Are House Rules Binding? This will Surprise You!

 House rules are not binding right?  You might be surprised.

The rules which govern participation in a strata scheme are called by-laws.  By-laws are made by a developer on registration of a strata plan or by an owners corporation by special resolution passed at a general meeting. By-laws are registered on the title of the common property and are binding on the owners corporation and owners and occupiers of the lots.  If by-laws are breached, they are able to be enforced.

By-laws are registered on the title of the common property and are binding on the owners corporation and owners and occupiers of the lots.  If by-laws are breached, they are able to be enforced.

But…what about rules that are made by a strata committee and placed on a notice board? Strata Rules and By-laws

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

 




Lift Refurbishments and Compensation Payouts?

Can an owners corporation shut down the lifts in its building to refurbish them?

If so, does the owners corporation have to pay compensation to owners and tenants who cannot access their apartments via the lifts during a lift refurbishment? And does a lift refurbishment need to be authorised by special resolution?

There are many thorny issues to navigate, to find out more Strata Building Lift Refurbishments

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




Are Explanatory Notes Required?

Do explanatory notes need to be included in the agenda of a general meeting of an owners corporation?  The answer might surprise you.

Since the commencement of the Strata Schemes Management Act 2015 on 30 November 2016, a practice has arisen for explanatory notes to be included in an agenda of a general meeting of an owners corporation.  The purpose of the explanatory notes is to provide a brief explanation of the purpose of each motion that appears on the meeting agenda.

But are these explanatory notes necessary? Click here to find out – Are Strata Meeting Explanatory Notes Required

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




Repairs that Alter, Add or Improve Common Property?

Can the strata committee approve repairs which alter, add to or improve common property?

The strata committee is generally able to organise maintenance and repairs to the common property. But what happens when maintenance or repairs alter, add to or improve the common property? Can the strata committee approve work of that type without the authority of a special resolution passed at a general meeting?

Read the full legal analysis here – Common Property Maintenance / Alterations

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




The Most Significant Strata Cases of 2017

Adrian Mueller, partner, recently presented a paper about the most significant strata cases in NSW over the last 12 months, at the 12th annual conference of the ‘Australian College of Community Association Lawyers’ (ACCAL) – the peak body of strata lawyers in Australia.

To view Adrian’s presentation and strata cases click here 2017 Strata Case Presentation and 2017 Strata Case Papers.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




Great News for By-law Registrations

Great news!

LPI NSW has updated the Registrar-General’s directions concerning the requirements to register a Consolidation/Change of By-Laws.

The Registrar-General’s directions now state as follows:

A consolidated version of the by-laws affecting the strata scheme must be included as an annexure, incorporate the change that is referred to at panel (E) and include any model by-laws.

Note: It is not acceptable to annex previously registered Change of By-laws forms as if it is a consolidated version.

It is suggested that a consolidated version:

  • omit all by-laws that have been previously repealed,
  • include all by-laws that have been previously added, and
  • include all other by-laws as previously amended, or
  • set out in some other way that lists the by-laws that currently affect the strata scheme.

For further information please refer to – LPI NSW Government

A separate Registrar-General’s direction for ‘Consolidated By-Laws’ now says the following:

The following requirements must be complied with:

  • The new change of by-law must be made in accordance with a resolution of the owners corporation and a completed Consolidation/Change of By-Laws dealing form (Form 15CH) must be lodged at LPI not more than 6 months after the passing of the resolution to make the by-law  (See section 141 Strata Schemes Management Act 2015).
  • A consolidated version of by-laws, which incorporates the new change of by-laws, must form an annexure to the Consolidation/Change of By-Laws dealing form (Form 15CH).
  • The consolidated version must include those by-laws lodged with (referred to as ‘developer by-laws’ or ‘strata by-laws’) or adopted (Model By-laws)  by the scheme on the registration of the strata plan together with any changes to those by-laws made since the registration of the strata plan. The text of the by-laws must be fully set out.
  • Where the Common Property Memorandum prescribed by the Strata Schemes Management Regulation  is adopted:
    – it may be included by reference only if the Common Property Memorandum is adopted in full and without any modifications as follows: “The Common Property Memorandum prescribed under clause 27 Strata Schemes Management Regulation 2016 has been adopted as a by-law”; or
    – where the Common Property Memorandum has been modified as provided in s. 107(3) Strata Schemes Management Act 2015,  the full text of the Common Property Memorandum as modified must be included.
  • Every subsequent change of by-laws will require a new consolidated list incorporating the change to accompany the Consolidation/Change of By -Laws form.
  • The Registrar General may waive the requirement to lodge a consolidated version (see clause 24(3) Strata Schemes Development Regulation 2016). A letter setting out the circumstances for assessment by the Registrar General must accompany the dealing.

For further information please refer to – LPI NSW Government

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




By-law Registration NSW (LPI) Backlog

Frustrated with the current challenge to register your by-laws?

