Replacing an air conditioner in a NSW strata property might appear simple on the surface.

However, the replacement of air conditioners can often become a point of contention if not managed correctly under the existing strata framework. This is where clear, comprehensive by-laws play a crucial role.

We frequently assist strata communities across NSW in navigating the complexities of common property and individual lot responsibilities. One area that consistently presents challenges is the replacement of air conditioning units.

While the Strata Schemes Management Act 2015 and its regulations provide a baseline, they often lack the specific guidance needed to address the nuances of modern air conditioning systems and the evolving needs of strata schemes.

The Pitfalls of Outdated or Non-Existent By-laws

Without well-defined by-laws addressing air conditioner replacements, strata schemes can face several potential issues:

• Disputes over responsibility: Who is responsible for the cost of replacement – the individual owner or the owners corporation? This can be particularly unclear when the unit services only one lot but is affixed to common property.
• Inconsistency in replacements: Without guidelines, owners may install different types or sizes of units, potentially impacting the building’s aesthetics, energy efficiency, and common property infrastructure (e.g., electrical load, drainage).
• Noise and vibration concerns: Upgraded or poorly installed units can lead to noise complaints affecting neighbouring lots, creating disharmony within the community.
• Insurance implications: Lack of clarity on responsibility can complicate insurance claims related to damage or malfunction of air conditioning units.
• Approval processes: Without a clear by-law outlining the approval process for replacements, committees can be burdened with inconsistent requests and lack a framework for fair decision-making.

The Solution: Proactive By-law Updates

The key to mitigating these risks and fostering harmonious living within your strata scheme lies in having clear and up-to-date by-laws specifically addressing air conditioner replacements. These by-laws can provide crucial guidance on:

• Defining responsibility for replacement costs
• Setting standards for replacement units.
• Establishing a clear approval process
• Addressing common property impact
• Defining maintenance responsibilities

Our specialist strata lawyers can:

• Review your existing by-laws: Assessing their adequacy in addressing air conditioner replacements.
• Draft new or amended by-laws: Tailoring them to the specific needs and characteristics of your strata community, ensuring compliance with current legislation.
• Guide you through the by-law change process: Ensuring all legal requirements are met for the successful implementation of new or updated by-laws.

Investing in clear and comprehensive by-laws regarding air conditioner replacements is an investment in the smooth operation and harmonious living of your NSW strata scheme.

Don’t wait for a dispute to arise – proactive review and updates can save your strata scheme significant time, money, and stress in the long run.

AIR CONDITIONER REPLACEMENT: NEED A BY-LAW UPDATE OR A SPECIFIC NEW 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.

Strata living in New South Wales offers a unique community environment with shared amenities like pools, gyms, and BBQ areas. However, the enjoyment of these facilities relies on owners contributing to their upkeep through regular levy payments. But what happens when an owner falls behind on their levies? Can they be denied access to these common facilities?

The Legal Position in NSW

In New South Wales, the Strata Schemes Management Act 2015 (SSMA) governs the rights and responsibilities of lot owners, including the implications of unpaid levies. An owner who has not paid their levies (including any interest and recovery costs) is considered an “unfinancial owner.”

The SSMA does impose some restrictions on unfinancial owners. Specifically, the Act restricts their participation in certain strata matters such as being restricted from voting at general meetings (except on motions requiring a unanimous resolution) and being elected to the strata committee.

However, it’s crucial to understand that the SSMA does not grant an automatic right to an owners corporation to deny an unfinancial owner access to common property facilities.

The Critical Role of By-Laws

The ability to restrict an owner’s access to common property facilities hinges on the existence and validity of specific by-laws within the strata scheme.

• By-laws and Restrictions: If a strata scheme’s registered by-laws explicitly include provisions restricting access to common facilities for lot owners with unpaid levies, then the owners corporation may have grounds to enforce those restrictions.
• Validity of By-laws: Even when such by-laws exist, their enforceability is not guaranteed. Section 150 of the SSMA empowers the NSW Civil and Administrative Tribunal (NCAT) to deem by-laws “harsh, unconscionable, or oppressive,” which can render them invalid.
• Legal advice is essential: Given the complexities of the legislation and the potential for legal challenges, owners corporations should always seek updated legal advice to determine the enforceability of any by-laws that restrict facility access. What might have been considered enforceable in the past may not be today.

