Sunday, 21st November 2021

register | forgot password?

New Strata Laws

Wednesday, 25th November 2015

New strata laws: what they could mean for you

The New South Wales government’s much heralded changes to the Strata Titles Act – the first significant overhaul since 1973 – are now a reality.

They took four years of planning and four Fair Trading ministers to reach parliament and will hopefully transform the development and management of the state’s strata schemes for the better.

According to the Department of Fair Trading, there are around 75,000 strata schemes in NSW representing $350 billion in assets. Approximately 2 million industry professionals, strata owners and residents in strata-titled townhouses and units have the potential to be affected by the changes to the current laws.

For Managing Agents, the new legislation will have a significant impact as it will put more pressure on them to perform and deliver a higher level of customer service when the legislation comes into effect (anticipated to be on 1 July 2016.) Historically managing agents have been on rolling contracts; some have been engaged with buildings for up to15 years.

The Department of Fair Trading responded to complaints from owners who consistently raised concerns about the difficulty of dismissing Managing Agents despite poor performance. The Strata Schemes Management Bill will limit the length of the appointment of a managing agent to 1 year for the first year and 3 years thereafter.

Now the contract with the Managing Agent must also be included in the meeting agenda of the Executive Committee once a year, and the Committee is required to assess the performance of the Agent. It is likely that as part of the process of considering the reappointment, Committees will put the contract out to tender. While price is clearly a factor, the trend we are seeing is the demand for a high level of customer service.

There is also potential for new players in the industry to win increased market share.

The recent industry consolidation of Managing Agents groups has seen the emergence of new, boutique players who are focused on customer service. The requirement for contracts to be reviewed annually will be a positive for these new entrants who are likely to be given the opportunity to pitch for strata management contracts which have been held for extended periods.

Included in the customer service requirements will be the need for expertise in sustainability. Strata-titled properties have been the ‘forgotten sector’ when it came to government programs and incentives but that is changing and owners and residents are demanding and getting more. They want to know about the state or local council programs that can provide energy auditing services, funding, rebates or other support.

We are seeing increasing number of Executive Committees expecting their Strata Managers to advise on “Green Strata” initiatives to reduce the use of electricity within their building and deliver a more sustainable footprint. This has the potential to be a factor in the awarding of contracts in the future.

There will also be more stringent standards of accountability for managing agents and they will be required to disclose all third party commissions. Historically Managing Agents have benefitted from the commissions received on the roll over of insurance policies, which have not had to be declared to an Owners Corporation.

Managing Agents are now likely to have to put insurance policies to tender, which could impact their commissions.

Nominal gifts and benefits, as well as, any links to the developer of the strata scheme will also have to be declared.

Strata Managers will be required to reform procedures around meetings, to modernise the management of strata schemes, introducing new ways to vote at meetings. Documents can be emailed, instead of being sent by physical delivery.

The Owners' Corporation may choose electronic means to conduct General Meetings, which could be via social media, video or teleconference. It is expected that the voter turnout in the General Meetings will improve and the need for proxy votes reduced. The practice of collecting proxy votes from passive owners to improve the position of a party may not be as effective as in the past.

The legislation also introduces flexible quorum arrangements. If no quorum is established, the chairperson will be able to declare that the people present constitute a quorum.

Under the reforms tabled in parliament developers will have to compensate owners if they have deliberately misled purchasers over levy estimates.

To help offset the costs of repairing defects as well as to ensure the burden of rectification is not unfairly imposed on new owners, the proposed reforms will see developers lodging a security bond equal to two per cent of the contract price of the building works.

If it is not paid out, the bond will be refunded no later than two years after the completion of building work or within 60 days of the final inspection report – whichever occurs first.

Measures have been introduced to prevent building defects going unnoticed until after statutory warranty periods are over. These include requiring developers or the strata scheme to arrange for building inspections between 12 to 18 months after completion of works.

