The New South Wales Government has made changes to Strata laws. This is effective from December 11, 2023, aiming to create fairness and transparency. These reforms stem from the Strata Legislation Amendment Bill 2023. Which is in response to public consultations and recommendations from the 2021 Statutory Review of the Strata Schemes Development Act 2015 and Strata Schemes Management Act 2015.
The following article will break down what this means for Owners Corporation and NSW Strata residents.
Key Reforms
Strata Renewal Process
Owners must disclose any financial interest in a Strata renewal proposal. The Land and Environment Court now scrutinises conflicts of interest, and opposing owners may face costs if acting unreasonably.
Pets and Assistance Animals
Owners’ Corporations cannot charge fees or bonds for pets and by-laws cannot hinder assistance animals. Whilst privacy measures are in place for evidence of an animal’s assistance status.
Strata Committees
Committee members are barred from participating in matters where they have a financial interest. Additionally, the removal of committee members is streamlined, and reappointment is prohibited for one year.
Meetings
The notice period for annual general meetings is extended to 14 days. Original owners must provide key documents, and restrictions are imposed on representation by power of attorney or company nominees.
Finances and Notices
Rules are clarified for repaying transferred funds between administrative and capital works. Levies for necessary repairs can be demanded in 14 days. Two independent quotes are required for expenditures over $30,000. Landlord’s agents must notify the owners corporation of tenancy, and electronic record-keeping becomes mandatory from June 11, 2024.
Managing Agents
Managing agents must give notice of contract expiry. The Commissioner for Fair Trading may seek the appointment of a compulsory managing agent.
Two-Lot Schemes
Notices to comply with by-laws can be issued without a resolution, and original owners retain full unit entitlement for special resolution matters.
By-Laws
Consolidation of by-laws requires a special resolution, and all by-laws must comply with the Strata Schemes Management Act 2015.
Transitional Arrangements
A transition period until March 11, 2024, includes requirements for original owners and landlords’ agents, with fines applicable after this date.
The NSW Strata land reforms mark a significant move toward more transparent Strata living. It is important to familiarise yourself with these changes. By doing so you can ensure a positive and harmonious strata living experience in your NSW Strata property.
Further information regarding the NSW Strata land reforms can be found here.
If you are unsure how these reforms may effect you, chat to your Owners Corporation manager today. For more information you can contact us here.