Important Considerations for Owners Corporations

Owners corporations need to proceed cautiously and ensure they are acting within the boundaries of the law. Here are some key considerations:

• Check the by-laws: The first step is to verify that the strata scheme has a by-law that specifically addresses the issue of restricting access to common property facilities for unfinancial owners. If no such by-law exists, the owners corporation cannot legally enforce such a restriction.
• Assess the enforceability of the by-law: Even if a relevant by-law is in place, it is essential to assess its enforceability as a by-law that is deemed harsh, unconscionable, or oppressive is unlikely to be upheld.
• Seek updated legal advice: Strata law is subject to change, and legal interpretations can evolve over time. Owners corporations should obtain current legal advice to ensure that their by-laws and enforcement actions comply with the latest legal standards.
• Apply to NCAT if necessary: If an enforceable by-law exists and an owner refuses to comply with it, the owners corporation may need to apply to NCAT for an order to enforce the by-law.

Proactive Measures: Promoting By-Laws and Levy Collections

To minimize disputes and ensure the smooth functioning of the strata scheme, owners corporations should adopt a proactive approach:

• Clear and comprehensive by-laws: Develop and maintain by-laws that are clear, unambiguous, and consistent with the SSMA. Ensure that all owners have easy access to these by-laws.
• Effective levy collection: Implement a robust system for collecting levies, including:
  • Issuing levy notices promptly.
  • Offering a range of payment options.
  • Following up on overdue payments in a timely and consistent manner.
  • Establishing a clear policy for handling levy arrears.
• Dispute resolution: Establish clear and fair procedures for resolving disputes related to levy payments and access to facilities.
• Professional guidance: Seek legal advice as needed to ensure compliance and best practices.

In NSW, the ability of an owners corporation to restrict an unfinancial owner’s access to common property facilities is not automatic. It depends on the specific by-laws of the strata scheme.

ACCESS TO FACILITIES: DO YOU NEED TO UPDATE YOUR BY-LAWS FOR UNFINANCIAL OWNERS?

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.

The NSW Government is currently reviewing the STRA regulations in response to rising rents and housing shortages. While no concrete legislative changes have been enacted for 2025 as of this date, the following key areas are under serious consideration:

What’s Changing in 2025? (Proposed Changes Under Review)

1. Potential Reduction of the 180-Night Cap

1. • A key area of review is the statutory 180-night annual limitation for non-hosted STRA within Greater Sydney. A reduction in this cap, potentially to 90 nights per annum, is being seriously contemplated.
   • Proposals for even more restrictive limits, such as a 60-night cap as advocated by certain local councils (e.g., Byron Bay), may influence broader legislative changes or empower further local council action.

2. Tougher Enforcement and Penalties

1. • The government is considering the implementation of more stringent enforcement mechanisms and increased financial penalties for non-compliance with STRA regulations. This includes, but is not limited to, failure to register, exceeding permissible nightly limits, and breaches of fire safety standards.
   • An increase in proactive compliance audits is also anticipated, potentially increasing the risk for unregistered or non-compliant STRA operations.

3. Enhanced Local Council Regulatory Powers

• • A potential outcome of the current review is the conferral of greater discretionary authority upon local councils to determine and enforce STRA limitations within their respective local government areas.

1. • This could result in significant variations in STRA regulations across different regions, potentially ranging from outright prohibitions in specific zones to more permissive frameworks in others.

4. Consideration of New Levies on STRA Properties

1. • The introduction of a new levy or tax specifically targeting STRA properties is under active consideration by policymakers. This approach mirrors recent developments in other jurisdictions, such as Brisbane’s implementation of differential council rating for STRA properties.
   • The primary policy objective of such a measure is to incentivise the return of properties to the long-term residential rental market.