The appointment of the inspector must be approved by the Owners Corporation who can refuse to approve the appointment on any grounds. There has to be complete transparency around the appointment of inspector to prove he has no connection with the developer. The developer is also responsible for all costs of obtaining an inspection and report.

As well building defects and rectification works must be included on the agenda for every general meeting of the Owners Corporation during the warranty period.

By Matthew Wrigley - Managing Director Perpetual Strata

Bookmark and Share

Comment from shahed4 on Tuesday, 22nd March 2016

New Strata Laws must know those people who are working in that company. You wrote the detail laws here. Employees must write down and keep in mind while working. Initially it's tough to follow the new laws but with the time it's become easy. I read feedback from different sites which show that site is good and i like to take services from it.

Comment from nanxiangwe on Tuesday, 22nd March 2016



Hermes Handbags absolutely fabricated abundant accession for avant-garde travelling culture. All of Christian Dior affluence covering appurtenances and accessories are abounding with acceptable superior adroitness and broadly celebrated all over the globe.In addition, Cindy Crawford invests 100% in all its projects. Therefore it is true to Swiss Watches. It not only participates in advertising campaigns for the Omega Watches brand, but it has a say in the development and communication products.


Comment from Devend72 on Wednesday, 27th January 2016

Just admiring your work and wondering how you managed this blog so well. It’s so remarkable that I can't afford to not go through this valuable information whenever I surf the internet!. anand mishra

Comment from Joey chen on Friday, 11th December 2015

Smugglers get Cheap Replica Handbags the affected items into the U.S. by importing the items after labels. Customs will Replica Handbags not appropriate items after the artist labels because again there is no proof. The Replica Handbags UK tags are added to the appurtenances afore sale.Have you anytime absolved accomplished a artery bell-ringer who claims to be affairs accurate Louis Vuitton’s for alone $30. 00? Do you anytime admiration how that’s legal, or Swiss Replica Handbags why they don’t get arrested? Commonly, if the apprenticed client purchases the items, the agent cheaply glues on a affected label. Buying affected commodity feeds the advancing bent activity. It contributes to accumulate sweatshops Mulberry Replica and adolescent activity in third apple countries open.There is affirmation that affairs affected appurtenances contributes to organized crime. Government sources accept affirmation that the bombing of the Apple Trade Center in ’93 was adjourned by the auction of affected apparel.Selling Cheap Replica Handbags affected items is a tax-free, banknote alone business. Law-abiding citizens get ashore with paying taxes, while counterfeiters bastard about it. In the United States alone, counterfeiting gets abroad Replica Handbags UK with not paying about in the breadth of $200 billion a year. If you get bent with affairs affected items you could face up to 5 years in bastille and/or fines up to $250,000The Billionaire may be ambience Sale Replica Watches a apple almanac if it comes to carat weight, as it is absolutely design set with 260 carats Cheap Replica Watches of emerald-cut diamonds. They anatomy the case and armlet of the Swiss Replica Watches replica watches uk acknowledgment to the artistic use of a Bead ambience in an astern pyramid style. . Anniversary design is GIA-certified and some of the stones weight up to 3 carats each. The case and armlet are one seamless article crafted in 18-karat white gold with a azure clear and azure caseback.Within this ablaze glory, sits the Replica Watches UK ellipsoidal watch “dial,” which isn’t absolutely a punch at all acknowledgment to the azure crystals and skeletonized movement. The awful skeletonized caliber, the JCAM09, is handcrafted and able with a tourbillon Replica Watches For Sale escarpment. The movement consists of a bare 167 apparatus and 19 jewels, and offers 72 hours of ability reserve.To announce the time, skeletonized blued easily point to design markers that are the addendum of an Art Deco-inspired Air Kin Replica Watches filigree that recalls the exciting canicule of Sale Replica Watches the Roaring Twenties. The aback of the replica watches is engraved with the Billionaire cast logo.

Search for services

Find tradesman or property services in your local area.

Search for services