Strata Schemes Management Act 1996 (NSW)
An Act to provide for the management of strata schemes and the resolution of disputes in connection with strata schemes; and for other purposes.
This Chapter contains provisions that are helpful in understanding the Act as a whole, as well as some machinery provisions.
This Act is the Strata Schemes Management Act 1996.
This Act commences on a day or days to be appointed by proclamation.
The objects of this Act are:
(a) to provide for the management of strata schemes created under the Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold Development) Act 1986, and
(b) to provide for the resolution of disputes arising in connection with the management of strata schemes.
This Act applies to strata schemes established under the Strata Schemes (Leasehold Development) Act 1986 in the same way as it applies to strata schemes established under the Strata Schemes (Freehold Development) Act 1973 unless otherwise specified.
This Act binds the Crown in right of New South Wales and, in so far as the legislative power of Parliament permits, the Crown in all its other capacities.
However, Parts 3, 4 and 4A of Chapter 2, Chapter 3 (sections 63–65 excepted) and Chapter 4 do not apply to or in respect of a strata scheme if the Crown is the owner of all lots in the scheme.
The Crown includes statutory bodies representing the Crown, such as the New South Wales Land and Housing Corporation.
Expressions used in this Act that are defined in the dictionary at the end of this Act have the meanings set out in the dictionary.
Expressions used in this Act (or in a particular provision of this Act) that are defined in the Interpretation Act 1987 have the meanings set out in that Act.
Introductory notes and other notes included in this Act are explanatory notes and do not form part of the Act.
This Chapter provides for who can be involved in the management of a strata scheme and for the rules that govern a strata scheme.
This Part provides an overview of the Chapter.
On the registration of a strata plan for a strata scheme, there is established an owners corporation for the strata scheme in accordance with Part 2.
An owners corporation for a strata scheme has the principal responsibility for the management of the scheme.
Strata plans for freehold strata schemes are registered under section 8 of the Strata Schemes (Freehold Development) Act 1973 and strata plans for leasehold strata schemes are registered under section 7 of the Strata Schemes (Leasehold Development) Act 1986.
An owners corporation for a strata scheme is the same as a body corporate for a strata scheme previously established under the Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold Development) Act 1986.
The owners corporation may be assisted in the carrying out of its management functions under this Act by any one or more of the following:
(a) the executive committee of the owners corporation established in accordance with Part 3,
(b) a strata managing agent appointed in accordance with Part 4,
(c) a caretaker appointed in accordance with Part 4A.
On the registration of a strata plan for a strata scheme, a set of by-laws applies to the strata scheme as provided by Part 5.
This Part provides for the establishment of an owners corporation for a strata scheme and for the procedure of an owners corporation.
The owners of the lots from time to time in a strata scheme constitute a body corporate under the name “The Owners—Strata Plan No X” (X being the registered number of the strata plan to which that strata scheme relates).
An owners corporation is declared to be an excluded matter for the purposes of section 5F of the Corporations Act 2001 of the Commonwealth in relation to the whole of the Corporations legislation.
This subsection ensures that neither the Corporations Act 2001 nor Part 3 of the Australian Securities and Investments Commission Act 2001 of the Commonwealth will apply in relation to an owners corporation. Section 5F of the Corporations Act 2001 of the Commonwealth provides that if a State law declares a matter to be an excluded matter in relation to those Acts, then the provisions of those Acts will not apply in relation to that matter in the State concerned.
An owners corporation has the functions conferred or imposed on it by or under this or any other Act.
An owners corporation may employ such persons as it thinks fit to assist it in the exercise of any of its functions.
An owners corporation must ensure that any person employed to assist it in the exercise of a function has the qualifications (if any) required by this Act for the exercise of that function.
An owners corporation may employ such persons to assist it as, for example, caretakers and persons providing services to retirement villages. For example, a caretaker is required to be appointed under Part 4A. In addition, the Act requires certain functions to be performed by particular persons or persons having particular expertise. For example, section 24 places restrictions on the persons who can exercise functions relating to the finances and accounts of an owners corporation.
An owners corporation may not delegate any of its functions to a person unless the delegation is specifically authorised by this Act.
Schedule 2 applies to an owners corporation.
An owners corporation for a strata scheme that is subject to an order of the Supreme Court under the Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold Development) Act 1986 for its termination continues in existence until it is wound up in accordance with the order.
While it so continues in existence, the owners corporation is constituted of persons who the order specifies are liable to contribute money required for the discharge of the liabilities of the owners corporation and persons who the order specifies are entitled to share in a distribution of assets of the owners corporation.
A freehold strata scheme may be terminated under Part 3 of the Strata Schemes (Freehold Development) Act 1973 and a leasehold strata scheme may be terminated under Part 3 of the Strata Schemes (Leasehold Development) Act 1986.
This Part requires an owners corporation for a strata scheme to appoint an executive committee to make decisions for the owners corporation. However, the owners corporation may limit the matters that the executive committee may decide and the Act contains various matters that must be decided by the owners corporation in general meeting.
The executive committee must appoint a chairperson, secretary and treasurer. This Part sets out the functions of those officers.
This Part gives effect to Schedule 3 which contains more detailed provisions about the constitution and procedure of executive committees.
An owners corporation must appoint an executive committee of the owners corporation in accordance with this Division.
The owners corporation may appoint an executive committee before the first annual general meeting of the owners corporation.
If an executive committee has not been appointed before the first annual general meeting of the owners corporation, the owners corporation must appoint an executive committee at that meeting.
If there is no executive committee of an owners corporation, the strata scheme must be administered by the owners corporation, but nothing in this subsection prevents a strata managing agent appointed under this Act from exercising any functions conferred on the agent.
An Adjudicator may, on application, make an order appointing a person nominated by the applicant (and who has consented to that nomination) to convene a meeting of the owners corporation if no executive committee of the owners corporation exists after the first annual general meeting.
The meeting is to be convened and held within such time as is specified in the order.
A meeting held under this section is, for the purpose of the election of an executive committee, taken to be the first annual general meeting of the owners corporation.
An order made under this section may include such ancillary or consequential provisions as the Adjudicator thinks fit.
If an order made under this section so provides:
(a) the person appointed to convene a meeting of an owners corporation by the order is to preside at the meeting and, while the person so presides, is taken to be the chairperson of the owners corporation, and
(b) notice of that meeting may be given in the manner specified in the order.
An application under this section may be made only by an owner, mortgagee or covenant chargee of a lot in the relevant strata scheme.
The members of an executive committee must, at the first meeting of the executive committee after they assume office as members, appoint a chairperson, secretary and treasurer of the executive committee.
The chairperson, secretary and treasurer of the executive committee are also, respectively, the chairperson, secretary and treasurer of the owners corporation.
One person may be appointed to more than one office under this section.
An Adjudicator may, on application, make an order appointing a person nominated by the applicant (and who has consented to that nomination) to convene a meeting of the executive committee of the owners corporation if there is not a chairperson, secretary and treasurer of the executive committee of the owners corporation after the first meeting of the executive committee has been held.
The meeting is to be convened and held within such time as is specified in the order.
A meeting held under this section is taken to have been held by the executive committee of the owners corporation.
An order made under this section may include such ancillary or consequential provisions as the Adjudicator thinks fit.
If an order made under this section so provides, notice of the meeting may be given in the manner specified in the order.
An application under this section may be made only by an owner, mortgagee or covenant chargee of a lot in the relevant strata scheme.
Part 1 of Schedule 3 makes further provision with respect to the constitution of an executive committee and the appointment of the chairperson, secretary and treasurer.
Part 2 of Schedule 3 makes further provision with respect to meetings of an executive committee.
A decision of an executive committee is taken to be the decision of the owners corporation, subject to subsection (4).