Implications for Strata Schemes and Lot Owners

The proposed amendments to STRA legislation carry significant implications for strata schemes and individual lot owners:

• Potential Impact on Investment Returns: Stricter nightly caps, particularly for non-hosted STRA, may directly reduce the revenue-generating potential of affected properties.
• Increased Compliance Burdens: More rigorous enforcement and potentially enhanced safety requirements could lead to increased operational costs for STRA hosts.
• Regulatory Uncertainty: The prospect of divergent STRA regulations across different local council areas may introduce complexity and uncertainty for owners with properties in multiple locations.
• Diminished Profitability: The imposition of new taxes or levies would directly impact the financial viability of STRA ventures.
• Differential Impact on Hosted STRA: Properties operating under a hosted model are likely to be less directly affected by the anticipated changes primarily targeting non-hosted arrangements.

Recommendations for Strata Schemes and Lot Owners

Given the dynamic nature of STRA regulations in NSW, it is imperative for owners corporations and lot owners to:

• Remain Vigilant: Continuously monitor official announcements and legislative updates issued by the NSW Government regarding STRA.
• Assess Investment Strategies: Evaluate the potential impact of the proposed amendments on existing and prospective STRA investments.
• Ensure Full Regulatory Compliance: Conduct thorough audits to verify adherence to current registration requirements, fire safety standards, and any applicable local council regulations.
• Engage with Legal Counsel: Seek expert legal advice from strata law specialists to understand the implications of the evolving legal landscape and to ensure ongoing compliance.
• Consider By-law Amendments: Owners corporations may need to review and potentially amend their strata by-laws in response to legislative changes or local council policies.

The anticipated amendments to NSW STRA legislation in 2025 signify a potentially significant shift in the regulatory environment. Proactive engagement with legal counsel and a commitment to staying informed are crucial for navigating these changes effectively and safeguarding the interests of strata communities and individual lot owners.

Easter 2025 and STRA Peak Period: Don’t Let Outdated STRA By-Laws Catch You Out.

Is your strata community prepared for the Easter short-term rental surge? Outdated by-laws can lead to disputes and compliance issues.

IS YOUR STRA BY-LAW UP TO DATE – DO YOU NEED A REVIEW?

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 we look ahead to mid-2025, there will be more significant changes to strata laws in New South Wales, designed to further enhance transparency, accountability, and the overall quality of strata living. Understanding these changes is crucial for all who work and live in strata.

Who Will the New Strata Laws Effect?

• strata managers
• developers
• building managers
• lot owners
• strata committee members: general committee members, the secretary, chairperson and treasurer
• Also apply to community land schemes

Following is a breakdown of the key reforms planned for mid-2025 that every person working and living in strata will need to be aware of:

1. Increased Transparency and Disclosure:

• Managing Agent Accountability:
  • From mid-2025, strata managing agents will be required to disclose any affiliations with suppliers and developers. This aims to eliminate potential conflicts of interest and ensure decisions are made in the best interests of the strata scheme.
  • Detailed breakdowns of insurance quotes will become mandatory, providing owners with greater clarity on how their levies are being used.
• Off the Plan Purchasers:
  • Developers must supply independently certified maintenance schedules and budget estimates. This ensures buyers are aware of potential future costs.

2. Strengthened Governance and Accountability:

• Strata Committee Training:
  • Committee members will be required to undergo mandatory training, equipping them with the knowledge and skills necessary to effectively manage strata schemes.
  • Their duties will be aligned with company director obligations, promoting a higher standard of governance and accountability.
• Building Managers Duties:
  • Building managers will also have statutory duties imposed upon them. This will increase accountability for the way that buildings are managed.

3. Improved Financial Management:

• Levy Payments and Recovery:
  • Clearer processes for levy payments and payment plans will be introduced, with extended periods before recovery action is taken. This aims to provide greater flexibility for owners while maintaining the financial stability of the strata scheme.
• Unfair contract terms:
  • Unfair contract terms will be prohibited in contracts for goods and services received by strata schemes.

4. Streamlining Approvals for Sustainability and Accessibility:

• Upgrades Made Easier:
  • The approval process for sustainability and accessibility upgrades, such as solar panels, electric vehicle charging stations, ramps, and handrails, will be streamlined. This will encourage initiatives that enhance environmental sustainability and inclusivity within strata communities.

