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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
Strata Schemes Management Bill 2015
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
The Strata Schemes Development Bill 2015 is cognate with this Bill.
Overview of Bill
The object of this Bill is to provide for the management of strata schemes and the resolution of
disputes in connection with strata schemes.
The Bill re-enacts the current law relating to the management of strata schemes with the changes
set out below in the outline of provisions.
Outline of provisions
Part 1 Preliminary
Part 1 of the proposed Act re-enacts Chapter 1 of the Strata Schemes Management Act 1996 (the
current Act), except that words and expressions used in the proposed Act are defined in the
proposed Part rather than in a Dictionary (proposed sections 4-7).
Part 2 Managing body for strata schemes--owners
corporation
Part 2 of the proposed Act re-enacts Part 2 of Chapter 2 and sections 29A and 118 of, and
clauses 2-5, 23 and 31 of Schedule 2 to, the current Act with the following changes and additions:
(a) documents required for the first general meeting are to be provided by the original owner
or lessor of the strata scheme at least 48 hours before the meeting (proposed section 16),
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Explanatory note
(b) an initial maintenance schedule and any report prepared on building defects under proposed
Part 11 are to be provided to the owners corporation at its first annual general meeting
(proposed section 16),
(c) the annual general meeting of an owners corporation must be held once in each financial
year rather than within 1 month of the anniversary of the first annual general meeting
(proposed section 18),
(d) the power to make an order convening a meeting of an owners corporation, in the absence
of officers of the corporation, is to be exercised by the Civil and Administrative Tribunal
(the Tribunal) rather than an Adjudicator. This change applies to all order-making powers
under the current Act that have been re-enacted (proposed section 20).
Part 3 Strata committee of owners corporation
Part 3 of the proposed Act re-enacts sections 16-18 and 21 and Division 2 of Part 3 of Chapter 2
of, and clauses 1-3, 4, 5, 7 and 17 of Schedule 3 to, the current Act with the following changes
and additions:
(a) the executive committee is now to be known as the strata committee,
(b) a building manager for a strata scheme, a person who acts as an agent for the leasing of lots
in a strata scheme or a person who has an undisclosed connection with the original owner
of a strata scheme is not eligible to be appointed or elected to the strata committee unless
the person is an owner (proposed section 32),
(c) a tenant representative for the strata committee may be nominated by the tenants, if there
are tenants for at least half the lots in a strata scheme, but will not be able to vote on
committee decisions and may be excluded from discussion about certain financial matters
(proposed section 33),
(d) a duty is imposed on members of a strata committee to carry out their functions for the
benefit, so far as practicable, of the owners corporation and with due care and diligence
(proposed section 37),
(e) the owners corporation may, by special resolution, declare that the office of an officer of
the corporation is vacant (proposed section 45).
Part 4 Strata managing agents and building managers
Part 4 of the proposed Act re-enacts Parts 4 and 4A of Chapter 2 and section 183A of the current
Act with the following changes and additions:
(a) a developer of a strata scheme, or a person connected with a developer, cannot be appointed
as the strata managing agent for the scheme until 10 years after the registration of the strata
plan for the scheme (proposed section 49),
(b) the term of appointment of a strata managing agent is to be limited to a maximum of
12 months for an agent appointed at the first annual general meeting or 3 years for any other
appointment, with any reappointment also limited to maximum terms of 3 years (proposed
section 50),
(c) a strata managing agent may transfer his or her functions as an agent if the transfer is
approved by a resolution of the owners corporation at a general meeting (proposed
section 51),
(d) it will be an offence for a strata managing agent to request or accept a gift or other benefit
for himself or herself or another person in connection with the provision of services as an
agent, other than the provision of a monetary commission, or the provision or payment of
training services, included in the agent's terms of appointment or otherwise approved by
the owners corporation (proposed section 57),
(e) a strata managing agent must report at an annual general meeting monetary commissions or
training services or payments received from third parties in the previous 12 months as well
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Explanatory note
as commissions and training services and an estimate of them expected to be received in the
following 12 months. The agent must also disclose to the strata committee of the owners
corporation variations from the matters disclosed, as soon as practicable after becoming
aware of the variation (proposed section 60),
(f) the period within which a strata managing agent must provide information is extended from
7 days to 14 days,
(g) caretakers for strata schemes are now to be referred to as building managers and a building
manager is not required to be a person entitled to exclusive possession of a lot or common
property,
(h) the power to make orders with respect to building manager agreements has been extended
to strata managing agent agreements and a power to make ancillary orders requiring the
return of documents to the owners corporation has also been included (proposed
section 72).
Part 5 Financial management
Part 5 of the proposed Act re-enacts Part 3, and Division 3 of Part 5, of Chapter 3 and sections 24,
103, 110, 115A, 148, 149, 229, 230 and 230A of the current Act with the following changes and
additions:
(a) additional money may be paid into the administrative fund or the capital works fund if
permitted to be paid to that fund under the proposed Act (proposed sections 73 and 74),
(b) monetary penalties payable to the owners corporation must be paid into the administrative
fund and monetary penalties payable by the owners corporation may be paid from the fund
(proposed section 73),
(c) the name of the sinking fund has been changed to the capital works fund (proposed
section 74),
(d) amounts paid to the owners corporation under proposed Part 11 are to be paid to the capital
works fund (proposed section 74),
(e) the owners corporation may levy a contribution on owners to recover amounts to cover
money transferred from the administrative fund or the capital works fund to the other fund
to meet a shortfall (proposed section 76),
(f) the 10-year capital works fund plan for a strata scheme must be reviewed at least once every
5 years (proposed section 80) and may be revised or reviewed at any time,
(g) an owners corporation may provide for payment plans for unpaid contributions, but only for
12 months at a time (proposed section 85),
(h) in addition to the current provision that an owners corporation may recover unpaid
contributions as a debt in a court of competent jurisdiction, the owners corporation may
obtain an order from the Tribunal that the owner or other person concerned pay the unpaid
contributions. At least 21 days notice must be given of any proposed action (proposed
section 86),
(i) an owners corporation may obtain an order by the Tribunal ordering the original owner
under the strata scheme to compensate the owners corporation if the Tribunal determines
that the estimates and levies determined during the initial period were inadequate (proposed
section 89),
(j) a statement of key financial information, that summarises information contained in the
financial statements, is to be prepared for each reporting period for the administrative fund
and the capital works fund and other funds kept by an owners corporation (proposed
sections 92 and 94),
(k) financial statements will be required for other funds kept by an owners corporation (in
addition to those for the administrative fund and the capital works fund) (proposed
section 93),
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Explanatory note
(l) requirements imposed on the treasurer under the regulation made under the current Act,
relating to issuing and recording receipts, transaction records and the levy register have
been incorporated into the proposed Part,
(m) provisions relating to requirements for approval to obtain legal services have been clarified
(proposed section 103).
Part 6 Property management
Part 6 of the proposed Act re-enacts Part 2 of Chapter 3, sections 111, 112, 114 and 115 and
Division 2 of Part 4 of Chapter 5 of the current Act with the following changes and additions:
(a) the obligation of an owners corporation to maintain and keep in repair common property
may be deferred for a particular item of property if the owner or another person is liable for
damage to the property and the owners corporation has taken action in respect of the
damage (proposed section 106),
(b) an owner of a lot in a strata scheme may recover from the owners corporation, as damages
for breach of statutory duty, any reasonably foreseeable loss suffered by the owner as a
result of a contravention by the owners corporation of proposed section 106, but any action
must be taken within 2 years of becoming aware of the loss (proposed section 106),
(c) the by-laws for a strata scheme may adopt a common property memorandum prescribed by
the regulations which specifies whether the owner or the owners corporation is responsible
for the maintenance, repair or replacement of any part of the common property (proposed
section 107),
(d) minor cosmetic work (including installing or repairing hooks or other things used to hang
things on walls, installing or repairing handrails, painting internal walls and laying carpet)
in connection with a lot will not require authorisation by the owners corporation. Specified
work is excepted from these provisions, including minor renovations, structural work, work
involving plumbing and waterproofing and reconfiguring walls and work that requires
consent under other legislation. The by-laws and regulations may specify additional work
as cosmetic work (proposed section 109),
(e) minor renovations (including renovating a kitchen, changing recessed light fittings,
installing or replacing wood or other hard floors, installing or replacing wiring or cabling
or power or access points and reconfiguring walls) can be done after approval by the owners
corporation at a general meeting. The regulations may specify additional work as minor
renovations. Notice of the renovations and other information must be given to the owners
corporation. The by-laws may delegate the approval power to the strata committee and may
also specify additional work as minor renovations. Specified work is excepted from these
provisions, including cosmetic and structural work and work that requires consent under
other legislation (proposed section 110),
(f) an owner of a lot in a strata scheme must not alter or add to the common property, unless
authorised under the proposed Part, a by-law under the proposed Part, a common property
rights by-law or a special resolution of the owners corporation (subject to a by-law that
amends that requirement) (proposed section 111),
(g) the owners corporation is empowered to grant a licence to use common property to a person
other than the owner of a lot in the strata scheme (proposed section 112),
(h) the original owner must cause an initial maintenance schedule to be prepared for the strata
scheme, containing matters to be prescribed by regulations, which will not be binding on an
owners corporation and may be used in proceedings about building defects (proposed
section 115),
(i) agents, employees or contractors of an owners corporation may enter any part of the parcel
of a strata scheme to carry out building rectification work for the purposes of proposed
Part 11 (proposed section 122),
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(j) an order may be obtained to enter a part of a parcel of a strata scheme for all situations where
the owners corporation is authorised to enter the part for inspection purposes or to carry out
work (proposed section 124),
(k) regulations may be made to establish a scheme for the disposal of goods abandoned on
common property (proposed section 125),
(l) if work by or on behalf of an owner or occupier causes damage to the common property or
another lot of a strata scheme, the owners corporation or owner of the lot may obtain an
order from the Tribunal that the owner or occupier repairs the damage or pays a specified
amount for repairs and other costs (proposed section 132).
Part 7 By-laws for strata schemes
Part 7 of the proposed Act re-enacts Part 5 of Chapter 2, Division 8 of Part 4 of Chapter 5 and
section 203 of the current Act with the following changes and additions:
(a) the matters about which by-laws can be made are to be matters relating to the management,
administration, control, use or enjoyment of the lots or the common property and lots of a
strata scheme (proposed section 136),
(b) the by-laws may limit the number of persons who may reside in a lot, but not to less than
2 adults per bedroom of the residence (proposed section 137) and higher monetary penalties
are payable for a contravention of a by-law (proposed section 147),
(c) a by-law must not be harsh, unconscionable or oppressive (proposed section 139),
(d) a by-law may require an occupant of a lot to provide evidence that an animal kept on the lot
is an assistance animal (proposed section 139).
Part 8 Obligations of owners, occupiers and others relating to
lots
Part 8 of the proposed Act re-enacts Parts 1 and 3 of Chapter 4 and Division 5 of Part 4 of
Chapter 5 of the current Act.
Part 9 Insurance
Part 9 of the proposed Act re-enacts Part 4 of Chapter 3 and Division 3 of Part 4 of Chapter 5 of
the current Act with the change that the approved insurers with whom insurance (other than
building insurance) is required to be taken out by owners corporations are to be general insurers
under the Insurance Act 1973 of the Commonwealth or persons prescribed by the regulations.
Part 10 Records and information about strata schemes
Part 10 of the proposed Act re-enacts Divisions 1, 2 and 4 of Part 5 of Chapter 3 and sections 155
and 156 of the current Act with the following changes and additions:
(a) the form in which a strata roll or other mandatory record may be made or stored is to be
determined by the owners corporation (proposed section 176),
(b) information about the owner of a lot in the strata roll is to include the owner's email address,
if any (proposed section 178),
(c) access to records of the owners corporation for inspection purposes may be given by
electronic means (proposed section 183),
(d) the lessor or sub-lessor of a lot in a strata scheme must give the tenant of the lot a copy of
the by-laws and any applicable strata management scheme not later than 14 days after the
tenant becomes entitled to possession of the lot. Notice of changes to by-laws must also be
given within 14 days (proposed section 186).
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Explanatory note
Part 11 Building defects
Part 11 of the proposed Act contains a scheme to provide for rectification of building defects in
new strata schemes. The proposed Part contains the following proposed provisions:
Division 1 Preliminary (proposed sections 189-192)
The proposed Division defines words and expressions used in the proposed Part and also
provides that a consent or approval by an owners corporation for the purposes of the
proposed Part is to be given by resolution at a general meeting.The proposed Part will apply
to building work carried out on a building, or a part of a building, that is part of the parcel
of a strata scheme and that is contemporaneous with or for the purposes of the registration
of a strata plan or a subdivision of a development lot. The building work must be residential
building work that is exempt from the home building compensation insurance requirements
under the Home Building Act 1989 or be work on a building used for mixed use purposes
that include residential purposes.
Division 2 Inspection reports (proposed sections 193-206)
The proposed Division provides that a developer of a strata scheme is to be required to
arrange for the building work to be inspected by a building inspector approved by the
owners corporation who is to give an interim report identifying any defective work. The
regulations will prescribe the kind of defective work that is to be reported on. Building
inspectors are to be persons who are of a class of persons prescribed by the regulations. The
inspector is to be appointed not later than 12 months after the completion of the work and
the interim report is to be given not earlier than 15 months and not later than 18 months after
that completion. A building inspector cannot be appointed by a developer without the
approval of the owners corporation. The Secretary of the Department of Finance, Services
and Innovation (the Secretary) is to arrange for the appointment of an inspector if the
developer and owners corporation fail to agree on an inspector or if the initial period for the
strata scheme has not ended. The Secretary may also appoint a building inspector if an
owner of a lot objects to an appointment. A building inspector must not be connected with
the developer, must act impartially and cannot and does not represent the interests of the
developer. It will be an offence to receive or offer benefits not to act impartially. A final
inspection is to be carried out and a report given by the same inspector (if available) or
another inspector arranged by the Secretary not earlier than 21 months and not later than
2 years after the completion of the work. The inspector will have power to enter any part of
a strata scheme parcel and is to be given assistance by the owners corporation for that
purpose. Inspection costs are payable by the developer. A builder who carried out defective
building work will be entitled to enter the property in connection with rectifying the work.
A final inspection report will not bind the Tribunal or any court but is to be taken into
account in proceedings relating to the building work.
Division 3 Building bonds (proposed sections 207-211)
The proposed Division requires a developer to lodge a security (a building bond) with the
Secretary for building work to which the proposed Part applies. The amount of the building
bond is to be 2% of the contract price for the building work. Amounts secured by a building
bond may be claimed or realised for payment to an owners corporation to meet the costs of
building work to rectify defective building work identified in a final inspection report under
the proposed Part.The building bond must be claimed or realised not later than 2 years after
the completion of the building work or within 60 days of the final inspection report being
given to the developer, whichever occurs later. Amounts secured by the building bond may
also be paid in the manner agreed between the owners corporation and the developer. The
Secretary is to rely on the final inspection report for the purposes of determining the
payment of amounts secured by the building bond. An owners corporation must use the
bond amount for or in connection with rectifying the defective building work (on any part
of the parcel of the strata scheme) or its costs. An owners corporation, or a person on the
owners corporation's behalf, will have power to enter a lot for the purpose of rectifying
defective building work. Any surplus is to be repaid to the developer. The Tribunal may, on
application by an owners corporation, a developer, a building inspector or a person entitled
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Explanatory note
to enter the strata parcel under the proposed Part, make an order requiring access to be given
to the parcel for the purposes of an inspection or in connection with rectifying defective
building work. The Tribunal may also, on application by the developer, an owners
corporation, an original owner or the Secretary, make an order determining the amount of
a building bond.
Division 4 Miscellaneous (proposed sections 212-215)
The proposed Part enables the Secretary to vary the time frames for actions under the
proposed Part. The proposed Division provides for a right to apply to the Secretary for a
review of decisions under the proposed Part. The proposed Division also contains powers
to make regulations with respect to specified matters arising under the proposed Part and
makes it clear that the proposed Part will not affect any other remedies that may be taken
for defective building work, such as statutory warranties that may apply for building work.
Any remedy obtained under the proposed Part may be taken into account by a court or other
body when determining whether to grant other remedies.
Part 12 Disputes and Tribunal powers
Part 12 of the proposed Act re-enacts Part 2 and Divisions 1 and 9 of Part 4 of Chapter 5 and
sections 125, 126, 135, 136, 173, 183, 183B, 185, 187-191, 199, 207 and 209 of the current Act
with the following changes and additions:
(a) an owners corporation is authorised to establish a voluntary dispute resolution process
(proposed section 216),
(b) jurisdiction is conferred on the Tribunal, rather than on Adjudicators, to make orders and
procedural matters dealt with by the Civil and Administrative Tribunal Act 2013 have been
omitted,
(c) jurisdiction is conferred on the Tribunal to make ancillary, consequential and interlocutory
orders and interim orders (proposed sections 229-231),
(d) jurisdiction is conferred on the Tribunal to deal with complaints or disputes about
agreements under the proposed Act, agreements relating to strata schemes between the
owners corporation and owners, mortgagees and covenant chargees and the failure of an
owners corporation to exercise a function under another Act (proposed section 232),
(e) jurisdiction is conferred on the Tribunal, on its own motion, to remove a person from a
strata committee and as an officer of the owners corporation, prohibit a strata committee
from determining a matter and require it to be determined by the owners corporation
(proposed section 238),
(f) an unpaid civil penalty imposed by the Tribunal may be recovered from an owner who is
liable to pay the penalty as if the amount owed were an amount of unpaid contributions
(proposed section 248).
Part 13 Offences and proceedings
Part 13 of the proposed Act re-enacts sections 215 and 225-228 of the current Act and also
provides that penalty notices will be able to be issued by an authorised officer for offences of a
kind prescribed by the regulations (proposed section 250).
Part 14 Miscellaneous
Part 14 of the proposed Act re-enacts sections 119, 120, 212, 214 and Parts 3-5 of Chapter 7 of
the current Act with the following changes and additions:
(a) officers of an owners corporation and other members of a strata committee are protected
from personal liability for acts done in good faith in that capacity for the purposes of the
proposed Act and any other Act, the liability will instead attach to the owners corporation
(proposed section 260),
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Explanatory note
(b) an email address may be given as an address for service under the proposed Act (proposed
section 261),
(c) there is an additional general provision providing for the giving of documents under the
proposed Act or regulations (proposed section 264),
(d) the regulations may exclude a particular class or classes of strata scheme from all or any of
the provisions of proposed Part 12 (proposed section 271).
