NSW strata laws are set to redefine accountability for building managers, mandating that you update your building manager contracts to reflect these changes. These reforms are part of the ongoing commitment to enhance transparency and ensure best practices across all strata schemes.

Key Takeaway: Building Managers Step into the Spotlight

Just as strata managing agents have seen increased disclosure requirements, building managers will now be subject to new statutory duties that mirror those of strata managing agents. This critical development aims to significantly increase accountability for how our buildings are managed, ensuring that all parties involved act in the best interests of the owners corporation.

What This Means for Building Managers:

While the specifics of these new duties are being refined, the overarching goal is to compel building managers to act with greater transparency, diligence, and in alignment with the owners corporation’s needs. This will likely include:

• Expanded Disclosure Requirements: Similar to strata managers, building managers will need to disclose any affiliations with suppliers or developers, providing owners corporations with full transparency regarding potential conflicts of interest.
• Enhanced Reporting: Expect more stringent reporting obligations to owners corporations regarding their activities, maintenance schedules, and any issues impacting the scheme.
• Acting in the Owners Corporation’s Best Interests: This is a fundamental principle that will now be legally enforced for building managers, ensuring their decisions and actions prioritise the welfare of the strata scheme.

Increased Powers for NCAT: A New Era of Enforcement

Perhaps one of the most impactful changes is the expanded power of the NSW Civil and Administrative Tribunal (NCAT). NCAT will now have the explicit authority to terminate both strata manager AND building manager contracts if they are found to be acting unlawfully.

This is a significant shift. It provides a powerful mechanism for owners corporations to address instances of mismanagement or misconduct, offering a clear pathway for resolution and ensuring that contracts can be swiftly terminated where there is a breach of legal obligations.

Why These Changes Matter to You:

• For Strata Managers: These reforms reinforce the emphasis on ethical conduct and transparency across the entire strata ecosystem. Understanding the new landscape for building managers will be crucial for seamless collaboration and ensuring your practices align with heightened expectations.
• For Building Managers: This is a call to action. Review your existing contracts and practices to ensure full compliance with the incoming statutory duties. Proactive adaptation will be key to navigating these changes successfully and avoiding potential Tribunal intervention.
• For Owners Corporations & Strata Committees: These reforms empower you with greater oversight and a stronger voice in ensuring your building is managed effectively and lawfully. You will have more tools at your disposal to hold both your strata manager and building manager accountable.

Act Now: Update your Building Manager Contracts

The new strata laws are changing how building manager contracts are handled. With new duties and NCAT’s power to terminate unlawful agreements, reviewing your building manager contracts are crucial. Don’t risk non-compliance; to ensure your contracts are up-to-date and protect your scheme, contact our team of specialist strata lawyers, we’re happy to help.

CLICK NOW TO UPDATE YOUR BUILDING MANAGER CONTRACT

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.

Introduction

A meeting of an owners corporation or strata committee cannot be recorded without the consent of those present at the meeting.  This is because section 7 of the Surveillance Devices Act 2007 prohibits a person using a listening device to record a private conversation and conversations at meetings that cannot be attended by members of the public involve private conversations.

But what happens when those present at a meeting know that the meeting is being recorded, do not object to the recording and allow the meeting to continue whilst it is being recorded?  In those circumstances, do those who attend the meeting grant their implied consent to the meeting being recorded?  A recent Supreme Court case helps provide the answer to that question.

Facts

Several people were having a conversation on a property.  One of them used a mobile phone to take a video recording of the conversation.  The recording of the conversation by use of the mobile phone was obvious.  And one of the people involved in the conversation stated that it was being recorded and explained why.  One of the parties to the conversation did not object to the recording and continued to converse with the others present.  A minute or so later that person said “What’s all this videoing shit?” whilst smiling and gesturing towards the camera as he continued to converse with the others. The person also raised his hand towards the camera at various times in order to placate the concerns of the others during a heated discussion about the removal of a power pole on their property.

The Decision

A dispute between the parties to the conversation ended up in the Supreme Court.  The person who was filmed objected to the video recording of the conversation being adduced in evidence.  The Court had to decide whether the video of the conversation was taken with the implied consent of that person.  The Court concluded that it was because that person had knowledge that the conversation was being recorded, he could see and was told that he was being filmed and he accepted that in order to continue to have the conversation with the others he would be filmed.  At no point did the person object to being filmed as a condition of continuing the conversation.  For these reasons, the Court permitted the video recording of the conversation to be admitted into evidence because it did not fall foul of the prohibition in section 7 of the Surveillance Devices Act 2007.

