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.

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

In a significant victory for owners corporations across Australia, the High Court has ruled that builders and developers cannot escape liability for negligent construction work. The landmark decision in Pafburn Pty Limited v The Owners – Strata Plan No 84674 affirms that developers and head contractors bear a non-delegable duty to ensure the quality of construction, even if the work is outsourced to subcontractors. This ruling has far-reaching implications for the building industry and provides greater protection for property owners.

On 11 December ds2024, the High Court of Australia handed down its judgment in the case of Pafburn Pty Limited v The Owners – Strata Plan No 84674. The key findings of the decision are as follows:

Key Findings

1. Appeal Dismissed: The appeal by Pafburn Pty Limited and Madarina against the NSW Court of Appeal decision in favour of the owners corporation was dismissed with costs. This means that the decision is in favour of the owners corporation.
2. Non-Delegable Duty: The court held that the duty imposed by Section 37(1) of the Design and Building Practitioners Act 2020 (NSW) (DBPA) is a non-delegable duty. This means that the developer and the head building contractor cannot limit their liability by delegating construction work to others.
3. Proportionate Liability: The court found that the proportionate liability scheme under Part 4 of the Civil Liability Act 2002 (NSW) (CLA) does not apply to claims for breach of the duty under Section 37 of the DBPA. The liability for breach of this duty is personal and cannot be apportioned among concurrent wrongdoers.
4. Vicarious Liability: The court clarified that Section 5Q of the CLA, which deals with liability based on non-delegable duties, applies to the duty under Section 37(1) of the DBPA. This means that the developer and the head building contractor are treated as vicariously liable for the negligence of those to whom they delegated construction work.
5. Economic Loss: The court confirmed that the owners corporation is entitled to claim damages for economic loss caused by defects in the building arising from the construction work, as per Section 37(1) of the DBPA.
6. Legislative Intent: The court emphasised that the DBPA was enacted to address public concerns about building defects and to ensure that owners have effective redress for economic loss caused by such defects. The provisions of the DBPA are intended to impose individual and collective responsibility on building practitioners for their work.
7. Outcome: The matter was remitted to hearing to determine whether the list response pleading can be maintained against all alleged wrongdoers, specifically whether they can be characterised as persons who carry out construction work under the DBPA.

These findings reinforce the non-delegable nature of the duty of care imposed on developers and head contractors under the DBPA and clarify the interaction between the DBPA and the CLA. This is good news for an owners corporation because it means that a builder and developer cannot attempt to limit or apportion their liability by arguing that the work was done by someone else, in other words, their duty cannot be delegated to a subcontractor (non-delegable duty).

An owners corporation can still take direct action against subcontractors (if necessary), although the owners corporation must be able to establish that the subcontractors carried out construction work within the meaning of the DBPA and breached the duty in section 37 of DBPA. We also note that the decision does not prevent cross claims by the builder and developer.

Complex Area of Law

This is a complex area where we have significant experience please contact us if you have a similar case.

Helen Amanatiadis I LLB LLM I Lawyer

Helen is admitted as a practitioner of the Supreme Court of NSW and High Court of Australia. Highly qualified Helen has over 25 years of experience in commercial dispute resolution, with a primary focus on building and construction and strata law. 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 Strata Hub is getting a major upgrade this December, with a raft of new features designed to streamline workflow and improve efficiency for strata managers and owners.

What Can You Expect from the Strata Hub Updates?

The new key features include:

• Transfer feature: This handy new tool will streamline the process of transferring strata records to a new managing agent.
• Vacant positions: Keep track of strata committee vacancies with the new vacant positions feature.
• Library of key resources: Strata Hub will now house a comprehensive library of essential resources, all in one place.
• Public strata search: Find the information quickly and easily with the new public strata search function.
• Streamlined scheme reporting: This allows strata managers to pull accurate and up-to-date data and reporting directly for schemes managed.
• Data validation: Ensure the accuracy of strata data with the new data validation tools.

These new features have been designed to make Strata Hub a more efficient, effective, and valuable resource for strata managers and owners.

Further details and training resources will be available in the coming weeks.

For more information visit NSW Government Strata Hub

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 November 2024, pet ownership in community schemes has undergone significant changes.

The new legislation focuses on preventing unreasonable interference. This means that while pets are allowed, their presence must not negatively impact the lives of other residents.

What Constitutes Unreasonable Interference?

Unreasonable interference refers to situations where a pet’s behaviour consistently disturbs or endangers others. This could include:

• Noise: Constant barking, howling, or other loud noises that disrupt the peace and quiet of other residents.
• Aggression: Repeatedly chasing, attacking, or threatening other residents or animals.
• Damage: Consistently damaging common property or the property of other residents.
• Health Risks: Spreading diseases or infestations.
• Nuisance: Causing unpleasant odours or other nuisances in common areas.

Specific Circumstances for Refusal

In addition to the general concept of unreasonable interference, the following specific circumstances may lead to a community scheme refusing a resident’s pet:

• Nuisance Orders: If a pet, particularly a cat or dog, has been subject to a nuisance order.
• Dangerous or Menacing Dogs: Dogs classified as dangerous or menacing under relevant legislation.
• Restricted Breeds: Dogs belonging to breeds restricted by the Companion Animals Act 1998.