Schedule 1 Meeting procedures of owners corporation
Schedule 1 to the proposed Act re-enacts Parts 2 (other than Division 2) and 3 of Schedule 2 to
the current Act with the following changes and additions:
(a) an owner or other person may request that a motion be included on the agenda for a general
meeting of the owners corporation even though the owner or person cannot vote because of
unpaid strata contributions (proposed clause 4),
(b) provisions relating to the nomination of persons as officers of the owners corporation are
included in the proposed Schedule (proposed clause 5),
(c) the agenda for the annual general meeting of an owners corporation must include
consideration of building defects and rectification until the end of any applicable statutory
warranty (proposed clause 6),
(d) the notice of an annual general meeting of an owners corporation that has a strata managing
agent must include a motion to consider the report as to commissions and training services
by the agent (proposed clause 9),
(e) the notice of an annual general meeting must include a motion to decide how to deal with
overdue contributions payable to the owners corporation (proposed clause 9),
(f) the notice of an annual general meeting is no longer required to be accompanied by a copy
of the last financial statements prepared by the owners corporation, but these must be
provided on request to a lot owner or mortgagee or covenant chargee of a lot (proposed
clause 10),
(g) a copy of the agenda for a meeting must be given to each tenant of a lot at least 7 days before
the meeting (proposed clause 11),
(h) the developer or lessor of a leasehold strata scheme is not entitled to vote or exercise a proxy
vote on a matter concerning building defects or rectification of building defects (proposed
clause 15),
(i) if there is no quorum for business at a meeting, the chairperson may, after half an hour,
declare that the persons present constitute a quorum for that purpose (proposed clause 17),
(j) a tenant is entitled to attend a meeting but not to vote (unless a proxy holder) and may be
excluded from a meeting when financial matters are being discussed or determined
(proposed clause 21),
(k) the number of proxies that may be held by one person is limited to 1 if a strata scheme has
20 lots or fewer or not more than 5% of the total number of lots in any other case, except
where the proxies are held as the co-owner of a lot (proposed clause 26),
(l) a provision of a contract for the sale of a lot, and any provision of an associated contract or
arrangement, that requires the owner of a lot to vote as directed at a meeting of an owners
corporation or to give a proxy will be void and unenforceable (proposed clause 27),
(m) the owners corporation may determine that a vote at a meeting may be made other than in
person and regulations may provide for the manner of such votes (proposed clause 28),
(n) voting may be carried out by secret ballot (proposed clause 29).
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Schedule 2 Meeting procedures of strata committees
Schedule 2 to the proposed Act re-enacts Parts 2 and 3 of Schedule 3 to the current Act with the
following changes and additions:
(a) the strata committee may determine that a vote at a meeting of the committee may be made
other than in person and regulations may provide for the manner of such votes (proposed
clause 10),
(b) members of a strata committee must disclose any pecuniary interest in a matter that is being
or is about to be considered at a meeting of the committee and, unless the committee
otherwise determines, must not be present for any deliberations on the matter or vote on the
matter (proposed clause 18).
Schedule 3 Savings, transitional and other provisions
Schedule 3 to the proposed Act contains savings and transitional provisions consequent on the
enactment of the proposed Act.
Schedule 4 Amendment of Acts
Schedule 4 to the proposed Act contains amendments to other Acts consequent on the enactment
of the proposed Act.
Schedule 4.3 enables an owners corporation to obtain a garnishee order against rent that is payable
for a lot in a strata plan, if the owners corporation has obtained a judgment debt for an unpaid
contribution against the owner of the lot and the rent is held in the trust account of a real estate
agent for the benefit of the judgment debtor.
Schedule 4.16 [3] enables an owners corporation, or an association in a community scheme, and
a local council to enter into an agreement in relation to a strata parking area or community scheme
parking area in the relevant strata scheme or community scheme. The council under such an
agreement would erect parking signs and provide parking enforcement services. It will be an
offence to park contrary to signs or contrary to marked parking spaces in any such parking area.
An agreement must comply with guidelines under the Local Government Act 1993 and applicable
regulations authorised by proposed section 271 of the proposed Act.
Schedule 4.23 enables the parking offences created under the provisions inserted by
Schedule 4.16 [3] to be dealt with by penalty notice.
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First print
New South Wales
Strata Schemes Management Bill 2015
Contents
Page
Part 1 Preliminary
1 Name of Act 2
2 Commencement 2
3 Objects of Act 2
4 Definitions 2
5 Resolutions of owners corporations 6
6 Meaning of "large strata scheme" 6
7 Connected persons 6
Part 2 Managing body for strata schemes--owners corporation
Division 1 Constitution of owners corporation
8 Constitution of owners corporation 7
Division 2 Management of strata schemes
9 Owners corporation responsible for management of strata scheme 7
10 Functions of owners corporation generally 7
11 Other management bodies and persons who assist the owners
corporation 7
12 Owners corporation may employ persons to assist in exercise
of functions 8
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13 Functions that may only be delegated to member of strata committee
or strata managing agent 8
Division 3 Meetings of owners corporation
14 First AGM must be held within 2 months after initial period 8
15 Agenda for first AGM 9
16 Documents and records to be provided to owners corporation at
first AGM 9
17 Tribunal may order initial documents to be provided 10
18 AGM must be held 10
19 Other general meetings 10
20 Tribunal may appoint person to hold first AGM and other meetings 10
21 Unanimous or special resolutions to be amended or revoked in
same way 10
22 Notice to be given to owners corporation of right to cast vote at meeting 11
23 Meeting procedures and voting 12
24 Order invalidating resolution of owners corporation 12
25 Order where voting rights denied or due notice of item of business
not given 12
Division 4 Limitation on functions during initial period
26 Restrictions on powers of owners corporation during initial period 13
27 Order to authorise certain acts during initial period 14
Division 5 Effect of termination order on owners corporation
28 Termination of strata scheme 14
Part 3 Strata committee of owners corporation
Division 1 Constitution of strata committee
29 Owners corporation to appoint strata committee 15
30 Members of strata committee 15
31 Persons who are eligible to be appointed or elected to strata
committee 15
32 Persons who are not eligible to be appointed or elected to strata
committee 16
33 Tenant representatives 16
34 Acting members of strata committee 17
35 Vacation of office of elected member of strata committee 17
Division 2 Functions of strata committee
36 Functions of strata committee 18
37 Duty of members of strata committee 18
38 Acts and proceedings of strata committee valid despite vacancies
or defects 18
Division 3 Meetings of strata committee
39 Convening meetings 19
40 Meeting procedures and voting 19
Division 4 Office holders
41 Strata committee to appoint officers 19
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Page
42 Functions of chairperson of owners corporation 19
43 Functions of secretary of owners corporation 19
44 Functions of treasurer of owners corporation 20
45 Vacation of office by officer 20
46 Payment of officers of owners corporation 21
47 Original owner to exercise officers' functions before appointment
of officers 21
48 Tribunal may order meeting if no officers or strata committee 21
Part 4 Strata managing agents and building managers
Division 1 Appointment of strata managing agents
49 Appointment of strata managing agents 22
50 Term of appointment of strata managing agents 22
51 Transfer of functions of strata managing agent 23
Division 2 Functions of strata managing agent
52 Owners corporation may delegate functions to strata managing agent 23
53 Exercise of delegated functions by strata managing agent 23
54 Functions of officers and strata committee may be given to strata
managing agent 23
55 Strata managing agent to record exercise of functions 24
56 Exercise of functions of strata managing agent appointed by Tribunal 24
57 Breaches by strata managing agent 24
Division 3 Accountability of strata managing agent
58 Strata managing agent may be required to provide information about
trust account and other accounts 25
59 Provision of information about money received and other transactions 25
60 Disclosure of commissions and training services 26
61 Procedure for requiring information from strata managing agent 26
62 Offences 26
63 Responsibility for providing information if a strata managing agent
ceases to hold a licence or dies 27
64 Exemption for information relating to certain transactions 27
65 Provision of other Act requiring agents to provide information not
to apply to affairs of owners corporation 27
Division 4 Building managers
66 Building managers 27
67 Appointment of building managers 28
68 Term of appointment of building managers 28
69 Transfer of functions of building manager 28
70 Functions of building manager 28
Division 5 General
71 Interests must be disclosed by potential strata managing agents
or building managers 29
72 Strata managing agent and building manager agreements may be
terminated or varied by Tribunal 29
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Contents
Page
Part 5 Financial management
Division 1 Funds and accounts of owners corporation
73 Administrative fund 30
74 Capital works fund 30
75 Investment of money in administrative fund or capital works fund 31
76 Use of administrative fund or capital works fund for purposes of
other fund 31
77 Distribution of surplus money in administrative fund or capital works fund 32
78 Accounts of owners corporation 32
Division 2 Contributions by owners
79 Estimates to be prepared of contributions to administrative and
capital works funds 32
80 Owners corporation to prepare 10-year capital works fund plan 33
81 Owners corporation to set contributions to administrative and
capital works funds 34
82 Individual contributions may be larger if greater insurance costs 34
83 Levying of contributions 34
84 Liability of persons other than owners for contributions 35
85 Interest, discounts on contributions and payment plans 35
86 Recovery of unpaid contributions and interest 35
87 Orders varying contributions or payment methods 36
88 Effect of order varying contributions where payments have been made 36
89 Order requiring original owner to pay compensation for inadequate
estimates and levies 36
90 Contributions for legal costs awarded in proceedings between
owners and owners corporation 37
91 Information about contributions payable for retirement village 37
Division 3 Financial statements and accounting records of owners
corporation
92 Owners corporation must prepare financial statements and statements
of key financial information 37
93 Requirements for financial statements 37
94 Statement of key financial information 38
95 Auditing of accounts and financial statements 39
Division 4 Accounting records
96 Accounting records must be kept by owners corporation 39
97 Receipts 39
98 Transaction records 39
99 Levy register 40
Division 5 Financial functions generally
100 Power to borrow money 40
101 Persons who can exercise functions relating to the finances and
accounts of the owners corporation 40
102 Limits on spending by large strata schemes 41
103 Legal services to be approved by general meeting 41
104 Restrictions on payment of expenses incurred in Tribunal proceedings 42
105 Disclosure of matters relating to legal costs 42
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Strata Schemes Management Bill 2015 [NSW]
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Part 6 Property management
Division 1 Common property
106 Duty of owners corporation to maintain and repair property 43
107 Common property memorandum 43
108 Changes to common property 44
109 Cosmetic work by owners 44
110 Minor renovations by owners 45
111 Work by owners of lots affecting common property 46
112 Owners corporation may grant licence to use common property 46
113 Agreement for payment to owner of consideration on transfer or
lease of common property 47
114 Functions subject to strata development contract 47
115 Initial maintenance schedule must be prepared 47
Division 2 Dealings with property
116 Powers to deal with property 47
Division 3 Work carried out by owners corporation
117 Provision of amenities and services to lot 48
118 Window safety devices--child safety 48
119 Work to rectify certain defects 48
120 Owners corporation may carry out work required to be carried out
by others 49
121 Provision of letterbox 49
Division 4 Powers to enter premises and carry out work
122 Power of owners corporation to enter property in order to carry out work 49
123 Access for fire safety inspections 50
124 Orders by Tribunal relating to entry to carry out work or inspections 50
Division 5 Goods left on common property
125 Disposal of abandoned goods on common property 50
Division 6 Orders about property
126 Orders relating to alterations and repairs to common property and
other property 51
127 Order relating to cosmetic work or minor renovations 51
128 Order consequent on alteration of building 51
129 Orders relating to window safety devices 52
130 Orders relating to personal property 52
131 Order granting certain licences 52
132 Rectification where work done by owner 52
Part 7 By-laws for strata schemes
Division 1 Interpretation
133 Definitions 54
Division 2 Establishment and effect of by-laws
134 By-laws that apply to strata schemes 54
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135 Requirement to comply with by-laws 54
136 Matters by-laws can provide for 55
137 Occupancy limits 55
138 Model by-laws 55
139 Restrictions on by-laws 55
140 Restrictions on by-laws during initial period 56
141 Procedure for changes to by-laws 56
Division 3 By-laws conferring rights or privileges over common
property
142 Common property rights by-law 57
143 Requirements and effect of common property rights by-laws 57
144 Common property rights by-law must provide for maintenance of
property 57
145 Common property rights by-law binding on owners for time being 58
Division 4 Enforcement of by-laws
146 Notice by owners corporation to owner or occupier 58
147 Civil penalty for breach of by-laws 58
Division 5 Orders about by-laws
148 Order revoking amendment of by-law or reviving repealed by-law 59
149 Order with respect to common property rights by-laws 59
150 Order invalidating by-law 60
Part 8 Obligations of owners, occupiers and others relating to lots
Division 1 Obligations relating to lots
151 Owners, occupiers and other persons not to interfere with support or
shelter provided by lot or with services 61
152 Owner must notify owners corporation of alteration to lot structure 61
153 Owners, occupiers and other persons not to create nuisance 61
Division 2 Agents for owners
154 Appointment of agents by corporations to exercise functions in
relation to lots 61
155 Owner may appoint agent if not able to deal with notices 62
Division 3 Keeping of animals on lots
156 Order for removal of an animal not permitted under by-laws 62
157 Order permitting keeping of animal 62
158 Order for removal of an animal permitted under by-laws 63
159 Effect of orders 63
Part 9 Insurance
Division 1 Owners corporation insurance obligations
160 Owners corporation to insure building 64
161 Requirements for damage policy 64
162 Insurance premiums where strata scheme is for part only of building 65
163 Use of insurance money by owners corporation 65
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Strata Schemes Management Bill 2015 [NSW]
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164 Other mandatory insurance requirements for owners corporation 65
165 Owners corporation may take out other insurance 66
166 Strata managing agent to obtain insurance quotations 66
Division 2 Insurance claims and other matters affecting insurance
167 Part does not limit owner's insurance rights 66
168 Insurable interests 67
169 Insurance of mortgaged lot 67
170 Insurance claim where owner at fault 67
171 Action against owners corporation by owner 67
Division 3 Orders about insurance
172 Exemption by Tribunal from building insurance requirements 68
173 Effect of exemption from building insurance requirements 68
174 Order to make or pursue insurance claim 68
175 Orders requiring damage policy 68
Part 10 Records and information about strata schemes
Division 1 Strata roll and other records
176 Form of records 70
177 Owners corporation must prepare strata roll 70
178 Content of strata roll 70
179 Notices and orders to be kept 71
180 Certain records to be retained for prescribed period 71
181 Owners corporation may require certain persons to produce records,
accounts and property of the owners corporation 71
Division 2 Provision of information about strata schemes
182 Requests for inspection of records of owners corporation 72
183 Inspection of owners corporation documents 73
184 Certificate by owners corporation as to financial and other matters
relating to lot 73
185 Strata information certificate is evidence of matters stated in it 75
186 Provision of strata scheme information to tenants 75
Division 3 Orders about strata roll and records
187 Order confirming information for strata roll 75
188 Order to supply information or documents 75
Part 11 Building defects
Division 1 Preliminary
189 Definitions 77
190 Interpretation provisions--building work 77
191 Building work to which Part applies 77
192 Owners corporation decisions 78
Division 2 Inspection reports
193 Building inspectors 78
194 Obligations of developer 78
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Strata Schemes Management Bill 2015 [NSW]
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195 Approval of building inspector appointment by owners corporation 79
196 When building inspector for interim inspection arranged by Secretary 79
197 Building inspector must not be connected with developer 80
198 Obligations of building inspector 80
199 Interim report 80
200 Obligation to arrange final inspection and report 81
201 Final report 81
202 Persons who are to be provided with copies or notice of reports 82
203 Powers of building inspector 82
204 Costs of reports and appointment 82
205 Effect of inspection report 82
206 Rectification of defects 83
Division 3 Building bonds
207 Bond to be given 83
208 Form of building bond 84
209 When amount secured by building bond payable 84
210 Use of amounts secured by building bond 84
211 Tribunal may make orders as to access and contract price 85
Division 4 Miscellaneous
212 Variation of times for reports and other matters 85
213 Review of decisions 86
214 Regulations 87
215 Relationship of Part to other remedies 88
Part 12 Disputes and Tribunal powers
Division 1 Internal dispute resolution
216 Internal dispute resolution procedures for strata schemes 92
Division 2 Alternative dispute resolution by Secretary
217 Definitions 93
218 Matters that may be subject to mediation 93
219 Mediation involving disputes about part strata parcels 93
220 Representation of parties 93
221 Effect of Division on other agreements or arrangements 93
222 Privilege 94
223 Evidence of mediation sessions not admissible 94
224 Confidentiality 94
225 Exoneration from liability for mediators 94
Division 3 Procedures for applications to Tribunal
226 Interested persons 95
227 Certain applications cannot be accepted without prior mediation 95
228 Notice of applications to Tribunal 96
Division 4 Orders that may be made by Tribunal
229 General order-making power of Tribunal 96
230 Agreements and arrangements arising from mediation sessions 96
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231 Interim orders 96
232 Orders to settle disputes or rectify complaints 97
233 Order for settlement of dispute between strata schemes 98
234 Order enforcing positive covenant 98
235 Orders enforcing restrictions on uses of utility lots 99
236 Order for reallocation of unit entitlements 99
237 Orders for appointment of strata managing agent 100
238 Orders relating to strata committee and officers 102
Division 5 General provisions relating to Tribunal powers and orders
239 Orders relating to title to land 102
240 Tribunal may make order of another kind 102
241 Tribunal may prohibit or direct taking of specific actions 102
242 Dismissal of application on certain grounds 102
243 Copies of orders 102
244 Tribunal to be provided with strata report and inspections 103
245 Effect of certain orders imposing obligations on owners corporation 103
246 Recording in Register of effect of certain orders 103
247 Changes to Register after orders allocating unit entitlements 104
248 Recovery of unpaid civil penalty 104
Part 13 Offences and proceedings
Division 1 Offences and enforcement
249 Investigations by Secretary 105
250 Penalty notices 105
251 Nature of proceedings for offences 106
252 Proof of reasonable excuse 106
Division 2 Other proceedings
253 Other rights and remedies not affected by this Act 106
254 Owners corporation may represent owners in certain proceedings 106
255 Structural defects--proceedings as agent 107
Part 14 Miscellaneous
256 Functions of Secretary 108
257 Delegation by Secretary 108
258 Tenancy notice to be given to owners corporation of leases
or subleases 108
259 Notice to be given to owners corporation of mortgagee taking
possession of lot 109
260 Personal liability 109
261 Address for service 109
262 Service of documents on an owners corporation 109
263 Service of documents by owners corporation and others 109
264 Service of documents 110
265 Change of owners corporation's address 111
266 Dividing fences 111
267 Apportionment of statutory charges 111
268 Powers of entry by public authority or public officer 112
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Strata Schemes Management Bill 2015 [NSW]
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269 Notices under Real Property Act 1900 to owners corporation taken
to be notices to owners 112
270 Contracting out prohibited 112
271 Regulations 112
272 Persons who may keep seals of owners corporations 113
273 Affixing of seal of owners corporation 113
274 Act to bind Crown 114
275 Repeals 114
276 Review of Act 114
Schedule 1 Meeting procedures of owners corporation 115
Schedule 2 Meeting procedures of strata committees 126
Schedule 3 Savings, transitional and other provisions 131
Schedule 4 Amendment of Acts 134
Page 10
New South Wales
Strata Schemes Management Bill 2015
No , 2015
A Bill for
An Act with respect to the management of strata schemes and disputes related to strata schemes
and other matters; and to repeal the Strata Schemes Management Act 1996.