However, the following decisions may not be made by the executive committee:
(a) a decision that is required by or under any Act to be made by the owners corporation by unanimous resolution or special resolution or in general meeting,
(b) a decision on any matter or type of matter that the owners corporation has determined in general meeting is to be decided only by the owners corporation in general meeting.
An owners corporation may in general meeting continue to exercise all or any of the functions conferred on it by this Act or the by-laws even though an executive committee holds office.
Despite any other provision of this Act, in the event of a disagreement between the owners corporation and the executive committee, the decision of the owners corporation prevails.
The functions of a secretary of an owners corporation include the following:
(a) to prepare and distribute minutes of meetings of the owners corporation and submit a motion for confirmation of the minutes of any meeting of the owners corporation at the next such meeting,
(b) to give on behalf of the owners corporation and of the executive committee the notices required to be given under this Act,
(c) to maintain the strata roll,
(d) to enable the inspection of documents on behalf of the owners corporation in accordance with section 108,
(e) to answer communications addressed to the owners corporation,
(f) to convene meetings of the executive committee and (apart from its first annual general meeting) of the owners corporation,
(g) to attend to matters of an administrative or secretarial nature in connection with the exercise, by the owners corporation or the executive committee, of its functions.
The functions of a treasurer of an owners corporation include the following:
(a) to notify owners of any contributions levied in accordance with this Act,
(b) to receive, acknowledge, bank and account for any money paid to the owners corporation,
(c) to prepare any certificate applied for under Division 4 of Part 5 of Chapter 3,
(d) to keep the accounting records and prepare the financial statements.
The treasurer of an owners corporation may delegate the exercise of any of the treasurer’s functions (other than this power of delegation) to another member of the executive committee if:
(a) the delegation is specifically approved by the executive committee of the owners corporation, and
(b) the executive committee specifically approves of the function being delegated to that member of the executive committee, and
(c) the delegation is subject to such limitations as to time or otherwise as the executive committee requires.
While a delegate is acting in accordance with the terms of such a delegation, the delegate is taken to be the treasurer of the owners corporation.
The executive committee of an owners corporation may, by a notice in writing served on the treasurer of the owners corporation, order the treasurer not to exercise any of the treasurer’s functions that are specified in the notice unless the treasurer does so jointly with another person so specified.
A person must not exercise any of the functions of an owners corporation or the treasurer of an owners corporation relating to the receipt or expenditure of, or the accounting for, money of the owners corporation or the keeping of the books of account of the owners corporation unless the person is:
(a) a member of the owners corporation or of the executive committee and the treasurer of the owners corporation or of the executive committee, or
(b) a strata managing agent who is empowered to exercise that function, or
(c) a person with whom the treasurer of the owners corporation is required by an order of the executive committee to exercise that function jointly, and who is enabling the treasurer to comply with the order, or
(d) a member of CPA Australia, or a member of the Institute of Chartered Accountants in Australia, authorised by the owners corporation to exercise the function, or
(d1) a member of the Institute of Public Accountants authorised by the owners corporation to exercise the function, or
(e) during the initial period only—a person authorised by the original owner to exercise the function.
Maximum penalty: 5 penalty units.
An owners corporation may pay to a person who is the chairperson, secretary, treasurer or a member of the executive committee such amount as the owners corporation determines at an annual general meeting in recognition of services performed by the person for the owners corporation in the period since the last annual general meeting.
This Part allows an owners corporation for a strata scheme to appoint a person who is licensed as a strata managing agent under the Property, Stock and Business Agents Act 2002 as a strata managing agent for the scheme. An owners corporation may delegate its functions to its strata managing agent. However, an owners corporation may not delegate the making of certain decisions that this Act requires to be made by the owners corporation, such as decisions on the amount of contributions to the administrative and sinking funds to be levied on owners.
An owners corporation may appoint a person who is the holder of a strata managing agent’s licence under the Property, Stock and Business Agents Act 2002 to be the strata managing agent of the strata scheme.
The Property, Stock and Business Agents Act 2002 defines strata managing agent as a person (whether or not such person carries on any other business) who, for reward (whether monetary or otherwise), exercises or performs any function of an owners corporation under this Act, not being:
(a) a person who:
(i) is the owner of a lot to which the strata scheme for which the owners corporation is constituted relates, and
(ii) is the secretary or treasurer of the executive committee of the owners corporation, and
(iii) exercises only functions of the owners corporation required, by the by-laws in force in respect of the strata scheme for which the owners corporation is constituted, to be exercised by the secretary or treasurer of that executive committee or by the owners corporation, or
(b) a person who maintains or repairs any property for the maintenance and repair of which the owners corporation is responsible.
A strata managing agent is to be appointed by instrument in writing authorised by a resolution at a general meeting of the owners corporation.
An owners corporation may terminate the appointment of a strata managing agent in accordance with the instrument of appointment if authorised by a resolution at a general meeting of the owners corporation.
The functions of a strata managing agent of a strata scheme may be transferred to another person by the strata managing agent, but only with the approval of the owners corporation for the strata scheme. A person to whom those functions are transferred is taken to be appointed as a strata managing agent of the strata scheme concerned in accordance with this section.
An owners corporation may, by the instrument appointing a strata managing agent or some other instrument, delegate to the strata managing agent:
(a) all of its functions, or
(b) any one or more of its functions specified in the instrument, or
(c) all of its functions except those specified in the instrument,
but only if authorised to do so by a resolution at a general meeting and subject to subsection (3).
An owners corporation may, if authorised to do so by a resolution at a general meeting, revoke a delegation under this section.
An owners corporation cannot delegate to a strata managing agent its power to make:
(a) a delegation under this section, or
(b) a decision on a matter that is required to be decided by the owners corporation, or
(c) a determination relating to the levying or payment of contributions.
A function delegated under this section may, while the delegation remains unrevoked, be exercised from time to time in accordance with the delegation.
A delegation under this section may be made subject to such conditions or such limitations as to the exercise of all or any of the functions, or as to time or circumstances, as may be specified in the instrument of delegation.
Despite any delegation made under this section, the owners corporation may continue to exercise all or any of the functions delegated.
Any act or thing done or suffered by a strata managing agent while acting in the exercise of a delegation under this section:
(a) has the same effect as if it had been done or suffered by the owners corporation, and
(b) is taken to have been done or suffered by the owners corporation.
The instrument of appointment of a strata managing agent may provide that the strata managing agent has and may exercise all the functions of the chairperson, secretary, treasurer or executive committee of an owners corporation or such of those functions as may be specified in the instrument.
However, the chairperson, secretary, treasurer and executive committee of an owners corporation may continue to exercise all or any of the functions that the strata managing agent is authorised to exercise.
Any act or thing done or suffered by a strata managing agent in the exercise of any function of the chairperson, secretary, treasurer or executive committee conferred on the strata managing agent in accordance with this section:
(a) has the same effect as it would have had if it had been done or suffered by the chairperson, secretary, treasurer or executive committee, as the case may be, and
(b) is taken to have been done or suffered by the chairperson, secretary, treasurer or executive committee, as the case may be.
This section is subject to section 32.
The following functions of an owners corporation, executive committee, chairperson, secretary or treasurer may not be delegated to or conferred on any other person unless the person is a member of the executive committee or a strata managing agent:
(a) the preparation of estimates for the purposes of section 75,
(b) the levying of contributions,
(c) the receiving of, acknowledging of, banking of or accounting for money paid to the owners corporation,
(d) having custody of any money paid to the owners corporation or making payments from any such money,
(e) the taking out of insurance required or permitted by this Act,
(f) the conduct of meetings of the owners corporation and handling of correspondence,
(g) the maintenance of records required to be kept under this Act,
(h) such other functions as may be prescribed by the regulations.
This section is subject to sections 24 and 32.
Section 24 enables some of these functions to be exercised by certain other specified persons.
