On February 3, 2025, significant changes to strata laws will come into effect in New South Wales.

These reforms are designed to enhance transparency and accountability within the strata management sector. Whether you’re a strata property owner, a member of an owners’ corporation, or a strata manager, it’s crucial to understand these new regulations and how they will impact you.

Key Changes to Strata Laws

1. Increased Disclosure Requirements: Strata managers will now be required to provide more detailed and frequent disclosures to strata property owners.  This includes:

– Connections with suppliers and developers

– Any commissions or training services received

– Detailed financial statements and reports

2. Enhanced Transparency: The new laws aim to ensure that strata managers act in the best interests of the owners’ corporations. By mandating comprehensive disclosures, the reforms seek to eliminate conflicts of interest and promote fairer management practices.

3. Penalties for Non-Compliance: Strata managers who fail to comply with the new disclosure requirements could face significant penalties. This underscores the importance of adhering to the new regulations and maintaining transparent operations.

Impact on Strata Property Owners

For strata property owners, these changes mean greater insight into the management of their properties. Owners will have access to more information, enabling them to make informed decisions and hold strata managers accountable.

What Strata Managers Need to Do

Strata managers should start preparing for these changes now. This includes:

• Reviewing and updating disclosure practices.
• Ensuring all financial and operational records are accurate and up-to-date.
• Communicating with owners’ corporations about the upcoming changes and how they will be implemented.

Conclusion

The new strata laws in NSW represent a significant step towards more transparent and accountable strata management. By understanding and complying with these changes, both strata managers and property owners can contribute to a fairer and more efficient strata system.

For more information visit: NSW government

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist

An owners corporation has the power to shape the future of its community. By making informed decisions about by-laws, an owners corporation can foster a more sustainable and environmentally friendly living environment.

The Choice of Outdoor Drying

Historically, people have relied on the sun and wind to dry their clothes. This simple, energy-efficient method not only reduces carbon emissions but also promotes healthier living for any community.

However, many strata by-laws restrict or prohibit outdoor drying, citing concerns about aesthetics or property values.

Indeed, for over 30 years, the model by-law concerning the drying of laundry items prohibited residents drying clothes in a way that is visible from outside their building without the consent of their owners corporation.

As the cost of living continues to rise, residents are looking at many ways to reduce costs. Using a dryer is no longer an option for many as they struggle with the costs of ever increasing energy bills.

This has led many strata owners to consider the option of drying their washing outside without use of a dryer.

Indeed, the new set of model by-laws introduced in November 2016 changed the default position in order to permit the drying of clothes outdoors (except over balcony railings) without owners corporation approval.

The Potential Benefits of Outdoor Drying in Strata:

• Reduced Energy Consumption: By relying on natural elements, residents can significantly reduce their energy consumption and lower their carbon footprint.
• Improved Air Quality: Outdoor drying can help to reduce indoor air pollution, which is often exacerbated using dryers which can also cause mould and damp issues.
• Cost Savings: By eliminating the need for energy-intensive dryers, residents can save money on their utility bills.
• Enhanced Community Spirit: Communal clotheslines can foster a sense of community and encourage social interaction among residents.

By relaxing restrictions on outdoor drying, an owners corporation can empower residents to make environmentally friendly choices.

What are the Options?

Consider the following options:

• Maintain Current By-Laws: Keep existing restrictions on outdoor drying in place.
• Relax Restrictions: Allow residents to dry laundry outdoors, perhaps with specific guidelines to maintain a clean and tidy appearance and to ensure washing is only permitted to remain outside for a reasonable period.
• Promote Communal Clotheslines: Encourage the installation of communal clotheslines in common areas, providing residents with a convenient and sustainable option.
• Educate Residents: Inform residents about the benefits of outdoor drying and how it can contribute to a greener future.
• Improving Air Quality, Improves Health: Not drying clothes inside will reduce indoor air pollution and reduce the risk of mould and damp issues.
• Lead by Example: Consider implementing sustainable practices such as recycling and energy-efficient lighting.

By carefully considering these options and engaging with your community, you can make informed decisions that will benefit both the environment and strata residents.