See also the Strata Schemes Development Bill 2015.
Strata Schemes Management Bill 2015 [NSW]
Part 1 Preliminary
The Legislature of New South Wales enacts: 1
Part 1 Preliminary 2
1 Name of Act 3
This Act is the Strata Schemes Management Act 2015. 4
2 Commencement 5
This Act commences on a day or days to be appointed by proclamation. 6
3 Objects of Act 7
The objects of this Act are as follows: 8
(a) to provide for the management of strata schemes, 9
(b) to provide for the resolution of disputes arising from strata schemes. 10
4 Definitions 11
(1) In this Act: 12
accounting records means the accounting records required to be kept by an owners 13
corporation under section 96. 14
administrative fund of an owners corporation means the fund established by the 15
owners corporation under section 73. 16
aggregate unit entitlement of lots in a strata scheme means the sum of the unit 17
entitlements of the lots. 18
approved insurer means: 19
(a) a general insurer within the meaning of the Insurance Act 1973 of the 20
Commonwealth, or 21
(b) any other person prescribed by the regulations for the purposes of this 22
definition. 23
building, in relation to a strata scheme or a proposed strata scheme, means a building 24
containing a lot or proposed lot, or part of a lot or proposed lot, in the scheme or 25
proposed scheme. 26
building management committee means a building management committee 27
established for a building under a strata management statement for a strata scheme. 28
building manager--see section 66. 29
building manager agreement-see section 67. 30
by-laws means the by-laws in force for a strata scheme. 31
capital works fund of an owners corporation means the fund established by the 32
owners corporation under section 74. 33
change a by-law--see section 133. 34
common property, in relation to a strata scheme or a proposed strata scheme, has the 35
same meaning as it has in the Strata Schemes Development Act 2015. 36
common property rights by-law--see section 142. 37
community scheme has the same meaning as it has in the Community Land 38
Development Act 1989. 39
company nominee of a corporation means an individual for the time being authorised 40
under section 154 (1) by the corporation. 41
connected person--see section 7. 42
Page 2
Strata Schemes Management Bill 2015 [NSW]
Part 1 Preliminary
covenant chargee of a lot or development lot in a leasehold strata scheme means a 1
covenant chargee of a leasehold estate of the lot. 2
damage policy--see section 160 (1). 3
defective building work--see section 190. 4
developer of the strata scheme constituted on registration of a strata plan proposed 5
under a development scheme means the person who, for the time being, is: 6
(a) the original owner of the strata scheme, or 7
(b) a person, other than the original owner, who is the owner of a development lot 8
within the strata plan. 9
development lot means a lot in a strata plan or strata plan of subdivision that is 10
identified by a strata development contract as a lot that is to be the subject of a strata 11
plan of subdivision under the development scheme for the contract. 12
development scheme means the scheme of development provided for, and 13
represented by, a strata development contract. 14
financial statements means the financial statements prepared by an owners 15
corporation in accordance with Division 3 of Part 5. 16
floor includes a stairway or ramp. 17
freehold strata scheme has the same meaning as it has in the Strata Schemes 18
Development Act 2015. 19
function includes a power, authority or duty, and exercise a function includes 20
perform a duty. 21
initial maintenance schedule means the schedule prepared by the original owner 22
under section 115. 23
initial period of an owners corporation of a strata scheme means the period: 24
(a) commencing on the day the owners corporation is constituted, and 25
(b) ending on the day there are owners of lots in the strata scheme (other than the 26
original owner) the sum of whose unit entitlements is at least one-third of the 27
aggregate unit entitlement. 28
interested person--see section 226. 29
large strata scheme--see section 6. 30
leasehold strata scheme has the same meaning as it has in the Strata Schemes 31
Development Act 2015. 32
lessor of a leasehold strata scheme has the same meaning as it has in the Strata 33
Schemes Development Act 2015. 34
local council, in relation to land, means: 35
(a) the council of the area under the Local Government Act 1993 in which the land 36
is situated, or 37
(b) a person declared by the regulations to be the local council for that land for the 38
purposes of this Act or any specified provision of this Act. 39
lot, in relation to a strata scheme, has the same meaning as it has in the Strata 40
Schemes Development Act 2015. 41
minor renovations--see section 110. 42
mortgage, in relation to a lot in a strata scheme, has the same meaning as it has in the 43
Strata Schemes Development Act 2015. 44
mortgagee, in relation to a lot or development lot in a leasehold strata scheme, has 45
the same meaning as it has in the Strata Schemes Development Act 2015. 46
occupier of a lot means a person in lawful occupation of the lot. 47
Page 3
Strata Schemes Management Bill 2015 [NSW]
Part 1 Preliminary
officer of an owners corporation means the chairperson, secretary or treasurer of the 1
owners corporation. 2
on-site residential property manager has the same meaning as it has in the Property, 3
Stock and Business Agents Act 2002. 4
original owner: 5
(a) of a freehold strata scheme means the person who held the fee simple in the 6
parcel the subject of that scheme when the strata plan for the scheme was 7
registered, or 8
(b) of a leasehold strata scheme means the person who, immediately after 9
registration of the strata plan for the scheme, is entitled to a leasehold estate in 10
all the lots in the scheme or is entitled to a leasehold estate in 2 or more lots in 11
the scheme with total unit entitlements exceeding more than two-thirds of the 12
aggregate unit entitlement of the lots in the scheme. 13
owner of a lot in a strata scheme means: 14
(a) except as provided by paragraph (b) or (c), each person for the time being 15
recorded in the Register as entitled to an estate in fee simple in the lot (in the 16
case of a freehold strata scheme) or as entitled to a leasehold estate in the lot 17
(in the case of a leasehold strata scheme), or 18
(b) except as provided by paragraph (c), each person whose name is entered on the 19
strata roll in accordance with section 178 as being entitled to an estate in fee 20
simple in the lot (in the case of a freehold strata scheme) or as entitled to a 21
leasehold estate in the lot (in the case of a leasehold strata scheme), or 22
(c) each person who is taken by section 43 (1) of the Strata Schemes Development 23
Act 2015 to be the owner of the lot. 24
owners corporation means an owners corporation constituted under section 8 for a 25
strata scheme. 26
parcel means: 27
(a) in relation to a strata scheme, the land from time to time comprising the lots 28
and common property in the scheme, and 29
(b) in relation to a plan lodged for registration as a strata plan, the land comprised 30
in that plan. 31
part strata parcel has the same meaning as it has in the Strata Schemes Development 32
Act 2015. 33
person present at a meeting includes a person who is not personally present but is 34
able to vote at the meeting by another means specified under clause 28 of Schedule 1 35
or clause 10 of Schedule 2. 36
planning approval means: 37
(a) a development consent within the meaning of the Environmental Planning and 38
Assessment Act 1979, or 39
(b) an approval under Part 3A or Part 5.1 of that Act. 40
positive covenant means a positive covenant imposed on land under section 88D 41
or 88E of the Conveyancing Act 1919. 42
precinct scheme has the same meaning as it has in the Community Land 43
Development Act 1989. 44
public authority means a public or local authority that is constituted by or under an 45
Act. 46
registered means registered in the office of the Registrar-General. 47
registrar means a registrar of the Tribunal. 48
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Strata Schemes Management Bill 2015 [NSW]
Part 1 Preliminary
retirement village has the same meaning as it has in the Retirement Villages 1
Act 1999. 2
schedule of unit entitlement, in relation to a strata scheme, has the same meaning as 3
it has in the Strata Schemes Development Act 2015. 4
Secretary means the Secretary of the Department of Finance, Services and 5
Innovation. 6
special resolution--see section 5. 7
strata committee of an owners corporation means the strata committee of that owners 8
corporation established under this Act. 9
strata development contract has the same meaning as it has in the Strata Schemes 10
Development Act 2015. 11
strata information certificate--see section 184 (1). 12
strata interest notice--see section 22 (1). 13
strata management statement has the same meaning as it has in the Strata Schemes 14
Development Act 2015. 15
strata managing agent means a person appointed as the strata managing agent for a 16
strata scheme. 17
strata plan has the same meaning as it has in the Strata Schemes Development 18
Act 2015. 19
strata roll for a strata scheme or a former strata scheme means the strata roll for that 20
scheme established under Division 1 of Part 10. 21
strata scheme means a freehold strata scheme or a leasehold strata scheme. 22
tenancy notice means a notice given to an owners corporation under section 258. 23
tenant of a lot means a lessee, sublessee or assignee of a lot, but does not include an 24
owner of the lot. 25
the Register has the same meaning as it has in the Real Property Act 1900. 26
Tribunal means the Civil and Administrative Tribunal. 27
unanimous resolution--see section 5. 28
unfinancial owner means an owner of a lot in a strata scheme who has not paid all 29
contributions levied on the owner that are due and payable, and any other amounts 30
recoverable from the owner, in relation to the lot. 31
unit entitlement of a lot in a strata scheme means the unit entitlement of the lot 32
shown on the schedule of unit entitlement for the strata scheme. 33
utility lot means a lot designed to be used primarily for storage or accommodation of 34
boats, motor vehicles or goods and not for human occupation as a residence, office, 35
shop or the like. 36
wall includes a door, window or other structure dividing a lot: 37
(a) from common property or from another lot, or 38
(b) if the lot is a lot in a part strata parcel--from any part of a building that is not 39
within the parcel. 40
(2) A reference in this Act to the registration of a strata plan or a strata plan of 41
subdivision is a reference to the registration of a plan as any such plan under the 42
Strata Schemes Development Act 2015. 43
(3) This Act applies to a leasehold strata scheme in the same way as it applies to a 44
freehold strata scheme unless otherwise specified. 45
(4) Notes included in this Act do not form part of this Act. 46
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Strata Schemes Management Bill 2015 [NSW]
Part 1 Preliminary
5 Resolutions of owners corporations 1
(1) In this Act, a resolution of an owners corporation is a special resolution if: 2
(a) it is passed at a properly convened general meeting, and 3
(b) not more than 25% of the value of votes cast are against the resolution. 4
(2) For the purposes of determining a special resolution, the value of a vote in respect of 5
a lot is equal to the unit entitlement of the lot. However, if the total unit entitlement 6
of lots of the original owner is not less than half of the aggregate unit entitlement, the 7
value of the vote in respect of those lots is taken to be reduced by two-thirds (ignoring 8
any fraction). 9
(3) In this Act, a resolution of an owners corporation is a unanimous resolution if it is 10
passed at a properly convened general meeting and no vote is cast against the 11
resolution. 12
Note. A motion or election that is not required to be approved by a special resolution or 13
unanimous resolution is passed by a simple majority of votes (see clause 14 of Schedule 1). 14
6 Meaning of "large strata scheme" 15
(1) In this Act, large strata scheme means a strata scheme comprising more than 100 lots 16
or another number of lots prescribed by the regulations for the purposes of this 17
section. 18
(2) When calculating the number of lots in a strata scheme for the purposes of this 19
section, utility lots and lots used for the purposes of parking are not to be included in 20
the calculation. 21
(3) The regulations may contain provisions of a savings or transitional nature consequent 22
on a change in the kinds of schemes that are large strata schemes. 23
7 Connected persons 24
(1) For the purposes of this Act, a person (the principal person) is connected with 25
another person if the other person: 26
(a) is a relative (within the meaning of the Local Government Act 1993) of the 27
principal person or, if the principal person is a corporation, is a relative of the 28
holder of an executive position in the corporation, or 29
(b) is employed or engaged by the principal person or is a business partner of the 30
principal person, or 31
(c) if the principal person is a corporation, holds an executive position in the 32
corporation, or 33
(d) is the employer of the principal person, or 34
(e) is employed or engaged by, or holds an executive position in, a corporation 35
that also employs or engages the principal person or in which the principal 36
person holds an executive position, or 37
(f) has any other connection or association with the principal person of a kind 38
prescribed by the regulations. 39
(2) However, the principal person is not connected with a member of an owners 40
corporation, or the strata committee of an owners corporation, merely because of any 41
dealing, contact or arrangement the member has with the principal person in the 42
capacity of a member of the owners corporation or strata committee. 43
(3) In this section, executive position in a corporation means the position of director, 44
manager or secretary of the corporation, or any other executive position of the 45
corporation, however those positions are designated. 46
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Strata Schemes Management Bill 2015 [NSW]
Part 2 Managing body for strata schemes--owners corporation
Part 2 Managing body for strata schemes--owners 1
corporation 2
Division 1 Constitution of owners corporation 3
8 Constitution of owners corporation 4
(1) The owners of the lots from time to time in a strata scheme constitute a body 5
corporate under the name "The Owners--Strata Plan No X" (X being the registered 6
number of the strata plan to which that strata scheme relates). 7
(2) An owners corporation is declared to be an excluded matter for the purposes of 8
section 5F of the Corporations Act 2001 of the Commonwealth in relation to the 9
whole of the Corporations legislation. 10
Note. This subsection ensures that neither the Corporations Act 2001 of the Commonwealth 11
nor Part 3 of the Australian Securities and Investments Commission Act 2001 of the 12
Commonwealth will apply in relation to an owners corporation. Section 5F of the Corporations 13
Act 2001 of the Commonwealth provides that if a State law declares a matter to be an excluded 14
matter in relation to those Acts, then the provisions of those Acts will not apply in relation to 15
that matter in the State concerned. 16
Division 2 Management of strata schemes 17
9 Owners corporation responsible for management of strata scheme 18
(1) The owners corporation for a strata scheme has the principal responsibility for the 19
management of the scheme. 20
(2) The owners corporation has, for the benefit of the owners of lots in the strata scheme: 21
(a) the management and control of the use of the common property of the strata 22
scheme, and 23
(b) the administration of the strata scheme. 24
(3) The owners corporation has responsibility for the following: 25
(a) managing the finances of the strata scheme (see Part 5), 26
(b) keeping accounts and records for the strata scheme (see Parts 5 and 10), 27
(c) maintaining and repairing the common property of the strata scheme (see 28
Part 6), 29
(d) taking out insurance for the strata scheme (see Part 9). 30
10 Functions of owners corporation generally 31
(1) An owners corporation has such other functions as may be conferred or imposed on 32
it by or under this or any other Act. 33
(2) An owners corporation must not delegate any of its functions to a person unless the 34
delegation is specifically authorised by this Act. 35
11 Other management bodies and persons who assist the owners corporation 36
The owners corporation for a strata scheme may be assisted in the carrying out of its 37
management functions under this Act by any one or more of the following: 38
(a) the strata committee of the owners corporation established in accordance with 39
this Act, 40
(b) a strata managing agent for the scheme appointed in accordance with Part 4, 41
(c) a building manager for the scheme appointed in accordance with Part 4. 42
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Strata Schemes Management Bill 2015 [NSW]
Part 2 Managing body for strata schemes--owners corporation
12 Owners corporation may employ persons to assist in exercise of functions 1
(1) The owners corporation for a strata scheme may employ such persons as it thinks fit 2
to assist it in the exercise of any of its functions. 3
(2) The owners corporation must ensure that any person employed to assist it in the 4
exercise of a function has the qualifications (if any) required by this Act or any other 5
law for the exercise of that function. 6
13 Functions that may only be delegated to member of strata committee or strata 7
managing agent 8
(1) The following functions of an owners corporation, strata committee or officer of an 9
owners corporation may be delegated to or conferred only on a member of the strata 10
committee or a strata managing agent: 11
(a) the preparation of estimates for the purposes of section 79, 12
(b) the levying of contributions, 13
(c) the receiving of, acknowledging of, banking of or accounting for money paid 14
to the owners corporation, 15
(d) having custody of any money paid to the owners corporation or making 16
payments from any such money, 17
(e) the taking out of insurance required or permitted by this Act, 18
(f) the conduct of meetings of the owners corporation and handling of 19
correspondence, 20
(g) the maintenance of records required to be kept under this Act, 21
(h) such other functions as may be prescribed by the regulations. 22
(2) This section is subject to sections 56 and 101. 23
Note. Section 101 enables some of these functions to be exercised by certain other specified 24
persons. 25
Division 3 Meetings of owners corporation 26
14 First AGM must be held within 2 months after initial period 27
(1) The original owner or, in the case of a leasehold strata scheme for which there is no 28
original owner, the lessor of the leasehold strata scheme must convene and hold a 29
meeting of the owners corporation, in accordance with this Act and the regulations, 30
not later than 2 months after the end of the initial period. 31
Maximum penalty: 10 penalty units. 32
(2) An original owner or lessor who fails to comply with this section remains liable to 33
the penalty for that contravention even if the Tribunal makes an order under this 34
Division or a meeting is convened and held in accordance with the order or 35
otherwise. 36
(3) An original owner or lessor required to convene the first annual general meeting of 37
an owners corporation must give at least 14 days notice of the first annual general 38
meeting to: 39
(a) each other owner and each first mortgagee and covenant chargee shown on the 40
strata roll, and 41
(b) each tenant of a lot in the strata scheme whose name has been notified under a 42
tenancy notice as a tenant of the lot to the owners corporation in accordance 43
with this Act. 44
Page 8
Strata Schemes Management Bill 2015 [NSW]
Part 2 Managing body for strata schemes--owners corporation
15 Agenda for first AGM 1
The agenda for the first annual general meeting of an owners corporation must 2
include the following items and may include other items: 3
(a) to decide whether the amount of a contribution required to be made to the 4
administrative fund or capital works fund should be confirmed or varied, 5
(b) to discuss the preparation of the 10-year capital works fund plan, 6
(c) to determine the number of members of the strata committee and to elect the 7
strata committee, 8
(d) to decide whether insurance taken out by the owners corporation should be 9
confirmed, varied or extended, 10
(e) to decide whether insurance referred to in section 165 (2) should be taken out 11
by the owners corporation, 12
(f) to decide if any matter or class of matter is to be determined by the owners 13
corporation in general meeting, 14
(g) to decide whether the by-laws for the strata scheme should be altered or added 15
to, 16
(h) to decide whether a strata managing agent should be appointed by the owners 17
corporation and, if appointed, what functions of the owners corporation should 18
be delegated to the strata managing agent, 19
(i) if there is a strata managing agent, a form of motion to consider the report by 20
the agent as to whether, and what, commissions have been paid to the agent or 21
are likely to be payable to the agent for the following 12 months, 22
(j) to decide whether a building manager should be appointed and, if appointed, 23
what functions the building manager should exercise, 24
(k) to receive the documents required to be provided under section 16, 25
(l) to consider the accounting records and last financial statements prepared, 26
(m) to consider the initial maintenance schedule, 27
(n) to consider building defects and rectification, 28
(o) to appoint an auditor or to decide whether an auditor should be appointed, 29
(p) any item prescribed by the regulations for the purposes of this section. 30
16 Documents and records to be provided to owners corporation at first AGM 31
(1) An original owner or lessor of a strata scheme required to convene a meeting under 32
this Division must, not later than 48 hours before its first annual general meeting, 33
deliver to the owners corporation the following: 34
(a) all plans, specifications, occupation certificates or other certificates (other than 35
certificates of title for lots), diagrams, depreciation schedules and other 36
documents (including policies of insurance) relating to the parcel or any 37
building on the parcel, 38
(b) without limiting paragraph (a), all planning approvals, complying 39
development certificates and related endorsed plans, approvals, "as built" 40
drawings, compliance certificates (within the meaning of the Environmental 41
Planning and Assessment Act 1979), fire safety certificates and warranties 42