If a strata managing agent has been delegated a duty by an owners corporation and a breach of the duty by the owners corporation would constitute an offence under a provision of this Act, the agent is guilty of an offence under that provision (instead of the owners corporation) for any breach of the duty by the agent occurring while the delegation remains in force.
A strata managing agent who exercises a function of an owners corporation must, immediately after its exercise, make a written record specifying the function and the manner in which it was exercised.
The strata managing agent must serve a copy of the written record on the owners corporation.
If a strata managing agent is appointed by an Adjudicator to exercise a function:
(a) the function cannot, while the strata managing agent holds office, be exercised by any other person, and
(b) anything done or suffered by the strata managing agent in the exercise of the function has the same effect as it would have if the function were exercised by the person who, but for paragraph (a), could have exercised it.
An owners corporation may require a strata managing agent to provide the following information relating to the trust account that the agent is required to operate under the Property, Stock and Business Agents Act 2002:
(a) the name and number of the account,
(b) the name of the financial institution in which the account is current,
(c) the balance in the account standing to the credit of the owners corporation on a specified date,
(d) particulars of all cheques drawn on the account on behalf of the owners corporation as at that date and not presented and duly paid.
An owners corporation may require a strata managing agent to provide the following information relating to any other accounts on which the agent operates in the exercise of functions of the owners corporation:
(a) the names and numbers of the accounts,
(b) the names of the financial institutions in which the accounts are current,
(c) the balance in each of the accounts standing to the credit of the owners corporation on a specified date,
(d) particulars of all cheques drawn on each of the accounts as at that date and not presented and duly paid.
An owners corporation may require a strata managing agent to provide:
(a) full particulars relating to the payment of money to, or the receipt of money by, the agent on behalf of the owners corporation, and
(b) if the money is not still held by the agent, the manner and time of disposal of the money.
An owners corporation may require a strata managing agent to provide full particulars as to any specified transaction that has been entered into by the agent on behalf of the owners corporation.
A requirement for information by an owners corporation under this Division must be made by notice in writing served on the strata managing agent.
The notice must specify a member of the executive committee to whom the information is to be delivered.
The strata managing agent must comply with the notice by providing a written statement, containing the information required, within 7 days after service of the notice.
Maximum penalty: 20 penalty units.
A person is not guilty of failing to comply with a notice under this section if reasonable cause for the failure is shown.
A strata managing agent must not knowingly provide information that is false or misleading in a material particular in a statement delivered in response to a notice under this section.
Maximum penalty (subsection (5)): 20 penalty units.
If a strata managing agent ceases to hold a licence under the Property, Stock and Business Agents Act 2002 to carry on business as a strata managing agent or dies:
(a) this Division (except sections 35 and 36) applies to any person who is required by that Act to maintain a trust account in connection with the business of the former licensee, and
(b) this Division (except section 33) applies to any person who is required by that Act to preserve records kept by the former licensee,
and so applies as if the person concerned were the strata managing agent.
A strata managing agent or other person is not required to provide information under this Division in relation to a transaction that took place more than 3 years before service of the notice requiring the information.
The provisions of section 101 of the Property, Stock and Business Agents Act 2002 do not apply to or in respect of a transaction if information about the transaction may be required to be provided to an owners corporation under this Division.
The provisions of section 101 of the Property, Stock and Business Agents Act 2002 enable a person directly concerned in a transaction with a licensee under that Act to require an itemised account of the transaction from the licensee.
A caretaker is a person who is entitled to exclusive possession (whether or not jointly with another person or other persons) of a lot or common property and assists in exercising any one or more of the following functions of the owners corporation for the strata scheme concerned:
(a) managing common property,
(b) controlling the use of common property by persons other than the owners and occupiers of lots,
(c) maintaining and repairing common property.
However, a person is not a caretaker if the person exercises those functions only on a voluntary or casual basis or as a member of the executive committee.
A person may be both a caretaker and an on-site residential property manager.
For the purposes of this Act, a person is taken to be a caretaker for a strata scheme if the person meets the description of a caretaker set out in this section, regardless of whether the title given to the person’s position is caretaker, building manager, resident manager or any other title.
A caretaker is required to be appointed by an instrument in writing (a
(a) by the original owner, if executed before the strata scheme commenced, or
(b) under the authority of a resolution passed at a general meeting of the owners corporation of the strata scheme concerned, if executed after the strata scheme commenced.
Unless it expires or otherwise ceases to have effect earlier, a caretaker agreement (including any additional term under any option to renew it) expires:
(a) at the conclusion of the first annual general meeting of the owners corporation, if the agreement was executed by the original owner, or
(b) when 10 years have expired after it commenced to authorise the caretaker to act under it, in any other case.
The functions of a caretaker under a caretaker agreement may be transferred to another person only with the approval of the owners corporation. A person to whom those functions are transferred is taken to be appointed as a caretaker by the caretaker agreement.
An owners corporation may terminate a caretaker agreement in accordance with its terms, and may approve a transfer of the functions of a caretaker, if authorised by a resolution at a general meeting of the owners corporation.
A caretaker may, in accordance with the caretaker agreement appointing the caretaker, assist in exercising one or more of the functions of the owners corporation of managing and controlling the use of common property (otherwise than by the owners or occupiers of lots) and of maintaining and repairing common property.
However, the owners corporation may continue to exercise all or any of those functions, subject to the caretaker agreement.
A person is not a strata managing agent for the purposes of this or any other Act only because the person is a caretaker acting in accordance with a caretaker agreement.
This Part deals with by-laws for a strata scheme governing such things as the behaviour of residents of the scheme and the use of common property. The Part provides that strata schemes in existence before the commencement of the Part are to have the by-laws set out in Schedule 1 together with additional by-laws that may previously have been added to those by-laws and any amendments that may previously have been made to those by-laws by the relevant owners corporation. A new strata scheme may, if it chooses, adopt model by-laws or register its own by-laws. The by-laws for both existing and new schemes can be amended or repealed by the owners corporation.
The Part places obligations on owners, mortgagees and covenant chargees in possession of a lot and lessees and occupiers of lots to comply with the by-laws.
The Part also contains procedural requirements for the making of certain by-laws and the amendment or repeal of by-laws.
This section applies to strata schemes that came into existence after the commencement of this section.
The by-laws in force for a strata scheme are the by-laws adopted by or lodged with the strata plan registered by the Registrar-General for the strata scheme, as in force at the date of lodgment, subject to any amendment, repeal or addition recorded by the Registrar-General under section 48.
Section 8 of the Strata Schemes (Freehold Development) Act 1973 and section 7 of the Strata Schemes (Leasehold Development) Act 1986 require that when a strata plan is submitted for registration it must be accompanied by the proposed by-laws for the strata scheme. Those by-laws are registered with the strata plan.
This section applies to strata schemes in existence before the commencement of this section.
The by-laws set forth in Schedule 1 are the by-laws in force for a strata scheme, including any additional by-laws, or any amendments or repeals relating to those by-laws, that have been registered for the strata scheme in accordance with:
(a) Division 3 of this Part, or
(b) Division 1 of Part 4 of the Strata Schemes (Freehold Development) Act 1973 as in force immediately before its repeal, or
(c) Division 1 of Part 4 of the Strata Schemes (Leasehold Development) Act 1986 as in force immediately before its repeal.
By-laws may be made in relation to any of the following:
• safety and security measures
• details of any common property of which the use is restricted
• the keeping of pets
• parking
• floor coverings
• garbage disposal
• behaviour
• architectural and landscaping guidelines to be observed by lot owners
• matters appropriate to the type of strata scheme concerned.
Subsection (1) does not limit the matters for which by-laws may be made.
The regulations may prescribe model by-laws which may be adopted as the by-laws for a strata scheme.
A by-law has no force or effect to the extent that it is inconsistent with this or any other Act or law.
