Were Statutory Warranties Breached?

In a recent case a residential apartment building in Rhodes, Sydney claimed damages against Walker Group Constructions, inferring they had breached statutory warranties.

However, after a five day hearing, the referee came to this surprising conclusion –  Were Statutory Warranties Breached?

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




Great News for By-law Registrations

Great news!

LPI NSW has updated the Registrar-General’s directions concerning the requirements to register a Consolidation/Change of By-Laws.

The Registrar-General’s directions now state as follows:

A consolidated version of the by-laws affecting the strata scheme must be included as an annexure, incorporate the change that is referred to at panel (E) and include any model by-laws.

Note: It is not acceptable to annex previously registered Change of By-laws forms as if it is a consolidated version.

It is suggested that a consolidated version:

  • omit all by-laws that have been previously repealed,
  • include all by-laws that have been previously added, and
  • include all other by-laws as previously amended, or
  • set out in some other way that lists the by-laws that currently affect the strata scheme.

For further information please refer to – LPI NSW Government

A separate Registrar-General’s direction for ‘Consolidated By-Laws’ now says the following:

The following requirements must be complied with:

  • The new change of by-law must be made in accordance with a resolution of the owners corporation and a completed Consolidation/Change of By-Laws dealing form (Form 15CH) must be lodged at LPI not more than 6 months after the passing of the resolution to make the by-law  (See section 141 Strata Schemes Management Act 2015).
  • A consolidated version of by-laws, which incorporates the new change of by-laws, must form an annexure to the Consolidation/Change of By-Laws dealing form (Form 15CH).
  • The consolidated version must include those by-laws lodged with (referred to as ‘developer by-laws’ or ‘strata by-laws’) or adopted (Model By-laws)  by the scheme on the registration of the strata plan together with any changes to those by-laws made since the registration of the strata plan. The text of the by-laws must be fully set out.
  • Where the Common Property Memorandum prescribed by the Strata Schemes Management Regulation  is adopted:
    – it may be included by reference only if the Common Property Memorandum is adopted in full and without any modifications as follows: “The Common Property Memorandum prescribed under clause 27 Strata Schemes Management Regulation 2016 has been adopted as a by-law”; or
    – where the Common Property Memorandum has been modified as provided in s. 107(3) Strata Schemes Management Act 2015,  the full text of the Common Property Memorandum as modified must be included.
  • Every subsequent change of by-laws will require a new consolidated list incorporating the change to accompany the Consolidation/Change of By -Laws form.
  • The Registrar General may waive the requirement to lodge a consolidated version (see clause 24(3) Strata Schemes Development Regulation 2016). A letter setting out the circumstances for assessment by the Registrar General must accompany the dealing.

For further information please refer to – LPI NSW Government

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




What are the New Works By-laws?

Current NSW strata laws can make it challenging for owners to carry out minor renovations to their lot, however, come 30 November 2016, there’s good news as the new reforms will provide clearer, common sense approvals for owner renovations.

The new laws will recognise three kinds of renovations:

  1. Cosmetic – strata owners will be able to carry out cosmetic work with no approval
  2. Minor – a simple majority resolution will be required to approve minor renovations
  3. Major – a special resolution and approval is required for major work

Read the Works By-laws and NCAT paper here or purchase your Strata By-law and Meeting Notice Templates now!

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




Be Ahead of the Pack with Meeting & By-law Templates!

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.




111 Days until a New Era for Strata! Will you be ready?

The new strata laws will commence on 30 November 2016. Will you be ready?

To help you get ready, the team at Muellers will be running training seminars across Sydney in September and November 2016.

We will explain the most important aspects of the new strata laws and tell you what you need to know to be ready come 30 November.

We will review the new laws concerning strata managers, by-laws, renovations, NCAT, building bonds, collective sales and more.

Look out for the invitations to our training seminars as places are limited and will book out quickly.

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




112 Days Until a New Era for Strata!

Approved and commencing on 30 November 2016 the new strata laws will come into play.

The final Strata Schemes Management Regulation 2016 will be published on the NSW Government Legislation Website.

You may also read the final Strata Schemes Management Regulation 2016 here.

These new laws will give strata communities the tools to effectively run their scheme and shape their own by-laws.

Complying with the laws
Some of the new requirements have a transition period, giving strata schemes time to comply. An example includes strata managing agent appointments, which continue for a period after the laws commence (for the duration of the term of appointment (up to a maximum of 3 years), or 6 months after the new laws start – whichever is the later).