relating to the parcel or any building, plant or equipment on the parcel, 43
(c) the certificate of title for the common property, the strata roll and any notices 44
or other records relating to the strata scheme, 45
(d) the initial maintenance schedule, 46
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Part 2 Managing body for strata schemes--owners corporation
(e) any interim report or final report of a building inspector prepared under Part 11 1
and relating to any building on the parcel, 2
(f) any other document or item relating to the parcel or any building, plant or 3
equipment on the parcel that is prescribed by the regulations for the purposes 4
of this section. 5
Maximum penalty: 100 penalty units. 6
(2) An original owner or lessor is only required under this section to deliver to the 7
owners corporation a thing if that thing is in the possession or control of the original 8
owner or lessor or may be obtained by the original owner or lessor by taking 9
reasonable steps to do so. 10
(3) This section does not require an original owner or lessor to deliver to the owners 11
corporation any documents that exclusively evidence rights or obligations of the 12
original owner or lessor and that are not capable of being used for the benefit of the 13
owners corporation or any of the other owners. 14
17 Tribunal may order initial documents to be provided 15
The Tribunal may, on application by an owners corporation, order an original owner 16
or lessor required to convene a meeting under this Division to provide to the owners 17
corporation a thing that was required to be but was not delivered to the owners 18
corporation in accordance with this Division. 19
18 AGM must be held 20
An owners corporation must hold an annual general meeting once in each financial 21
year of the corporation. 22
19 Other general meetings 23
(1) The secretary or a strata committee of an owners corporation may convene a general 24
meeting (that is not an annual general meeting) of the owners corporation at any time. 25
(2) The secretary of the owners corporation, or another officer if the secretary is absent, 26
must convene a general meeting (that is not an annual general meeting) of the owners 27
corporation as soon as practicable, and not later than 14 days after, receiving a 28
qualified request. 29
(3) A meeting may be convened on a qualified request even if the first annual general 30
meeting has not been held. 31
(4) A request is a qualified request for the purposes of this section if it is made by one 32
or more owners of a lot or lots in the strata scheme having a total unit entitlement of 33
at least one-quarter of the aggregate unit entitlements. 34
20 Tribunal may appoint person to hold first AGM and other meetings 35
(1) The Tribunal may, on application by an owners corporation or an owner or 36
mortgagee of a lot in a strata scheme, order a person to convene and hold a meeting 37
of the owners corporation within the time specified in the order if a meeting has not 38
been convened and held in accordance with this Act. 39
(2) The person who is to convene and hold the meeting is to be a person nominated by 40
the applicant, or appointed by the Tribunal, who has consented to the nomination or 41
appointment. 42
21 Unanimous or special resolutions to be amended or revoked in same way 43
(1) A unanimous resolution or special resolution of an owners corporation about a matter 44
that is required by or under this Act or the by-laws of a strata scheme to be 45
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Part 2 Managing body for strata schemes--owners corporation
determined by a resolution of that kind cannot be amended or revoked other than by 1
a subsequent resolution of the same kind. 2
(2) However, a unanimous resolution of an owners corporation dealing with common 3
property may be amended by a special resolution. 4
22 Notice to be given to owners corporation of right to cast vote at meeting 5
(1) Person with right to vote at meetings must notify owners corporation 6
A person who has an interest in a lot that, subject to this Act, gives the person a right 7
to cast a vote either personally or by nominee at meetings of an owners corporation 8
must give the owners corporation written notice of that interest (a strata interest 9
notice). 10
(2) Contents of strata interest notice 11
The strata interest notice must specify the following information and, if the interest 12
is a mortgage, include confirmation by the mortgagor or be verified by statutory 13
declaration of the mortgagee: 14
(a) the person's full name and an address for service of notices, 15
(b) the lot concerned and the exact nature of the person's interest in it, 16
(c) the date on which the person acquired the interest, 17
(d) if the voting entitlement conferred by the interest is one that, according to this 18
Act, is to be exercised by a nominee, the nominee's full name and address for 19
service of notices. 20
Note. An address for service of notices may be an Australian postal address or an electronic 21
address, including an email address (see section 261). 22
(3) Other matters to be specified in notice 23
The strata interest notice must specify the manner in which the interest arose and be 24
verified by statutory declaration if any of the following applies to the interest: 25
(a) the interest is that of the executor or administrator of the estate of a deceased 26
person, 27
(b) the interest is that of the liquidator or receiver in bankruptcy of any person, 28
(c) the interest has arisen by operation of law or the order of any court, 29
(d) the interest has arisen in any manner otherwise than by transfer of the interest 30
from some other person or the discharge of a mortgage. 31
(4) Owners corporation may require notice to be given 32
The secretary of the owners corporation, if of the opinion that a person obliged to 33
give notice under this section has not done so, may by a written notice given to the 34
person require the person: 35
(a) to state, within 14 days, whether or not the person is a person required to give 36
notice under this section, and 37
(b) if the person is such a person, to give that notice. 38
(5) Person prevented from casting vote if certain requirements not met 39
A person is not entitled to cast a vote at a meeting of the owners corporation if the 40
person has not complied with a notice given to the person under subsection (4) or, in 41
the case of a vote to be tendered through a nominee, if the nominee's full name and 42
address for service of notices have not been notified under this section. 43
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Part 2 Managing body for strata schemes--owners corporation
(6) Changes in certain information to be notified 1
A person who has given notice under this section may by further notice advise any 2
change of nominee or of the person's or any nominee's address for service. 3
23 Meeting procedures and voting 4
Other procedures for general meetings of the owners corporation and voting at those 5
meetings are set out in Schedule 1. 6
24 Order invalidating resolution of owners corporation 7
(1) The Tribunal may, on application by an owner or first mortgagee of a lot in a strata 8
scheme, make an order invalidating any resolution of, or election held by, the persons 9
present at a meeting of the owners corporation if the Tribunal considers that the 10
provisions of this Act or the regulations have not been complied with in relation to 11
the meeting. 12
(2) The Tribunal may, on application by an owner or first mortgagee of a lot in a strata 13
scheme, make an order invalidating any resolution of, or election held by, the persons 14
present at a meeting of the owners corporation if the Tribunal considers that the 15
provisions of Part 10 (other than Division 6 or 7) of the Strata Schemes Development 16
Act 2015 have not been complied with in relation to the meeting. 17
(3) The Tribunal may refuse to make an order under this section only if it considers: 18
(a) that the failure to comply with the provisions of this Act or the regulations, or 19
of the Strata Schemes Development Act 2015, did not adversely affect any 20
person, and 21
(b) that compliance with the provisions would not have resulted in a failure to pass 22
the resolution or affected the result of the election. 23
(4) The Tribunal may not make an order invalidating a resolution under subsection (2) if 24
an application for an order has been made under Division 6 of Part 10 of the Strata 25
Schemes Development Act 2015 in relation to the same or a related matter. 26
(5) The Tribunal may not make an order under this section invalidating a decision by an 27
owners corporation to approve, or not to approve, the appointment of a building 28
inspector under Part 11. 29
25 Order where voting rights denied or due notice of item of business not given 30
(1) The Tribunal may, on application by a person entitled to vote on a motion for a 31
resolution of an owners corporation at a general meeting, order that a resolution 32
passed at the general meeting be treated as a nullity on and from the date of the order. 33
(2) The Tribunal must not make the order unless the Tribunal is satisfied that the 34
resolution would not have been passed but for the fact that the applicant for the order: 35
(a) was improperly denied a vote on the motion for the resolution, or 36
(b) was not given due notice of the item of business in relation to which the 37
resolution was passed. 38
(3) An application for an order may not be made unless: 39
(a) an application for mediation of the dispute was made not later than 28 days 40
after the date of the meeting at which the resolution was passed, or 41
(b) if an application for mediation was not made, the application for the order was 42
made not later than 28 days after the date of the meeting at which the 43
resolution was passed. 44
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Part 2 Managing body for strata schemes--owners corporation
(4) If a resolution that is to be treated as a nullity by an order changes the by-laws and 1
the order has been recorded in the Register under this Act, the by-laws have force and 2
effect on and from the date the order is so recorded to the same extent as they would 3
have had if the change had not been made. 4
(5) Subsection (4) is subject to the by-laws having been or being changed in accordance 5
with this Act and to any relevant order made by a superior court. 6
(6) The Tribunal may not make an order under this section if an application for an order 7
has been made under Division 6 of Part 10 of the Strata Schemes Development 8
Act 2015 in relation to the same or a related matter. 9
(7) The Tribunal may not make an order under this section invalidating a decision by an 10
owners corporation to approve, or not to approve, the appointment of a building 11
inspector under Part 11. 12
Division 4 Limitation on functions during initial period 13
26 Restrictions on powers of owners corporation during initial period 14
(1) An owners corporation for a strata scheme must not, during the initial period, do any 15
of the following things unless the owners corporation is authorised to do so by an 16
order of the Tribunal under this Division: 17
(a) alter any common property or erect any structure on the common property 18
otherwise than in accordance with a strata development contract, 19
(b) incur a debt for an amount that exceeds the amount then available for 20
repayment of the debt from its administrative fund or its capital works fund, 21
(c) appoint a strata managing agent or a building manager or other person to assist 22
it in the management or control of use of the common property, or the 23
maintenance or repair of the common property, for a period extending beyond 24
the holding of the first annual general meeting of the owners corporation, 25
(d) borrow money or give securities. 26
(2) An owners corporation may recover from the original owner: 27
(a) as a debt, any amount for which the owners corporation is liable because of a 28
contravention of subsection (1) (b), together with the expenses of the owners 29
corporation incurred in recovering that amount, and 30
(b) as damages for breach of statutory duty, any loss suffered by the owners 31
corporation as a result of any other contravention of this section. 32
(3) An owner may recover, as damages for breach of statutory duty, any loss that has 33
been suffered by the owner as a result of a contravention of this section (other than 34
subsection (1) (b)). 35
(4) It is a defence to an action under this section in debt or for damages if it is proved that 36
the original owner: 37
(a) did not know of the contravention on which the action is based, or 38
(b) was not in a position to influence the conduct of the owners corporation in 39
relation to the contravention, or 40
(c) used due diligence to prevent the contravention. 41
(5) A remedy available under this section does not affect any other remedy. 42
Note. Section 140 places restrictions on the making, amendment and repeal of by-laws during 43
the initial period. 44
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Part 2 Managing body for strata schemes--owners corporation
27 Order to authorise certain acts during initial period 1
(1) The Tribunal may, on application, make an order: 2
(a) waiving, varying or extinguishing a restriction relating to the initial period of 3
an owners corporation (whether or not imposed by this Act or the Strata 4
Schemes Development Act 2015), and 5
(b) authorising any matter to be done in relation to the waiving, varying or 6
extinguishing of that restriction. 7
(2) The application may be made by the owners corporation, the original owner or an 8
owner of a lot in the strata scheme or a proposed strata scheme. 9
(3) Written notice of an application must be given to: 10
(a) the owners corporation and each owner of a lot in the strata scheme or 11
proposed strata scheme to which the application relates, unless the owners 12
corporation or the owner is the applicant, and 13
(b) each registered mortgagee of a lot in the strata scheme and any mortgagee 14
specified on the strata roll for the lot and any covenant chargee having the 15
benefit of a covenant charge affecting a lot, and 16
(c) any other persons that the Tribunal directs. 17
(4) The Tribunal may order that notice of an application be dispensed with if the 18
Tribunal considers it appropriate in the circumstances of the case. Any person to 19
whom notice is given is entitled to appear and be heard on the hearing of the 20
application. 21
(5) Notice of an application is not required to be given to a mortgagee specified on the 22
strata roll for a lot if the rights of the person as a mortgagee: 23
(a) are suspended for the time being because of a sub-mortgage, particulars of 24
which are specified on the strata roll, or 25
(b) have been terminated because of an instrument, particulars of which are 26
specified on the strata roll. 27
Division 5 Effect of termination order on owners corporation 28
28 Termination of strata scheme 29
(1) An owners corporation for a strata scheme that is subject to an order under the Strata 30
Schemes Development Act 2015 for the termination of the strata scheme continues in 31
existence until it is wound up in accordance with the order. 32
(2) While it so continues in existence, the owners corporation is constituted of persons 33
who the order specifies are liable to contribute money required for the discharge of 34
the liabilities of the owners corporation and persons who the order specifies are 35
entitled to share in a distribution of assets of the owners corporation. 36
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Part 3 Strata committee of owners corporation
Part 3 Strata committee of owners corporation 1
Division 1 Constitution of strata committee 2
29 Owners corporation to appoint strata committee 3
(1) An owners corporation must appoint a strata committee of the owners corporation in 4
accordance with this Act. 5
(2) The owners corporation may appoint the strata committee before the first annual 6
general meeting of the owners corporation. 7
(3) The members of the strata committee must be elected at the first annual general 8
meeting of the owners corporation whether or not members were appointed before 9
that meeting. 10
(4) If there is no strata committee of an owners corporation, the strata scheme must be 11
administered by the owners corporation, but nothing in this subsection prevents a 12
strata managing agent appointed under this Act from exercising any functions 13
conferred on the agent. 14
30 Members of strata committee 15
(1) The strata committee of an owners corporation is to consist of the number of persons 16
determined by the owners corporation (not being more than 9). 17
(2) The strata committee of a large strata scheme must consist of at least 3 members. 18
(3) A strata committee for a strata scheme comprising 2 lots is to consist of the following 19
persons: 20
(a) the owner of each lot who is a sole owner or the company nominee of a lot if 21
the sole owner is a corporation, 22
(b) for each lot that is owned by co-owners, the co-owner nominated by the other 23
co-owners or (if the co-owner nominated is a corporation) the company 24
nominee of that co-owner, or if there is no such nomination, the co-owner first 25
named on the strata roll. 26
(4) The elected members of a strata committee must be elected at each annual general 27
meeting of the owners corporation. 28
(5) Nomination for election as a member of a strata committee (other than a tenant 29
representative) may be made before or at the meeting at which the election is held. 30
(6) The regulations may provide for the procedures for nomination of members of the 31
strata committee. 32
31 Persons who are eligible to be appointed or elected to strata committee 33
(1) The following persons are eligible for appointment or election to the strata committee 34
of an owners corporation: 35
(a) an individual who is a sole owner of a lot in the strata scheme, 36
(b) a company nominee of a corporation that is a sole owner of a lot in the strata 37
scheme, 38
(c) an individual who is a co-owner of a lot or a company nominee of a 39
corporation that is a co-owner of a lot in the strata scheme, if the person is 40
nominated for election by an owner who is not a co-owner of the lot or by a 41
co-owner of the lot who is not a candidate for election as a member, 42
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Part 3 Strata committee of owners corporation
(d) an individual who is not an owner of a lot in the strata scheme, if the person is 1
nominated for election by an owner of a lot who is not a member, or is not 2
seeking election as a member, of the strata committee. 3
(2) To avoid doubt, an individual who is a sole owner of a lot may nominate himself or 4
herself, and an owner that is a corporation may nominate the corporation's company 5
nominee, for election as a member of the strata committee. 6
(3) A sole owner of a lot in a strata scheme may not nominate more than one person for 7
election as a member of the strata committee, except as provided by subsection (5). 8
(4) Only one co-owner (including a company nominee of a co-owner) of the same lot 9
may be a member of a strata committee at the same time, except as provided by 10
subsection (5). 11
(5) A person who is an owner of more than one lot in the strata scheme may nominate 12
one person for election as a member of the strata committee for each lot for which 13
the person is an owner. 14
32 Persons who are not eligible to be appointed or elected to strata committee 15
(1) The following persons are not eligible for appointment or election to a strata 16
committee or to act as members of a strata committee unless they are also the owners 17
of lots in the strata scheme: 18
(a) the building manager for the strata scheme, 19
(b) a person who acts as an agent for the leasing of a lot or lots in the strata scheme 20
to tenants, 21
(c) a person who is connected with the original owner of the strata scheme or the 22
building manager for the scheme, unless the person discloses that connection 23
at the meeting at which the election is held and before the election is held or 24
before the person is appointed to act as a member, 25
(d) any other person prescribed by the regulations for the purposes of this section. 26
(2) An owner of a lot in a strata scheme who was an unfinancial owner at the date notice 27
was given of the meeting at which the election of a strata committee is to be held and 28
who did not pay the amounts owing by the owner before the meeting is not eligible 29
for appointment or election to the strata committee. 30
(3) A person who becomes ineligible for appointment or election to a strata committee 31
after being appointed or elected to the strata committee must disclose that fact to the 32
secretary or chairperson of the owners corporation as soon as possible after becoming 33
aware of that fact. 34
(4) A disclosure by a person under this section, other than a disclosure that is made at a 35
meeting of an owners corporation or strata committee, is to be made by written notice 36
given to the secretary or chairperson. 37
33 Tenant representatives 38
(1) This section applies to a strata scheme if there are tenants (being tenants notified in 39
a tenancy notice given in accordance with this Act) for at least half of the number of 40
lots in the scheme. 41
(2) The tenants of lots in a strata scheme (being tenants notified in a tenancy notice given 42
in accordance with this Act) may nominate one tenant representative for the strata 43
committee. 44
(3) The tenant representative on a strata committee, in that capacity: 45
(a) is not entitled to vote on decisions of the committee or to put a motion or 46
nominate a person for office, and 47
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Part 3 Strata committee of owners corporation
(b) is not entitled to act as an officer of the owners corporation for committee 1
purposes, and 2
(c) cannot be counted in determining whether there is a quorum of the committee. 3
(4) The strata committee, at any meeting or for the purpose of all meetings, may 4
determine that a tenant representative is not entitled to be present when the following 5
matters are being discussed or determined: 6
(a) financial statements and auditor's reports, 7
(b) levying of contributions, 8
(c) recovery of unpaid contributions, 9
(d) a strata renewal proposal under Part 10 of the Strata Schemes Development 10
Act 2015 or any related matter, 11
(e) any other financial matter specified by the regulations. 12
(5) The regulations may provide for the procedures for nomination of a tenant 13
representative, including the term for which a tenant representative is appointed, the 14
notification of an appointment and the end of an appointment. 15
34 Acting members of strata committee 16
(1) A member of a strata committee may, with the consent of the strata committee, 17
