NSW Strata Reforms – The New Laws Explained!

Will your by-laws need updating in line with the new Strata Laws?

Since last week’s article where we spoke about ‘phase 1’ of the strata law reforms, the proposed amendments to the Strata Schemes Management Act 2015 (NSW) have been released.

Below we explain the new proposed strata laws and share the timeline for their introduction here.

Original Owners Votes

  •  If a scheme comprises of more than two lots the proposed amendments provide that the value of a vote cast by an original owner, usually a developer, of a strata scheme may be reduced.

Strata Committees

  • Committee member removal now only requires an ordinary resolution and once removed they’re not eligible to be on the committee for 12 months.
  • Where it is called for, an election for a committee can take place at any general meeting, not just the AGM.
  • A call for nominations to the committee must be included in the general meeting notice.
  • A member with a conflict of interest must be excused from voting and discussion on that matter.

Strata Managers

  • Must provide notice to the owners corporation 6 months prior to expiration of their agency agreement.
  • Fair Trading can recommend to NCAT that a compulsory agent be appointed to manage dysfunctional strata schemes.

Internal Funds Transfer

  • Under the proposed amendment for internal funds transfers, the owners corporation must, within three months of the transfer, decide at a general meeting, if the funds should be repaid, and if yes, how it should be done – via a simple reverse transfer or by special levy.

Emergency Repair Levies

  • The proposed amendments will reduce from 30 days to 14 days the time period for payment of a special levy for urgent repairs. This amendment is for necessary building repairs to mitigate any serious and imminent threats to the health and/or safety of building occupants.

Work Quotes

  • Multiple quotations for works exceeding $30,000 will now be required for all schemes – small and large – Also, the comparative quotations will need to be for people or companies that are not connected with each other.

Pets

  • A pet bond or fee can no longer be charged by the owners corporation.
  • A by-law cannot impose unreasonable burdens on people with assistance animals.

By-laws

  • Under proposed changes, owners corporations may consolidate the by-laws for the scheme only by special resolution – whether or not a by-law has been amended, repealed or added.
  • Two lot strata schemes do not need to pass a resolution to issue a ‘Notice to Comply’ regarding a by-law breach.

Books and Records

  • The strata roll and other mandatory records must now be kept electronically.

Rentals

  • Rental agents will be required to give tenants and lessees a copy of a strata scheme’s by-laws and strata management statement on commencement of a lease and whenever documents are updated if they are not provided by the landlord or head tenant.
  • Rental agents will have to provide the owners corporation notice that a lot has been leased or subleased if the notice hasn’t been provided by the landlord or head tenant.
  • Tenants can give notice of the lease to the owners corporation if the landlord, head tenant or rental agent fails to do so. In giving notice of the lease or sublease the regulations may prescribe the documents or other evidence a tenant must provide.

Service of Documents

  • The regulations may provide for the service of documents, including by prescribing additional methods of service.

Meetings

  • General Meeting Notices – time period for notices increases from 7 days to 14 days.
  • Company Nominees – number of votes to be limited in a similar way to the way proxy votes are limited.
  • AGM – Delivery of development documents by the developer must be done 14 days before the first AGM.

Community Titles

  • Most of the above proposals will also apply to Community Title regulations.

Strata Renewals

  • Allowing a strata renewal committee to operate for 2 years instead of 1 year to reflect the length of time it can take for that committee to develop a strata renewal proposal.
  • Permitting the Land and Environment Court to allow a collective sale of a strata building to proceed even though some of the preliminary steps associated with the sale have not been followed correctly (eg; inadequate meeting notice periods) if that has not resulted in a substantial injustice.
  • Allowing dissenting owners who do not object in good faith to have costs awarded against them (eg; where an objecting owner is a developer who is trying to obstruct a collective sale to another developer)

More information

NSW Government – https://www.nsw.gov.au/media-releases/critical-reforms-to-strata-laws

Amendment Bill – https://www.parliament.nsw.gov.au/bills/Pages/bill-details.aspx?pk=18511

Timeline – https://www.parliament.nsw.gov.au/bill/files/18511/SPI%20-%20Strata%20Legislation%20Amendment%20Bill%202023.pdf


Adrian Mueller Partner JS Mueller & Co Lawyers specialising in Strata Law

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

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.



NSW Strata Reforms Finally Moving Forward!