More Information

For further information on the updated regulations and how to manage pets in a community scheme, please refer to the following resources:

Fair Trading NSW: Link to Fair Trading NSW website on pets in strata schemes

DOES YOUR PET BY-LAW NEED TO BE UPDATE? – 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.

A Second Phase of Reform

New South Wales is gearing up for significant changes in strata law, as the second phase of recommendations from the statutory review is set to be implemented. The proposed changes, introduced to the NSW Parliament on 20 November, 2024, aim to address a range of issues affecting strata communities across the state.

Key Proposed Changes

While specific details may vary, the proposed changes are expected to cover a broad spectrum of areas, including:

Accountability for Developers

• Enhanced Developer Responsibility: Developers will be held more accountable for the accuracy of initial maintenance schedules and levy estimates provided for new strata developments.

Improved Strata Management

• Stricter Oversight: Increased oversight of strata management agreements to ensure transparency and fairness.
• Building Manager Duty: Introduction of a statutory duty on building managers to uphold specific obligations.

Protecting Owners’ Rights

• Fair Contract Terms: Safeguarding owners corporations from unfair contract terms in standard form contracts.
• Stronger Committee Governance: Imposing new duties on strata committee members to improve governance and decision-making.
• Common Property Maintenance: Reinforcing owners corporations’ obligations to maintain and repair common property.
• Enforcement Powers: Granting NSW Fair Trading additional powers to enforce common property maintenance obligations.

Sustainability and Accessibility

• Sustainability Focus: Encouraging sustainable practices by requiring owners corporations to consider sustainability in annual general meetings and levy estimates.
• Embedded Network Protections: Enhancing protections for owners and owners corporations regarding embedded networks.
• Accessibility Improvements: Facilitating the installation of support infrastructure for owners with additional needs.

 Other Enhancements

• Clarity and Efficiency: Implementing various changes to streamline strata law processes and improve clarity.
• Financial Hardship Support: Providing assistance to owners facing financial difficulties.

Impact on Strata Owners and Committees

These proposed changes are likely to have a significant impact on both strata owners and committees. Strata owners can expect increased protection and greater involvement in decision-making processes. Strata committees, on the other hand, may face additional responsibilities and regulatory requirements.

What’s Next?

As the proposed changes progress through the legislative process, it’s crucial for strata managers, strata owners and committees to stay informed. By understanding the implications of these reforms, you can better prepare for the future and ensure the smooth functioning of your strata communities.

More Information

For more information and insights on the proposed strata law changes visit NSW Government changes to strata laws

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 has released a new guide to help strata property owners better understand the ins and outs of strata living.

The Strata Living Guide covers a range of essential topics, including by-laws, financial obligations, renovations, and dispute resolution.

Strata managers it is important that you share a copy of the Strata Living Guide to new and existing owners to help them better understand how strata living works.

The guide aims to empower strata owners by providing them with the knowledge and tools they need to effectively manage their properties and resolve common issues.

It also offers practical advice on how to navigate the complexities of strata living, such as understanding their rights and responsibilities, attending meetings, and making informed decisions.

Key topics covered in the guide include:

• The basics of strata
• Common property and individual ownership
• Key roles and responsibilities within a strata scheme
• Financial obligations and levies
• By-laws and rules governing strata schemes
• Meetings and decision-making processes
• Repairs and maintenance of common property
• Renovating your property
• Resolving disputes and conflicts

The NSW Government is committed to improving the regulatory framework for strata living and ensuring that all strata owners have access to the information they need to make informed decisions.

The Strata Living Guide is a valuable resource for anyone who owns or is considering purchasing a strata-titled property in NSW.

You can download the full guide here: NSW Strata Living Guide 

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.

Navigating the complexities of strata fencing can be a daunting task. Understanding responsibilities and the governing laws is crucial to avoid disputes and ensure a harmonious living environment.

The Dividing Fences Act: Your Strata Fencing Guide

The Dividing Fences Act 1991 (NSW) provides a framework for resolving fencing disputes between neighbouring lot owners within strata schemes. While the Act outlines general principles, it’s essential to consider the specific circumstances of your situation and advisable to get professional legal advice.

Key Points to Remember:

• Common Property Fences: The owners corporation is responsible for maintaining and repairing fences that divide common property from external areas but can claim a contribution for the cost to carry out fencing work from neighbours in many circumstances.
• Fences between Lots and Common Property: In most cases, the responsibility for these fences is either entirely borne by the owners corporation (where the fences are common property) or is shared equally between the lot owner and the owners corporation (where the fences are not common property).
• Fences between Lots: In most cases, owners share equal responsibility for building, maintaining, and repairing fences that separate their individual lots where those fences are not common property.

Fence Definitions: Not so Simple

Then there are hedges, ditches, structures, embankments, natural watercourses, walls, retaining walls, and parts of buildings and more, that have been used to create boundaries or a fencelike structure – are these considered dividing fences?

Expert Advice and Strata By-laws

Strata fencing bylaws also help to prevent disputes between lot owners and owners corporations about the responsibility for fencing maintenance and maintain a harmonious living environment.

If you’re unsure about who is responsible for a particular fence or wall, have a dispute or need by-law advice, speak to our specialist strata lawyers, we’re happy to assist.

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.