Last week the NSW Court of Appeal delivered two victories for owners corporations and in the process clarified the operation of important areas of the strata legislation.

The two victories involved:

• Access Rights Being Confirmed – The Connaught Case
• The Right to Start Legal Action Being Confirmed – The Gazebo Apartments Case

Click here to read these strata legal cases – Owners Corporation Rights Vindicated

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

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.

• 39 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!

Does an owners corporation have to approve development applications and renovations?

Strata buildings are becoming older. This has given rise to an increasing number of renovations that are carried out in strata buildings. This, in turn, has resulted in more owners corporations and strata managers being asked to approve development applications, and building works associated with renovations.

Often requests for development applications or building works to be approved are made urgently and owners corporations and strata managers are threatened with legal action if approval is not given promptly. But does an owners corporation have to approve a development application or allow an owner to renovate his or her unit?

What happens if the owners corporation refuses to approve a development application or permit renovations? Can the owners corporation’s decision be overturned? If so, how? This paper will provide the answers to these questions.

Click here for the full paper – Strata Applications and Renovations

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.