forowners

What’s new for industry professionals

New disclosure and accountability requirements for strata professionals are now in place. These include new requirements relating to third party commissions and conflicts of interest. Changes to strata management contracts affect the length of strata managing agent appointments.

Did you know? There are transition periods for strata schemes to adapt to some of the new laws. For example, pre-appointed strata professionals and members of the executive committee (now strata committee) can continue in their roles as part of transitional arrangements.

Popular topics

Disclosure requirements

Strata managers must now disclose any third party commissions paid to them during the previous 12 months at the Annual General Meeting of the owners corporation. There are also new limits on the gifts or benefits that agents are allowed to receive in connection with their role as strata managing agent.

Read more about disclosure requirements
Agency agreements

If appointed at the first Annual General Meeting, appointment of a strata managing agent is for a maximum term of 12 months. After this date, any future appointment of them (or another strata managing agent) is for a maximum term of 3 years. The NSW Civil and Administrative Tribunal now has greater powers to make orders and remove strata managing agents where they are failing to perform their duties.

Read more strata managing agent responsibilities
By-laws (rules)

New model by-laws (sample rules) are now available. These include new model by-laws relating to keeping pets and dealing with cigarette smoke. All strata schemes must review their by-laws by 30 November 2017. Help your clients review their scheme’s by-laws, using the model by-laws as a guide.

Read more about by-laws
Parking

There are new options for dealing with unauthorised parking issues in your clients' strata blocks. Strata schemes can approach their local council to provide parking enforcement services. The strata scheme would need to enter into a commercial arrangement with the council, if the council agrees to patrolling the premises.

Read more about parking management in strata
Electronic communications

There are new electronic communications options for owners and strata managing agents to communicate with each other and be involved in how the strata scheme is managed. This includes options such as online voting, emailing meeting papers and allowing people to phone-in to meetings.

Read more about electronic communication in strata
Collective sale and renewal

Owners can collectively sell and redevelop their block if at least 75% of the lot owners agree and if certain requirements are met. Each owner must have at least 60 days to consider the ‘collective sale proposal’ and the NSW Land and Environment Court must check and approve all plans and approvals. All owners must receive at least market value for their property.

Read more about collective sale and renewal

Did you know? Strata schemes must review their by-laws. Help your clients review their by-laws by 30 November 2017 and make the most of the new laws. For example, owners can decide to delegate approval for minor renovations directly to the strata committee, for faster approvals. New model by-laws can be used as a guide to help schemes in their review.

Translated information to communicate the key changes

Download a PDF poster or posters to display on the noticeboard of your strata scheme:

 

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Model by-laws (rules) Find out more
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