The by-laws for a strata scheme bind the owners corporation and the owners and any mortgagee or covenant chargee in possession (whether in person or not), or lessee or occupier, of a lot to the same extent as if the by-laws:
(a) had been signed and sealed by the owners corporation and each owner and each such mortgagee, covenant chargee, lessee and occupier, and
(b) contained mutual covenants to observe and perform all the provisions of the by-laws.
There is an implied covenant by the lessee in a lease of a lot or common property to comply with the by-laws for the strata scheme.
In this section,
An owners corporation may serve a notice, in a form approved by the Director-General, on the owner or occupier of a lot requiring the owner or occupier to comply with a specified by-law if the owners corporation is satisfied that the owner or occupier has contravened that by-law.
A notice cannot be issued under this section unless a resolution approving the issue of the notice, or the issue of notices for the type of contravention concerned, has first been passed by the owners corporation or the executive committee of the owners corporation.
Subsection (2) does not apply to the issue of a notice under this section by a strata managing agent if that function has been delegated to the strata managing agent in accordance with this Act.
The Tribunal may impose a pecuniary penalty on a person for failing to comply with a notice under this section (see section 203).
If a lot or common property in a freehold strata scheme is leased, the lessor must provide the lessee with a copy of the by-laws, and any strata management statement affecting the lot or common property, within the time and in the manner required by this section.
Maximum penalty: 1 penalty unit.
If a lot or common property in a leasehold strata scheme is sublet, the sublessor must provide the sublessee with a copy of the by-laws, and any strata management statement affecting the lot or common property, within the time and in the manner required by this section.
Maximum penalty: 1 penalty unit.
The copy of the by-laws or strata management statement must be provided to the lessee or sublessee within 7 days after the lessee or sublessee becomes entitled to possession of the lot or common property.
If a lot or common property in a freehold scheme is leased and the by-laws are amended, the lessor must provide the lessee with a further copy of the by-laws, within the time and in the manner required by this section.
Maximum penalty: 1 penalty unit.
If a lot or common property in a leasehold strata scheme is sublet and the by-laws are amended, the sublessor must provide the sublessee with a further copy of the by-laws, within the time and in the manner required by this section.
Maximum penalty: 1 penalty unit.
Any further copy of by-laws required to be provided under subsection (3A) or (3B) must be provided to the lessee or sublessee within 7 days after the amendment of the by-laws is recorded by the Registrar-General under section 48 (1) (b).
The copy of the by-laws or strata management statement (including any further copy of by-laws that have been amended) must be:
(a) served personally on the lessee or sublessee, or
(b) if the lease or sublease relates to a lot—served on the lessee or sublessee in any manner allowed by this Act for service of a document on the occupier of a lot, or
(c) if the lease or sublease relates to a lot or common property that is fully enclosed by walls or other structures—left in a conspicuous position at the lot or on the common property.
Subsections (1), (2), (3A) and (3B) do not apply if the strata scheme concerned is part of a community scheme or the lessee or sublessee is the owner of a lot in the strata scheme concerned.
An owners corporation, in accordance with a special resolution, may, for the purpose of the control, management, administration, use or enjoyment of the lots or the lots and common property for the strata scheme, make by-laws adding to, amending or repealing the by-laws for the strata scheme.
An amendment or repeal of a by-law or, a new by-law, has no force or effect until:
(a) the owners corporation has lodged a notification, in the form approved under the Real Property Act 1900, in the Registrar-General’s office, and
(b) the Registrar-General has made an appropriate recording of the notification in the folio of the Register comprising the common property.
A notification cannot be lodged in the Registrar-General’s office more than 2 years after the passing of the resolution for the amendment, repeal or new by-law.
No by-law is capable of operating to prohibit or restrict the devolution of a lot or a transfer, lease, mortgage, or other dealing relating to a lot.
If an order made under Chapter 5 has effect as if its terms were a by-law, that by-law is not capable of being amended or repealed except by a by-law made in accordance with a unanimous resolution and, in the case of a strata leasehold scheme, with the consent of the lessor of the scheme.
A by-law for a residential strata scheme has no force or effect to the extent to which it purports to prohibit or restrict persons under 18 years of age occupying a lot. This subsection does not apply to a by-law for a strata scheme for a retirement village or housing exclusively for aged persons.
A by-law has no force or effect to the extent to which it purports to prohibit or restrict the keeping on a lot of a dog used as a guide or hearing dog by an owner or occupier of the lot or the use of a dog as a guide or hearing dog on a lot or common property.
An owners corporation must not, during the initial period, make, amend or repeal a by-law in such a manner that a right is conferred or an obligation is imposed on one or more, but not all, owners or in respect of one or more, but not all, lots.
An owners corporation may recover from the original owner, as damages for breach of statutory duty, any loss suffered by the owners corporation as a result of a contravention of this section.
An owner may recover, as damages for breach of statutory duty, any loss that has been suffered by the owner as a result of a contravention of this section.
It is a defence to an action under this section for damages if it is proved that the original owner:
(a) did not know of the contravention on which the action is based, or
(b) was not in a position to influence the conduct of the owners corporation in relation to the contravention, or
(c) used due diligence to prevent the contravention.
A remedy available under this section does not affect any other remedy.
This Division applies to a by-law conferring on the owner of a lot specified in the by-law, or the owners of several lots so specified:
(a) a right of exclusive use and enjoyment of the whole or any specified part of the common property, or
(b) special privileges in respect of the whole or any specified part of the common property (including, for example, a licence to use the whole or any specified part of the common property in a particular manner or for particular purposes),
and to a by-law that amends or repeals such a by-law.
This Division does not prevent an owners corporation making a by-law in accordance with section 54 of the Community Land Management Act 1989.
An owners corporation may make, amend or repeal a by-law to which this Division applies, but only:
(a) with the written consent of the owner or owners of the lot or lots concerned and, in the case of a strata leasehold scheme, the lessor of the scheme, and
(b) in accordance with a special resolution.
A by-law to which this Division applies may be made even though the person on whom the right of exclusive use and enjoyment or the special privileges are to be conferred had that exclusive use or enjoyment or enjoyed those special privileges before the making of the by-law.
After 2 years from the making, or purported making, of a by-law to which this Division applies, it is conclusively presumed that all conditions and preliminary steps precedent to the making of the by-law were complied with and performed.
A by-law to which this Division applies may confer rights or special privileges subject to such conditions as may be specified in the by-law (for example, a condition requiring the payment of money by the owner or owners of the lot or lots concerned, at specified times or as determined by the owners corporation).
A by-law to which this Division applies must:
(a) provide that the owners corporation is to continue to be responsible for the proper maintenance of, and keeping in a state of good and serviceable repair, the common property or the relevant part of it, or
(b) impose on the owner or owners concerned the responsibility for that maintenance and upkeep.
Any money payable under a by-law to which this Division applies by more than one owner to the owners corporation or to any person for or towards the maintenance or upkeep of any common property is payable by those owners proportionately according to the relative proportions of their respective unit entitlements unless the by-law otherwise provides.
To the extent to which a by-law to which this Division applies makes a person directly responsible for the proper maintenance, and keeping in a state of good and serviceable repair, of any common property, it discharges the owners corporation from its obligations to maintain and repair property under Chapter 3.
A by-law to which this Division applies, while it remains in force, continues to operate for the benefit of, and is binding on, the owner or owners for the time being of the lot or lots specified in the by-law.
If a person becomes owner of a lot at a time when, under a by-law or under this subsection, a former owner is liable to pay money to the owners corporation, the person who becomes owner is jointly and severally liable with the former owner to pay the money to the owners corporation.
Any money payable by an owner to the owners corporation under a by-law to which this Division applies or under subsection (2) may be recovered, as a debt, by the owners corporation.
(Repealed)
This Division applies to a strata scheme that is part of a community scheme under the Community Land Management Act 1989.
