New South Wales Consolidated Acts

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Limits on spending by owners corporation

102 Limits on spending by owners corporation

(1) An owners corporation must obtain at least 2 independent quotations for proposed expenditure for an item or matter that is more than the amount prescribed by the regulations for this section.
(2) If the owners corporation is not able to comply with subsection (1), the secretary of the owners corporation must add an item to the agenda of the next general meeting of the owners corporation to note--
(a) the item or matter for which the quotations were required, and
(b) the reasons the owners corporation was unable to obtain the quotations.
(3) An owners corporation for a large strata scheme must not spend more on an item or matter than the amount specified for the item or matter in the estimates prepared at an annual general meeting, plus 10%.
(4) The owners corporation may, by resolution at a general meeting, remove the limitation imposed by subsection (3) generally or in relation to a single item or matter.
(5) This section does not apply to expenditure for emergency purposes, including in relation to the following--
(a) burst or blocked water or sewerage pipes,
(b) serious damage caused by a storm, fire or another natural disaster,
(c) unexpected electrical or security system failures,
(d) glass breakages that affect the security of a building in the strata scheme or could result in damage to the inside of the building.
(6) In this section--

"independent quotations" means quotations from persons who are not connected with each other.

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