Reform of strata laws – Bills passed
In September, we reported on what were then proposed reforms to the NSW strata laws that were likely to affect close to 2 million industry professionals, strata owners, and residents in strata properties across NSW, as well as developers.
Since then, the NSW Parliament has passed the Strata Scheme Management Bill 2015 and Strata Scheme Development Bill 2015. The Strata Schemes Management Act 2015 (NSW) and Strata Schemes Development Act 2015 (NSW) confirm around 90 changes to the existing laws, on issues including collective sale, renovations, proxy farming, defects and parking. It is anticipated that the new laws will commence 1 July 2016 following the development of new regulations and a comprehensive public awareness campaign to inform individuals of their new rights and responsibilities.
Some of the key changes affecting new and existing strata schemes, as well as developers, include:
- Modern and flexible schemes – enabling use of modern forms of communication between the owners corporation;
- Transparency and accountability – increasing standards and accountability of strata managing agents and building managers;
- Collective sale and renewal – recognising the rights of owners to jointly end or wind up a strata scheme so the site can be sold or renewed;
- Maintaining the building's condition – introducing mandatory defect inspection reports and a building bond. A building bond for the construction of high rise strata buildings (those over 3 stories in height) will maintain developer and builder accountability for their work. Developers will be required to lodge a 2% bond for the contracted price of the building, as a form of security to fix any defective work. The developer will also need to prepare a maintenance schedule, to be tabled at the first annual general meeting to inform owners about their maintenance obligations;
- Owner renovations – waiving restrictions for minor, cosmetic changes and lowering the approval necessary for more extensive renovations;
- Proxy voting – limiting the number of proxy votes able to be held by one person;
- Levies and capital works funds – requiring developers to set realistic levies during the period between when the strata plan is registered, and the developer has sold at least one third of the unit entitlements in the scheme and for the subsequent year after; and
- Dispute resolution – expanding the powers of NCAT to exclusively deal with most strata disputes, including orders to recover outstanding levies.
Practice and courts
NSW BPB: Complying development course dates
announced
Certifiers can now register for face-to-face delivery of the new
complying development course (11 November 2015)
More...
More still...
NSW BPB: Complying development notification in rural
areas
Neighbour notification requirements for complying development have
changed in many rural and regional areas (10 November 2015)
More...
Cases
Trengrove v Commissioner for Fair Trading [2015]
NSWCATOD 131
HOME BUILDING – residential building work - two years'
relevant industry experience Home Building Act 1989 (NSW) s 20, Sch
1, cll 2 & 3; Home Building Regulation 2004 cl 28(1)
More...
Ricky Holt v Commissioner for Fair Trading [2015]
NSWCATOD 130
Decision of Respondent set aside and substituted. Fit and proper
person - Qualified Supervisor certificate and contractor licence
authorising him to do specialist work within the categories of
Plumber, Drainer, Gas Fitter, LPG Gas Fitter and Roof Plumber -
Administrative Decisions Review Act 1997; Home Building Act 1989
More...
Charlton v Secretary, Department of Finance, Services
& Innovation, NSW Fair Trading [2015] NSWCATOD
128
Home Building Act – application for owner-builder permit
– whether dual occupancy – whether secondary or single
dwelling – strata subdivision.
More...
The White Ant Co Pty Ltd v Robson [2015] NSWCA
345
CONTRACT – construction – whether the liability
provision of a deed could be enlivened otherwise than by the
operation of other provisions of the deed – whether the
plaintiffs at trial had pleaded that the defendant was liable on
some basis other than the terms of the deed
More...
Legislation
Strata Schemes Management Act 2015 (NSW)
Strata Schemes Development Act 2015 (NSW)
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.