If the by-laws for a strata scheme to which this Division applies are inconsistent:
(a) with the community management statement, or
(b) if the strata scheme is also part of a precinct scheme under the Community Land Development Act 1989—with the precinct management statement,
the management statement prevails.
In a lease of a lot or common property in a strata scheme to which this Division applies there is implied an agreement by the lessee to comply with:
(a) the community management statement, and
(b) if the strata scheme is also part of a precinct scheme under the Community Land Development Act 1989—the precinct management statement.
(Repealed)
If it is proposed to grant a lease of a lot or common property in a strata scheme to which this Division applies, the lessor must annex the following to the copy of the lease submitted for execution by the lessee:
(a) a copy of the community management statement,
(b) if the strata scheme is also part of a precinct scheme under that Act—a copy of the precinct management statement.
Maximum penalty: 1 penalty unit.
This Chapter sets out the key areas of management for a strata scheme, that is, the main responsibilities of an owners corporation for a strata scheme.
This Part provides an overview of the Chapter.
An owners corporation has, for the benefit of the owners:
(a) the management and control of the use of the common property of the strata scheme concerned, and
(b) the administration of the strata scheme concerned.
The owners corporation has responsibility for the following:
(a) maintaining and repairing the common property of the strata scheme as provided by Part 2,
(b) managing the finances of the strata scheme as provided by Part 3,
(c) taking out insurance for the strata scheme as provided by Part 4,
(d) keeping accounts and records for the strata scheme as provided by Part 5.
Other functions of an owners corporation are included in Part 6.
This Part sets out the duties of an owners corporation to maintain and repair the property of a strata scheme and to arrange access for fire safety inspections. Certain powers are given to an owners corporation to recover money for work required to be carried out and to enter property to carry out certain necessary work. The Part also deals with certain powers of an owners corporation in relation to alterations or additions to common property and the granting of licences over common property.
An owners corporation must properly maintain and keep in a state of good and serviceable repair the common property and any personal property vested in the owners corporation.
An owners corporation must renew or replace any fixtures or fittings comprised in the common property and any personal property vested in the owners corporation.
This clause does not apply to a particular item of property if the owners corporation determines by special resolution that:
(a) it is inappropriate to maintain, renew, replace or repair the property, and
(b) its decision will not affect the safety of any building, structure or common property in the strata scheme or detract from the appearance of any property in the strata scheme.
The decision of an owners corporation under subsection (3) may be reviewed by an Adjudicator (see section 138).
This section applies if a person who is required to carry out work as referred to in this section fails to carry out the work.
An owners corporation may carry out work that is required to be carried out by an owner of a lot under a notice served on the owner by a public authority and may recover the cost of carrying out the work from the owner or any person who, after the work is carried out, becomes the owner.
An owners corporation may carry out work that is required to be carried out by a person who is the owner, mortgagee or covenant chargee in possession, lessee (or, in the case of a leasehold strata scheme, sublessee) or occupier of a lot under a term or condition of a by-law and may recover the cost of carrying out the work from that person or any person who, after the work is carried out, becomes the owner of that lot.
An owners corporation may carry out work that is required to be carried out by a person who is the owner, mortgagee or covenant chargee in possession, lessee (or, in the case of a leasehold strata scheme, sublessee) or occupier of a lot in order to remedy a breach of a duty imposed by Chapter 4 and may recover the cost of the work from that person.
An owners corporation may carry out work required to be carried out under an order made under this Act and may recover the cost of carrying out the work from the person against whom the order was made.
The costs incurred by an owners corporation in carrying out any work referred to in this section may be recovered by the owners corporation as a debt.
An owners corporation may carry out such work as is necessary to rectify any of the following defects:
(a) any structural defect in any part of a building comprised in a lot that affects or is likely to affect the support or shelter provided by that lot for another lot in the building or the common property,
(b) any defect in any pipe, wire, cable or duct that provides, or through which passes, any water, sewage, drainage, gas, electricity, garbage, artificially heated or cooled air, heating oil or other service (including telephone, radio or television services) within a lot.
An owners corporation may carry out work referred to in this section at its own expense if the cost of the work cannot be recovered from some other person.
An owners corporation of a strata scheme to which this section applies must ensure that there are complying window safety devices for all windows of each building in the strata scheme that are windows to which this section applies.
Maximum penalty: 5 penalty units.
An owners corporation is to carry out work related to its functions under this section at its own expense and may, for the purposes of this section, carry out work on any part of the parcel.
An owner of a lot in a strata scheme to which this section applies may install a complying window safety device on a window to which this section applies (other than a window on another owner’s lot).
An owner of a lot who installs a window safety device under this section must:
(a) repair any damage caused to any part of the common property by the installation of the device, and
(b) ensure that the device is installed in a competent and proper manner and has an appearance, after it has been installed, in keeping with the appearance of the building.
An owners corporation or an owner of a lot may carry out work authorised by this section despite any other provision of this Act, the regulations or any by-law of the scheme.
The regulations may make provision for or with respect to the following:
(a) the strata schemes and windows to which this section applies,
(b) the devices or other things that are complying window safety devices for the purposes of this section,
(c) notification to the owners corporation by owners who install window safety devices.
A regulation may apply this section to a window located on any part of a parcel.
An owners corporation may, by its agents, employees or contractors, enter on any part of the parcel for the purpose of carrying out the following work:
(a) work required to be carried out by the owners corporation in accordance with this Act (including work relating to window safety devices),
(b) work required to be carried out by the owners corporation by a notice served on it by a public authority,
(c) work required to be carried out by the owners corporation by an order under this Act.
An owners corporation may, by its agents, employees or contractors, enter on any part of the parcel for the purpose of determining whether any work is required to be carried out by the owners corporation in accordance with this Act.
In an emergency, the owners corporation may enter any part of the parcel for those purposes at any time.
In a case that is not an emergency, the owners corporation, may enter any part of the parcel for those purposes with the consent of any occupier of that part of the parcel or, if the occupier does not consent, in accordance with an order of an Adjudicator under section 145.
A person must not obstruct or hinder an owners corporation in the exercise of its functions under this section.
Maximum penalty: 2 penalty units.
An owners corporation is liable for any damage to a lot or any of its contents caused by or arising out of the carrying out of any work, or the exercise of a power of entry, referred to in this section unless the damage arose because the owners corporation was obstructed or hindered.
For the purpose of improving or enhancing the common property, an owners corporation or an owner of a lot may take any of the following action, but only if a special resolution has first been passed at a general meeting of the owners corporation that specifically authorises the taking of the particular action proposed:
(a) add to the common property,
(b) alter the common property,
(c) erect a new structure on the common property.
A special resolution that authorises action to be taken under subsection (1) in relation to the common property by an owner of a lot may specify whether the ongoing maintenance of the common property once the action has been taken is the responsibility of the owners corporation or the owner.
If a special resolution under this section does not specify who has the ongoing maintenance of the common property concerned, the owners corporation has the responsibility for the ongoing maintenance.
A special resolution under this section that allows an owner of a lot to take action in relation to certain common property and provides that the ongoing maintenance of that common property after the action is taken is the responsibility of the owner has no effect unless:
(a) the owners corporation obtains the written consent of the owner to the making of a by-law to provide for the maintenance of the common property by the owner, and
(b) the owners corporation makes such a by-law.
A by-law made for the purposes of this section:
(a) may require, for the maintenance of the common property, the payment of money by the owner concerned at specified times or as determined by the owners corporation, and
(b) must not be amended or repealed unless a special resolution has first been passed at a general meeting of the owners corporation and the owners corporation has obtained the written consent of the owner concerned.
The provisions of sections 52 (3), 54 (2) and (3) and 55 apply to a by-law made for the purposes of this section in the same way as those provisions apply to a by-law to which Division 4 of Part 5 of Chapter 2 applies.
An owners corporation may grant a licence to an owner of a lot to use common property in a particular manner or for particular purposes if the owners corporation has approved the granting of the licence by special resolution passed at a general meeting of the owners corporation.