5. Enhanced Protection for Owners:

• NSW Fair Trading’s Role:
  • NSW Fair Trading will have expanded powers to assist with common property maintenance matters, providing greater support to owners in resolving disputes.
• Original Owners Multi Storey Schemes:
  • Changes to the requirements of original owners of multi storey strata schemes, will provide increased protection to subsequent owners.

These reforms represent a significant step towards a more transparent, accountable, and equitable strata living environment. It’s essential for every person that lives and works in strata to stay informed about these changes and understand how they may impact their strata scheme.

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.

On 3 February 2025, new laws commenced that impose on strata managers additional disclosure obligations to owners corporations they manage. Those new disclosure obligations are contained in section 60 of the Strata Schemes Management Act 2015.

NSW Fair Trading Compliance Monitoring

NSW Fair Trading is monitoring compliance of strata managers with those new disclosure obligations. In some cases, Fair Trading is issuing notices to strata managers requesting that they provide written procedures and training plans concerning the new disclosure obligations.

Written Procedures and Training Plan Obligations

We have prepared written procedures and training plans for strata managers concerning the new disclosure obligations. Those documents outline the procedures that strata managers will need to follow to comply with those new disclosure obligations, contain a training plan outlining how strata managers will train staff about the new disclosure obligations and also contain sample disclosure documents that can be used by strata managers in order to comply with the new disclosure obligations.

Assistance for Strata Managers

If you are a strata manager and you need assistance preparing written procedures or training plans in order to comply with the new disclosure obligations, or to respond to any notices issued by NSW Fair Trading, please do not hesitate to contact us.

We can make available our pricing schedule for supplying written procedures and training plans to you on request.

DISCLOSURE OBLIGATIONS: PROCEDURES AND TRAINING PLANS HELP AVAILABLE

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.

In a recent case, the Land and Environment Court has confirmed that an owners corporation can apply to the Court for orders to require trees on a neighboring property which obstruct views from residential lots in the owners corporation’s building to be removed or pruned.  The Court confirmed that the individual lot owners do not have to apply to the Court for that relief.

The Case

A row of 21 Cyprus trees grows on a property in Sydney’s lower North Shore adjacent to a strata building.  The foliage of those trees is relatively close to the windows of some of the apartments in that building.  They obstruct the views from, and sunlight entering, the windows from those apartments.  To remedy that problem, the owners corporation of the apartment building applied to the Land and Environment Court for orders to require the neighbor to remove 9 of the trees and prune 10 of the trees.  Those orders were sought under the Trees (Disputes between Neighbors) Act 2009.

The Problem

In the case, the neighbor argued that the owners corporation was not entitled to apply for any orders on behalf of the apartment owners concerning the trees.  This was because the trees did not obstruct any views or sunlight on the common property but only from the apartments themselves and the owners corporation did not own or manage the apartments as a result of which it did not have standing to apply for orders in relation to the trees.

The Decision

The Land and Environment Court rejected the neighbour’s argument.  The Court held that the land which adjoined the trees in question was common property that was owned by the owners corporation and as the owner of that land the owners corporation could apply for an order relating to an apartment situated on the land in its strata scheme.  The Court also said that the apartment owners or residents themselves could also apply to the Court for orders in relation to the trees.  The Court stressed that this case was different to cases under the Trees Act that relate to tree damage.  In those types of cases apartment owners could only apply to the Court for orders in relation to damage to their apartments and the owners corporation could only apply to the Court for orders relating to damage to common property.

Conclusion

The Court’s decision clarifies that an owners corporation is entitled to apply for relief under the Trees Act in relation to trees on a neighboring property that obstruct views or sunlight through windows in apartments.  The Court’s decision represents a departure from earlier decision of the Court in 2012 in Salmon v Kibble[2012] NSWLEC 1359 in which it was held that an owners corporation could not make an application to the Court and instead applications needed to be made by the owners of the individual apartments.

The case provides greater flexibility for tree disputes involving strata schemes to be resolved through applications that are made by owners corporations.