Review your Strata By-laws

Don’t let laundry disputes disrupt your community. Review your strata building’s laundry by-law now to ensure it’s clear, fair, and up to date. You’ll maintain a harmonious community and prevent future disputes. Speak to the experts today!

REVIEW YOUR LAUNDRY BY-LAW NOW!

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

NSW Fire and Rescue (FRNSW) continues to grapple with a concerning surge in e-bike and e-scooter fires, with at least five incidents per week in NSW linked to lithium-ion batteries.

A recent fire at an inner Sydney e-bike shop, resulting in the evacuation of an entire apartment block, underscores this alarming trend.

FRNSW emphasizes the need for increased awareness and education regarding the safe selection, use, charging, storage, and disposal of lithium-ion batteries to minimize the risk of fires.

Key Safety Tips

• Never leave charging devices unattended: Avoid sleeping or leaving your home while lithium-ion batteries or powered devices are charging.
• Disconnect chargers: Unplug chargers once batteries are fully charged.
• Avoid hazardous storage: Keep batteries away from exits and flammable materials.
• Proper disposal: Do not dispose of batteries in regular trash or recycling bins.
• Recycling: Take used lithium-ion batteries to nearby BCycle battery recycling drop-off points.
• Buy reputable brands: Purchase batteries and chargers from trusted sources.
• Avoid mixing components: Do not combine batteries or chargers from different brands.
• Implement a by-law: Owners corporations should adopt an e-bike/e-scooter by-law to manage resident safety and mitigate fire risks.
• For more information, visit FRNSW Lithium-ion Battery Safety.
• In case of a fire, evacuate immediately and call 000.

A By-law Can Proactively Safeguard Your Strata Community

By implementing a well-crafted by-law, Owners Corporations can significantly reduce the risk of e-vehicle fires and establish clear guidelines, including:

• Protection for owners corporations in case of battery fire incidents
• Safe charging practices for lithium-ion batteries
• Restrictions on battery types to ensure safety
• Proper disposal procedures to prevent hazards
• Registration and storage requirements for e-vehicles
• Resident education for e-vehicle safety

We strongly recommend implementing an e-vehicle by-law for e-bikes, e-scooters, and other e-vehicles, especially as warmer weather approaches and more residents use these modes of transportation.

GET YOUR E-BIKE / E-SCOOTER BY-LAW HERE NOW!

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

Changes to pet laws – do you need to update your pets by-law?

As of July 1, 2024, the NSW Government introduced new regulations for cat and dog ownership. All cats and dogs residing in your strata building (and across NSW) must now be microchipped.

The recent changes to pet ownership regulations in NSW will impact residents living in strata schemes and NSW communities. 

Here’s what you need to know:

Microchipping and Registration

• All cats and dogs in your strata building (and across NSW), regardless of age, must be microchipped. They must be microchipped by 12 weeks old (or before selling or giving them away).
• Dogs and Cats must also be registered on the new NSW Pet Registry within 12 weeks of age or upon taking ownership. This is a one-time fee that transfers with the pet if ownership changes. They must register within 28 days to avoid late fees.

Keeping Information Up-to-Date

Residents with pets must:

• Create an account on the NSW pet registry website This online platform allows for paying fees, updating pet’s details, and report missing animals.
• Especially important for strata residents: Pet’s information on the registry must be updated whenever contact details or ownership changes. This ensures the pet can be easily returned if they get lost within the building or surrounding areas.

Benefits for Strata Communities

• These new regulations aim to improve overall pet management in strata buildings and the surrounding communities. Up-to-date pet registry information helps reunite lost pets with their owners quickly and minimises any inconvenience for fellow residents and the strata community.

Update your Pets By-law too!

It’s important to review your strata scheme’s pet by-laws alongside these new regulations. Speak to the experts at JS Mueller & Co Strata Lawyers today, we’re happy to assist.

CLICK NOW TO UPDATE YOUR PET BY-LAW

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist. 

Spring is here, and the risk of e-bike and e-scooter fires could rise as owners take advantage of the warmer weather. As these temperatures warm-up, so too does the likelihood of these light electric vehicles being left unattended in common areas to charge overnight.