A licence may be granted subject to terms and conditions.
Division 4 of Part 5 of Chapter 2 enables owners corporations to make by-laws granting exclusive use rights and special privileges (including licences) in relation to common property.
A person authorised to carry out an inspection under the Environmental Planning and Assessment Act 1979 of a building or premises for purposes relating to fire safety may give a notice in writing to an owners corporation for a strata scheme requiring the owners corporation to ensure that access is provided, within a period or at a time specified in the notice, to the common property of the strata scheme and, if so specified, some or all of the individual lots in the strata scheme.
An owners corporation must comply with a requirement of a notice given to the owners corporation under this section.
Maximum penalty: 20 penalty units.
It is a defence to a prosecution for an offence against subsection (2) consisting of a failure to ensure that access is provided to a lot in a strata scheme if the owners corporation establishes that the owner or occupier of the lot refused to allow the access or could not be contacted by the owners corporation.
For the purposes of the Environmental Planning and Assessment Act 1979, access to a building or premises or part of a building or premises given to a person in accordance with this section, or in accordance with an order of an Adjudicator made under section 145 for the purposes of this section, is taken to be a permission given to that person by the occupier of the building, premises or part to enter the premises and carry out the inspection concerned.
This Part requires an owners corporation for a strata scheme to establish an administrative fund and a sinking fund and to levy contributions to those funds from owners of lots in the scheme. The administrative fund is generally used to meet recurrent expenses, such as expenses involved in maintaining the common property from day-to-day in good condition and insuring the property. The sinking fund is generally used to meet expenses of a capital nature, such as painting buildings or replacing fixtures or fittings.
An owners corporation must establish an administrative fund.
An owners corporation must pay the following amounts into the administrative fund:
(a) the contributions levied on, and paid by, owners for payment into the fund,
(b) the proceeds of the disposal of any personal property of the owners corporation,
(c) any fees paid to the owners corporation for inspection of its records and the provision of information and certificates relating to its records.
An owners corporation may pay into the administrative fund any amounts paid to the owners corporation by way of discharge of insurance claims.
An owners corporation must not pay any money from its administrative fund except for the purpose of:
(a) payments of the kind for which estimates have been made under section 75 (1), or
(b) payments made in accordance with this Division on a distribution of a surplus in the fund, or
(c) payments to a member of the executive committee in accordance with this Act, or
(d) other payments in connection with carrying out its functions under this Act or the by-laws, except payments of a kind referred to in section 71 (1).
However, an owners corporation may pay money by transfer from its administrative fund to its sinking fund or by meeting from its administrative fund expenditure that should have been met from its sinking fund so long as the owners corporation complies with subsection (3).
The owners corporation must, not later than 3 months after the disbursement, make a determination under section 76 (1) of an amount sufficient to recoup the amount of the disbursement.
An owners corporation must establish a sinking fund.
However, an owners corporation for a strata scheme comprising 2 lots need not establish a sinking fund if:
(a) the owners corporation so determines by unanimous resolution, and
(b) the buildings comprised in one of those lots are physically detached from the buildings comprised in the other lot, and
(c) no building or part of a building in the strata scheme is situated outside those lots.
An owners corporation must pay the following amounts into its sinking fund:
(a) the contributions levied on, and paid by, owners for payment into the fund,
(b) any amounts paid to the owners corporation by way of discharge of insurance claims, unless those amounts have been paid into the administrative fund,
(c) any amount received by the owners corporation that is not required or permitted to be paid into the administrative fund.
An owners corporation must not pay any money from its sinking fund except for the purpose of:
(a) payments of the kind for which estimates have been made under section 75 (2), or
(b) payments made in accordance with this Division on a distribution of a surplus in the fund.
However, an owners corporation may disburse money by transfer from its sinking fund to its administrative fund or by meeting from its sinking fund expenditure that should have been met from its administrative fund if the owners corporation complies with subsection (3).
The owners corporation must, not later than 3 months after the disbursement, make a determination under section 76 (1) of an amount sufficient to recoup the amount of the disbursement.
An owners corporation may, in accordance with a unanimous resolution, distribute between the owners any money in its administrative fund or sinking fund that is not, in the opinion of the owners corporation, required for the purposes of either fund.
A distribution to an owner of a lot or a person entitled to receive it under subsection (3) must be made in the same proportion as is borne by the unit entitlement for the lot to the aggregate unit entitlement.
Any money payable under subsection (1) in relation to a lot that is subject to a mortgage or covenant charge shown on the strata roll is to be paid:
(a) in accordance with the joint directions of the owner of the lot and the mortgagee or covenant chargee, or
(b) if they cannot agree—in accordance with an order of the court that, under subsection (4), has jurisdiction in the matter.
An application for an order to resolve a dispute under subsection (3) may be made:
(a) in the case of a dispute where the amount of the payment does not exceed $500 and the title to land is not in question or is in question only incidentally—to the Local Court, or
(b) in the case of an application where the amount of payment does not exceed $500 and the title to land is in question otherwise than incidentally—to the District Court of New South Wales, or
(c) in the case of an application where the amount of the payment exceeds $500 but does not exceed $10,000 and the title to land is not in question or is in question only incidentally—to the District Court of New South Wales, or
(d) in any other case—to the Supreme Court.
An owners corporation may invest any money in its administrative fund or sinking fund in any manner permitted by law for the investment of trust funds or in any prescribed investment.
Any interest received on an investment made under this section forms part of the fund to which the investment belongs.
An owners corporation must pay any amounts that are received by it and are not otherwise invested in accordance with this Act into an account established in a financial institution in the name of the owners corporation.
This section does not apply to an owners corporation that has appointed a strata managing agent to whom the duty of the owners corporation under this section is delegated in accordance with this Act.
An owners corporation must, not later than 14 days after the constitution of the owners corporation and at each annual general meeting after that, estimate how much money it will need to credit to its administrative fund for actual and expected expenditure:
(a) to maintain in good condition on a day-to-day basis the common property and any personal property vested in the owners corporation, and
(b) to provide for insurance premiums, and
(c) to meet other recurrent expenses.
Recurrent expenses would include such regular expenses as insurance, water charges, electricity charges, carpet cleaning, lawnmowing services and the like and minor expenses relating to maintenance of the common property.
An owners corporation must, at each annual general meeting, estimate how much money it will need to credit to its sinking fund for actual and expected expenditure:
(a) for painting or repainting any part of the common property which is a building or other structure, and
(b) to acquire personal property, and
(c) to renew or replace personal property, and
(d) to renew or replace fixtures and fittings that are part of the common property, and
(e) to replace or repair the common property, and
(f) to meet other expenses of a capital nature.
Expenses of a capital nature would include expenses in relation to major repairs or improvements to the common property or personal property of the owners corporation, such as painting of a building or replacement of roofing, guttering or fences and the like.
When estimating amounts needed to be credited to the administrative fund or the sinking fund the owners corporation must have before it, and take into account, a statement of the existing financial situation of the strata scheme and an estimate of receipts and payments.
In estimating amounts to be credited to the sinking fund, an owners corporation that is required to prepare a plan under section 75A is to take into account anticipated major expenditure identified in the plan for the 10-year period to which the plan relates.
An owners corporation of a large strata scheme must include in the estimates prepared under this section at an annual general meeting specific amounts in relation to each item or matter on which the owners corporation intends to expend money, or on which the owners corporation is aware money will be likely to be expended, in the period until the next annual general meeting.
This section applies to owners corporations established on or after the commencement of this section.
An owners corporation to which this section applies is to prepare a plan of anticipated major expenditure to be met from the sinking fund over the 10-year period commencing on the first annual general meeting of the owners corporation.
The initial plan is to be finalised by the end of the second annual general meeting of the owners corporation.
