Passed in Parliament in 2015, these major reforms came into effect on November 30 last year and now apply to about one-quarter of the state’s population who live in, own or manage strata property, including townhouses, villas and apartments.
“It’s a huge sector, you’ve got everything from two-lot schemes to multimillion-dollar buildings with 800-plus lot schemes. We also had to consider the interests of owner-investors, owner-occupiers, and tenants. The resulting reforms reflect these interests and deliver benefits for the whole strata community,” says Fair Trading spokesperson, Manager of Strata Mediation Michael Courtney.
“The law was just old. It was 1996 when the last legislation came in, but even then a lot of the laws from1961were retained. So the intention was, particularly as strata living and strata building has changed so much over those decades, to bring the legislation into line with the needs of the 21st century,” he says of what prompted the changes.
Complaints, disputes at tribunal, other jurisdictions’ laws and “direct customer and stakeholder feedback” once the legislation review had been announced, were all considered as the legislation was updated. One of the biggest changes is that it is easier to be involved in meetings, says Courtney.
“Whether you’re an owner, tenant or investor, [it’s about] making it easier to be involved in your scheme,” he says.
The new laws also make “a number of things easier” in relation to repairs, maintenance and by-laws. Internal regulation of the scheme has become clearer and easier, says Courtney.
By-laws under review
The new laws require strata schemes to review their existing by-laws – the set of rules that owners, tenants and, in some cases, visitors must follow – within 12 months (by November 30 this year). The by-laws cover different aspects about communal living. For example, under what conditions pets may be allowed, if smoking is allowed on common property, as well as issues around noise.
To help owners consider updates, NSW Fair Trading has some model by-laws that schemes can adopt or they are free to devise their own as long as they are not “harsh, unconscionable or oppressive”. They can also review their existing by-laws and “if they’re happy, leave them”, says Courtney.
Problem parkers addressed
A common source of frustration for residents in the past has been unauthorised parking, especially for those living in buildings near train stations. The new law allows the strata scheme to negotiate a commercial arrangement with the local council to provide parking management services. If anyone steals your spot or uses the visitors’ parking space when not visiting a resident, they can be fined.
Renovation approvals now easier
Other reforms are designed to bring strata laws up to date with the contemporary realities of strata living. There is a clearer approvals process for renovations. “The previous legislation required the owners corporation, which all owners belong to, to pretty much consider anything you wanted to do that affected common property. If you wanted to bang a nail into the wall inside your lot on the common property wall to hang a painting, you needed permission from the owners corporation,” says Courtney.
Now, owners can do these cosmetic renovations without approval, but they are responsible for fixing any damage to common property that could result. Minor renovations, such as a kitchen improvement or anything that doesn’t include waterproofing or major structural change, need 50 per cent approval from owners at a general meeting and more substantial renovations require 75 per cent of owners to “say yes”, he says.
To fast-track permission for minor renovations, owners can decide to delegate approvals to the strata committee that oversees day-to-day matters for the scheme.
Strata meetings and management changes
The new strata laws also provide online options relating to meetings. “One of the key aspects of the legislation is that all owners corporations can now decide whether they want to use modern technology to conduct meetings – teleconferencing, Skype, email voting, email distribution of agendas. It doesn’t matter where you are really, you’ll be able to be involved in the management of the scheme,” says Courtney.
Another key change relates to collective sale. It allows a decision to sell a scheme for redevelopment with the agreement of 75 per cent of the strata lots if they meet all the requirements for the proposal to proceed. Previously, unanimous consent was required.
There’s also stronger accountability measures for strata managing agents, including new disclosure requirements and limits to the period of time a strata managing agent may be appointed. There is also a new building defects bond and defects inspection process for new strata buildings, which will apply from July 1.
The changes, says Courtney, are “making life easier for a lot of people”.
To find out more, visit stratalaws.nsw.gov.au.