New strata laws will come into force in New South Wales in November 2016. The motivation behind the reforms is to modernise the laws so they reflect the needs of people who own strata townhouses or apartments in the modern era.
Strata refers to ownership by a person or entity of a portion of a property, with the rest of the property being known as the common property.
Each strata plan is different, but traditionally an individual owner will be responsible for the maintenance and upkeep of the interior of their unit and things like appliances, furniture and general wear and tear. All of the owners will be jointly responsible to look after the common property and the condition of the buildings themselves, including things like driveways and gardens.
Interestingly, approximately 25% of the New South Wales population lives in strata accommodation.
Some of the important changes include:
- Adopting modern technology to conduct meetings, for example, electronically.
- A requirement that by-laws be reviewed annually to make sure they are compatible with the lifestyle of the owners of the units within a complex.
- Allowing tenants to participate in strata meetings.
- Allowing Owners Corporations to team up with local Councils to allow parking officers into strata complexes to issue fines for improper parking.
- Allowing Owners Corporations to make orders banning smokers in strata complexes.
- Simplifying the process of conducting minor cosmetic renovations such as hanging pictures, filling cracks, installing safety rails and other similar minor alterations so that permission is no longer needed by special resolution or by-law.
- Compensation to people who are promised unrealistically low strata levies by developers/sale agents in the purchase process.
- Greater flexibility to allow Owners Corporations to hire and fire strata managers to ensure they are getting bang for their buck.
These laws are the most significant change in strata legislation in decades, and are a much needed update as more and more people are living in strata complexes.
If you are thinking about purchasing a strata unit and aren’t sure how this differs to regular freehold land, contact us today to discuss.