September’s National Fire Prevention Month serves as a timely reminder of the serious dangers these fires pose. Tragically, hundreds of people across Australia (and worldwide) have been injured or killed due to e-vehicle fires, and online footage showcases the devastating power of these blazes.

To address this growing concern, FPA Australia has organized events like ‘Not so Safe Storage: The Risk of Light EVs in Common Areas’ as part of National Fire Protection Month during September. These initiatives aim to promote awareness and educate residents and the strata industry about the importance of safe e-vehicle charging and storage practices.

Implementing a well-crafted by-law is also a proactive step to mitigate the risk of e-vehicle fires in strata schemes. By establishing clear guidelines for charging, storage, registration, and resident education, owners corporations can significantly enhance the safety of their communities.

REDUCE YOUR FIRE RISK TODAY WITH AN E-BIKE / E-SCOOTER BY-LAW

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist. 

It is predicted that the Australian home security market will grow by US$6.56 billion dollars by 2030, a 15.73% annual growth from 2024 to 2030*.

What is driving this growth?

This surge is driven by several factors:

• Increased crime rates are making people want to feel secure in their homes and communities.
• Technological advancements offer a wider range of affordable security options.
• The growing popularity of strata living has led to increased demand for communal security measures.

What about privacy?

While residents crave safety, privacy concerns are also on the rise.

The issue is what rights do strata lot owners and owners corporations have to install their own security? Security cameras, in particular, can create complex issues under differing legislation.

Owners corporations and residents should be mindful of their rights under the Surveillance Devices Act 2007 (NSW) to avoid committing any offence.

These two NCAT cases share some valuable lessons Strata, Owners Corporations Lot Owners and Security Cameras

Do you need a by-law?

A well-crafted CCTV by-law is essential for managing security while protecting privacy.

If you need help developing or updating your strata scheme’s CCTV by-law, our experts can assist you.

Contact us today for expert advice, we’re happy to help.

* Source: Research and Markets March 2024

DO YOU NEED TO DEVELOP OR UPDATE YOUR CCTV BY-LAW?

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

As of 1 July 2024, NSW (and ACT) became the first state in Australia to adopt new and modern defamation laws for the digital age.

Led by the NSW Government the changes in the Defamation Amendment Act 2023 (NSW) will improve the balance between freedom of speech and protection of reputation when someone publishes content through a digital intermediary.

Examples of digital intermediaries include:

• Social Media Platforms
• Review Websites
• Search Engines
• Content Hosts
• Service Providers
• Individuals and organisations who use online platforms to host forums inviting third-party comments (known as forum administrators).

Part A reforms include:

• two conditional statutory exemptions from defamation liability for a narrow group of digital intermediaries, including search engines in relation to organic search results (non-sponsored search results)
• a new innocent dissemination defence for digital intermediaries, subject to a simple complaints process
• empowering courts to order digital intermediaries to prevent access to defamatory content online, even when they are not parties to defamation proceedings
• requiring courts to consider safety, privacy and the public interest when making orders against digital intermediaries to provide the identity or contact details of a poster of online content

To read the full bill and other information including Stage 2 visit NSW Government.

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist

A lot owner has an apartment in a strata scheme with shared facilities with a pool, sauna and gym however the owner does not live in that strata scheme because they have rented their apartment out – can they still use the pool, sauna and gym, deemed as shared facilities?

The answer may not be that straight forward and raises many questions:

• They have rented out their apartment, but the lot owner still pays the levies so wouldn’t they be entitled to use the shared facilities?
• Even though the lot owner still pays the levies have they signed their rights over to the tenants for use of the shared facilities once they lease the property?
• Can the lot owner prohibit their tenants from using the apartment facilities thereby by doing so, the owner can have complete access to the facilities as after all they pay the levies?
• Perhaps the lot owner can still use the facilities, unless there is a specific by-law which prohibits them from using the shared facilities?

The answer is typically this:

• When an owner leases their lot, they also lease their interests in the common property to their tenant.
• This means the owner forfeits his or her right to use the common property facilities such as the pool, sauna and gym.
• In some cases a shrewd owner might change the lease to reserve to the owner the right to continue to use the common property facilities.
• It is unlikely this would be legally effective because an owner’s interest in the common property cannot be dealt with separately from, or severed from, his or her interest in their lot.
• However, an astute owner could decide not to lease out part of the lot such as storage room or one of two car spaces. In doing so, the owner could retain his or her interest in the common property and the right to use the common property facilities.