The new building defects bond requirements will start on 1 July 2017 (and only applies to new strata schemes). This will allow for the new Australian Standard for inspecting group title buildings to be adopted as the standard for the defects inspections.

Next steps
If you own, rent or manage strata, become informed and help your strata scheme or clients to prepare by sharing the link to ‘Major Changes to Strata Laws‘ information. You can also read the media release –  A New Era for Strata.

NSW Land and Property Information (LPI) is due to release the final Strata Schemes Development Regulation 2016 later this year.

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




Just in Time for the Holiday Season…

NSW Fair Trading recently announced the commencement date for the new Strata Schemes Management Act 2015 which will come into effect on 30 November 2016.

A key challenge for strata managers, tenants and owners to ensure they’re across the 90 odd changes, bringing strata into the 21st century.

However, not so for the new building defect bond scheme which will commence on 1 July 2017, allowing for builders, developers and the strata community time to prepare for, and comply with the changes.

The reforms will benefit more than two million people in NSW who manage, own or live in strata.

The final details of the new laws will be published in the coming weeks.

For more information on the new laws visit NSW Government Fair Trading

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




Strata Managers Forum – Proposed New Strata Laws

In September 2015 the JS Mueller & Co team presented at a forum to the strata industry the new proposed strata laws.

  • James Moir: By-laws – How will they operate under the proposed laws?
  • Adrian Mueller: Meetings – What are the changes under the proposed laws?
  • Iain Fairholm: Strata Managers – How will the proposed laws affect you?
  • Faiyaaz Shafiq: Levy Collection – Procedural change?
  • Bruce Bentley: Building Defects – What impact will the proposed laws have?

Since the forum, it has been announced that the new strata laws will come into operation on 1 July 2016.

On 29 Oct 2015, the New South Wales Parliament passed the new Strata Schemes Management Bill 2015 and the Strata Schemes Development Bill 2015.

Papers and presentations are available to view here:

JS Mueller & Co Forum Presentations_Sept15
JS Mueller & Co Forum Papers_Sept15

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

 

 




Once an Icon – Now a Pile of Rubble

Senior Lawyer, Adrian Mueller reminisces…

“In 1980 my parents took me to the Gold Coast for a holiday. It was my first adventure in Queensland. I was 2 years old. We stayed at the (in)famous Iluka hotel.

The Iluka was built in the 1970’s. It was an iconic building – one of the Gold Coast’s first high rises. It had 72 luxury apartments and was a stone’s throw from Cavill Avenue.

It held fond memories for me and, I imagine, many families who enjoyed wonderful times together at the Iluka.

You can imagine my horror when I recently discovered that the Iluka has been demolished. Why? Because of concrete cancer.

You see the owner of the building was faced with a dilemma. Repair the concrete spalling which had been left untreated for decades at exorbitant cost or demolish the building. The owner chose to demolish.

A leading architect Professor Holden, Head of Architecture at the Griffith University in Qld, has said that high rises built in the 1970’s have an average lifespan of 40 years.

That is a sobering thought for apartment owners many of whom cannot afford special levies to repair widespread concrete spalling.

So what is the solution? For some buildings, it may simply be too late. The Iluka is a case in point.

For other buildings, the key is preventative maintenance. As unpalatable as it might be, apartment owners need to realise that spending a little to detect and treat concrete spalling at an early stage saves money in the long run.”

Adrian Mueller also acknowledges that the challenge for strata managers and other stakeholders is to convince owners to invest in proactive maintenance to protect their investment by spending a little in the short term to save big money down the track.

Says  Adrian “Convincing owners to spend now to save later is no mean feat. But it is achievable. And doing so can avoid potential disasters.

I will miss the Iluka.”

Adrian specialises in strata law and those areas of the law that particularly deal with building defects.

“An apartment is someone’s home and most valuable asset. That is something worth protecting and knowing where you stand is vital” says Adrian.

For more information on concrete cancer, visit the following websites – Concrete Cancer or Remedia Structural Repairs

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




What Type of Renovations Require a By-law?

What sort of renovations require a by-law?

Renovating an apartment, as opposed to a house requires a different set of approvals, the most obvious is the fact that you have a share in the land along with the other residents. Everything you do inside your own apartment has some effect on everyone else.

There are laws, rules and regulations governing this, known as strata title, and owners corporation so it pays to ensure that you understand what type of renovations require a by-law.

Click below to download the presentation and full paper on Renovation By-laws from our April 2015 seminar:

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