Do explanatory notes need to be included in the agenda of a general meeting of an owners corporation?  The answer might surprise you.

Since the commencement of the Strata Schemes Management Act 2015 on 30 November 2016, a practice has arisen for explanatory notes to be included in an agenda of a general meeting of an owners corporation.  The purpose of the explanatory notes is to provide a brief explanation of the purpose of each motion that appears on the meeting agenda.

But are these explanatory notes necessary? Click here to find out – Are Strata Meeting Explanatory Notes Required

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

Did you know that JS Mueller & Co can save you loads of time and money and recover your strata levy arrears faster?

How, you ask?

We have been recovering strata levies for over 30 years so we know all the tricks!

We have paralegals who do nothing but levy debt collection. They often spend an enormous amount of their day researching a bad debtor to find information to allow you to recover overdue levies faster.

To find these details we’ll spend time searching for any media articles, reviewing social media sites and generally hunting around the internet for any clues as to their place of work and living arrangements and, any other information which will help us locate the debtor.

This often turns up information about a debtor’s employment or tenant. We then use that information to contact the debtor, issue garnishee orders or just to get your levies paid quicker!

So, how can JS Mueller & Co save you time and money in the levy collection debt recovery process?

It’s simple. Often you’ll already know this information and if, at the time of instruction these details are provided to us that will save time and money, resulting in much faster levy collection debt recoveries.

Here’s a quick list of the helpful information about a debtor you can provide us, that’s if you know them, when providing your next levy collection instruction to us.

• Employment Details
• Tenant Details
• Real Estate Agency
• Real Estate Property Manager Details
• Media Stories

Click here for the full details of the new Levy Collection New Laws.

For 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.

Great news!

LPI NSW has updated the Registrar-General’s directions concerning the requirements to register a Consolidation/Change of By-Laws.

The Registrar-General’s directions now state as follows:

A consolidated version of the by-laws affecting the strata scheme must be included as an annexure, incorporate the change that is referred to at panel (E) and include any model by-laws.

Note: It is not acceptable to annex previously registered Change of By-laws forms as if it is a consolidated version.

It is suggested that a consolidated version:

• omit all by-laws that have been previously repealed,
• include all by-laws that have been previously added, and
• include all other by-laws as previously amended, or
• set out in some other way that lists the by-laws that currently affect the strata scheme.

For further information please refer to – LPI NSW Government

A separate Registrar-General’s direction for ‘Consolidated By-Laws’ now says the following:

The following requirements must be complied with:

• The new change of by-law must be made in accordance with a resolution of the owners corporation and a completed Consolidation/Change of By-Laws dealing form (Form 15CH) must be lodged at LPI not more than 6 months after the passing of the resolution to make the by-law  (See section 141 Strata Schemes Management Act 2015).
• A consolidated version of by-laws, which incorporates the new change of by-laws, must form an annexure to the Consolidation/Change of By-Laws dealing form (Form 15CH).
• The consolidated version must include those by-laws lodged with (referred to as ‘developer by-laws’ or ‘strata by-laws’) or adopted (Model By-laws)  by the scheme on the registration of the strata plan together with any changes to those by-laws made since the registration of the strata plan. The text of the by-laws must be fully set out.
• Where the Common Property Memorandum prescribed by the Strata Schemes Management Regulation  is adopted:
  – it may be included by reference only if the Common Property Memorandum is adopted in full and without any modifications as follows: “The Common Property Memorandum prescribed under clause 27 Strata Schemes Management Regulation 2016 has been adopted as a by-law”; or
  – where the Common Property Memorandum has been modified as provided in s. 107(3) Strata Schemes Management Act 2015,  the full text of the Common Property Memorandum as modified must be included.
• Every subsequent change of by-laws will require a new consolidated list incorporating the change to accompany the Consolidation/Change of By -Laws form.
• The Registrar General may waive the requirement to lodge a consolidated version (see clause 24(3) Strata Schemes Development Regulation 2016). A letter setting out the circumstances for assessment by the Registrar General must accompany the dealing.

For further information please refer to – LPI NSW Government

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

Current NSW strata laws can make it challenging for owners to carry out minor renovations to their lot, however, come 30 November 2016, there’s good news as the new reforms will provide clearer, common sense approvals for owner renovations.