The plan is to be reviewed and (if necessary) adjusted no later than at the fifth annual general meeting of the owners corporation.
An owners corporation to which this section applies is to prepare a plan as referred to in subsection (2) for each 10-year period following the period referred to in that subsection and is to finalise and review the plan in accordance with the requirements of subsections (3) and (4) at the corresponding annual general meetings in the relevant 10-year period.
An owners corporation may engage expert assistance in the preparation of a plan under this section.
The regulations may extend the operation of this section to all owners corporations or to such classes of owners corporations established before the commencement of this section as are specified in the regulations.
A regulation referred to in subsection (7) may make necessary modifications to the application of any provision of this section to an owners corporation established before the commencement of this section.
The owners corporation must determine the amounts to be levied as a contribution to the administrative fund and the sinking fund to raise the amounts estimated as needing to be credited to those funds.
That determination must be made at the same meeting at which those estimated amounts are determined.
The owners corporation must levy on each person liable for it such a contribution.
If the owners corporation is subsequently faced with other expenses it cannot at once meet from either fund, it must levy on each owner a contribution to the administrative fund, determined at a general meeting of the owners corporation, in order to meet the expenses.
A contribution is, if an owners corporation so determines, payable by such regular periodic instalments as are specified in the determination setting the amount of the contribution.
If the use to which a lot is put causes an insurance premium for the strata scheme to be greater than it would be if it were not put to that use, so much of a contribution payable by the owner of the lot as is attributable to insurance premiums may, with the consent of the owner, be increased to reflect the extra amount of premium.
An owners corporation may apply for an order under section 149 (2) for a variation of contributions if an owner unreasonably refuses consent under this subsection.
An owners corporation levies a contribution required to be paid to the administrative fund or sinking fund by an owner of a lot by serving on the owner a written notice of the contribution payable.
Contributions levied by an owners corporation must be levied in respect of each lot and are payable (subject to this section and section 77) by the owners in shares proportional to the unit entitlements of their respective lots.
If, at the time a person becomes owner of a lot, another person is liable in respect of the lot to pay a contribution, the owner is jointly and severally liable with the other person for the payment of the contribution and interest on the contribution.
A mortgagee or covenant chargee in possession of a lot (whether in person or not) is jointly and severally liable with the owner of the lot:
(a) for any regular periodic contributions to the administrative fund or sinking fund together with any interest on those contributions, and
(b) for any other contribution together with interest on that contribution if the mortgagee or covenant chargee has been given written notice of the levy of the contribution.
Subsection (4) does not affect the liability of an owner of a lot for any contribution levied under this section.
Regular periodic contributions to the administrative fund and sinking fund of an owners corporation are taken to have been duly levied on an owner of a lot even though notice levying the contributions was not served on the owner.
Any contribution levied by an owners corporation becomes due and payable to the owners corporation in accordance with the decision of the owners corporation to make the levy.
A contribution, if not paid at the end of one month after it becomes due and payable, bears until paid simple interest at an annual rate of 10 per cent or, if the regulations provide for another rate, that other rate.
However, an owners corporation may by special resolution determine (either generally or in a particular case) that a contribution is to bear no interest.
An owners corporation may, by special resolution, determine (either generally or in a particular case) that a person may pay 10 per cent less of a contribution levied if the person pays the contribution before the date on which it becomes due and payable.
An owners corporation may recover as a debt a contribution not paid at the end of one month after it becomes due and payable, together with any interest payable and the expenses of the owners corporation incurred in recovering those amounts.
Interest paid or recovered forms part of the fund to which the relevant contribution belongs.
If a specific amount has been determined as referred to in section 75 (5) for expenditure on any item or matter, the executive committee of the owners corporation concerned must not, in the period until the annual general meeting next occurring after the determination was made, spend on the item or matter an amount greater than that determined amount for expenditure on the item or matter plus 10 per cent.
The owners corporation of a large strata scheme may by resolution at a general meeting remove the limitation imposed by subsection (1) generally or in relation to any particular item or matter.
An owners corporation of a large strata scheme must obtain at least 2 quotations in relation to proposed expenditure in respect of any one item or matter if the proposed expenditure will exceed an amount prescribed by the regulations for the purposes of this section.
Sections 80A (1) and 80B do not apply to expenditure undertaken for emergency purposes, including, for example, expenditure to remedy any of the following:
(a) burst or blocked water or sewerage pipes,
(b) serious damage caused by fire or by storm or any other natural disaster,
(c) unexpected electrical or security system failure,
(d) glass breakages that affect the security of any building in the strata scheme or could result in damage to the inside of any such building.
An owners corporation or executive committee of an owners corporation must not seek legal advice or the provision of any other legal services, or initiate legal action, for which any payment may be required unless a resolution is passed at a general meeting of the owners corporation approving the seeking of the advice or services or the taking of that action.
The regulations may make provision for or with respect to exempting any type of legal service or legal action from the operation of this section.
This Part requires an owners corporation for a strata scheme for a building to take out insurance on the building. In the case of a strata scheme for a part of a building, the obligation to insure is placed on the owners corporation and the owner or owners of the rest of the building.
The Part provides specific exceptions to the insurance requirements and enables an owners corporation to apply to an Adjudicator for an exemption from those requirements.
The Part also deals with other types of insurance that must or may be taken out by an owners corporation and contains miscellaneous provisions as to the taking out of insurance by an owners corporation or an owner of a lot.
In this Part,
(a) owners’ improvements and owners’ fixtures forming part of the building other than paint, wallpaper and temporary wall, floor and ceiling coverings, and
(b) a building consisting entirely of common property, and
(c) anything prescribed by the regulations as forming part of a building for the purposes of this definition,
but does not include:
(d) fixtures removable by a lessee or sublessee at the expiration of a tenancy, or
(e) anything prescribed by the regulations as not forming part of a building for the purposes of this definition.
In this Part, a
A damage policy is to provide for the rebuilding of the building or its replacement by a similar building in the event of its destruction so that every part of the rebuilt building or the replacement building is in a condition no worse or no less extensive than that part or its condition when that part was new.
A damage policy is to provide for the repair of damage to, or the restoration of the damaged portion of, the building in the event of its being damaged but not destroyed, so that the repaired or restored portion, is in a condition no worse or no less extensive than that portion or its condition when that portion was new.
A damage policy is to provide for the payment of expenses incurred in the removal of debris.
A damage policy is to provide for the remuneration of architects and other persons whose services are necessary as an incident to the rebuilding, replacement, repair or restoration.
A damage policy may provide that, instead of the work and the payments being carried out or made on the occurrence of any of the events specified in subsection (1), the liability of the insurer is, on the occurrence of any such event, limited to an amount specified in the policy that is not less than an amount calculated in the manner prescribed by the regulations.
Any agreement that was in force immediately before the commencement of Part 4A of Chapter 2 that, if entered into after that commencement, would be a caretaker agreement is taken to be a caretaker agreement appointing a caretaker.
However:
(a) the caretaker is not required to be or have been entitled to exclusive possession of a lot or common property either while the agreement is in force or as a precondition to entering into the agreement, and
(b) section 40B (2) does not apply to such an agreement, and
(c) an application for an order under section 183A may not be made with respect to such an agreement on the ground that the period for which the agreement is in force is harsh, oppressive, unconscionable or unreasonable.
In this clause,
Clause 11 (4) of Schedule 2, as amended by the amending Act, extends to an instrument appointing a proxy that was in force immediately before that subclause was amended by that Act.
Clause 11 (7A) and (7B) of Schedule 2, as inserted by the amending Act, extend to a proxy that was in force immediately before those subclauses were inserted by that Act.
In this Part:
Section 29A does not affect the exercise of a function under this Act before the commencement of that section.
Section 80D applies only to legal advice or legal services sought, or legal action entered into, after the commencement of that section.
Section 88A does not affect any insurance that was taken out in accordance with the provisions of this Act as in force before the commencement of that section.