Case citation: The Owners – Strata Plan No. 52378 v Huang [2025] NSWLEC 1125.

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

The Supreme Court has confirmed that an owners corporation and NCAT can grant an owner retrospective approval of work or repairs done by the owner to the common property without the approval of the owners corporation.

However, the Court has also confirmed that there are some prerequisites that must be met before NCAT is able to grant retrospective approval for works done by an owner on common property without the approval of an owners corporation.

The Court has left open the question of whether an owner who does repairs to the common property which an owners corporation should have but did not perform can be compensated for the cost of those repairs.

Facts

Mr Colman owns a lot in a strata building in Pyrmont, Sydney.  Mr Colman and his wife sought the approval of their owners corporation to undertake alterations to a terrace on their lot which affected the common property.  Those alterations included removing and replacing tiles and waterproofing on the terrace. The Colmans alleged that work, or some of it, was necessary to repair defects in the common property which the owners corporation has failed or refused to fix.  Ultimately the Colmans undertook those works without first obtaining the permission of the owners corporation.

The Case

Mr Colman applied to NCAT for orders approving the works he did to his terrace on the grounds that the owners corporation had unreasonably withheld approval of those works and for the owners corporation to pay him damages.  Mr Colman’s application to NCAT was dismissed and an appeal to the Appeal Panel of NCAT was unsuccessful.  Mr Colman then appealed to the Supreme Court but was also unsuccessful.

Ruling

In its decision, the Supreme Court made some key findings about the operation of the Strata Schemes Management Act 2015 with respect to works done by owners that affect the common property.  In summary, the Supreme Court found that:

• Both an owners corporation and NCAT can give retrospective approval of works or repairs already carried out by an owner to common property directly affecting the owner’s lot, even if the owners corporation did not approve of those works before they were done;
• In the case of repairs to the common property undertaken by an owner without the consent of an owners corporation, the strata committee could retrospectively approve those repairs;
• If an owners corporation decides to retrospectively approve work that has been done to the common property by an owner after completion of the work, that approval must be given by special resolution if it involved major renovations;
• NCAT cannot grant retrospective approval for works or repairs that an owner has done to the common property without the permission of the owners corporation unless the owner has first sought the approval of the owners corporation for those works or repairs (even if that approval is sought after the works or repairs are done);
• Where an owner wants to do renovations that affect the common property, there is no reason why the owner cannot seek the owners corporation’s approval of those works and agree to take on responsibility for the maintenance and upkeep of the works by way of a special resolution approving a single by-law that both authorises the works and makes the owner responsible for their maintenance and upkeep – separate special resolutions to approve the works and then to adopt a by-law for the works are not necessary;
• An owners corporation can be taken to unreasonably refuse to approve an owner’s request for consent to carry out works that affect common property, even if the owner’s application for approval has not been voted on at a general meeting, for example, where the application for approval is urgent but the strata committee or secretary refuse to convene a general meeting to consider the issue or decline to do so within a reasonable time or accidentally omit it from the agenda of the next general meeting – in those circumstances there would be a constructive refusal of consent even though no formal decision has been made by the owners corporation at a meeting to reject the owner’s application;
• A by-law cannot delegate to the strata committee power to approve major renovations undertaken by an owner;
• An owner cannot recover compensation from an owners corporation for the cost of repairs the owner does to the common property without the authority of the owners corporation or an order approving that work made by NCAT (either prospectively or retrospectively);
• The question of whether an owner who carried out repairs to the common property which an owners corporation fails to perform can recover compensation from the owners corporation for the cost of those repairs if they are approved by the owners corporation or NCAT remains open and previous cases which indicated that repair costs could not be recovered by the owner under the previous strata legislation do not necessarily shut the gate on recovery of those repair costs under the current legislation;
• There is no need for an owners corporation to pass a resolution at a general meeting to authorise itself to carry out repairs to the common property – the decision to perform the repairs can be made by the strata committee;

Conclusion

The Colman case provided the Supreme Court with an opportunity to clarify a number of grey areas of strata law.  In doing so, the Court has clarified the power for an owners corporation and NCAT to retrospectively approve of work that has been done by an owner to the common property and also clarified that in some circumstances, an owner’s proposal to carry out work to common property can be rejected by an owners corporation even if the proposal is not put to a vote at a meeting, for instance, where the owners corporation delays dealing with the proposal.

