The Supreme Court has decided that structural defects under the old home building legislation do not extend to cover building elements such as waterproofing membranes and tiling attached to structural components of the building.

This is bad news for owners corporations of residential buildings who made home warranty insurance claims or defect claims against builders and developers before 2015 that are still current because it will essentially limit the scope for them to argue that defects are structural defects that are covered by a six year warranty instead of the two year warranty for non-structural defects.

For owners corporations of residential buildings, this is bad news – Strata and Structural Defects.

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

In a recent decision, NCAT has confirmed that it is business as usual and that appeals against decisions of Strata Adjudicators will continue to be dealt with by NCAT in the same manner, even though strata adjudications have been abolished under the Strata Schemes Management Act 2015.

Introduction

The Strata Schemes Management Act 1996 (old Act) allowed Strata Adjudicators to make orders to resolve strata disputes. On 30 November 2016, the old Act was repealed and replaced by the Strata Schemes Management Act 2015 (new Act).  The new Act abolished strata adjudications.

However, there were still strata adjudications pending at the time the old Act was repealed and decisions of Strata Adjudicators under the old Act continued to be made up until recently. This created uncertainty as to whether or not a party dissatisfied with a decision made by an Adjudicator could appeal against the decision after 30 November 2016.

To read the full article – NCAT Clarifies Appeal Rights Against Decisions of Strata Adjudicators

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

Adrian Mueller, partner, recently presented a paper about the most significant strata cases in NSW over the last 12 months, at the 12th annual conference of the ‘Australian College of Community Association Lawyers’ (ACCAL) – the peak body of strata lawyers in Australia.

To view Adrian’s presentation and strata cases click here 2017 Strata Case Presentation and 2017 Strata Case Papers.

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

Thank you Strata for your support in 2016, we loved sharing our knowledge on all things Strata Law.

As a wrap up here are some useful links from 2016…

• We shared our knowledge at Forums throughout the year
• We tweeted, 107 times sharing the latest in strata law
• We developed Strata By-law Templates for the new strata laws making it easier for you
• We posted, 30 times on LinkedIn with the latest updates
• We improved our Levy Collection App, thanks to your feedback
• We shared our knowledge through 54 newsletters
• We expanded our team to better service the strata industry

We’re taking a break from 23 December 2016 and returning on 9 January 2017.

We wish you and your families a safe and happy ‘Festive Season’ and look forward to working with you in 2017.

For more information check out muellers.com.au or send an email to enquiries@muellers.com.au and we’ll get back to you on our return.

The procedure for registering by-laws under the new strata legislation is completely new. Land and Property Information (LPI) NSW will no longer allow by-laws to be registered unless a consolidated version of all by-laws including any new by-laws is lodged for registration.

What Has Changed?

The new strata legislation requires any change in the by-laws for a strata scheme that are lodged for registration to be in the form of a consolidated version of all of the existing by-laws that incorporates the changes to the by-laws as well. The consolidated version of the by-laws must include any relevant model by-laws.

What Does the Change Mean?

If you attempt to register a change in the by-laws without the consolidated version of the by‑laws, Land and Property Information will reject the document you lodge.

Do I Have to Comply?

There is a limited exemption to the requirement to lodge a consolidated version of the by-laws each time you need to register a change to the by-laws.  Land and Property Information may permit a change in the by-laws for a strata scheme to be lodged separately, and not in a consolidated version, if satisfied that it would be too onerous for a consolidated version to be lodged and there are no more than five separate change of by-laws recorded on the title of the common property.

Can you get an Exemption?

The new procedure for registering changes to the by-laws for a strata scheme at Land and Property Information is untested. However, we expect that it may prove difficult to secure an exemption from the need to lodge a consolidated version of the by-laws when registering a change to the by-laws. Where that occurs, every change of by-laws will require a new consolidated list of by-laws.

Why the Change?

The rationale for the change is to ensure that a consolidated set of all of the by-laws for a strata scheme is recorded on title much like the by-laws in a management statement for a community scheme or neighbourhood scheme.