appoint an owner or company nominee of a corporation that is an owner who is 18
eligible to be a member to act in his or her place as a member at any meeting of the 19
strata committee. 20
(2) The owner or company nominee appointed is, while so acting as a member, taken to 21
be a member. 22
(3) An owner or company nominee of a corporation may be appointed whether or not he 23
or she is already a member of the strata committee. 24
(4) If a person so appointed is a member of the strata committee, the person may, at any 25
meeting of the strata committee, separately vote in the person's capacity as such a 26
member and on behalf of the member in whose place the person has been appointed 27
to act. 28
35 Vacation of office of elected member of strata committee 29
(1) An elected member of a strata committee vacates office as a member: 30
(a) if the person was eligible to be a member at the time of election and the person 31
ceases to be so eligible (other than because the person is an unfinancial owner), 32
or 33
(b) if the person was not an owner at the time of election or was a company 34
nominee and the individual who nominated the person for election or the 35
corporation for which the person is a company nominee ceases to be an owner 36
or gives written notice to the owners corporation that the person's office is 37
vacated, or 38
(c) on the receipt by the owners corporation from the person of notice in writing 39
of the person's resignation as a member, or 40
(d) at the end of the next meeting at which a new strata committee is elected by 41
the owners corporation, or 42
(e) if the owners corporation, in accordance with a special resolution, determines 43
that the person's office as a member is vacated, or 44
(f) if the person dies. 45
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(2) A strata committee may appoint a person eligible for election as a member to fill a 1
vacancy in the office of a member of the strata committee, other than a vacancy 2
arising under subsection (1) (d) or a vacancy in the office of an officer of the owners 3
corporation. Any person so appointed holds office, subject to this section, for the 4
balance of his or her predecessor's term of office. 5
Note. Section 45 (2) provides for the filling of vacancies in the office of members who are 6
officers of the owners corporation. 7
(3) A special resolution that determines that the office of a member is vacated may relate 8
to more than one member of a strata committee or to all members of a strata 9
committee. 10
Division 2 Functions of strata committee 11
36 Functions of strata committee 12
(1) A strata committee has the functions conferred on it by or under this or any other Act. 13
(2) A decision of a strata committee is taken to be the decision of the owners corporation. 14
However, in the event of a disagreement between the owners corporation and the 15
strata committee, the decision of the owners corporation prevails. 16
(3) The following decisions cannot be made by the strata committee: 17
(a) a decision that is required by or under any Act to be made by the owners 18
corporation by unanimous resolution or special resolution or in general 19
meeting, 20
(b) a decision on any matter or type of matter that the owners corporation has 21
determined in general meeting is to be decided only by the owners corporation 22
in general meeting. 23
(4) An owners corporation may in general meeting continue to exercise all or any of the 24
functions conferred on it by this Act or the by-laws even though a strata committee 25
holds office. 26
37 Duty of members of strata committee 27
It is the duty of each member of a strata committee of an owners corporation to carry 28
out his or her functions for the benefit, so far as practicable, of the owners corporation 29
and with due care and diligence. 30
Note. Section 260 provides protection from personal liability for members of strata committees 31
who act in good faith. 32
38 Acts and proceedings of strata committee valid despite vacancies or defects 33
(1) This section applies if, when any act or proceeding of a strata committee was done, 34
taken or commenced there was: 35
(a) a vacancy in the office of an officer of the owners corporation or any other 36
member of the strata committee, or 37
(b) any defect in the appointment, or any disqualification, of any such officer or 38
member. 39
(2) Any act or proceeding of a strata committee done in good faith is as valid as if the 40
vacancy, defect or disqualification did not exist and the strata committee were fully 41
and properly constituted. 42
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Part 3 Strata committee of owners corporation
Division 3 Meetings of strata committee 1
39 Convening meetings 2
(1) The secretary of the owners corporation may convene a meeting of the strata 3
committee at any time. 4
(2) The secretary of the owners corporation, or any other member of the strata 5
committee, must convene a meeting of the committee if requested to do so by at least 6
one-third of the members of the committee. 7
(3) The meeting must be held: 8
(a) in the case of a large strata scheme, not later than 28 days after the request is 9
made, or 10
(b) in the case of any other strata scheme, not later than 14 days after the request 11
is made. 12
40 Meeting procedures and voting 13
Other procedures for meetings of a strata committee and voting at those meetings are 14
set out in Schedule 2. 15
Division 4 Office holders 16
41 Strata committee to appoint officers 17
(1) The members of a strata committee must, at the first meeting of the strata committee 18
after they assume office as members, appoint a chairperson, secretary and treasurer 19
of the strata committee in accordance with this Act. 20
(2) The chairperson, secretary and treasurer of the strata committee are also, 21
respectively, the chairperson, secretary and treasurer of the owners corporation. 22
(3) A person may be appointed to one or more of the offices of chairperson, secretary 23
and treasurer. 24
(4) Nomination for election as an officer of the owners corporation may be made before 25
or at the meeting at which the election is held. 26
(5) The regulations may provide for the procedures for nomination of officers of the 27
strata committee. 28
42 Functions of chairperson of owners corporation 29
The functions of the chairperson of an owners corporation include the following: 30
(a) to preside at meetings of the owners corporation and the strata committee of 31
the owners corporation, 32
(b) to make determinations as to quorums and procedural matters at meetings of 33
the owners corporation and the strata committee of the owners corporation. 34
43 Functions of secretary of owners corporation 35
The functions of a secretary of an owners corporation include the following: 36
(a) to prepare and distribute minutes of meetings of the owners corporation and 37
submit a motion for confirmation of the minutes of any meeting of the owners 38
corporation at the next such meeting, 39
(b) to give on behalf of the owners corporation and the strata committee of the 40
owners corporation notices required to be given under this Act, 41
(c) to maintain the strata roll, 42
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Part 3 Strata committee of owners corporation
(d) to enable the inspection of documents on behalf of the owners corporation in 1
accordance with this Act, 2
(e) to answer communications addressed to the owners corporation, 3
(f) to convene meetings of the strata committee and (apart from its first annual 4
general meeting) of the owners corporation, 5
(g) to attend to matters of an administrative or secretarial nature in connection 6
with the exercise of functions by the owners corporation or the strata 7
committee of the owners corporation, 8
(h) any other functions conferred on the secretary under any other Act or law. 9
44 Functions of treasurer of owners corporation 10
(1) General functions 11
The functions of a treasurer of an owners corporation include the following: 12
(a) to notify owners of any contributions levied in accordance with this Act, 13
(b) to receive, acknowledge, bank and account for any money paid to the owners 14
corporation, 15
(c) to prepare any strata information certificate, 16
(d) to keep the accounting records and prepare the financial statements. 17
(2) Delegation by treasurer of functions 18
The treasurer of an owners corporation may delegate the exercise of any of the 19
treasurer's functions (other than this power of delegation) to another member of the 20
strata committee of the owners corporation if: 21
(a) the delegation is specifically approved by the strata committee, and 22
(b) the strata committee specifically approves of the function being delegated to 23
that member, and 24
(c) the delegation is subject to any limitations as to time or otherwise that the 25
strata committee requires. 26
(3) While a delegate is acting in accordance with the terms of the delegation, the delegate 27
is taken to be the treasurer of the owners corporation. 28
(4) Strata committee may require treasurer to exercise functions jointly 29
The strata committee of an owners corporation may, by a written notice given to the 30
treasurer of the owners corporation, order the treasurer not to exercise any of the 31
treasurer's functions that are specified in the notice unless the treasurer does so 32
jointly with another person so specified. 33
45 Vacation of office by officer 34
(1) An officer of an owners corporation vacates office as an officer: 35
(a) if the person ceases to be a member of the strata committee, or 36
(b) on the receipt by the owners corporation from the person of written notice of 37
the person's resignation as an officer, or 38
(c) if another person is appointed by the strata committee to hold that office, or 39
(d) if the owners corporation, by special resolution, declares that the person's 40
office is vacated, or 41
(e) if the person dies. 42
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Part 3 Strata committee of owners corporation
(2) A strata committee is to appoint a person who is a member of the strata committee, 1
or who is eligible to be a member of the strata committee, to fill a vacancy in the 2
office of an officer of an owners corporation, other than a vacancy referred to in 3
section 35 (1) (d). Any person so appointed holds office, subject to this section, for 4
the balance of his or her predecessor's term of office. 5
46 Payment of officers of owners corporation 6
An owners corporation may pay to a person who is an officer of the owners 7
corporation or another member of the strata committee of the owners corporation an 8
amount determined by the owners corporation at an annual general meeting in 9
recognition of services performed by the person for the owners corporation in the 10
period since the last annual general meeting. 11
47 Original owner to exercise officers' functions before appointment of officers 12
The functions of the chairperson, secretary and treasurer of an owners corporation 13
are to be exercised by the original owner of the strata scheme, or an agent of the 14
original owner authorised in writing, until the offices are filled or until the end of the 15
first annual general meeting of the owners corporation, whichever first occurs. 16
48 Tribunal may order meeting if no officers or strata committee 17
(1) The Tribunal may, on application by an owner, mortgagee or covenant chargee of a 18
lot in a strata scheme, make an order appointing a person to convene and hold a 19
meeting of the owners corporation if there is not a chairperson, secretary and 20
treasurer of the owners corporation, or if no strata committee exists, after the first 21
annual general meeting of the owners corporation has been held. 22
(2) The Tribunal may make any other ancillary orders it thinks fit, including the 23
following orders: 24
(a) orders relating to giving notice of the meeting, 25
(b) orders relating to the person who is to preside at the meeting. 26
(3) The person who is to convene and hold the meeting is to be a person nominated by 27
the applicant, or appointed by the Tribunal, who has consented to the nomination or 28
appointment. 29
(4) The meeting is to be convened and held within the time (if any) specified in the order. 30
(5) A person appointed by an order under this section to preside at a meeting is taken, 31
while so presiding, to be the chairperson of the owners corporation. 32
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Part 4 Strata managing agents and building managers
Part 4 Strata managing agents and building managers 1
Division 1 Appointment of strata managing agents 2
49 Appointment of strata managing agents 3
(1) An owners corporation for a strata scheme may appoint a person who is the holder of 4
a strata managing agent's licence under the Property, Stock and Business Agents 5
Act 2002 to be the strata managing agent of the scheme. 6
(2) The appointment is to be made by instrument in writing authorised by a resolution at 7
a general meeting of the owners corporation. 8
(3) The developer of a strata scheme, or a person connected with the developer, is not 9
entitled to be appointed as the strata managing agent of the scheme until after the end 10
of the period of 10 years commencing on the date of registration of the strata plan. 11
(4) A reference in this section to a strata managing agent's licence under the Property, 12
Stock and Business Agents Act 2002 includes a reference to a corporation licence 13
under that Act that authorises the holder to act as, or carry on the business of, a strata 14
managing agent. 15
(5) An owner who is seeking appointment as a strata managing agent is not entitled to 16
vote or cast a proxy vote on the appointment at a meeting of the owners corporation. 17
50 Term of appointment of strata managing agents 18
(1) The term of appointment (including any additional term under an option to renew) of 19
a strata managing agent for a strata scheme expires (if the term of the appointment 20
does not end earlier or is not ended earlier for any other reason): 21
(a) if the strata managing agent is appointed by the owners corporation at the first 22
annual general meeting, at the end of the period of 12 months following that 23
appointment, or 24
(b) in any other case, at the end of the period of 3 years following the appointment. 25
(2) A person may be reappointed by the owners corporation by resolution at a general 26
meeting as the strata managing agent for a strata scheme at the end of the person's 27
term of appointment. 28
(3) The appointment of a strata managing agent may be terminated in accordance with 29
the instrument of appointment if authorised by a resolution at a general meeting of 30
the owners corporation. 31
(4) The term of appointment of a strata managing agent may be extended by the strata 32
committee for successive periods of up to 1 month after it would otherwise expire 33
pending a decision as to the reappointment of the strata managing agent. 34
(5) A strata managing agent must give the owners corporation written notice of the end 35
of a term of appointment: 36
(a) at least 3 months before the end of the term of appointment, and 37
(b) at least 7 days before the end of each extension of a term permitted by this 38
section. 39
(6) In this section, a reference to the appointment of a strata managing agent includes a 40
reference to the reappointment of a strata managing agent. 41
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Part 4 Strata managing agents and building managers
51 Transfer of functions of strata managing agent 1
(1) A strata managing agent may transfer his or her functions as a strata managing agent, 2
but only if the transfer is authorised by a resolution at a general meeting of the owners 3
corporation for the strata scheme. 4
(2) A person to whom the functions are transferred is taken to be appointed under this 5
Division as a strata managing agent for the strata scheme. 6
(3) The term of appointment as a strata managing agent of the person to whom the 7
functions are transferred ends on the same day as the term of the person by whom the 8
functions were transferred would have ended if the transfer had not taken place. 9
Division 2 Functions of strata managing agent 10
52 Owners corporation may delegate functions to strata managing agent 11
(1) An owners corporation may, by the instrument appointing a strata managing agent or 12
some other instrument, delegate to the strata managing agent: 13
(a) all of its functions, or 14
(b) any one or more of its functions specified in the instrument, or 15
(c) all of its functions except those specified in the instrument. 16
(2) An owners corporation must not delegate to a strata managing agent its power to 17
make: 18
(a) a delegation under this section, or 19
(b) a decision on a matter that is required to be decided by the owners corporation, 20
or 21
(c) a determination relating to the levying or payment of contributions. 22
(3) A delegation may be made subject to the conditions or limitations as to the exercise 23
of all or any of the functions, or as to time or circumstances, that may be specified in 24
the instrument of delegation. 25
(4) An owners corporation may delegate the functions only if authorised to do so by a 26
resolution at a general meeting. 27
(5) An owners corporation may, if authorised to do so by a resolution at a general 28
meeting, revoke or vary a delegation under this section. 29
53 Exercise of delegated functions by strata managing agent 30
(1) A function delegated under this Division may, while the delegation remains 31
unrevoked, be exercised from time to time in accordance with the delegation. 32
(2) Despite any delegation made under this Division, the owners corporation may 33
continue to exercise all or any of the functions delegated. 34
(3) Any act or thing done or suffered by a strata managing agent while acting in the 35
exercise of a delegation under this Division: 36
(a) has the same effect as if it had been done or suffered by the owners 37
corporation, and 38
(b) is taken to have been done or suffered by the owners corporation. 39
(4) This section is subject to section 56. 40
54 Functions of officers and strata committee may be given to strata managing agent 41
(1) The instrument of appointment of a strata managing agent may provide that the strata 42
managing agent has and may exercise all the functions of the chairperson, secretary, 43
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Part 4 Strata managing agents and building managers
treasurer or strata committee of an owners corporation or the functions of those 1
officers or the strata committee specified in the instrument. 2
(2) However, the chairperson, secretary, treasurer and strata committee of an owners 3
corporation may continue to exercise all or any of the functions that the strata 4
managing agent is authorised to exercise. 5
(3) Any act or thing done or suffered by a strata managing agent in the exercise of any 6
function of the chairperson, secretary, treasurer or strata committee conferred on the 7
strata managing agent in accordance with this section: 8
(a) has the same effect as if it had been done or suffered by the chairperson, 9
secretary, treasurer or strata committee, and 10
(b) is taken to have been done or suffered by the chairperson, secretary, treasurer 11
or strata committee. 12
(4) This section is subject to section 56. 13
55 Strata managing agent to record exercise of functions 14
(1) A strata managing agent who exercises a function of the owners corporation or of an 15
officer of the owners corporation must, immediately after its exercise, make a record 16
specifying the function and the manner in which it was exercised. 17
(2) The strata managing agent must give a copy of the records kept for the preceding 18
12 months to the owners corporation at least once each year. 19
56 Exercise of functions of strata managing agent appointed by Tribunal 20
If a strata managing agent is appointed by the Tribunal, or by an owners corporation 21
on an order of the Tribunal, to exercise a function: 22
(a) the function cannot, while the strata managing agent holds office, be exercised 23
by any other person, and 24
(b) anything done or suffered by the strata managing agent in the exercise of the 25
function has the same effect as it would have if it had been done or suffered by 26
the person who, but for paragraph (a), could have exercised it. 27
57 Breaches by strata managing agent 28
(1) If a strata managing agent has been delegated a function by an owners corporation 29
and a breach of the duty by the owners corporation would constitute an offence under 30
a provision of this Act, the agent is guilty of an offence under that provision (instead 31
of the owners corporation) for any breach of the duty by the agent occurring while 32
the delegation remains in force. 33
(2) A strata managing agent must not, in connection with the provision of services as a 34
strata managing agent or the exercise of functions as a strata managing agent, request 35
or accept a gift or other benefit from another person for himself or herself or for 36
another person. 37
Maximum penalty: 20 penalty units. 38
(3) Subsection (2) does not apply to: 39
(a) remuneration paid to a strata managing agent or an employee or contractor of 40
a strata managing agent by an owners corporation, or 41
(b) a monetary commission provided to a strata managing agent, if the provision 42
of such a commission is in accordance with the terms of appointment of the 43
strata managing agent by the owners corporation or has been otherwise 44
approved by the owners corporation, or 45
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Part 4 Strata managing agents and building managers
(c) a training service provided to, or paid for, a strata managing agent, if it was 1
related to strata management functions and the provision or payment is in 2
accordance with the terms of appointment of the strata managing agent by the 3
owners corporation or has been otherwise approved by the owners 4
corporation, or 5
(d) a gift or other benefit that has a value that is less than the amount prescribed 6
by the regulations for the purposes of this subsection. 7
(4) In this section: 8
gift has the same meaning as it has in Part 6 of the Election Funding, Expenditure 9
and Disclosures Act 1981. 10
training service means a training course or service (including attendance at industry 11
events such as conferences). 12
Division 3 Accountability of strata managing agent 13
58 Strata managing agent may be required to provide information about trust account 14
and other accounts 15
(1) An owners corporation may require a strata managing agent to provide the following 16
information relating to the trust account that the agent is required to operate under the 17
Property, Stock and Business Agents Act 2002: 18
(a) the name and number of the account, 19
(b) the name of the authorised deposit-taking institution in which the account is 20
current, 21