The new laws will recognise three kinds of renovations:

1. Cosmetic – strata owners will be able to carry out cosmetic work with no approval
2. Minor – a simple majority resolution will be required to approve minor renovations
3. Major – a special resolution and approval is required for major work

Read the Works By-laws and NCAT paper here or purchase your Strata By-law and Meeting Notice Templates now!

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

The procedure for registering by-laws under the new strata legislation is completely new. Land and Property Information (LPI) NSW will no longer allow by-laws to be registered unless a consolidated version of all by-laws including any new by-laws is lodged for registration.

What Has Changed?

The new strata legislation requires any change in the by-laws for a strata scheme that are lodged for registration to be in the form of a consolidated version of all of the existing by-laws that incorporates the changes to the by-laws as well. The consolidated version of the by-laws must include any relevant model by-laws.

What Does the Change Mean?

If you attempt to register a change in the by-laws without the consolidated version of the by‑laws, Land and Property Information will reject the document you lodge.

Do I Have to Comply?

There is a limited exemption to the requirement to lodge a consolidated version of the by-laws each time you need to register a change to the by-laws.  Land and Property Information may permit a change in the by-laws for a strata scheme to be lodged separately, and not in a consolidated version, if satisfied that it would be too onerous for a consolidated version to be lodged and there are no more than five separate change of by-laws recorded on the title of the common property.

Can you get an Exemption?

The new procedure for registering changes to the by-laws for a strata scheme at Land and Property Information is untested. However, we expect that it may prove difficult to secure an exemption from the need to lodge a consolidated version of the by-laws when registering a change to the by-laws. Where that occurs, every change of by-laws will require a new consolidated list of by-laws.

Why the Change?

The rationale for the change is to ensure that a consolidated set of all of the by-laws for a strata scheme is recorded on title much like the by-laws in a management statement for a community scheme or neighbourhood scheme.

What Happens to the Existing Registered By-Laws?

Once the consolidated version of the by-laws is registered, all current notifications of by-laws appearing on the common property title will be removed and the common property title will be updated to refer to the consolidated version only.

What Happens if I Get it Wrong?

When the consolidated list of by-laws is prepared, care will need to be taken to ensure that the list is complete and accurate. Land and Property Information will not examine the consolidated set of by-laws against any existing change of by-laws recorded on the common property title to ensure that the consolidated set is complete and accurate. If the consolidated set of by-laws is wrong, for example, an existing by-law is not included in the consolidated set; a person aggrieved by the error may make a claim against the owners corporation or strata manager who registered the incorrect consolidated set of by-laws.

Where is the Change Found and What does it Mean?

The new requirement concerning the registration of changes to by-laws for strata schemes is contained in clause 24 of the Strata Schemes Development Regulation 2016.  We expect that this new requirement will create significant problems for strata managers and others who attempt to register changes to the by-laws without a consolidated version of the by-laws.

How Can we Help?

Muellers are able to prepare a consolidated version of the by-laws for a strata scheme for a fee of $750 plus GST where there are no more than two changes of by-laws dealings registered on the title of the common property.  For strata schemes which have more than two change of by-laws registered, please contact us to obtain a price to prepare a consolidated set of by-laws for that scheme.

There is Still Hope!

We will continue to provide a cost effective and efficient by-law registration service under the new regime. If you encounter difficulty registering changes to the by-laws for any strata scheme that you manage, please do not hesitate to get in contact with us so that we are able to help you.

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.

October 2016 the JS Mueller & Co team presented to the strata industry on the new strata laws ‘Are you Prepared for the New Strata Laws?’ This is in preparation for the new Strata Schemes Management Bill 2015 and the Strata Schemes Development Bill 2015 due to commence 30 November 2016.

The JS Mueller and Co team presented:

• James Moir: Works By-laws – How will they operate under the new laws?
• Adrian Mueller: Meetings – What are the changes under the new laws?
• Faiyaaz Shafiq: Levy Collection – Procedural changes under the new laws?
• Anna Minassian: Building Defects – What impact will the new laws have?
• Trish Smith: LevyCollect – How can it benefit you?

Please click below to view presentations and papers:

JS Mueller & Co New Strata Laws Forum Presentations_Oct16
JS Mueller & Co Forum Papers_Oct16

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

There has been considerable recent media coverage concerning proposed changes to laws regulating short term lettings in apartment buildings in NSW.

Many in the media are saying that owners corporations are going to lose the right to prohibit short term lettings in their buildings. Is that right? What does the NSW Government really have in store for short term lettings?

To read the full article – Short Term Lettings – Changes in the Air

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