What Happens to the Existing Registered By-Laws?

Once the consolidated version of the by-laws is registered, all current notifications of by-laws appearing on the common property title will be removed and the common property title will be updated to refer to the consolidated version only.

What Happens if I Get it Wrong?

When the consolidated list of by-laws is prepared, care will need to be taken to ensure that the list is complete and accurate. Land and Property Information will not examine the consolidated set of by-laws against any existing change of by-laws recorded on the common property title to ensure that the consolidated set is complete and accurate. If the consolidated set of by-laws is wrong, for example, an existing by-law is not included in the consolidated set; a person aggrieved by the error may make a claim against the owners corporation or strata manager who registered the incorrect consolidated set of by-laws.

Where is the Change Found and What does it Mean?

The new requirement concerning the registration of changes to by-laws for strata schemes is contained in clause 24 of the Strata Schemes Development Regulation 2016.  We expect that this new requirement will create significant problems for strata managers and others who attempt to register changes to the by-laws without a consolidated version of the by-laws.

How Can we Help?

Muellers are able to prepare a consolidated version of the by-laws for a strata scheme for a fee of $750 plus GST where there are no more than two changes of by-laws dealings registered on the title of the common property.  For strata schemes which have more than two change of by-laws registered, please contact us to obtain a price to prepare a consolidated set of by-laws for that scheme.

There is Still Hope!

We will continue to provide a cost effective and efficient by-law registration service under the new regime. If you encounter difficulty registering changes to the by-laws for any strata scheme that you manage, please do not hesitate to get in contact with us so that we are able to help you.

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

The new strata legislation is set to commence on 30 November 2016.  Will you be ready?  Why not be ahead of the pack!

Introduction

The Strata Schemes Management Act 2015 will introduce new laws dealing with meetings, building works, electronic voting and proxy farming.  We have developed meeting notice and by-law templates that deal with each of these new areas:

AGMs

The new Act contains additional requirements for AGMs. This means notices for AGMs need to contain additional motions and further information. And some of the motions you already include in an AGM notice will change. We have developed a template AGM notice which covers the matters required under the new Act. Our AGM notice also includes explanatory notes and information that will need to accompany the meeting notice such as the strata manager’s report as to commissions and a call for nominations for members of the strata committee.

Building Works

The new legislation deals with three different types of building works that will affect common property: cosmetic work, minor renovations and major renovations.

Cosmetic Work

Under the new laws, owners will not need to obtain the approval of an owners corporation to carry out cosmetic work. And an owners corporation will be able to make a by-law identifying additional work that is able to be considered cosmetic work which does not require approval.  We have prepared a by-law that identifies the additional types of cosmetic work and lays down rules owners will need to follow when carrying out that work.

Minor Renovations

The new laws will also allow owners to carry out minor renovations that affect the common property. Minor renovations will only require the approval of an owners corporation to be given by ordinary resolution. A special resolution will no longer be required for minor renovations. The new laws also allow an owners corporation to identify types of minor renovations and delegate to the strata committee the power to approve minor renovations.  We have developed a by-law that does just that and sets out clear rules for owners to follow before, during and after minor renovations.

Major Renovations

The new legislation also deals with major renovations.  We have developed a by-law that comprehensively deals with major renovations. That by-law contains all of the bells and whistles that are required to regulate major renovations in a strata building.  Using that by‑law takes the hard work out of the approval process and allows you and the owners corporations you manage to focus on the key decision of whether it is appropriate to approve an application for permission to carry out major renovations and not have to worry about the conditions of approval.

Electronic Voting

The new legislation will permit an owners corporation and strata committee to allow votes to be cast by electronic means whilst owners and committee members participate in meetings remotely.  But the legislation does not set out the rules that will apply to e-voting.  Nor does the legislation make clear whether or not an owners corporation and strata committee will need to pass a resolution each year to approve e-voting.  We have prepared a by-law that lays down clear rules concerning e-voting during meetings so that stakeholders will know where they stand.  Our by-law will make it easier to facilitate e-voting during meetings of an owners corporation and strata committee.

