Strata changes affect investors and tenant
Posted 22 August 2016
Category: Strata, Strata Reform
Pets get the green light but smokers will have to be careful.
Important reforms affecting NSW strata investors and occupants will start on November 30.
Investors and owner-occupiers need to understad these changes, and obtaining legal advice is recommended.
Other states are looking closely at NSW, and many of these concepts are likely to be followed. The key changes are:
- Finances: reporting requirements will change and there will be changes in timing of levy payments and interest payments on arrears levies. Those who have not been raising funds to match 10-year sinking funds can expect significant increases in levies.
- Development: in the sale or redevelopment of a strata building, the power will shift from the dissenting minority to a 75% majority. People living in areas rezoned to a much higher density will be considering their options.
- By-laws: changes will permit, without consent, dogs registered under the Disbility Discrimination Act 1992 and pet by-laws that are harsh, unjust or oppressive will have no force. There will be greater scope for by-laws addressing unauthorised parking, smoking and occupant numbers.
- Renovations: “minor cosmetic work” can be carried out without the consent of the owners’ corporation.
- Common property: a lot owner may be able to claim compensation from the owners’ corporation for failure to maintain common property where this causes a loss to the owners.
- Governance: strata committee members will be subject to duties but will have no liability if acting in “good faith”. There will be changes to meetings and other procedures, voting and elctronic meeting attendance will be allowed.
- Tenant rights: tenants are to be given some rights, including notices of meetings, attending meetings and in some cases appointing a representative.
Bannermans Lawyers is ready, willing and able to assist you with your enquiries. For further information, please contact us to discuss.
***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.
Author: David Bannerman
Publication: Money Magazine