Case citation: Colman v The Owners – Strata Plan No. 61131 [2025] NSWSC 63

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 firefighters are battling a dramatic surge in lithium-ion battery fires, with more than one fire per day this month. This alarming trend has prompted fire officials to issue urgent warnings about potential fatalities and highlights the critical need for strict rules around lithium batteries, particularly within strata complexes.

The Growing Threat

The number of lithium-ion battery fires in NSW has increased significantly each year since 2022. Already in 2025, there have been 25 reported fires, with firefighters responding to more than one daily. A recent fire, suspected to be caused by an e-bike battery, underscores the danger.

Key Concerns for Strata

• Increased Frequency: The rapid rise in these fires poses a direct threat to the safety of residents and property within strata buildings.
• Recent Incidents: Multiple fires in quick succession demonstrate the volatile nature of these batteries and the potential for rapid escalation.
• Official Warnings: Fire and Rescue NSW officials have explicitly warned of the likelihood of fatalities from battery fires, emphasizing the urgency of the situation.
• Improper Handling: The increasing use of these batteries, coupled with the potential for improper charging and storage, significantly elevates the risk in densely populated strata environments.

Data Highlights the Danger

• 2022: 165 fires
• 2023: 272 fires
• 2024: 318 fires
• 2025 (to date): 25 fires

Taking Proactive Steps in Strata

This surge in fires underscores the growing risk associated with lithium-ion batteries and the need for immediate action within strata. It is strongly recommended that strata committees consider implementing comprehensive by-laws addressing the following:

• E-bike and E-scooter Storage: Designating safe and appropriate storage areas, potentially away from common areas and flammable materials.
• Charging Regulations: Establishing clear guidelines for charging these devices, including restrictions on charging in common areas or overnight.
• Battery Disposal: Providing information and resources on the safe disposal of lithium-ion batteries.
• Resident Education: Raising awareness among residents about the fire risks associated with lithium-ion batteries and promoting safe handling practices.

For more information read the full media article here 

Protecting Your Community

By implementing a by-law and taking these proactive steps, strata committees can significantly reduce the fire risks associated with lithium-ion batteries. Prioritizing safety and working collaboratively with residents, building managers, and local authorities is crucial to ensuring a secure environment for the entire community. Don’t wait for a tragedy to happen – act now to protect your strata complex.

GET YOUR ELECTRIC VEHICLE (EV) 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.

Introduction

The property development industry has become more astute in recent years.  This has resulted in property developers putting in place corporate structures that are intended to protect their assets.  This often results in owners corporations being unable to recover compensation from developers to cover the costs to fix defects that affect their buildings.  So what can be done to avoid that problem?

In this article we take a look at a recent case in which an owners corporation represented by JS Mueller & Co succeeded in convincing the Supreme Court to make a freezing order against a developer to prevent the developer dissipating its assets to ensure that the developer would have sufficient assets to pay any compensation the owners corporation was awarded by the Court to cover the cost to fix building defects.

The Facts

There is a mixed use building in Milsons Point, Sydney containing 125 residential lots and 2 commercial lots.  The building was completed in July 2021.  Since August 2021, the developer has been selling the residential lots in the ordinary course.  The developer has now sold 121 of the 125 residential lots.  The developer still owns 4 of the residential lots. They are effectively the developer’s only assets.

The building contains defects.  The owners corporation has sued the developer in the Supreme Court for damages arising out of those defects.  In the case, the owners corporation has obtained evidence from a quantity surveyor to the effect that the estimated cost to rectify the defects is in the order of $10.6 million.

The Problem

The owners corporation became concerned that the developer’s only assets were the four residential lots that it owned in the building and that once those lots were sold, the sale proceeds would be dissipated and the developer would have no assets left to pay any damages the owners corporation was awarded by the Court.  That would have rendered to the continuation of the court case against the developer pointless.