(c) the balance in the account standing to the credit of the owners corporation on 22
a specified date, 23
(d) particulars of all cheques drawn on the account on behalf of the owners 24
corporation as at that date and not presented and duly paid. 25
(2) An owners corporation may require a strata managing agent to provide the following 26
information relating to any other accounts on which the agent operates in the exercise 27
of functions of the owners corporation: 28
(a) the names and numbers of the accounts, 29
(b) the names of the authorised deposit-taking institutions in which the accounts 30
are current, 31
(c) the balance in each of the accounts standing to the credit of the owners 32
corporation on a specified date, 33
(d) particulars of all cheques drawn on each of the accounts as at that date and not 34
presented and duly paid. 35
59 Provision of information about money received and other transactions 36
(1) An owners corporation may require a strata managing agent to provide: 37
(a) full particulars relating to the payment of money to, or the receipt of money 38
by, the agent on behalf of the owners corporation, and 39
(b) if the money is not still held by the agent, the manner and time of disposal of 40
the money. 41
(2) An owners corporation may require a strata managing agent to provide full 42
particulars of any specified transaction that has been entered into by the agent on 43
behalf of the owners corporation. 44
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Part 4 Strata managing agents and building managers
60 Disclosure of commissions and training services 1
(1) A strata managing agent for a strata scheme must report the following at the annual 2
general meeting of the owners corporation for the scheme: 3
(a) whether any commissions or training services have been provided to or paid 4
for the agent (other than by the owners corporation) in connection with the 5
exercise by the agent of functions for the scheme during the preceding 6
12 months and particulars of any such commissions or training services, 7
(b) any such commissions or training services and the estimated amount or value 8
of any such commissions or training services that the agent believes are likely 9
to be provided to or paid for the agent in the following 12 months. 10
Maximum penalty: 20 penalty units. 11
Note. It will be an offence for an agent to receive commissions or training services that are not 12
of a kind permitted by the agent's terms of appointment or approved by the owners corporation 13
(see section 57). 14
(2) A strata managing agent must, as soon as practicable after becoming aware that 15
commissions or training services provided to or paid for the agent (other than by the 16
owners corporation) differ from the commissions or training services or any estimate 17
of them disclosed at the annual general meeting, disclose to the strata committee the 18
variation and give an explanation for the variation. 19
Maximum penalty: 20 penalty units. 20
(3) The Tribunal may, on application by an owners corporation, order a strata managing 21
agent to pay to the owners corporation: 22
(a) the whole or part of the amount or value of any commissions or training 23
services provided to or paid for the agent and not disclosed in accordance with 24
this section, or 25
(b) the whole or part of the amount or value of any commissions or training 26
services provided to or paid for the agent that are not of a kind or an amount 27
disclosed by the agent under this section, if the Tribunal is satisfied that the 28
disclosure of those things at the previous annual general meeting was not made 29
in good faith. 30
(4) In this section: 31
training service means a training course or service (including attendance at industry 32
events such as conferences). 33
61 Procedure for requiring information from strata managing agent 34
(1) An owners corporation is to require information from a strata managing agent under 35
this Division by written notice given to the strata managing agent. 36
(2) The notice must specify a member of the strata committee to whom the information 37
is to be delivered. 38
62 Offences 39
(1) A strata managing agent must comply with a notice to provide information under this 40
Division by giving a written statement, containing the information required, within 41
14 days after the notice is given. 42
Maximum penalty: 20 penalty units. 43
(2) A person is not guilty of failing to comply with the notice if reasonable cause for the 44
failure is shown. 45
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Part 4 Strata managing agents and building managers
(3) A strata managing agent must not knowingly provide information that is false or 1
misleading in a material particular in a statement given in response to a notice to 2
provide information under this Division. 3
Maximum penalty: 20 penalty units. 4
63 Responsibility for providing information if a strata managing agent ceases to hold a 5
licence or dies 6
If a strata managing agent ceases to hold a licence under the Property, Stock and 7
Business Agents Act 2002 to carry on business as a strata managing agent or dies: 8
(a) this Division (except section 59) applies to any person who is required by that 9
Act to maintain a trust account in connection with the business of the former 10
licensee, and 11
(b) this Division (except section 58 (1)) and section 188 apply to any person who 12
is required by that Act to preserve records kept by the former licensee, 13
and so apply as if the person concerned were the strata managing agent. 14
64 Exemption for information relating to certain transactions 15
A strata managing agent or other person is not required to provide information under 16
this Division in relation to a transaction that took place more than 5 years before 17
notice requiring the information was given. 18
65 Provision of other Act requiring agents to provide information not to apply to affairs 19
of owners corporation 20
Section 101 of the Property, Stock and Business Agents Act 2002 does not apply to 21
or in respect of a transaction if information about the transaction may be required to 22
be provided to an owners corporation under this Division. 23
Note. Section 101 of the Property, Stock and Business Agents Act 2002 enables a person 24
directly concerned in a transaction with a licensee under that Act to require an itemised 25
account of the transaction from the licensee. 26
Division 4 Building managers 27
66 Building managers 28
(1) A building manager is a person who assists in exercising any one or more of the 29
following functions of the owners corporation: 30
(a) managing common property, 31
(b) controlling the use of common property by persons other than the owners and 32
occupiers of lots, 33
(c) maintaining and repairing common property. 34
(2) However, a person is not a building manager if the person exercises those functions 35
only on a voluntary or casual basis or as a member of the strata committee. 36
(3) A person may be both a building manager and an on-site residential property 37
manager. 38
(4) A building manager may be a person who is entitled to exclusive possession (whether 39
or not jointly with any other person) of a lot or common property in a strata scheme. 40
(5) For the purposes of this Act, a person is taken to be a building manager for a strata 41
scheme if the person meets the description of a building manager set out in this 42
section, regardless of whether the title given to the person's position is building 43
manager, caretaker, resident manager or any other title. 44
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Part 4 Strata managing agents and building managers
67 Appointment of building managers 1
(1) A building manager may be appointed for a strata scheme. 2
(2) The appointment is to be made by instrument in writing (a building manager 3
agreement) executed before or after the strata scheme commenced by the building 4
manager and: 5
(a) by the original owner, if executed before the strata scheme commenced, or 6
(b) under the authority of a resolution passed at a general meeting of the owners 7
corporation of the strata scheme, if executed after the strata scheme 8
commenced. 9
68 Term of appointment of building managers 10
(1) A building manager agreement (including any additional term under any option to 11
renew it) expires (if the term of the appointment does not end earlier or is not ended 12
earlier for any other reason): 13
(a) at the conclusion of the first annual general meeting of the owners corporation, 14
if the agreement was executed before the meeting, or 15
(b) when 10 years have expired after it commenced to authorise the building 16
manager to act under it, in any other case. 17
(2) A person may be reappointed as building manager for a strata scheme at the end of 18
the person's building manager agreement. 19
(3) The appointment of a building manager may be terminated in accordance with the 20
building manager agreement, if authorised by a resolution at a general meeting of the 21
owners corporation. 22
69 Transfer of functions of building manager 23
(1) A building manager may transfer his or her functions as a building manager to 24
another person, but only if the transfer is authorised by a resolution at a general 25
meeting of the owners corporation. 26
(2) A person to whom those functions are transferred is taken to be appointed as a 27
building manager by the building manager agreement. 28
(3) The term of appointment as a building manager of the person to whom the functions 29
are transferred ends on the same day as the term of the person by whom the functions 30
were transferred would have ended if the transfer had not taken place. 31
70 Functions of building manager 32
(1) A building manager may, in accordance with the building manager agreement 33
appointing the building manager, assist in exercising one or more of the functions of 34
the owners corporation of managing and controlling the use of common property 35
(otherwise than by the owners or occupiers of lots) and of maintaining and repairing 36
common property. 37
(2) However, the owners corporation may continue to exercise all or any of those 38
functions, subject to the building manager agreement. 39
(3) A person is not a strata managing agent for the purposes of this or any other Act only 40
because the person is a building manager acting in accordance with a building 41
manager agreement. 42
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Part 4 Strata managing agents and building managers
Division 5 General 1
71 Interests must be disclosed by potential strata managing agents or building 2
managers 3
(1) A person appointed as the strata managing agent or building manager for a strata 4
scheme who has an interest that must be disclosed under this section must disclose 5
the interest to the owners corporation before the appointment of the person. 6
Maximum penalty: 50 penalty units. 7
(2) The following are interests that must be disclosed to the owners corporation by a 8
person: 9
(a) that the person is connected with the original owner, 10
(b) any direct or indirect pecuniary interest in the strata scheme (other than an 11
interest arising only from the prospective appointment). 12
72 Strata managing agent and building manager agreements may be terminated or 13
varied by Tribunal 14
(1) The Tribunal may, on application by an owners corporation for a strata scheme, make 15
any of the following orders in respect of an agreement for the appointment of a strata 16
managing agent or building manager for the scheme: 17
(a) an order terminating the agreement, 18
(b) an order requiring the payment of compensation to a party to the agreement, 19
(c) an order varying the term, or varying or declaring void any of the conditions, 20
of the agreement, 21
(d) an order that a party to the agreement take any action or not take any action 22
under the agreement, 23
(e) an order dismissing the application. 24
(2) If the Tribunal makes an order terminating the agreement, the Tribunal may also 25
order the strata managing agent or building manager to return to the owners 26
corporation, within the period specified in the order, any documents or other records 27
relating to the strata scheme that are in the possession of the agent or manager. 28
(3) The Tribunal may make an order under this section on any of the following grounds: 29
(a) that the strata managing agent or building manager has refused or failed to 30
perform the agreement or has performed it unsatisfactorily, 31
(b) that charges payable by the owners corporation under the agreement are 32
unfair, 33
(c) that the strata managing agent has contravened section 58 (2), 34
(d) that the strata managing agent has failed to disclose commissions or training 35
services (including estimated commissions or value of training services or 36
variations and explanations for variations) in accordance with section 60 or 37
has failed to make the disclosures in good faith, 38
(e) that the strata managing agent or building manager has failed to disclose an 39
interest under section 71, 40
(f) that the agreement is, in the circumstances of the case, otherwise harsh, 41
oppressive, unconscionable or unreasonable. 42
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Part 5 Financial management
Part 5 Financial management 1
Division 1 Funds and accounts of owners corporation 2
73 Administrative fund 3
(1) Establishment of fund 4
An owners corporation must establish an administrative fund. 5
(2) Amounts payable to fund 6
An owners corporation must pay the following amounts into the administrative fund: 7
(a) the contributions levied on, and paid by, owners for payment into the fund, 8
(b) the proceeds of the disposal of any personal property of the owners 9
corporation, 10
(c) any fees paid to the owners corporation for inspection of its records and the 11
provision of information and certificates relating to its records, 12
(d) any monetary penalty payable to the owners corporation under this Act, 13
(e) the proceeds of any investment of the fund. 14
(3) An owners corporation may also pay the following amounts into the administrative 15
fund: 16
(a) any amounts paid to the owners corporation by way of discharge of insurance 17
claims, 18
(b) any income of the owners corporation (other than proceeds of any investment 19
of the capital works fund), 20
(c) any amount that may be, but is not required to be, paid into the fund under this 21
Act. 22
(4) Amounts payable from fund 23
An owners corporation may pay money from its administrative fund only for the 24
following purposes: 25
(a) payments of the kind for which estimates have been made under section 79 (1), 26
(b) payments made in accordance with this Division on a distribution of a surplus 27
in the fund, 28
(c) payments to a member of the strata committee of the owners corporation in 29
accordance with this Act, 30
(d) other payments in connection with exercising its functions under this Act or 31
the by-laws, or the Strata Schemes Development Act 2015, except payments 32
that are permitted to be made from the capital works fund, 33
(e) any monetary penalty payable by the owners corporation under this Act, 34
(f) the transfer of money to the capital works fund or to pay expenditure that 35
should have been paid from the capital works fund. 36
74 Capital works fund 37
(1) Establishment of fund 38
An owners corporation must establish a capital works fund. 39
(2) Amounts payable to fund 40
An owners corporation must pay the following amounts into the capital works fund: 41
(a) the contributions levied on, and paid by, owners for payment into the fund, 42
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Part 5 Financial management
(b) any amounts paid to the owners corporation by way of discharge of insurance 1
claims, unless paid into the administrative fund, 2
(c) any amounts paid to the owners corporation under Part 11, 3
(d) any amount received by the owners corporation that is not required or 4
permitted to be paid into the administrative fund, 5
(e) the proceeds of any investment of the fund. 6
(3) An owners corporation may also pay the following amounts into the capital works 7
fund: 8
(a) any income of the owners corporation, 9
(b) any amount that may be, but is not required to be, paid into the fund under this 10
Act. 11
(4) Amounts payable from fund 12
An owners corporation may pay money from its capital works fund only for the 13
following purposes: 14
(a) payments of the kind for which estimates have been made under section 79 (2), 15
(b) payments made in accordance with this Division on a distribution of a surplus 16
in the fund, 17
(c) payments of amounts for the purposes of Part 11, 18
(d) the transfer of money to the administrative fund or to pay expenditure that 19
should have been paid from the administrative fund. 20
(5) Exemption 21
An owners corporation for a strata scheme comprising 2 lots need not establish a 22
capital works fund if: 23
(a) the owners corporation so determines by unanimous resolution, and 24
(b) the buildings comprised in one of those lots are physically detached from the 25
buildings comprised in the other lot, and 26
(c) no building or part of a building in the strata scheme is situated outside those 27
lots. 28
75 Investment of money in administrative fund or capital works fund 29
(1) An owners corporation may invest any money in its administrative fund or capital 30
works fund in any manner permitted by law for the investment of trust funds or in 31
any investment prescribed by the regulations. 32
(2) Any interest received on an investment made under this section forms part of the fund 33
to which the investment belongs. 34
76 Use of administrative fund or capital works fund for purposes of other fund 35
(1) This section applies if the owners corporation for a strata scheme having more than 36
2 lots: 37
(a) transfers money from the administrative fund to the capital works fund or uses 38
the administrative fund to meet expenditure that should have been met from 39
the capital works fund, or 40
(b) transfers money from the capital works fund to the administrative fund or uses 41
the capital works fund to reimburse expenditure that should have been met 42
from the administrative fund. 43
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Part 5 Financial management
(2) The owners corporation must, not later than 3 months after the transfer or use, 1
determine the amount to be levied as a contribution to the fund from which the 2
transfer or use was made to reimburse the amounts paid from the fund. Section 81 (3) 3
and (5) apply to a contribution determined under this subsection. 4
77 Distribution of surplus money in administrative fund or capital works fund 5
(1) An owners corporation for a strata scheme may, in accordance with a unanimous 6
resolution, distribute between the owners any money in its administrative fund or 7
capital works fund that is not, in the opinion of the owners corporation, required for 8
the purposes of either fund. 9
(2) A distribution to an owner of a lot or other person entitled to receive it under this 10
section must be made in the same proportion that the unit entitlement of the lot bears 11
to the aggregate unit entitlement. 12
(3) Any money distributed under this section in relation to a lot that is subject to a 13
mortgage or covenant charge shown on the strata roll is to be paid: 14
(a) in accordance with the joint directions of the owner of the lot and the 15
mortgagee or covenant chargee, or 16
(b) if they cannot agree--in accordance with an order under this section. 17
(4) The Tribunal may, on application by an owners corporation, an owner of a lot that is 18
subject to a mortgage or covenant charge, or the mortgagee or covenant chargee 19
concerned, make an order as to the payment of money under subsection (3). 20
(5) An application under this section is to be made to, and determined by, the Supreme 21
Court (and not the Tribunal) if: 22
(a) the title to land is in question otherwise than incidentally, or 23
(b) the matter is incidental to other proceedings being dealt with by the Court. 24
78 Accounts of owners corporation 25
(1) An owners corporation must pay any amounts that are received by it and are not 26
otherwise invested in accordance with this Act into an account established in an 27
authorised deposit-taking institution in the name of the owners corporation. 28
(2) This section does not apply to an owners corporation that has appointed a strata 29
managing agent to whom the duty of the owners corporation under this section is 30
delegated in accordance with this Act. 31
Division 2 Contributions by owners 32
79 Estimates to be prepared of contributions to administrative and capital works funds 33
(1) An owners corporation must, not later than 14 days after the constitution of the 34
owners corporation and at each annual general meeting after that, estimate how much 35
money it will need to credit to its administrative fund for actual and expected 36
expenditure: 37
(a) to maintain in good condition on a day-to-day basis the common property and 38
any personal property vested in the owners corporation, and 39
(b) to provide for insurance premiums, and 40
(c) to meet other recurrent expenses. 41
Note. Recurrent expenses would include such regular expenses as insurance, water charges, 42
electricity charges, carpet cleaning, lawn mowing services and the like and minor expenses 43
relating to maintenance of the common property. 44
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(2) An owners corporation must, at each annual general meeting, estimate how much 1
money it will need to credit to its capital works fund for actual and expected 2
expenditure: 3
(a) for painting or repainting any part of the common property which is a building 4
or other structure, and 5
(b) to acquire personal property, and 6
(c) to renew or replace personal property, and 7
(d) to renew or replace fixtures and fittings that are part of the common property, 8
and 9
(e) to replace or repair the common property, and 10
(f) to meet other expenses of a capital nature. 11
Note. Expenses of a capital nature would include expenses in relation to major repairs or 12
improvements to the common property or personal property of the owners corporation, such 13
as replacement of roofing, guttering or fences and the like. 14
(3) When estimating amounts needed to be credited to the administrative fund or the 15
capital works fund, the owners corporation must have before it, and take into 16
account, a statement of the existing financial situation of the strata scheme and an 17
estimate of receipts and payments. 18
(4) An estimate prepared before the first annual general meeting of an owners 19
corporation is to take into account the initial maintenance schedule provided by the 20
original owner for that meeting. 21
(5) In estimating amounts to be credited to the capital works fund, an owners corporation 22
is to take into account anticipated major expenditure identified in the 10-year plan for 23
