Broadband Networks in Apartment Buildings

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.




Strata Dispute Resolution Process Explained

How are most strata disputes resolved?

What is the difference between strata mediation and strata adjudication?

How long does the process take?

How much does it cost?

To view the full article please click here –  Strata Dispute Resolution Explained

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




Strata Owner Feels the Need to Shoot

Should anyone who turns up to a strata meeting with a gun in their pocket be banned from ever living in a community scheme?

For those of us who have been involved in strata for a while, it’s only a matter of time when a strata meeting will turn ugly.

You’re usually dealing with some very volatile elements in any given strata scheme – it’s about people’s rights and responsibilities. There are people for whom the right to do what they want in the home that they own, goes without saying – which is rarely the right fit with a lifestyle that depends on a sense of community such as strata living.

Logic and reason can be quickly forgotten as recently seen in the news where an elderly Sydney man was involved in the shooting of his building manager during a bitter strata meeting.

Click here to view the full media article.

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




Security of Payment Warnings Abolished

The Building and Construction Industry Security Of Payment Amendment Act 2013 is proclaimed to commence on 21 April 2014.

The Building and Construction Industry Security of Payment Act 1999 was amended by the Building and Construction Industry Security of Payment Amendment Act 2013. The amendments will not apply to construction contracts entered into before 21 April 2014. The Act applies to all construction contracts entered into by owners corporations for work on the common property.

The principal changes which affect owners corporations are as follows:

  • Owners corporations will now be a principal under the main contract with the head contractor.
    A progress payment is to be made by a principal to a head contractor 15 business days after a payment claim is made or such earlier date as may be provided by the contract.
  • It is no longer possible to contractually extend the period for the making of the payment.
    The contractor is no longer required to endorse a payment claim made under the Act in any way. This means that you must treat every invoice or payment claim under a construction contract or any construction arrangement as being subject to the Act.
  • You will need to immediately enquire from your principal on receipt of any invoice for construction work, whether there is a dispute in relation to payment and, if there is, ensure that a payment schedule is prepared and served on the contractor within 15 business days of receipt of the invoice. Failure to do so will remove any right to withhold any part of the payment claim.
  • Head contractors must now serve a supporting statutory statement with a payment claim which must include a declaration to the effect that all subcontractors have been paid.
  • Failure to serve a supporting statement leaves the head contractor liable to a fine up to $22,000.00 but does not invalidate the payment claim.

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




Swimming Pool Legislation Deferred

Commencement of the Swimming Pools Amendment Act 2012 has now been deferred for 12 months to 29 April 2015.

For details of the legislation and its ramifications for owners corporations refer to the following article.

Click here for the full article – Swimming Pool Legislation

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




Strata By-laws Differ Across State Boundaries

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.

 




To Stay or to Go? It’s Your (Neighbour’s!) Choice.

That’s the concept many strata unit and apartment owners in New South Wales will be faced with if controversial changes to strata laws, proposed by the NSW Government, go ahead in July 2015.

Under the proposal, the consent of only a 75% majority of strata unit owners in a block will be required to consent to its demolition.

This is in stark contrast to the current laws, which require agreement by 100% of strata unit owners for a block to be sold to a developer for demolition. This proposal will effectively enable that 75% to force their neighbours (the minority 25%) to sell their homes, whether they are willing or not. An unpleasant prospect for that minority, despite compensation and relocation assistance.

With many strata blocks within New South Wales becoming quite dated, ongoing maintenance and renovation is, without doubt, an extremely costly process, with the preferred option being to simply demolish the buildings and build more aesthetically appealing higher density buildings. Currently, the 100% agreement strata laws force apartment owners to maintain and repair their buildings, regardless of the cost, and irrespective of whether developers could potentially pay a fair price to demolish and replace the buildings with modern, more liveable apartments. This has been a contentious issue for some time.

There are several positives should this law come into effect. For example, some of Sydney’s trendiest suburbs are host to some of its oldest, and least sustainable, buildings. The reforms would allow for redevelopment rather than expensive maintenance, offering potential increases in tenancy numbers and far more energy efficient buildings. Local council height restrictions could be more effectively adhered to, and, of course, it opens the door for stimulation within the building industry.

There are, of course, anticipated negatives to the proposed reform. There is potential for a small number of developers to over or underpay strata owners for their properties, thereby affecting the property market, and potential for owners to lose their lifelong residence and be insufficiently compensated. However, some safeguards are apparently planned, such as the enforcement of independent valuations, and there is talk of an ”extinguishment commissioner” who will hear appeals against unfair payments.

Should the reforms come to fruition, developers could be encouraged to offer apartment owners options such as ‘first option to buy deals’ and assistance with temporary or permanent relocation.

In circumstances such as these, legal advice will be imperative for strata owners.

“The new strata laws will introduce novel concepts unfamiliar to apartment owners and other stakeholders in the strata industry. These will need to be explained in simple language to make sure all stakeholders know where they stand,” says Bruce Bentley, partner of Sydney strata law firm, JS Mueller & Co.

Bruce specialises in strata law and those areas of the law that particularly affect the development, management and administration of group title communities.

“An apartment is someone’s home and most valuable asset. That is something worth protecting. Knowing where you stand if there is a proposal to sell under the new laws will be vital said, Bruce.”

The focus of the strata reforms is on improving the lives of people living in strata communities by increasing transparency and engagement within strata developments. These are worthy goals. But the proof is in the eating, and time will tell if the Government is able to deliver on its promise to improve strata living through more modern strata laws.

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

 




Supreme Court Corrects Error in Strata Plan

Surveyors are not perfect. They can make mistakes when drawing strata plans.

But what happens once a strata plan containing errors is registered? Are the errors able to be corrected? A recent Supreme Court case confirms that the answer is “yes”.

Click here for the full article – Supreme Court Corrects Strata Plan Error

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