Application for Freezing Order

In November 2024 the owners corporation applied to the Supreme Court for a freezing order to be made against the developer.  The purpose of that order was to prevent the developer from disposing of its assets up to the value of $10.6 million being the amount of the owners corporation’s claim.  The developer resisted the application for the freezing order and argued that there was no basis for the Court to make that order.

The Decision

On 6 February 2025 the Supreme Court published its decision in which it concluded that it was appropriate for a freezing order to be made against the developer generally in the terms sought by the owners corporation.  The Court was persuaded that there was a danger that any damages that were awarded to the owners corporation would be wholly or partially unsatisfied because the developer might dispose of its assets once it sells the remaining 4 lots in the building that it still owns.  The Court concluded that it was likely that the developer would sell those 4 lots in the future and that it would distribute the profit generated by the sale of the those lots either by way of dividend or as a loan to other members of its corporate group.  This was consistent with the way in which the developer had dealt with the proceeds of sale of other lots it had sold in the development.

Conclusion

The case shows that an owners corporation that is concerned that a developer against whom it has made a claim for damages arising from building defects can take steps to protect its interests and ensure that the developer does not dissipate its assets to avoid having to pay damages to the owners corporation.  The case shows that the Supreme Court will make freezing orders against developers in appropriate circumstances to safeguard the position of owners corporations who are at risk of being left with nothing if the developers of their strata schemes are able to deal with their assets without restraint.

Case citation: The Owners – Strata Plan No. 102081 v Aqualand Constructions Pty Ltd [2025] NSWSC 31

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.

The Building Commission NSW has announced a delay in the implementation of planned fire safety reforms. Originally scheduled for February 2025, these reforms will now be rolled out in 2026 and 2027.

New regulations will significantly impact owners corporations, owners, strata managers, developers, and fire safety professionals. These changes, stemming from the Environmental Planning and Assessment (Development Certification and Fire Safety) Amendment (Fire Safety) Regulation 2022, aim to bolster fire safety standards and increase accountability.

What’s Changing?

The biggest shift involves aligning AFSS inspections with Australian Standard 1851-2012. This means:

• Increased Inspection Frequency: Seven critical fire safety measures now require monthly servicing, a significant jump from previous requirements.
• Stricter Record-Keeping: Detailed records of all inspections, including any missed servicing, must be kept onsite for at least seven years. These records must be readily available for inspection by authorities.
• Zero Tolerance for Non-Compliance: Failure to adhere to these new rules can result in hefty fines of up to $66,000 per incident.

The Impact on Your Owners Corporation

These changes translate to:

• Increased Costs: Expect a rise in maintenance costs due to more frequent inspections and potential repairs.
• Heightened Risk: The potential for costly fines adds a significant layer of risk for your Owners Corporation.
• Increased Administrative Burden: Maintaining comprehensive records and ensuring compliance with the new regulations will require careful planning and diligent record-keeping.

What Can Owners Corporation Plan Ahead for?

• Avoid the Rush: Schedule inspections and engage qualified fire safety practitioners early to avoid last-minute delays and potential penalties.
• Budget Accordingly: Factor in the increased costs of inspections and potential repairs into your financial planning.
• Review Existing Records: Gather all necessary fire safety records and ensure they are readily available for inspection.
• Consult with Experts: Seek guidance from strata compliance experts who can provide tailored advice on navigating these new regulations.
• Fire Safety By-laws: Reduce your risk and consult JS Mueller & Co Strata Lawyers to ensure your fire safety by-laws are current

New Key Dates and Changes

These new AFSS requirements are a significant shift. By proactively addressing these changes, your Owners Corporation can ensure compliance, mitigate risks, and protect the safety and value of your property.

For more information including the new key dates and changes scheduled for 2026 and 2027 visit NSW Government

Strata, Mitigate your Risk…

It is critical that you prepare and ensure you are across the new  regulations, new key dates and in preparation your fire safety by-laws are up to date.

DOES YOUR FIRE SAFETY BY-LAW NEED UPDATING? CLICK 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