The NSW Strata Reforms Phase 1

The NSW Government is moving ahead with phase one of the reforms to strata laws providing benefit to those living in strata. The first phase includes:

  • Providing transparency – with collective sales and renewal processes
  • Removing restrictions on pets – residents with pets will no longer be required to pay fees, bonds or for insurances for the joy of having a pet
  • Requiring multiple quotes – ensuring competitive pricing is obtained for goods and services
  • Giving Fair Trading approval to ask NCAT – to appoint compulsory strata managing agents to help manage dysfunctional strata schemes

Some Significant Changes…

Some of the more significant changes include:

Strata Committees

  • Committee member removal now only requires an ordinary resolution and once removed they’re not eligible to be on the committee for 12 months
  • Where it is called for, an election for a committee can take place at any general meeting, not just the AGM
  • A call for nominations to the committee must be included in an AGM notice
  • A member with a conflict of interest must be excused from voting and discussion on that matter

Strata Managers

 Must provide notice to the owners corporation 6 months prior to expiration of their agency agreement.

  • Fair Trading can recommend to NCAT that a compulsory agent be appointed to manage dysfunctional strata schemes

Meetings

  • General Meeting Notices – time period for notices increases from 7 days to 14 days
  • Company Nominees – number of votes to be limited in a similar way to the way proxy votes are limited
  • AGM – Delivery of development documents by the developer must be done 14 days before the first AGM

Quotations

  • Multiple quotations for works exceeding $30,000 will now be required for all schemes – small and large

Pets

  • A pet bond or fee can no longer be charged by the owners corporation
  • A by-law cannot impose unreasonable burdens on people with assistance animals

Books/Records

 Must now be kept electronically

Strata Renewals

  • Allowing a strata renewal committee to operate for 2 years instead of 1 year to reflect the length of time it can take for that committee to develop a strata renewal proposal
  • Permitting the Land and Environment Court to allow a collective sale of a strata building to proceed even though some of the preliminary steps associated with the sale have not been followed correctly (e.g. inadequate meeting notice periods) if that has not resulted in a substantial injustice.
  • Allowing dissenting owners who do not object in good faith to have costs awarded against them (e.g. where an objecting owner is a developer who is trying to obstruct a collective sale to another developer)

 More information:

NSW Government – https://www.nsw.gov.au/media-releases/critical-reforms-to-strata-laws

Amendment Bill – https://www.parliament.nsw.gov.au/bills/Pages/bill-details.aspx?pk=18511


Adrian Mueller Partner JS Mueller & Co Lawyers specialising in Strata Law

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

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.



Pets and Strata – The Next Chapter!

What is the Next Chapter for Pets and Strata?

If you are an owner or occupier of strata property,  you could not help but notice the flurry of activity over the last couple of years, both at a legislative level and in the Courts of New South Wales in relation to the question of pets.

In the next (but probably not the last) instalment of this saga, the New South Wales Government is implementing amendments to the legislation and to regulations, to commence on 25 August 2021.

Amendment to the Strata Schemes Management Act 2015

Commencing on 25 August 2021, section 137B will be inserted into the Act. Section 137B effectively prevents a by-law, or a decision of an owners corporation under a by-law, from banning the keeping of an animal within a strata scheme unless the animal unreasonably interferes with another occupant’s use and enjoyment of their lot or the common property.

The question which arises from this section is what is meant by “unreasonably interferes with another occupant’s enjoyment of their lot or the common property”?

The New Regulation

Also, now to commence on 25 August 2021 is the Strata Schemes Amendment (Pets) Regulation.

The specific purpose of this regulation is to set out, for the purposes of section 137B, the circumstances in which the keeping of an animal unreasonably interferes with an owner or occupant’s use and enjoyment of their lot.

In short, this new regulation says that an animal will cause an “unreasonable interference” with an owner or occupant’s use and enjoyment of their lot if:

  • the animal makes a noise which interferes with the peace, comfort and convenience of another occupant;
  • the animal repeatedly runs at or chases another occupant, visitor or another animal;
  • the animal repeatedly causes damage to the common property or to another lot;
  • the animal endangers the heath of another occupant through infection or infestation;
  • the animal causes a persistent offensive odour that penetrates another lot or the common property; or
  • for dogs and cats, the owner of the animal fails to comply with orders under the Companion Animals Act 1998.

The provisions also pick up the provisions of the Companion Animals Act 1998 which refer to a “restricted” dog and a “menacing or dangerous” dog. Those dogs will be able to be banned from strata buildings.

Conclusion

It will be interesting to see whether these additions to the strata legislation assist or provide more interpretive problems for owners corporations.

Author I Warwick van Ede I Lawyer I BEc LLM Acc Spec (Property).

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