corporation why the payment plan should be approved to convince other owners why they should be given more time to pay their levies.
4. Have the payment plan approved at the EGM or alternatively, wait until the AGM for the plan to be approved.

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 has 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 likely to be adhered to and is fair and reasonable.

If a request for a payment plan is refused the lot owner may decide to take legal action in NCAT to ask for more time to pay their levies (but this would be unusual) or seek orders from the Local Court to permit the levies to be paid by instalments.

Any payment plan approved by an owners corporation cannot extend beyond 12 months and still does not prevent the owners corporation taking legal action against the lot owner to recover overdue levies.

For the full details of the new levy collection laws read our paper – Levy Collection New Laws

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

JS Mueller & Co has been serving the strata industry for almost four decades, since 1979, and as our business grows, so does our team of strata experts. As such, we’re proud to announce the addition of three new strata lawyers to our team.

Adrian Mueller partner JS Mueller & Co said “our team of strata lawyers is growing fast and we pride ourselves on recruiting experts with the right mix of experience and knowledge helping us to continue to expand our presence as a leader in the strata industry. We’d also like to thank our existing clients for their ongoing support.”

“In my 40 years as senior partner of our firm I have not experienced a team of lawyers as proficient as the team we have today. I am proud that we are able to provide unparalleled service to our clients from the best strata lawyers in NSW”, said Jeffrey Mueller.

Please join us in giving a warm welcome to our newest team members.

Warwick VanEde I Lawyer I 28 Years I Strata Law I Property Law I Litigation
Warwick is a NSW Law Society Accredited Specialist in property law who has significant experience advising on strata and community title developments. He has a focus on providing assistance to developers and owners corporations including drafting by-laws, community and strata management statements, conveyancing and all aspects of strata law. He is also an accomplished litigator having appeared as advocate in most senior courts in NSW. Full profile.

Helen Amanatiadis I Lawyer I 20 Years I Strata Law I Property Law I Litigation I Construction
Helen has extensive experience acting for owners corporations, particularly in relation to construction related matters. Her experience includes building contract negotiations, preparing payment schedules and adjudication responses in security of payment claims by contractors against owners corporations, and acting in building contract and defects disputes. Helen also advises on insurance claims, easements, compulsory acquisitions, strata disputes and by-laws. Full profile.

Daniela Terruso I Lawyer I 15 Years I Strata Law I Property Law
Daniela has significant experience in providing legal services to owners corporations and developers in a wide variety of areas. Her background includes working on the acquisition of development sites and preparation of off the plan contracts, by-laws and management statements for vacant land, housing and strata and community title developments. Daniela also specialises in drafting complex by-laws. Full profile.

Our Team
We are continuing to build our team. In our view, there is no substitute for experience and that is why we have assembled a team of lawyers that have real expertise in strata law. As our firm further grows, you can expect that we will continue to keep you up to date with all of the latest developments in strata law.

If you are interested in working for JS Mueller & Co Lawyers please send us a covering letter and resume.

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

Must strata lot owners pay, as part of their levies, maintenance of the common property they do not use?

Are all strata owners responsible for paying for the maintenance of every part of the common property even if some owners cannot or do not use part of the common areas?

Is it possible for an owners corporation to raise a differential contribution that is levied on some but not all owners or is levied in shares that are not proportional to the unit entitlements of the lots?

Here are some typical examples where owners often query if they should pay for maintenance of these areas:

• A strata scheme that contains multiple stages – should they pay for stage 2 if they’re in stage 1?
• The owner of a ground floor lot who does not use a lift servicing the upper levels of the building
• The owner who does not use recreational facilities such as a swimming pool, gym or tennis court

Are these exceptions or are common areas in strata residential blocks treated as a whole?

Read this paper to find out the true position – Common Property Use and Differential Levies in Strata Blocks

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

To contact us during this period please leave a message and we’ll get back to you on our return.

Thanks Strata, as a wrap up here are some useful links from 2017…

• We shared our strata knowledge through our new resource library
• We listened to you and launched our new brand and website
• We developed strata by-law and meeting templates for the new strata laws
• We tweeted, 54 times sharing the latest in strata law
• We posted, 45 times on LinkedIn with the latest updates
• We collected for over 600 new levy debt recovery matters plus our regulars
• We expanded our team to better service the strata industry

We’re taking a break from 5.30pm 21 December 2017 and returning on 15 January 2018.

We wish you and your families a safe and happy ‘Festive Season’ and look forward to working with you in 2018.

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

Owners Corporations and strata managers in NSW sometimes wonder how they can recover outstanding strata levies from owners of strata units who have disappeared and are nowhere to be found. Well, do not be disillusioned.

Muellers has now given hope to owners corporations and strata managers and has proved the naysayers wrong acting in what has been widely reported as the first ever sale of a strata unit by the NSW Sheriff.

In the recent case of The Owners-Strata Plan No. 7396 -v- Siak Hong law (unreported), in which Muellers acted for the successful owners corporation, the Supreme Court of NSW ordered that documents be served on a unit owner who was unable to be found, via substituted service orders.

More importantly, the Supreme Court also ordered the NSW Sheriff to sell the owner’s unit by a certain date to ensure the sale of the unit and recovery of overdue levies was not delayed.

This case shows that overdue levies can be recovered from an errant unit owner and that it is possible to force the Sheriff to sell a strata unit to ensure that overdue levies are paid to an owners corporation.

The outcome we achieved in the case was the result of much hard work, sheer determination and a never say die attitude to demonstrate that even in the most difficult cases it is possible for overdue levies to be recovered.

Setting a precedent, the case was also picked up by mainstream media:

• Sale of apartment owned by monk who disappeared overseas sets legal precedent
• Merry chase for mystery Malaysian monk who renounced his ‘worldly possessions’

At Muellers that is the approach we take to all our levy collection matters and that is why we are widely regarded as the leader in strata levy collections.

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