Proxies

The new legislation contains anti-proxy farming laws. These laws will prohibit a person holding more than one proxy (for a strata scheme containing up to 20 lots) and from holding proxies greater than 5% of the total number of lots (for schemes that have more than 20 lots).  But the legislation does not say what will happen when a person holds more than the maximum number of proxies.  Which proxies will be used and discarded?  And who gets to make that decision?  We have developed a by-law that will answer these questions.  Our by‑law lays down clear rules that will need to be followed by stakeholders where a person holds too many proxies and a decision needs to be made as to which proxies will be used and which proxies will be jettisoned.

Act Now

Be ready for the new legislation.  Act now.  We are offering the AGM notice and by-laws we have developed that deal with these new topics at competitive prices.  We invite you to contact us to discuss the by-laws and obtain pricing information.

Click here for pricing on Strata By-law and Meeting Notice Templates.

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

October 2016 the JS Mueller & Co team presented to the strata industry on the new strata laws ‘Are you Prepared for the New Strata Laws?’ This is in preparation for the new Strata Schemes Management Bill 2015 and the Strata Schemes Development Bill 2015 due to commence 30 November 2016.

The JS Mueller and Co team presented:

• James Moir: Works By-laws – How will they operate under the new laws?
• Adrian Mueller: Meetings – What are the changes under the new laws?
• Faiyaaz Shafiq: Levy Collection – Procedural changes under the new laws?
• Anna Minassian: Building Defects – What impact will the new laws have?
• Trish Smith: LevyCollect – How can it benefit you?

Please click below to view presentations and papers:

JS Mueller & Co New Strata Laws Forum Presentations_Oct16
JS Mueller & Co Forum Papers_Oct16

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

There has been considerable recent media coverage concerning proposed changes to laws regulating short term lettings in apartment buildings in NSW.

Many in the media are saying that owners corporations are going to lose the right to prohibit short term lettings in their buildings. Is that right? What does the NSW Government really have in store for short term lettings?

To read the full article – Short Term Lettings – Changes in the Air

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

Is the NSW Parliament about to legalise short term holiday lettings?

It’s proposed that some types of short term holiday lettings should become legal in NSW without needing the approval of the local council or the owners corporation if the City of Sydney has its way.

View the full article here now – Short Term Letting Changes

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

Current Position

Under the current law there are no legal rights for lot owners to request an instalment payment plan from an owners corporation should they fall behind in their levy payments – although an instalment plan is sometimes agreed to by an owners corporation in an appropriate case.

New Position

As of 1 December 2016 the new laws will give a lot owner the right to request an owners corporation to agree to a payment plan for any levies in arrears. Before the owners corporation can accept a payment plan they will need to have such a request properly approved at a general meeting.

The lot owner will have to do the following:

1. Make a request 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. The lot owner may be required to pay the costs of holding the EGM at which the owner wants the payment plan to be approved.
3. The owners corporation will then consider the payment plan at the EGM.
4. Alternatively, an owners corporation can approve a plan at an AGM.

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 will have 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 more likely to be adhered to.

An owners corporation will have to be aware that if a request for a payment plan is unreasonably refused the lot owner may decide to take legal action against a refusal and seek orders from a Court of Law or Tribunal forcing the owners corporation to enter into a payment plan.

Click here for the full details of the new Levy Collection laws – Levy Collection New Laws

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

Trial Our FREE Time Saving LevyCollect App…

Our levy collection service is second to none with our integrated  ‘LevyCollect’ app. Simple, free and easy to use – accessible through your device, on the go. Benefits include:

• Reduces your workload – gives you time back
• 24/7/365 access from your desktop, laptop, smartphone or tablet – anytime, anywhere
• Gives you greater access to your Levy Collection matters
• You choose when to access your matters
• All of your matter communication conveniently located in one place
• Regular reporting – you choose when and how often you receive reports
• Simple, easy to use app for your phone or tablet and portal login for your desk/laptop

To trial our FREE LevyCollect online portal and app service contact jsmmarketing@muellers.com.au

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