The Supreme Court has ordered an owners corporation suing its former lawyers to give security for the costs the lawyers will incur defending the case and has halted the case until the owners corporation does so.

In Court cases, the loser is normally ordered to pay most of the winner’s costs.  But what happens if the eventual winner is fearful that the loser will not be able to pay its costs?

Is there anything the winner can do to halt the case before it incurs substantial costs fighting the case?

This decision is a game changer.  Read on to find out why… Owners Corporation Security Costs for Building Defects

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

Can the strata committee approve repairs which alter, add to or improve common property?

The strata committee is generally able to organise maintenance and repairs to the common property. But what happens when maintenance or repairs alter, add to or improve the common property? Can the strata committee approve work of that type without the authority of a special resolution passed at a general meeting?

Read the full legal analysis here – Common Property Maintenance / Alterations

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 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.

Frustrated with the current challenge to register your by-laws?

The good news is that JS Mueller & Co has been in communication with Land and Property Information NSW (LPI) regarding the current backlog. We‘ve been advised that LPI is fully aware of the issue and are currently working on a solution which will be announced soon.

In the meantime, if you require any assistance with the registration of by-laws, please do not hesitate to contact us on the details below, and we’ll assist you through this process.

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

Under the new strata regulations, proxy voting will prevent any individual attempting to control owners’ decisions by obtaining a majority of proxy votes.

The number of proxy votes able to be held by one person will be limited to:

1. Schemes – 20 lots or less

For schemes with up to 20 lots, a person will be permitted one proxy vote.

2. Schemes – more than 20 lots

For schemes with more than 20 lots, a person will not be able to hold proxies for more than 5% of the total number of lots in that scheme (rounded down to the nearest whole number).

There is also an introduction of remote voting meaning owners need not be in the same country, let alone the same room, to cast a vote.

Telephone, video conferencing, email voting and even a voting website will all be permissible, with the approval of the owners corporation or strata committee.

Click here to read the full article – New Rules on Meetings and Voting

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.

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.

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 21^st 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.

Late last Friday the NSW Government released consultation drafts of the Strata Schemes Management Regulation 2016 and Strata Schemes Development Regulation 2016, with their accompanying Regulatory Impact Statements (RIS).

To read the new proposed draft regulation please click below:

1. Consultation draft – Strata Schemes Management Regulation 2016
2. RIS – Strata Schemes Development Regulation 2016
3. RIS – Strata Schemes Management Regulation 2016

To read the current legislation please click below:

1. Strata Schemes Management Act 1996
2. Strata Schemes Management Regulation 2010

If you have any comments after you’ve read through the regulations, please send them directly to SCA’s General Manager, Rachel Lynn (rachel.lynn@stratacommunity.org.au) by Monday 11 May 2016.

Rachel will ensure a response is sent to meet the Government deadline of 27 May 2016.

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