the capital works fund proposed under this Division. 24
(6) An owners corporation of a large strata scheme must include in the estimates 25
prepared at an annual general meeting: 26
(a) specific amounts in relation to each item or matter on which the owners 27
corporation intends to spend money, or on which the owners corporation is 28
aware money will be likely to be spent, in the period until the next annual 29
general meeting, and 30
(b) a note as to any difference between the estimates and the 10-year plan for the 31
capital works fund prepared under this Division and the reasons for the 32
difference. 33
80 Owners corporation to prepare 10-year capital works fund plan 34
(1) An owners corporation is to prepare a plan of anticipated major expenditure to be met 35
from the capital works fund for a 10-year period commencing on the first annual 36
general meeting of the owners corporation. 37
(2) An owners corporation is to prepare a plan for each 10-year period following the 38
10-year period to which the first plan applied. The plan is to be prepared for the 39
annual general meeting at which the period covered by the previous plan expires. 40
(3) An owners corporation may, by resolution at a general meeting, review, revise or 41
replace a 10-year plan prepared under this section and must review the plan at least 42
once every 5 years. 43
(4) A plan under this section is to include the following: 44
(a) details of proposed work or maintenance, 45
(b) the timing and anticipated costs of any proposed work, 46
(c) the source of funding for any proposed work, 47
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(d) any other matter the owners corporation thinks fit, 1
(e) any other matter prescribed by the regulations for the purposes of this section. 2
(5) A plan under this section is to be finalised by the end of the next annual general 3
meeting of the owners corporation after the annual general meeting for which the 4
plan is prepared. 5
(6) An owners corporation may engage expert assistance in the preparation of a plan 6
under this section. 7
(7) An owners corporation is, so far as practicable (and subject to any adjustment under 8
this section), to implement each plan prepared under this section. 9
81 Owners corporation to set contributions to administrative and capital works funds 10
(1) The owners corporation must determine the amounts to be levied as a contribution to 11
the administrative fund and the capital works fund to raise the amounts estimated as 12
needing to be credited to those funds. 13
(2) That determination must be made at the same meeting at which those estimated 14
amounts are determined. 15
(3) The owners corporation must levy on each person liable for it such a contribution. 16
(4) If the owners corporation is subsequently faced with other expenses it cannot at once 17
meet from either fund, it must levy on each owner of a lot in the strata scheme a 18
contribution to the administrative fund or capital works fund, determined at a general 19
meeting of the owners corporation, in order to meet the expenses. 20
(5) A contribution is, if an owners corporation so determines, payable by the regular 21
periodic instalments specified in the determination setting the amount of the 22
contribution. 23
82 Individual contributions may be larger if greater insurance costs 24
(1) If the use to which a lot in a strata scheme is put causes an insurance premium for the 25
strata scheme to be greater than it would be if it were not put to that use, so much of 26
a contribution payable by the owner of the lot as is attributable to insurance 27
premiums may, with the consent of the owner, be increased to reflect the extra 28
amount of the premium. 29
(2) The Tribunal may, on application, make an order for payment of contributions of a 30
different amount to one or more contributions levied or proposed by an owners 31
corporation on an owner if the Tribunal is of the opinion that the owner's consent has 32
been unreasonably refused under this section. 33
(3) An application for an order under this section may be made by the lessor of a 34
leasehold strata scheme, an owners corporation, an owner of a lot or a mortgagee in 35
possession. 36
83 Levying of contributions 37
(1) An owners corporation levies a contribution required to be paid to the administrative 38
fund or capital works fund by an owner of a lot by giving the owner written notice of 39
the contribution payable. 40
(2) Contributions levied by an owners corporation must be levied in respect of each lot 41
and are payable (subject to this section and section 82) by the owners in shares 42
proportional to the unit entitlements of their respective lots. 43
(3) Any contribution levied by an owners corporation becomes due and payable to the 44
owners corporation on the date set out in the notice of the contribution. The date must 45
be at least 30 days after the notice is given. 46
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(4) Regular periodic contributions to the administrative fund and capital works fund of 1
an owners corporation are taken to have been duly levied on an owner of a lot even 2
though notice levying the contributions was not given to the owner. 3
84 Liability of persons other than owners for contributions 4
(1) If, at the time a person becomes the owner of a lot, another person is liable to pay a 5
contribution in respect of the lot, the owner is jointly and severally liable with the 6
other person for the payment of the contribution and any interest on the contribution. 7
(2) A mortgagee or covenant chargee in possession of a lot is jointly and severally liable 8
with the owner of the lot: 9
(a) for any regular periodic contributions to the administrative fund or capital 10
works fund together with any interest on those contributions, and 11
(b) for any other contribution together with interest on that contribution taken to 12
recover unpaid contributions, if the mortgagee or covenant chargee has been 13
given written notice of the levy of the contribution, and 14
(c) for any costs payable as a debtor in respect of enforcement action to recover 15
unpaid contributions. 16
(3) Subsection (2) does not affect the liability of an owner of a lot for any contribution 17
levied under this section. 18
85 Interest, discounts on contributions and payment plans 19
(1) A contribution, if not paid when it becomes due and payable, bears until paid simple 20
interest at an annual rate of 10% or, if the regulations provide for another rate, that 21
other rate. 22
(2) Interest is not payable if the contribution is paid not later than one month after it 23
becomes due and payable. 24
(3) However, an owners corporation may by resolution determine (either generally or in 25
a particular case) that a contribution is to bear no interest. 26
(4) An owners corporation may, by resolution at a general meeting, determine (either 27
generally or in a particular case) that a person may pay 10% less of a contribution 28
levied if the person pays the contribution before the date on which it becomes due 29
and payable. 30
(5) An owners corporation may, by resolution at a general meeting, agree to enter into 31
payment plans, either generally or in particular cases, for the payment of overdue 32
contributions. A payment plan is to be limited to a period of 12 months but a further 33
plan may be agreed to by the owners corporation by resolution. 34
(6) The regulations may prescribe requirements for payment plans. 35
(7) The existence of a payment plan does not limit any right of the owners corporation 36
to take action to recover the amount of unpaid contributions. 37
(8) The Tribunal may, on application by an owner, order that no interest is chargeable on 38
a specified contribution if the Tribunal is satisfied that the owners corporation should 39
reasonably have made a determination not to charge interest for the late contribution. 40
86 Recovery of unpaid contributions and interest 41
(1) The Tribunal may, on application by an owners corporation, order an owner of a lot 42
in the strata scheme, or other person, to pay any of the following that are payable by 43
the owner or other person under this Act: 44
(a) a contribution not paid at the end of one month after it becomes due and 45
payable, 46
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(b) any interest payable on an unpaid contribution, 1
(c) the expenses of the owners corporation incurred in recovering any such 2
amounts. 3
Note. Section 78 of the Civil and Administrative Tribunal Act 2013 provides for the recovery 4
as a judgment debt of amounts ordered to be paid by the Tribunal. 5
(2) An owners corporation may, without obtaining an order under this section, recover 6
as a debt in a court of competent jurisdiction any of the following: 7
(a) a contribution not paid at the end of one month after it becomes due and 8
payable, 9
(b) any interest payable on an unpaid contribution, 10
(c) the expenses of the owners corporation incurred in recovering any such 11
amounts. 12
(3) Interest paid or recovered forms part of the fund to which the relevant contribution 13
belongs. 14
(4) An owners corporation must not take action to recover an amount under this section 15
unless it has given the person against whom the action is to be taken at least 21 days 16
notice of the action. 17
(5) The notice of the action must set out the following: 18
(a) the amount of the contribution, interest or expenses sought to be recovered, 19
(b) the recovery action proposed, 20
(c) any other matter prescribed by the regulations for the purposes of this 21
subsection. 22
87 Orders varying contributions or payment methods 23
(1) The Tribunal may, on application, make either or both of the following orders if the 24
Tribunal considers that any amount levied or proposed to be levied by way of 25
contributions is inadequate or excessive or that the manner of payment of 26
contributions is unreasonable: 27
(a) an order for payment of contributions of a different amount, 28
(b) an order for payment of contributions in a different manner. 29
(2) An application for an order may be made by the lessor of a leasehold strata scheme, 30
an owners corporation, an owner or a mortgagee in possession. 31
88 Effect of order varying contributions where payments have been made 32
If a contribution that is the subject of an order by the Tribunal under this Division has 33
been wholly or partly paid: 34
(a) an order to pay more has effect as if the owners corporation had decided to 35
levy a contribution equal to the difference, and 36
(b) an order to pay less imposes a duty on the owners corporation to refund the 37
difference. 38
89 Order requiring original owner to pay compensation for inadequate estimates and 39
levies 40
(1) The Tribunal may, on application by the owners corporation for or an owner of a lot 41
in the strata scheme, order the original owner of the strata scheme to pay 42
compensation to the owners corporation if the Tribunal determines that the estimates 43
and levies determined during the initial period for the purposes of determining and 44
meeting expenditures relating to the scheme were inadequate to meet the actual or 45
expected expenditures of the owners corporation. 46
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(2) The Tribunal must not make an order under this section if the original owner satisfies 1
the Tribunal that the original owner used due care and diligence in determining the 2
estimates and levies. 3
(3) An application under this section must be made not later than 3 years after the end of 4
the initial period. 5
90 Contributions for legal costs awarded in proceedings between owners and owners 6
corporation 7
(1) This section applies to proceedings brought by one or more owners of lots against an 8
owners corporation or by an owners corporation against one or more owners of lots 9
(including one or more owners joined in third party proceedings). 10
(2) The court may order in the proceedings that any money (including costs) payable by 11
an owners corporation under an order made in the proceedings must be paid from 12
contributions levied only in relation to the lots and in the proportions that are 13
specified in the order. 14
(3) The owners corporation must, for the purpose of paying the money ordered to be paid 15
by it, levy contributions in accordance with the terms of the order and must pay the 16
money out of the contributions paid in accordance with that levy. 17
(4) This Division (other than provisions relating to the amount of contributions) applies 18
to and in respect of contributions levied under this section in the same way as it 19
applies to other contributions levied under this Division. 20
91 Information about contributions payable for retirement village 21
An owners corporation of a strata scheme for a retirement village (within the 22
meaning of the Retirement Villages Act 1999) must, if requested by the operator of 23
the retirement village, give a statement in writing specifying the amount of current 24
contributions levied on a particular lot in the strata scheme. 25
Division 3 Financial statements and accounting records of owners 26
corporation 27
92 Owners corporation must prepare financial statements and statements of key 28
financial information 29
(1) An owners corporation must cause financial statements, and a statement of key 30
financial information, to be prepared for each reporting period for the administrative 31
fund, the capital works fund and any other fund kept by the owners corporation. 32
(2) The reporting period for financial statements or a statement of key financial 33
information prepared under this Division is: 34
(a) the period that commences on the date of registration of the strata plan and 35
ends on a date that is not earlier than 2 months before the date of the first 36
annual general meeting, and 37
(b) each period that commences on the date up to which those statements were last 38
prepared under this Division and ends on a date that is not earlier than 39
2 months before the next succeeding annual general meeting. 40
93 Requirements for financial statements 41
(1) The financial statements are to be prepared on a cash or accrual basis and to comprise 42
only the following matters: 43
(a) a statement of income and expenditure for the administrative fund, 44
(b) a statement of income and expenditure for the capital works fund, 45
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(c) a statement of income and expenditure for any other fund kept by the owners 1
corporation. 2
(2) The financial statement for an administrative fund or capital works fund must specify 3
the following: 4
(a) the fund, and the reporting period, for which it is prepared, 5
(b) the balance carried forward in the fund from the previous period, 6
(c) the particulars and amount of each item of income of the fund received during 7
the current period, 8
(d) the particulars and amount of each item of expenditure from the fund during 9
the current period, 10
(e) the amount of the contribution to the fund determined for each person liable to 11
make such a contribution, 12
(f) the balance outstanding for each such contribution, 13
(g) the cash in the fund at the end of the current period, 14
(h) the balance of the fund, 15
(i) in respect of each liability to contribute to the fund--any unpaid arrears and 16
any balance outstanding, 17
(j) the extent to which, at the end of the current period, the fund is in debit or 18
credit. 19
(3) The financial statements for any other fund must specify the following: 20
(a) the fund, and the reporting period, for which it is prepared, 21
(b) the balance carried forward in the fund from the previous period, 22
(c) the particulars and amount of each item of income of the fund received during 23
the current period, 24
(d) the particulars and amount of each item of expenditure from the fund during 25
the current period, 26
(e) the cash in the fund at the end of the current period, 27
(f) the balance of the fund, 28
(g) the extent to which, at the end of the current period, the fund is in debit or 29
credit. 30
94 Statement of key financial information 31
(1) The statement of key financial information for an administrative fund or capital 32
works fund must be in the form prescribed by the regulations and specify the 33
following matters: 34
(a) the fund, and the reporting period, for which it is prepared, 35
(b) the balance carried forward in the fund from the previous period, 36
(c) the total income of the fund received during the period, 37
(d) the total interest earned by the fund during the period, 38
(e) the total contributions paid to the fund during the period and the total of all 39
arrears in contributions payable to the fund, 40
(f) the total expenditure for maintenance from the fund during the period, 41
(g) the total expenditure for administration costs from the fund during the period, 42
(h) the balance of the fund, 43
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(i) the principal items of expenditure for maintenance proposed during the next 1
year. 2
(2) The statement of key financial information for any other fund must be in the form 3
prescribed by the regulations and specify the following matters: 4
(a) the fund, and the reporting period, for which it is prepared, 5
(b) the balance carried forward in the fund from the previous period, 6
(c) the total income of the fund received during the period, 7
(d) the total interest earned by the fund during the period, 8
(e) the balance of the fund. 9
95 Auditing of accounts and financial statements 10
(1) The owners corporation for a large strata scheme, or a strata scheme for which the 11
annual budget exceeds $250,000 (or another amount prescribed for the purposes of 12
this section by the regulations), must ensure that the accounts and financial 13
statements of the owners corporation are audited before presentation to the annual 14
general meeting. 15
(2) The owners corporation for any other strata scheme may determine that the accounts 16
and financial statements of the owners corporation are to be audited. 17
(3) An audit of the accounts and financial statements of an owners corporation under this 18
section must be carried out in accordance with the Australian Auditing Standards. 19
(4) The regulations may specify the manner in which the annual budget of a strata 20
scheme is to be determined for the purposes of this section. 21
Division 4 Accounting records 22
96 Accounting records must be kept by owners corporation 23
(1) An owners corporation must keep accounting records in accordance with this 24
Division. 25
Maximum penalty: 5 penalty units. 26
(2) The accounting records may be made and stored in the form determined by the 27
owners corporation. 28
(3) Separate accounting records must be kept for the administrative fund, the capital 29
works fund and any other fund kept by the owners corporation. 30
(4) The regulations may prescribe accounting records that are required to be kept by an 31
owners corporation. 32
97 Receipts 33
(1) The treasurer of an owners corporation must, if requested to do so, issue a receipt for 34
each payment received by the treasurer for the owners corporation and must cause a 35
record to be kept of the details of such receipts. 36
(2) Each receipt must contain the information prescribed by the regulations for the 37
purposes of this section. 38
98 Transaction records 39
(1) The treasurer of an owners corporation must record particulars of money received or 40
money disbursed by the owners corporation as soon as practicable after each 41
transaction occurs. 42
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(2) The treasurer must balance the records of transactions and carry the balance forward 1
at the end of each prescribed period. 2
(3) At the end of each prescribed period, the treasurer must compare the entries in the 3
records of transactions with the banking records for the account of the owners 4
corporation and enter in the records of transactions: 5
(a) the amounts credited to the account and appearing in the banking records for 6
which no receipt had been given, and 7
(b) the amounts debited to the account and appearing in the banking records for 8
which no cheque had been drawn. 9
(4) Any necessary reconciliation (showing the balance in the account of the owners 10
corporation as indicated in the banking records, and adding any money received but 11
not banked and deducting any cheques drawn but not presented for payment) must 12
be entered by the treasurer in the record of transactions at the end of the entries for 13
the relevant prescribed period. 14
(5) In this section: 15
prescribed period means 12 months or, if an annual general meeting of the owners 16
corporation determines a shorter period, that shorter period. 17
99 Levy register 18
The treasurer of an owners corporation must keep a levy register that includes, for 19
each lot in the strata scheme (other than a utility lot), the following particulars in 20
relation to contributions payable: 21
(a) the date on which the contribution is due and payable, 22
(b) the type of contribution and the period in respect of which it is to be made, 23
(c) the amount of the contribution levied shown as a debit, 24
(d) the amount of each payment shown as a credit, 25
(e) the date on which each payment relating to the contribution is made, 26
(f) whether a payment made was made in cash or in some other specified manner, 27
(g) whether an amount paid comprised full payment or part payment, 28
(h) details of any discount given for early payment, 29
(i) the balance of the account. 30
Division 5 Financial functions generally 31
100 Power to borrow money 32
(1) An owners corporation may borrow money and secure the repayment of money and 33
of any interest in any manner agreed between the owners corporation and the lender, 34
otherwise than by charging the repayment on the common property. 35
(2) An owners corporation must not borrow money, or secure the payment of money and 36
interest, unless a resolution approving the relevant loan has been passed at a general 37
meeting of the owners corporation. 38
101 Persons who can exercise functions relating to the finances and accounts of the 39
owners corporation 40
A person must not exercise any of the functions of an owners corporation or the 41
treasurer of an owners corporation relating to the receipt or expenditure of, or 42
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Part 5 Financial management
accounting for, money of the owners corporation or the keeping of the books of 1
account of the owners corporation unless the person is: 2
(a) the treasurer of the owners corporation, or 3
(b) a strata managing agent who is empowered to exercise the function, or 4
(c) a person with whom the treasurer of the owners corporation is required by a 5
decision of the strata committee to exercise the function jointly, and who is 6
enabling the treasurer to comply with the decision, or 7
(d) a member of CPA Australia, or a member of the Institute of Chartered 8