Do you need to review your by-laws?

In some cases it can be very useful to put in place a by-law that makes these rules clear to ensure that common property facilities are not overused.

NEED TO UPDATE YOUR COMMON PROPERTY FACILITIES BY-LAW?

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist

Carpet inside an apartment in a strata building is common property.  So too is paint on the walls and ceiling inside an apartment.  Surely that can’t be right!  But according to two Supreme Court Judges, it is.

Introduction

There are some truths that the strata industry has held to be self-evident for many years.  For example, in the strata industry, it has long been held that carpet inside an apartment in a strata building forms part of the lot and is not common property and that the same can be said for paint on the walls and ceiling inside an apartment.

But sometimes in strata living (as in life) not everything is as it seems.  A recent Supreme Court case makes that clear.

Carpet

In 2021, the owners corporation of a townhouse complex in Tweed Heads South sued the builder of the complex in the Supreme Court for damages arising out of construction defects.  The case was heard by the Supreme Court in May 2024 and on 7 June 2024 the Court published its judgment.

During the course of its judgment, the Supreme Court had to consider whether or not the owners corporation was entitled to recover damages from the builder for consequential damage to carpets inside the townhouses that was caused by defects in the common property that had allowed water to leak into and cause damage to those townhouses including the carpets in them. The builder argued that the carpet inside the townhouses was lot property as a result of which the owners corporation could not claim compensation for the damage to the carpet.

The Supreme Court disagreed.  The Court held that the carpet was installed inside the townhouses before the strata plan was registered and, relying on the Seiwa case, held that the lower horizontal boundary of each townhouse was the upper surface of its floor, namely the carpet.  For these reasons, the Court concluded that the carpet in each townhouse was common property meaning the owners corporation could claim damages for the cost to remove all carpet and underlay and supply and install new carpet to match existing carpet as closely as possible: see The Owners – Strata Plan No. 99960 v SPS Building Contractors Pty Ltd [2024] NSWSC 687.

Cosmetic Work

The conclusion that carpet inside a strata lot is common property will not sit comfortably with many within the strata industry.  That begs the question: did the Supreme Court get it right?

There is an indication in the Strata Schemes Management Act 2015 that it did.  Section 109 of that Act allows an owner of a lot in a strata building to carry out cosmetic work to common property in connection with the owner’s lot without the approval of the owners corporation.  Section 109 provides some examples of cosmetic work including laying carpet.  This indicates that the legislature considered that carpet in a lot forms part of the common property.

Again, this conclusion will still not sit well with many in the strata industry.  So is there any other support for it?

Paint

In 2010, the Supreme Court had to consider a claim by lot owners for damages to cover (among other things) the cost to repair water damage to ceilings and peeling paint work on ceilings in their lot.  The Court concluded that the ceilings and the paint on them were not within the cubic space of the lot and therefore formed part of the common property: see Stolfa v Owners Strata Plan 4366 & Ors [2010] NSWSC 1507.

Again, section 109 of the Act provides support for the conclusion that paint inside a strata lot forms part of the common property.  This is because section 109 says that painting a strata lot is cosmetic work to common property in connection with the lot.

Common Property Memorandum

There is further support for these conclusions in the common property memorandum.  Section 107 of the Act permits an owners corporation to make a by-law to adopt a common property memorandum.  The common property memorandum specifies whether an owner or the owners corporation is responsible for the maintenance and repair of certain common property.

The common property memorandum that has been prescribed under the strata regulations covers paintwork inside a lot including on a ceiling and internal carpeting.  Whilst the common property memorandum allocates responsibility for the maintenance and repair of that paintwork and carpeting to owners, the inclusion of those items in the memorandum lends support to the conclusion that they form part of the common property, as strange as that might seem.

