Changes to Strata Legislation in NSW effective November 2016

New apartment building

We can now confirm the reforms to the Strata Title Legislation for New South Wales has officially been passed by the government and will commence from 30 November 2016.

There are over 90 changes to the legislation which will affect landlords and tenants. Some of these changes are as follows:-

Annual General Meetings (AGMs)

  • Tenants will now be entitled to attend the AGM of the Owners Corporation and Notices of Annual General Meetings must be provided to all tenants at least 7 days prior to the meeting. Tenants will not be entitled to vote.
  • Voting on motions may be conducted by secret ballot.
  • Meetings may be conducted via electronic means such as teleconferencing.
  • Developers will not be granted permission to vote on motions that are related to building defects.

The Executive Committee

  • The Executive Committee will now be referred to as The Strata Committee.
  • Nominations for The Strata Committee will be made before the AGM.
  • Tenants may nominate a ‘tenant representative’ to the executive committee, although they will not be entitled to vote.

Strata Managing Agents

  • A Strata Manager may be appointed for a maximum period of 3 years.
  • Strata Managers will be required to report to the Owners Corporation at each AGM.

Financial Matters

  • The Sinking Fund will now be named the Capital Works Fund.
  • The Owners Corporation may agree to allow owners to pay levy arrears via an approved payment plan.
  • The Owners Corporation will no longer be required to provide detailed accounts at the AGM, however owners may request accounts prior to the meeting.

By-Laws

  • There will be a new set of By-Laws available and all Owners Corporations are encouraged to review their existing By-Laws within a 12 month period from 30 November 2016.

Repairs and Maintenance

  • An owner now has statutory right to sue the Owners Corporation for failing to properly repair and maintain common property.
  • Owners may carry out ‘minor renovations’ if passed by majority vote at the AGM, rather than a Special Resolution – i.e. 75% majority.

As mentioned, there are over 90 changes to the Strata Legislation. To find out more, visit the NSW Fair Trading website or contact the team at CPS Property today.

Leave a Reply

Your email address will not be published. Required fields are marked *