NSW Reform of Strata Scheme Laws
Friday 26 September 2014 @ 1.34 p.m. | Legal Research
The New South Wales Government is setting out to reform NSW strata and community scheme laws. Changes will include stiffer fines for serial by-law breakers, curbs on proxy farming and compulsory maintenance plans. The changes are scheduled to be announced on Friday 26 September 2014 (today) by NSW Fair Trading Minister Matthew Mason-Cox.
Background
NSW currently has 75,000 strata schemes worth $350 billion in asset. These numbers will continue to rise. The proposed reforms will affect some two million industry professionals, strata owners, and residents in strata-titled townhouses and units. The government has conducted consultations and the proposed reforms will be based on the results of these consultations. Over 70 new proposed reforms will come into force to update the 50 year old strata scheme laws currently in operation in NSW.
The Changes
The changes will affect residential schemes such as gated communities, multi-unit block developments and buildings with shared common facilities. "The position paper sets out a coherent and informed approach to meet the future needs of residents living in nearly 2200 community, neighbourhood and precinct schemes operating around the state," said Mr Mason-Cox.
Significant changes will include:
- Allowing decision making by special resolution; 75 per cent of owners voting at a meeting as opposed to the current scheme requiring for unanimity on some issues
- Requiring the builder or developer to provide a maintenance schedule at the first AGM of a new scheme. Ideally this would allow for owners to get a clearer idea of their responsibilities to maintain and repair common property
- Restricting the number of proxy votes any individual can hold
- Revising the system of fines for by-law breaches to allow community schemes to recoup some of their costs, making it more viable to pursue serial offenders.
The Future
Mason-Cox explained that the reforms will be delivered as part of a package of building industry reforms related to multiple occupancy buildings, strata, security of payments and home warranty insurance. "Next steps include drafting of the Community Scheme Bills and further consultation on the draft legislation in the new year."
The government has scheduled early 2015 for the reintroduction of the much heralded and controversial strata law reforms.
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