Strata law in New South Wales has undergone significant reform under the Strata Schemes Management Act 2015 and Strata Schemes Development Act 2015. These changes affect the roles of owners corporations, strata committees, meeting procedures, levies, financial management, by-laws, common property, and strata renewal. Below is a summary of the key updates every strata owner, tenant, or committee member should know.

Owners Corporations and Strata Committees

• Delegated functions: Owners corporations can delegate functions such as levying contributions, managing money, insurance, and maintaining records to the strata committee or a managing agent (section 13).
• Strata committee elections: Members are elected at each Annual General Meeting (AGM), with eligibility restrictions for building managers, leasing agents, or those connected with the original owner (sections 29–32).
• Conflict of interest: Committee members must disclose pecuniary interests and cannot vote on matters where a conflict arises (Schedule 2, clause 18).
• Liability protection: Good faith decisions made by committee members or officers attach liability to the owners corporation, not the individual (section 260).

Meetings

• Annual General Meetings: Must be held within 2 months of the initial period ending, then once per financial year (sections 14–18).
• First AGM: The original owner must provide building records, approvals, certificates, and maintenance schedules (section 16, clause 6).
• Quorum: If no quorum is present within 30 minutes, the chairperson may adjourn or declare those present a quorum (Schedule 1, clause 17(4)).
• Voting: May occur in person, by proxy, or via electronic means (clauses 14–16). Proxy farming is limited: 1 proxy in schemes ≤20 lots, or 5% in schemes with >20 lots (Schedule 1, clause 26).
• Tenant participation: Tenants may attend meetings, and if ≥50% of lots are tenanted, a tenant representative can join the committee (section 33).

Levies and Financial Management

• Payment plans: Owners corporations can agree to 12-month plans for outstanding contributions (section 85(5)).
• Separate accounting: Required for administrative, capital works, and other funds (section 96).
• Record-keeping: Financial and meeting records must be kept for 7 years, with secret ballot papers retained for 13 months (section 180, clause 41).
• Strata information certificate: Issued under section 184, providing key financial and management information.

Strata Managing Agents

• Appointment: Limited to 12 months at the first AGM, then up to 3 years thereafter (section 50).
• Disclosure: Agents must declare commissions, training, or financial interests connected with the scheme (section 60–71).
• Gift ban: Agents cannot accept gifts over $60 (clause 63).

Maintenance and Common Property

• Owners corporations may defer repairs pending legal action, provided safety isn’t compromised (section 106).
• A common property memorandum may be adopted to clarify maintenance responsibilities (section 107).
• Rules introduced for abandoned goods and illegally parked cars, allowing removal under notice (clauses 32, 34).

Renovations

• Cosmetic work: No approval required for minor changes like painting or carpet (section 109).
• Minor renovations: Require ordinary resolution approval (section 110, clause 28).
• Major renovations: Structural changes, waterproofing, or external alterations require a special resolution (section 111).

By-Laws

• All strata schemes must review by-laws within 12 months of the new laws (section 141).
• Pets: No automatic ban. Model by-laws provide options, but assistance animals cannot be refused (section 139).
• Smoking: Smoke drift is recognised as a nuisance. Model by-law 9 provides options restricting smoke penetration.
• Occupancy limits: By-laws can restrict occupancy to two adults per bedroom, with cultural and family exemptions (section 137, clause 36).

Dispute Resolution

Mediation is the preferred method for dispute resolution under the 2015 Management Act. If unresolved, matters may escalate to the NSW Civil and Administrative Tribunal (NCAT) for orders and penalties.

Strata Renewal (Part 10 – Development Act 2015)

• Owners can propose collective sale or redevelopment of a scheme (section 156).
• A strata renewal committee is formed if a proposal warrants further investigation (section 160).
• Renewal plans require 75% owner support (section 154).
• Dissenting owners must receive at least compensation value for their lot (section 182).
• The Land and Environment Court must approve renewal plans, ensuring fairness and statutory compliance.

Source: REINSW – https://www.reinsw.com.au/