The good news is that JS Mueller & Co has been in communication with Land and Property Information NSW (LPI) regarding the current backlog. We‘ve been advised that LPI is fully aware of the issue and are currently working on a solution which will be announced soon.

In the meantime, if you require any assistance with the registration of by-laws, please do not hesitate to contact us on the details below, and we’ll assist you through this process.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




Thank You Strata, Some Handy Links for 2017

Thank you Strata for your support in 2016, we loved sharing our knowledge on all things Strata Law.

As a wrap up here are some useful links from 2016…

  • We shared our knowledge at Forums throughout the year
  • We tweeted, 107 times sharing the latest in strata law
  • We developed Strata By-law Templates for the new strata laws making it easier for you
  • We posted, 30 times on LinkedIn with the latest updates
  • We improved our Levy Collection App, thanks to your feedback
  • We shared our knowledge through 54 newsletters
  • We expanded our team to better service the strata industry

We’re taking a break from 23 December 2016 and returning on 9 January 2017.

We wish you and your families a safe and happy ‘Festive Season’ and look forward to working with you in 2017.

For more information check out muellers.com.au or send an email to enquiries@dev.muellers.4data.com.au and we’ll get back to you on our return.




What are the New Works By-laws?

Current NSW strata laws can make it challenging for owners to carry out minor renovations to their lot, however, come 30 November 2016, there’s good news as the new reforms will provide clearer, common sense approvals for owner renovations.

The new laws will recognise three kinds of renovations:

  1. Cosmetic – strata owners will be able to carry out cosmetic work with no approval
  2. Minor – a simple majority resolution will be required to approve minor renovations
  3. Major – a special resolution and approval is required for major work

Read the Works By-laws and NCAT paper here or purchase your Strata By-law and Meeting Notice Templates now!

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.




Oh Dear! Registering By-laws Just Got Hard!

The procedure for registering by-laws under the new strata legislation is completely new. Land and Property Information (LPI) NSW will no longer allow by-laws to be registered unless a consolidated version of all by-laws including any new by-laws is lodged for registration.

What Has Changed?

The new strata legislation requires any change in the by-laws for a strata scheme that are lodged for registration to be in the form of a consolidated version of all of the existing by-laws that incorporates the changes to the by-laws as well. The consolidated version of the by-laws must include any relevant model by-laws.

What Does the Change Mean?

If you attempt to register a change in the by-laws without the consolidated version of the by‑laws, Land and Property Information will reject the document you lodge.

Do I Have to Comply?

There is a limited exemption to the requirement to lodge a consolidated version of the by-laws each time you need to register a change to the by-laws.  Land and Property Information may permit a change in the by-laws for a strata scheme to be lodged separately, and not in a consolidated version, if satisfied that it would be too onerous for a consolidated version to be lodged and there are no more than five separate change of by-laws recorded on the title of the common property.

Can you get an Exemption?

The new procedure for registering changes to the by-laws for a strata scheme at Land and Property Information is untested. However, we expect that it may prove difficult to secure an exemption from the need to lodge a consolidated version of the by-laws when registering a change to the by-laws. Where that occurs, every change of by-laws will require a new consolidated list of by-laws.

Why the Change?

The rationale for the change is to ensure that a consolidated set of all of the by-laws for a strata scheme is recorded on title much like the by-laws in a management statement for a community scheme or neighbourhood scheme.

What Happens to the Existing Registered By-Laws?

Once the consolidated version of the by-laws is registered, all current notifications of by-laws appearing on the common property title will be removed and the common property title will be updated to refer to the consolidated version only.

What Happens if I Get it Wrong?

When the consolidated list of by-laws is prepared, care will need to be taken to ensure that the list is complete and accurate. Land and Property Information will not examine the consolidated set of by-laws against any existing change of by-laws recorded on the common property title to ensure that the consolidated set is complete and accurate. If the consolidated set of by-laws is wrong, for example, an existing by-law is not included in the consolidated set; a person aggrieved by the error may make a claim against the owners corporation or strata manager who registered the incorrect consolidated set of by-laws.

Where is the Change Found and What does it Mean?

The new requirement concerning the registration of changes to by-laws for strata schemes is contained in clause 24 of the Strata Schemes Development Regulation 2016.  We expect that this new requirement will create significant problems for strata managers and others who attempt to register changes to the by-laws without a consolidated version of the by-laws.

How Can we Help?

Muellers are able to prepare a consolidated version of the by-laws for a strata scheme for a fee of $750 plus GST where there are no more than two changes of by-laws dealings registered on the title of the common property.  For strata schemes which have more than two change of by-laws registered, please contact us to obtain a price to prepare a consolidated set of by-laws for that scheme.

There is Still Hope!

We will continue to provide a cost effective and efficient by-law registration service under the new regime. If you encounter difficulty registering changes to the by-laws for any strata scheme that you manage, please do not hesitate to get in contact with us so that we are able to help you.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.