Fair Trading NSW has confirmed that the 1 December 2014 commencement date for the NSW Home Building Amendment Act 2014 has been delayed to 2015.

The amendments will commence in two stages:

Stage 1:
It is anticipated that the critical change surrounding statutory warranties will commence mid-January 2015. The critical change to the warranties will be a shift from “structural defect” (which is the current position) to a warranty which will only cover a building defect which is a “major defect”.

If the defect is categorised as a “major defect” it will enjoy a 6 year warranty otherwise any defect which is not a major defect and/or a non-major item will only have a warranty for 2 years. The new definition of “major defect” will be more restrictive than the current definition of a “structural defect”. The new amendments will have retrospective effect.

Stage 1 will also have other amendments commencing mid January 2015 and they are as follows:

1. For the first time, statutory warranties will be implied into subcontracts entered into by the principal contractor who undertakes residential building work. These changes will allow an owners corporation to enforce warranties as a successor in title against subcontractors.
2. If a defect arises due to an owners defective design or specification the builder will not be held liable for that defect.
3. Within 6 months the owner must notify the builder and the subcontractor of a defect. If the owner fails to do so such a failure may result in the reduction of any damages.
4. Owners must not unreasonably refuse access to a builder who wishes to rectify the defect.
5. Courts will be required to give priority to rectification orders as opposed to monetary orders.

Stage 2:
This stage will involve the provisions that relate to re-drafting of contracts. The contracts will have to comply with the amending legislation hence these will be dealt with in the second quarter of 2015.

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

• 11 Days until 1 December 2014!
• Do not get caught out!
• The time to act is now!
• Have your buildings inspected by a building consultant to check for defects!
• Avoid losing your rights to make a building defect claim!

FAST-TRACK YOUR BY-LAWS – For almost 40 years JS Mueller & Co has proudly built a reputation for providing superior strata legal services.

Our highly-skilled team of specialist strata lawyers has unparalleled knowledge and experience of the strata law that allows us to respond to your by-law requests within 7 days*.

Click here for more information – 7 Day Strata By-laws*

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

The Department of Communications has released an information note to assist building owners and managers to make informed decisions when selecting a telecommunications carrier to install equipment to enable the building to connect to the National Broadband Network.

The Department recommends that building owners and managers consider whether:

• the service provider’s proposal will provide building occupants with a choice of providers and competition into the future
• building occupants will be locked into the decision to use the service provider for a fixed period or in perpetuity
• other carriers will be able to install competing cabling in the future
• carriers are correctly advising on their rights to access facilities, particularly in respect to in-building cabling
• the service provider’s proposal is consistent with pre-existing contracts with other providers, and
• the service provider has a clear plan for managing possible interference with existing services
• consider lease and licence agreements

For the full article please click here – NBN Broadband in Strata

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

Historically, with each of the individual states and territories throughout Australia having their own strata legislation, the downside has been that the lack of national uniformity has presented significant challenges with interpretation and enforcement of the relevant legislation across different jurisdictions.

There are currently three principal jurisdictions throughout Australia − New South Wales, Victoria and Queensland − each having introduced strata laws during the 1960s, with New South Wales leading the way in 1961. However, over the decades, each of the states has replaced and consolidated legislation at differing times, with regular, ongoing reviews of strata and community legislation taking place at a different pace across the country as governments endeavour to harmonise communal living environments and address issues which arise as communal living density increases.

Three law firms in these principal state-based jurisdictions have formed an alliance, aptly named Strata Lawyers Australia, comprising one law firm from each state which specialises in the practice of strata and community title law. The purpose of this alliance is to combine the local expertise of each firm in order to provide a quality, nation-wide legal service which will maximise the effectiveness of strata law services for stakeholders in the strata industry in each state.

Sydney-based firm, JS Mueller & Co, is an active member of this strategic alliance and draws on local expertise to provide industry-leading legal services and advice, enabling them to operate across state borders and provide the most relevant and comprehensive legal service possible.

Recent developments within the strata industry across the country have meant that the implementation of a national alliance of strata law firms will have a direct and meaningful impact on the efficiency and delivery of legal services in this industry. Indeed industry growth and consolidation have seen an emerging trend of strata management businesses operating across multiple jurisdictions.

A number of other states and territories, particularly the ACT, have recognised the need to modernise regulatory arrangements for the strata sector and are keen to see the various jurisdictions brought into line.

JS Mueller & Co strata lawyer, Adrian Mueller, says that, for example, “ACT strata laws are quite different from strata laws in other jurisdictions. The ACT Unit Titles Management Act has some unique provisions”.

Adrian’s extensive expertise has seen him deliver ground-breaking papers and seminars to strata lawyers and managers throughout the country − a definite asset to the services offered by the Strata Lawyers Australia alliance.

It is Adrian’s recommendation that comprehensive legal advice is always obtained from a specialist in the relevant jurisdiction when dealing with contentious strata issues, particularly in light of the significant variations nation-wide.