Section 230A does not apply to a disclosure under Division 2 of Part 11 of the Legal Profession Act 1987 made before the commencement of that section.
Clause 34 (g) of Schedule 2 does not apply to a notice served before the commencement of that paragraph.
Clause 34A of Schedule 2 does not apply to the agenda of a meeting notice of which was served before the commencement of that clause.
Clause 6 of Schedule 3, as in force immediately before its substitution by the amending Act, continues to apply to a meeting notice of which was given before the substitution of that clause.
Clause 16 of Schedule 3, as in force immediately before its substitution by the amending Act, continues to apply to a meeting held before the substitution of that clause.
In this Part,
The repeal of section 56 by the amending Act does not affect any by-law that was recorded by the Registrar-General before that repeal.
Section 56 as in force immediately before its repeal by the amending Act is taken to continue to apply to a proposed by-law for which written approval was given under that section before that repeal but that was not recorded by the Registrar-General before that repeal.
An amendment made to this Act by the amending Act does not affect the casting of a vote by means of any proxy or power of attorney in force immediately before the commencement of the amendment.
However, subclause (1) does not operate in relation to the casting of a vote in any period during which the proxy or power of attorney is in force because of a renewal or extension of its term that took place after the commencement of the amendment concerned.
An appeal to the Supreme Court for which a hearing date had been allocated before the commencement of Schedule 18 to the Courts and Crimes Legislation Amendment Act 2008 is to be determined as if that Act had not been enacted.
Despite any other provision of this Act, an owners corporation is not required to comply with section 64A until 13 March 2018.
Accordingly, an order cannot be sought under section 140A in respect of a failure to exercise a function under section 64A until on or after 13 March 2018.
(a) the original owner, or
(b) a person, other than the original owner, who is the owner of a development lot within the strata plan.
(a) during any period during which the rights of the person as mortgagee, under that mortgage are, by reason of a sub-mortgage, suspended, or
(b) whose rights, as mortgagee, under that mortgage have, by reason of any other instrument, terminated,
if particulars of that sub-mortgage or other instrument have been entered on the strata roll for that strata scheme.
(a) the owners corporation for the strata scheme,
(b) the chairperson, secretary or treasurer of the owners corporation (or of the executive committee of the owners corporation) of the strata scheme,
(c) a strata managing agent for the strata scheme,
(d) an owner of a lot in, a person having an estate or interest in a lot in, or an occupier of a lot in, the strata scheme.
(a) the owners corporation for the strata scheme,
(b) the chairperson, secretary or treasurer of the owners corporation (or of the executive committee of the owners corporation) of the strata scheme,
(c) a strata managing agent for the strata scheme,
(d) the lessor of the strata scheme,
(e) an owner or sublessee of, a person having any other estate or interest in, or an occupier of, a lot in the strata scheme.
(a) the owners corporation or a strata managing agent for, an owner of a lot in, a person having any other estate or an interest in a lot in, or an occupier of a lot in, any other strata scheme affecting the building,
(b) any other person for the time being bound by the strata management statement for the building.
(a) in relation to a freehold strata scheme, has the same meaning as in the Strata Schemes (Freehold Development) Act 1973, and
(b) in relation to a leasehold strata scheme, has the same meaning as in the Strata Schemes (Leasehold Development) Act 1986.
(a) in relation to a freehold strata scheme, the person by whom the parcel the subject of that scheme was held in fee simple at the time of registration of the strata plan to which the scheme relates, or
(b) in relation to a leasehold strata scheme, the person who, immediately after registration of the strata plan concerned is the lessee of all the lots the subject of the scheme or the lessee of 2 or more of those lots (the sum of whose unit entitlements is more than two-thirds of the aggregate of the aggregate unit entitlement).
(a) except as provided by paragraph (b), a person for the time being recorded in the Register as entitled to an estate in fee simple in that lot, or
(b) a person whose name has been entered on the strata roll as an owner in accordance with section 98.
(a) except as provided by paragraph (b) or (c), a person for the time being recorded in the Register as entitled to a leasehold estate in the lot, or
(b) a person whose name has been entered on the strata roll as a lessee in accordance with section 98, or
(c) while a proprietor is taken by section 35 (1) of the Strata Schemes (Leasehold Development) Act 1986 to be the lessee of the lot, the proprietor.
(a) except as provided in paragraph (b), the land from time to time comprising the lots and common property the subject of a strata scheme, and
(b) in relation to a plan lodged for registration as a strata plan, the land comprised in that plan.
(a) in relation to a freehold strata scheme, has the same meaning as in the Strata Schemes (Freehold Development) Act 1973, and
(b) in relation to a leasehold strata scheme, has the same meaning as in the Strata Schemes (Leasehold Development) Act 1986.
(a) in relation to a freehold strata scheme, a strata development contract, as in force for the time being, registered under Division 2A of Part 2 of the Strata Schemes (Freehold Development) Act 1973, and
(b) in relation to a leasehold strata scheme, a strata development contract, as in force for the time being, registered under Division 5 of Part 2 of the Strata Schemes (Leasehold Development) Act 1986.
(a) in the case of a freehold strata scheme, the Strata Schemes (Freehold Development) Act 1973, and
(b) in the case of a leasehold strata scheme, the Strata Schemes (Leasehold Development) Act 1986.
(a) in relation to a freehold strata scheme, has the same meaning as in the Strata Schemes (Freehold Development) Act 1973, and
(b) in relation to a leasehold strata scheme, has the same meaning as in the Strata Schemes (Leasehold Development) Act 1986.
A reference in this Act:
(a) to a strata plan, a strata plan of subdivision, a strata plan of consolidation or a building alteration plan is a reference to a plan registered as such under the Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold Development) Act 1986, or
(b) to a notice of conversion is a reference to a notice registered as such under the Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold Development) Act 1986,
together with any endorsements required to be made on or any plans and documents required to accompany the plan or notice so registered before it may be registered.
Unless otherwise specifically provided by this Act, it is a sufficient compliance with any provision of this Act requiring an instrument to be accompanied by another instrument if that other instrument is endorsed on that firstmentioned instrument.
For the purposes of this Act, a strata scheme is contiguous with another strata scheme even if it is divided by, or separated from the other scheme by, a natural feature (such as a watercourse), a railway, a road, a public reserve or a drainage reserve.
If, in any provision of this Act, reference is made to any person, body, matter or thing (including land) and that provision has effect in relation to a strata scheme, a reference in that provision to any other person, body, matter or thing (including land) is a reference to that other person, body, matter or thing (including land) in connection with that strata scheme.
In this Act,
When calculating the number of lots in a strata scheme for the purposes of this clause, utility lots and lots used for the purposes of parking are not to be included in the calculation.
The regulations may contain provisions of a savings or transitional nature consequent on a change in the number of lots comprising a large strata scheme.
A reference in this Act (however expressed) to a strata managing agent’s licence under the Property, Stock and Business Agents Act 2002 includes a reference to a corporation licence under that Act that authorises the holder to act as, or carry on the business of, a strata managing agent.
For the purposes of this Act, a person (
(a) is a relative (within the meaning of the Local Government Act 1993) of the principal person or, where the principal person is a corporation, is a relative of the holder of an executive position in the corporation, or
(b) is employed or engaged by the principal person or is a partner of the principal person, or
(c) where the principal person is a corporation, holds an executive position in the corporation, or
(d) is the employer of the principal person, or
(e) is employed or engaged by, or holds an executive position in, a corporation that also employs or engages the principal person or in which the principal person holds an executive position, or
(f) has any other connection or relationship with the principal person of a kind prescribed by the regulations.
However, the principal person is not connected with another person who is a member of an owners corporation, or the executive committee of an owners corporation, merely because of any dealing, contact or arrangement the other person has with the principal person in the other person’s capacity as such a member.
In this clause,
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