Strata has quickly become a large and complex part of the housing mix. As a property professional in NSW, it is important that you are aware of these changes and communicate them to your contacts as required.
The changes implement 31 recommendations from the 2021 Report on the Statutory Review of the Strata Schemes Development Act 2015 and Strata Schemes Management Act 2015 and align community land laws with strata laws. The Report’s recommendations were informed by public consultation on the strata laws. The updated laws aim to make strata and community living fairer and more transparent.
As a licensed strata managing agent, you need to be aware of the following reforms.
Changed notice period of your contract expiry date
- You are now required to provide owners corporations and associations with three to six months’ notice before the expiry date – no more or less.
Making it easier and fairer to keep pets
- Community land schemes cannot have by-laws or make decisions that unreasonably prohibit the keeping of a pet on a lot. (To commence in 2024.)
- Schemes are banned from having fees, bonds or insurance as a condition of having a pet.
- Strata and community schemes cannot have by-laws that affect the ability of assistance animals to perform their duty on a lot or scheme property.
- There is more clarity about the proof that schemes may request from the lot owner or resident to establish that an animal is an assistance animal.
Improving meetings
- The minimum notice period for the annual general meeting is now 14 days. This excludes community schemes with a precinct scheme where 21 days’ notice is still required.
- Key documents must be provided at least 14 days before the first annual general meeting.
- There are restrictions on how many owners a power of attorney or company nominee can represent.
Increased accountability for finances
- Schemes must get two independent quotes for work costing more than $30,000.
- Levies for repairs to fix a serious or imminent threat to a resident’s health or safety can be required to be paid in 14 days. This reduced from 30 days.
- Existing rules have been clarified around repayment of money transferred between administrative and capital works funds or taken from one fund instead of the other.
- New records must be kept electronically. This applies to records created after 10 June 2024.
New two-lot scheme arrangements
- A notice to comply with a by-law can be issued without agreement from the owner of the other lot.
- The original owner (usually the developer) maintains their full unit entitlement when voting on matters that need a special resolution.
Time to adjust to the changes
- NSW Fair Trading will take an educational approach until 10 March 2024 to give industry time to adjust to some of the changes.
Other changes
The updated laws for strata and community land schemes include several other areas of reform. To learn more about these:
- visit the nsw.gov.au Changes to strata scheme laws web page
- visit the NSW Fair Trading Changes to community land laws web page
- contact NSW Fair Trading on 13 32 20.
Further reforms will be progressed in 2024. To keep informed about opportunities to have your say on any proposed new laws, subscribe to NSW Fair Trading’s property, strata and community scheme newsletters.
Regards
| Natasha Mann | John Minns |
| Commissioner for Fair Trading Deputy Secretary, Better Regulation Division |
Strata and Property Services Commissioner NSW Fair Trading |
*Strata Schemes Management Act 2015, Strata Schemes Development Act 2015, Community Land Management Act 2021 and Community Land Development Act 2021