Conclusion

The case provides a salutary lesson for those who attend meetings of an owners corporation or strata committee that are being recorded.  If those present know that the meeting is being recorded, do not object to the recording and continue with the meeting, then there is a good argument that they have impliedly consented to the recording of the meeting and cannot later object to the recording being used for any legitimate purpose including as evidence in litigation.

Case: Brown v Etna Developments Pty Ltd (Surveillance Devices) [2025] NSWSC 218

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.

New laws will soon commence in New South Wales to increase transparency and accountability in the strata management industry.

Strata managing agents who engage in unethical practices, such as undisclosed kickbacks or failing to disclose conflicts of interest, will face harsher penalties.

The new laws aim to protect the interests of strata owners by giving them greater control over their buildings and common property.

The big changes are:

• Increased penalties: Maximum penalties and penalty infringement notice amounts for agents who fail to disclose information about commissions have been raised.
• Strengthened conflict-of-interest disclosure: Agents will be required to provide more detailed information about potential conflicts of interest.
• Ban on insurance commissions: Agents will no longer be allowed to receive commissions on insurance products unless they actively help residents find the best deals.
• Enhanced enforcement powers: NSW Fair Trading has been granted additional authority to investigate and prosecute breaches of strata laws.

Best Practice Guide

The new disclosure requirements are largely in line with the Strata Community Association’s best practice guide.

This means that strata managers who are already following the guide will not need to make significant changes to their practices.

The new laws will also ensure that all strata managers are subject to the same standards.

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.

EV Charging – Grant Funding Deadline

Owners Corporations considering installing electric vehicle charging infrastructure in the strata scheme should be aware of the availability of grants from the NSW State Government to assist owners corporations with at least 10 apartments to install EV charging infrastructure in a common area.

The process takes place over two steps.

Step 1 – Feasibility Assessment

Owners corporations which believe they may be eligible can make application for a feasibility assessment.  The cost for an owners corporation making an application is $2,000.00 plus GST.  The New South Wales Government will cover any other part of the cost of the assessment process.

To be eligible, your strata scheme must:

• be located in NSW;
• be a registered strata scheme under the Strata Schemes Development Act 2015;
• contain 10 or more apartments as a class 2 building;
• have a private and/or common property visitor (or shared) off-street common property parking as part of the strata scheme;
• have no more than 4 EV chargers already installed (for buildings with less than 40 apartments) or no more than 10% of the number of parking spaces for buildings over 40 apartments;
• be able to implement EV charging infrastructure upgrades that can be accessed by all residents.

Step 2 – Grant Implementation

If the Step 1 feasibility assessment report is positive then the owners corporation will be invited to apply for Step 2 of the grants.

The owners corporation  will firstly need to meet for the purpose of passing some necessary motions and to empower the strata committee to obtain quotes for the Step 2 works.  Once those quotes are obtained then they are submitted together with some other documentation to the New South Wales Government for review, and once approved then the owners corporation can proceed to installation.

The government will fund 80% (up to $80,000.00 per building) of eligible infrastructure costs and will also cover 50% (up to $1,200.00 per building) of eligible software subscription costs for two years.

Act Now – Limited EV Government Funding

There is $10 million available to assist eligible NSW strata schemes, but it is on a “first come first served” basis.

It is therefore critical that if your owners corporation is considering undertaking works of this kind, that you begin to consider making application for  the funds which may be available to you as soon as possible.

If your strata scheme requires assistance in any aspect of the process, for example in drafting the necessary motions to take the matter forward, then we would be happy to assist you.

We also specialise in EV by-laws should you require a new EV by-law or a review of an existing EV by-law.

Warwick van Ede I BEc LLM I Lawyer

Since 1990, Warwick has specialised in strata law, property law and litigation. Recognised for his expertise, he is also a NSW Law Society Accredited Specialist in Property Law. In 2021 he was selected to serve on the Property Law Committee of the Law Society of NSW. Profile I LinkedIn

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.

In a recent decision, NCAT upheld a security fob by-law made by an owners corporation.  This is a good decision as it demonstrates that appropriately worded security fob and access key by-laws can be made by owners corporations.

Introduction

Many strata buildings contain security systems which restrict access to and egress from the buildings.  These systems often include security access keys or fobs which are distributed to owners and occupiers to enable them to get into and out of the building.

Did you know owners corporations are able to implement appropriately worded security fob and access key by-laws?

So, what was included in this particular by-law Security Access, NCAT and By-laws

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