National consolidation in the strata industry will see growth in the number of strata management businesses and law firms operating across borders including through strategic alliances such as Strata Lawyers Australia. And consolidation of national licensing is expected to bolster confidence among strata managers and make strata communities a more viable option for our ever-expanding population density, but will almost certainly require continual monitoring and ongoing legislative reform well into the foreseeable future.

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

Traditionally, keeping animals in apartment or unit buildings have been sternly frowned upon.

Rigid by-laws (the rules governing the day-to-day ‘housekeeping’ of the strata scheme) imposed by owners corporations have tended to be rigid and often subject to change at very short notice − and often not generally in favour of the tenant − and have led to many unfortunate events occurring where ‘hidden’ pets have been revealed in the most unpleasant circumstances, resulting in hefty fines and/or fractured (or terminated) living arrangements.

And with an estimated one in five people in New South Wales living within a strata scheme, the chances of a potential (or current) tenant owning a pet are high.

Essentially, pets should not be kept in strata accommodation without owners being sure of the relevant pet by-laws and obtaining the necessary approvals.  Pet owners are affected by both their strata community’s by-laws and their state legislation (although owners corporation consent is not necessary to keep a guide dog in a strata scheme).

When renting in a strata building, the by-laws should be reviewed and the real estate agent should confirm with the landlord of the property whether a pet is allowed. When buying, the terms of the by-laws should be confirmed with the owners corporation, and those terms should be explained to the purchaser by an experienced strata lawyer prior to entering into a contract.

Under recent legislation reviews in New South Wales, the NSW Fair Trading Minister has confirmed that changes to the legislation include default by-laws being altered so that pets will be allowed, subject to ‘reasonable’ approvals and conditions set by executive committees, or owners corporations.

However, if an existing strata scheme has a by-law which bans pets that ban remains in place under the new legislation. Equally, if an existing strata scheme wishes to allow pets, a by-law will still need to be voted in. If a new strata scheme wishes to ban pets it can do so by introducing such a by-law, if a 75% majority vote is obtained.

Adrian Mueller,  specialist strata title lawyer with Sydney’s JS Mueller & Co, says “that the changes will have an impact on new strata buildings as the new laws will apply to them. But the new laws will not apply to existing buildings unless owners corporations choose to adopt them.”

A professional speaker at forums on strata law for strata managers state-wide, Adrian says, “often people do not bother to check the by-laws before moving into an apartment. This is foolish and can lead to significant and expensive problems for pet owners.”

With by-laws and state legislation being updated regularly, the advice from JS Mueller & Co is that pet owners should always obtain a copy of their strata by-laws from the owners corporation and legal advice should also be obtained. Should a dispute arise assistance is also available from the relevant state government department, NSW Fair Trading.

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

There are two schools of thought surrounding the apparent ‘surge’ in Chinese interest in the Australian property market.

One is that the Chinese are ‘only interested in newly built properties and buildings’; the other, that this is not necessarily the case, and the Chinese are actually equally interested in land, or existing homes which they can renovate or knock down.

Whichever trend the current data leans towards, the fact is that Australia is now among the most popular property investment destinations for the Chinese, who are reported to have spent almost $6 billion in Australia’s real estate market last financial year. The driving force behind this sudden influx of foreign investment appears to be due to China’s own financial policies forcing the financially wealthy to seek better returns outside their homeland, making them the fastest growing international property buyers in both the global and Australian real estate markets.

Their interest seems to be sparking strong surges within the Australian property market and, as a result, pushing prices up in Australian capital cities − particularly Sydney and Melbourne. Incomes of the average Australian workers aren’t keeping up with the price rises, which is leaving the market open for an increasing number of wealthy overseas investors.

While Chinese buyers have been active in the Australian property market for some time, it has been during the last twelve months their investment activity has been more pronounced.

Many of these buyers have friends or relatives in Australia to bid for them, but there is no requirement for foreign investors to reside in Australia themselves, subject to the relevant provisions in the Foreign Acquisitions and Takeovers Act 1975 (Cth). This means multitudes of overseas buyers fly into Australia to inspect and buy properties they simply found on the internet.

However, purchasing investment properties in this manner poses significant problems for many of the investors, as the legal requirements surrounding foreign investment in Australia differ greatly from those affecting the domestic investment industry. Building regulations, strata laws, contracts, monetary exchanges and tenancy laws within the Australian property market can be areas fraught with challenges for the Chinese investors, as well as Australian vendors, and it is an area of law that requires specialist knowledge and experience.

“Australian property laws operate very differently to Chinese law. There are many traps for unwary Chinese investors, says strata lawyer, Clifford To.”

With over eight years’ experience in property development, town planning and administrative law, Cantonese-speaking Clifford forms part of the expert team at JS Mueller & Co and is an expert in helping Chinese investors navigate the legal minefield of property investment in Australia.

Chinese investors need to understand the way Australian property laws impact on them. Not having a proper understanding of the law can have disastrous consequences, Clifford says. ”

With a reported, 90 million Chinese searching for investment property online every month, and more than half of them purchased their properties with cash, the impact on the Australia economy is expected to be significant.

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