Conclusion

The conclusions reached by the Supreme Court will be surprising to many and turn longstanding thinking in the strata industry about some basic concepts on its head.  Those conclusions are not entirely free from doubt and there is at least one case which goes the other way.  Nevertheless, the Supreme Court decisions should give everyone in the strata industry pause for thought.

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

Introduction

It is an unfortunate reality that many strata apartment buildings contain defects.  Many of those defects are widespread or systemic defects that affect most or all of the lots.  But how far does an owners corporation have to go to prove the existence of systemic defects?  Does the owners corporation have to organise for its experts to inspect each and every lot to prove that those systemic defects exist in each lot?  A recent Supreme Court case provides the answer to that question.

The Case

There is a strata complex containing 45 townhouses in Tweek Heads South.  The complex was built in about 2018 and 2019.  There are defects in the complex.

In 2021, the owners corporation of the complex sued the builder for damages to (among other things) cover the cost to rectify defects throughout the complex.  In the case, the owners corporation claimed that several defects were systemic and present in numerous townhouses.  One of those defects related to waterproofing defects at the outer edge of balconies above garage doors of many townhouses.

The parties’ experts agreed that the beam which spans the outer edge of the balconies on two of the townhouses suffered moisture damage due to the same waterproofing defect on the balconies of those townhouses.  However, the owners corporation’s expert did not inspect any of the other townhouses or carry out any investigations to prove that those defects existed in them.  The builder denied that those same defects existed in the other townhouses and claimed that the owners corporation had not proved its case in that regard.

Proving the Existence of Systemic Defects

The Court agreed with the builder and concluded that the owners corporation had not proven, on the balance of probabilities, that the waterproofing defects and moisture damage to the beams on the outer edge of the balconies existed in any of the other townhouses.  In other words, the Court concluded that the owners corporation had not proven that those defects were systemic.

The Court relied heavily on an earlier decision in The Owners – Strata Plan No. 62930 v Kell & Rigby Holdings Pty Ltd [2010] NSWSC 612.  In that case, the owners corporation of a block of 14 units argued that no water stops had been installed by the builder in the bathrooms of all 14 units.  The owners corporation’s expert evidence only proved that there were no water stops in the bathrooms of three units.  But the owners corporation claimed that the lack of water stops was a systemic defect present in all of the bathrooms.

The Court held that it could not be inferred from the evidence that established that there were no water stops in three bathrooms that waterproofing work was incorrectly performed in other units and observed that the fact that the waterproofing contractor defectively performed work in a small number of units did not warrant a conclusion that it did so everywhere else.  Importantly, the Court concluded that the burden of proof lay on the owners corporation and that it had chosen to carry out limited destructive testing in three bathrooms only when there was no reason why it could not had done so in all of the units.

In the case involving the townhouse complex in Tweed Head South, the Supreme Court followed the reasoning in Kell & Rigby and concluded that there was insufficient evidence available to support the inference that the balcony waterproofing defect in two townhouses provided a basis for finding that the same defect existed in all 26 townhouses which have front first floor balconies.

Importantly, the Court held that it could not rely on the opinion of the owners corporation’s expert that the defect was systemic due to similar construction details being present in all townhouses because it was not known whether the waterproofing defects that had been identified in two of the townhouses were caused by faulty design or shoddy workmanship.  For all of these reasons, the Court rejected the owners corporation’s claim that the defect on the outer edge of the balconies was a systemic one that affected all such balconies and instead only accepted that the defect existed in two of the balconies that had actually been inspected and tested by the owners corporation’s experts.

Conclusion

The case provides a salutary lesson for owners corporations who wish to pursue a claim against a builder, developer or subcontractor for systemic defects.  Typically, the owners corporation will need to go the extra mile and pay its expert to inspect more than just a handful of lots to ensure that adequate testing and investigations are undertaken to enable the expert to form an opinion that will allow the owners corporation to prove, on the balance of probabilities, that the defect in question is widespread and systemic.  In some cases, this will require the expert to inspect and undertake testing and investigations in all of the lots, which in a large strata building, can be expensive.  But that is the unfortunate price an owners corporation must sometimes pay in order to succeed in a claim with respect to systemic defects.

Case: The Owners – Strata Plan 99960 v SPS Building Contractors Pty Ltd [2024] NSWSC 687

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.