Accountants Australia and New Zealand, authorised by the owners 9
corporation to exercise the function, or 10
(e) a member of the Institute of Public Accountants authorised by the owners 11
corporation to exercise the function, or 12
(f) during the initial period only--a person authorised by the owners corporation 13
to exercise the function. 14
Maximum penalty: 5 penalty units. 15
102 Limits on spending by large strata schemes 16
(1) An owners corporation for a large strata scheme must obtain at least 2 quotations in 17
relation to proposed expenditure in respect of any one item or matter if the proposed 18
expenditure will exceed the amount prescribed by the regulations for the purposes of 19
this section. 20
(2) An owners corporation for a large strata scheme must not spend on an item or matter 21
an amount greater than the amount specified for the item or matter (plus 10%) in 22
estimates provided for that item or matter at an annual general meeting. 23
(3) The owners corporation may by a resolution passed at a general meeting remove the 24
limitation imposed by subsection (2) generally or in relation to any particular item or 25
matter. 26
(4) This section does not apply to expenditure for emergency purposes, including (but 27
not limited to) the following: 28
(a) burst or blocked water or sewerage pipes, 29
(b) serious damage caused by fire or storm or any other natural disaster, 30
(c) unexpected electrical or security system failure, 31
(d) glass breakages that affect the security of any building in the strata scheme or 32
could result in damage to the inside of any such building. 33
103 Legal services to be approved by general meeting 34
(1) An owners corporation or strata committee of an owners corporation must not obtain 35
legal services for which any payment may be required unless a resolution approving 36
the obtaining of those services is passed at a general meeting of the owners 37
corporation. 38
(2) An owners corporation or strata committee may obtain legal services without 39
obtaining approval under this section if: 40
(a) it is of the opinion that urgent action is necessary to protect the interests of the 41
owners corporation, and 42
(b) the cost of the legal services does not exceed $10,000 or another amount 43
prescribed by the regulations for the purposes of this subsection. 44
(3) Approval under this section is not required for the following: 45
(a) to obtain legal advice before commencing legal action, 46
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(b) to take legal action to recover unpaid contributions, interest on unpaid 1
contributions or related expenses, 2
(c) to take any other legal action prescribed by the regulations for the purposes of 3
this section. 4
(4) A failure by an owners corporation or the strata committee of an owners corporation 5
to obtain an approval under this section does not affect the validity of any 6
proceedings or other legal action taken by the owners corporation. 7
(5) In this Division: 8
legal services includes obtaining legal advice and taking legal action. 9
104 Restrictions on payment of expenses incurred in Tribunal proceedings 10
(1) An owners corporation cannot, in respect of its costs and expenses in proceedings 11
brought by or against it for an order by the Tribunal, levy a contribution on another 12
party who is successful in the proceedings. 13
(2) An owners corporation that is unsuccessful in proceedings brought by or against it 14
for an order by the Tribunal cannot pay any part of its costs and expenses in the 15
proceedings from its administrative fund or capital works fund, but may make a levy 16
for the purpose. 17
(3) In this section, a reference to proceedings includes a reference to proceedings on 18
appeal from the Tribunal. 19
105 Disclosure of matters relating to legal costs 20
If a disclosure under another Act is made to an owners corporation in respect of the 21
costs of legal services to be provided to the owners corporation and the legal services 22
are services for which approval is required under section 103, the owners corporation 23
must give a copy of the disclosure to each owner and strata committee member not 24
later than 14 days after the disclosure being made. 25
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Part 6 Property management 1
Division 1 Common property 2
106 Duty of owners corporation to maintain and repair property 3
(1) An owners corporation for a strata scheme must properly maintain and keep in a state 4
of good and serviceable repair the common property and any personal property 5
vested in the owners corporation. 6
(2) An owners corporation must renew or replace any fixtures or fittings comprised in 7
the common property and any personal property vested in the owners corporation. 8
(3) This section does not apply to a particular item of property if the owners corporation 9
determines by special resolution that: 10
(a) it is inappropriate to maintain, renew, replace or repair the property, and 11
(b) its decision will not affect the safety of any building, structure or common 12
property in the strata scheme or detract from the appearance of any property in 13
the strata scheme. 14
(4) If an owners corporation has taken action against an owner or other person in respect 15
of damage to the common property, it may defer compliance with subsection (1) 16
or (2) in relation to the damage to the property until the completion of the action if 17
the failure to comply will not affect the safety of any building, structure or common 18
property in the strata scheme. 19
(5) An owner of a lot in a strata scheme may recover from the owners corporation, as 20
damages for breach of statutory duty, any reasonably foreseeable loss suffered by the 21
owner as a result of a contravention of this section by the owners corporation. 22
(6) An owner may not bring an action under this section for breach of a statutory duty 23
more than 2 years after the owner first becomes aware of the loss. 24
(7) This section is subject to the provisions of any common property memorandum 25
adopted by the by-laws for the strata scheme under this Division, any common 26
property rights by-law or any by-law made under section 108. 27
(8) This section does not affect any duty or right of the owners corporation under any 28
other law. 29
107 Common property memorandum 30
(1) The by-laws for a strata scheme may adopt a common property memorandum 31
prescribed by the regulations for the purposes of this section. 32
(2) The common property memorandum is to specify whether an owner of a lot or the 33
owners corporation is responsible for the maintenance, repair or replacement of any 34
part of the common property. 35
(3) The by-laws may modify the common property memorandum only to provide that it 36
does not apply to specified items, being items that are not common property for the 37
purposes of the particular strata scheme or that are the subject of a common property 38
rights by-law or a by-law made under section 108. 39
(4) The provisions of a common property rights by-law or a by-law made under 40
section 108 for a strata scheme prevail, to the extent of any inconsistency, over the 41
provisions of a common property memorandum adopted by the by-laws of the strata 42
scheme. 43
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108 Changes to common property 1
(1) Procedure for authorising changes to common property 2
An owners corporation or an owner of a lot in a strata scheme may add to the 3
common property, alter the common property or erect a new structure on common 4
property for the purpose of improving or enhancing the common property. 5
(2) Any such action may be taken by the owners corporation or owner only if a special 6
resolution has first been passed by the owners corporation that specifically authorises 7
the taking of the particular action proposed. 8
(3) Ongoing maintenance 9
A special resolution under this section that authorises action to be taken in relation to 10
the common property by an owner of a lot may specify whether the ongoing 11
maintenance of the common property once the action has been taken is the 12
responsibility of the owners corporation or the owner. 13
(4) If a special resolution under this section does not specify who has the ongoing 14
maintenance of the common property concerned, the owners corporation has the 15
responsibility for the ongoing maintenance. 16
(5) A special resolution under this section that allows an owner of a lot to take action in 17
relation to certain common property and provides that the ongoing maintenance of 18
that common property after the action is taken is the responsibility of the owner has 19
no effect unless: 20
(a) the owners corporation obtains the written consent of the owner to the making 21
of a by-law to provide for the maintenance of the common property by the 22
owner, and 23
(b) the owners corporation makes the by-law. 24
(6) The by-law: 25
(a) may require, for the maintenance of the common property, the payment of 26
money by the owner at specified times or as determined by the owners 27
corporation, and 28
(b) must not be amended or repealed unless the owners corporation has obtained 29
the written consent of the owner concerned. 30
(7) Sections 143 (2), 144 (2) and (3) and 145 apply to a by-law made for the purposes of 31
this section in the same way as they apply to a common property rights by-law. 32
Note. A new by-law or other changes to the by-laws for a strata scheme must be approved by 33
a special resolution of the owners corporation (see section 141). 34
109 Cosmetic work by owners 35
(1) The owner of a lot in a strata scheme may carry out cosmetic work to common 36
property in connection with the owner's lot without the approval of the owners 37
corporation. 38
(2) Cosmetic work includes but is not limited to work for the following purposes: 39
(a) installing or replacing hooks, nails or screws for hanging paintings and other 40
things on walls, 41
(b) installing or replacing handrails, 42
(c) painting, 43
(d) filling minor holes and cracks in internal walls, 44
(e) laying carpet, 45
(f) installing or replacing built-in wardrobes, 46
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Part 6 Property management
(g) installing or replacing internal blinds and curtains, 1
(h) any other work prescribed by the regulations for the purposes of this 2
subsection. 3
(3) An owner of a lot must ensure that: 4
(a) any damage caused to any part of the common property by the carrying out of 5
cosmetic work by or on behalf of the owner is repaired, and 6
(b) the cosmetic work and any repairs are carried out in a competent and proper 7
manner. 8
(4) The by-laws of a strata scheme may specify additional work that is to be cosmetic 9
work for the purposes of this section. 10
(5) This section does not apply to the following work: 11
(a) work that consists of minor renovations for the purposes of section 110, 12
(b) work involving structural changes, 13
(c) work that changes the external appearance of a lot, including the installation 14
of an external access ramp, 15
(d) work that detrimentally affects the safety of a lot or common property, 16
including fire safety systems, 17
(e) work involving waterproofing or the plumbing or exhaust system of a building 18
in a strata scheme, 19
(f) work involving reconfiguring walls, 20
(g) work for which consent or another approval is required under any other Act, 21
(h) any other work prescribed by the regulations for the purposes of this 22
subsection. 23
(6) Section 108 does not apply to cosmetic work carried out in accordance with this 24
section. 25
110 Minor renovations by owners 26
(1) The owner of a lot in a strata scheme may carry out work for the purposes of minor 27
renovations to common property in connection with the owner's lot with the approval 28
of the owners corporation given by resolution at a general meeting. A special 29
resolution authorising the work is not required. 30
(2) The approval may be subject to reasonable conditions imposed by the owners 31
corporation and cannot be unreasonably withheld by the owners corporation. 32
(3) Minor renovations include but are not limited to work for the purposes of the 33
following: 34
(a) renovating a kitchen, 35
(b) changing recessed light fittings, 36
(c) installing or replacing wood or other hard floors, 37
(d) installing or replacing wiring or cabling or power or access points, 38
(e) work involving reconfiguring walls, 39
(f) any other work prescribed by the regulations for the purposes of this 40
subsection. 41
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(4) Before obtaining the approval of the owners corporation, an owner of a lot must give 1
written notice of proposed minor renovations to the owners corporation, including 2
the following: 3
(a) details of the work, including copies of any plans, 4
(b) duration and times of the work, 5
(c) details of the persons carrying out the work, including qualifications to carry 6
out the work, 7
(d) arrangements to manage any resulting rubbish or debris. 8
(5) An owner of a lot must ensure that: 9
(a) any damage caused to any part of the common property by the carrying out of 10
minor renovations by or on behalf of the owner is repaired, and 11
(b) the minor renovations and any repairs are carried out in a competent and 12
proper manner. 13
(6) The by-laws of a strata scheme may provide for the following: 14
(a) additional work that is to be a minor renovation for the purposes of this 15
section, 16
(b) permitting the owners corporation to delegate its functions under this section 17
to the strata committee. 18
(7) This section does not apply to the following work: 19
(a) work that consists of cosmetic work for the purposes of section 109, 20
(b) work involving structural changes, 21
(c) work that changes the external appearance of a lot, including the installation 22
of an external access ramp, 23
(d) work involving waterproofing, 24
(e) work for which consent or another approval is required under any other Act, 25
(f) work that is authorised by a by-law made under this Part or a common property 26
rights by-law, 27
(g) any other work prescribed by the regulations for the purposes of this 28
subsection. 29
(8) Section 108 does not apply to minor renovations carried out in accordance with this 30
section. 31
Note. Section 132 enables rectification orders to be made against owners of lots for damage 32
caused by work done by owners. 33
111 Work by owners of lots affecting common property 34
An owner of a lot in a strata scheme must not carry out work on the common property 35
unless the owner is authorised to do so: 36
(a) under this Part, or 37
(b) under a by-law made under this Part or a common property rights by-law, or 38
(c) by an approval of the owners corporation given by special resolution or in any 39
other manner authorised by the by-laws. 40
112 Owners corporation may grant licence to use common property 41
(1) An owners corporation may grant a licence to an owner or occupier of a lot in the 42
strata scheme or another person to use common property in a particular manner or for 43
particular purposes if the owners corporation has approved the granting of the licence 44
by a special resolution. 45
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(2) A licence may be granted subject to terms and conditions. 1
Note. Division 3 of Part 7 enables owners corporations to make common property rights 2
by-laws granting exclusive use rights and special privileges (including licences) in relation to 3
common property. 4
(3) Without limiting this section, a licence may be granted under an agreement with the 5
local council for a strata parking area under section 650A of the Local Government 6
Act 1993. 7
113 Agreement for payment to owner of consideration on transfer or lease of common 8
property 9
An owners corporation may, in accordance with a special resolution, make an 10
agreement with an owner for the payment to the owner of: 11
(a) the whole or any part of the consideration under any transaction proposed to 12
be entered into by the owners corporation under Division 6 of Part 2 of the 13
Strata Schemes Development Act 2015, or 14
(b) any money payable to the owners corporation under a common property rights 15
by-law. 16
114 Functions subject to strata development contract 17
The exercise by an owners corporation of functions under this Act is subject to the 18
provisions of any strata development contract affecting common property for the 19
strata scheme concerned and to the operation of this Act and the Strata Schemes 20
Development Act 2015 in relation to the strata development contract. 21
115 Initial maintenance schedule must be prepared 22
(1) The original owner must cause an initial maintenance schedule to be prepared for the 23
maintenance of the common property of a strata scheme. 24
Note. The purpose of the initial maintenance schedule is to provide information to the owners 25
corporation about obligations and costs relating to the maintenance of common property. 26
(2) The initial maintenance schedule must comply with the requirements prescribed by 27
the regulations for the purposes of this subsection. 28
(3) An owners corporation is not required by this Act to comply with the initial 29
maintenance schedule for the maintenance of common property vested in it. 30
(4) The initial maintenance schedule may be considered in any proceedings for the 31
purpose of determining whether or not a defect in or damage to a building could have 32
been avoided by the taking of specified action. 33
Division 2 Dealings with property 34
116 Powers to deal with property 35
(1) An owners corporation may dispose of or otherwise deal with any lot vested in the 36
owners corporation as a result of a subdivision effected under section 13 of the Strata 37
Schemes Development Act 2015. 38
(2) The owners corporation may acquire or dispose of personal property or otherwise 39
deal with personal property of the owners corporation. 40
(3) Section 50 (1) (d) of the Interpretation Act 1987 does not apply to an owners 41
corporation. 42
Note. Section 50 (1) (d) of the Interpretation Act 1987 provides that a statutory corporation 43
may, for the purpose of enabling it to exercise its functions, purchase, exchange, take on 44
lease, hold, dispose of and otherwise deal with property. 45
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Division 3 Work carried out by owners corporation 1
117 Provision of amenities and services to lot 2
An owners corporation may enter into an agreement with an owner or occupier of a 3
lot to provide amenities or services to the lot or to the owner or occupier of the lot. 4
118 Window safety devices--child safety 5
(1) An owners corporation for a strata scheme to which this section applies must ensure 6
that there are complying window safety devices for all windows of each building in 7
the strata scheme that are windows to which this section applies. 8
Maximum penalty: 5 penalty units. 9
(2) An owners corporation is to carry out work related to its functions under this section 10
at its own expense and may, for the purposes of this section, carry out work on any 11
part of the parcel. 12
(3) An owner of a lot in a strata scheme to which this section applies may install a 13
complying window safety device on a window to which this section applies (other 14
than a window on another owner's lot). 15
(4) An owner of a lot who installs a window safety device under this section must: 16
(a) repair any damage caused to any part of the common property by the 17
installation of the device, and 18
(b) ensure that the device is installed in a competent and proper manner and has 19
an appearance, after it has been installed, in keeping with the appearance of the 20
building. 21
(5) An owners corporation or an owner of a lot may carry out work authorised by this 22
section despite any other provision of this Act, the regulations or any by-law of the 23
scheme. 24
(6) The regulations may make provision for or with respect to the following: 25
(a) the strata schemes and windows to which this section applies, 26
(b) the devices or other things that are complying window safety devices for the 27
purposes of this section, 28
(c) notification to the owners corporation by owners who install window safety 29
devices. 30
(7) A regulation may apply this section to a window located on any part of a parcel. 31
119 Work to rectify certain defects 32
(1) An owners corporation for a strata scheme may carry out work that is necessary to 33
rectify any of the following defects: 34
(a) any structural defect in any part of a building comprised in a lot in the scheme 35
that affects or is likely to affect the support or shelter provided by that lot for 36
another lot in the building or the common property, 37
(b) any defect in any pipe, wire, cable or duct that provides, or through which 38
passes, any water, sewage, drainage, gas, electricity, garbage, artificially 39
heated or cooled air, heating oil or other service (including telephone, internet, 40
radio or television services) within a lot. 41
(2) An owners corporation may carry out the work at its own expense if the cost of the 42
work cannot be recovered from some other person. 43
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120 Owners corporation may carry out work required to be carried out by others 1
(1) Work required by public authority 2
If an owner of a lot in a strata scheme fails to carry out work that is required to be 3
carried out under a notice given to the owner by a public authority, the owners 4
corporation may carry out the work and recover the cost of carrying out the work 5
from the owner or any person who, after the work is carried out, becomes the owner. 6
(2) Work required to be carried out under term or condition of by-law 7
If a person who is the owner, mortgagee or covenant chargee in possession, tenant or 8
occupier of a lot in the strata scheme fails to carry out work that is required to be 9
carried out by the person under a term or condition of a by-law of the scheme, the 10
owners corporation may carry out the work and recover the cost of carrying out the 11
work from that person, the owner of the lot (if the person is not the owner) or any 12
person who, after the work is carried out, becomes the owner of that lot. 13
(3) Work that is duty of owner or occupier to carry out 14
If a person who is the owner, mortgagee or covenant chargee in possession, tenant or 15
occupier of a lot in the strata scheme fails to carry out work in order to remedy a 16
breach of a duty imposed by Part 8, the owners corporation may carry out the work 17
and recover the cost of the work from that person. 18
(4) Work required to be carried out under order 19
If a person fails to carry out work required to be carried out under an order made 20
under this Act, the owners corporation may carry out the work and recover the cost 21
of carrying out the work from the person against whom the order was made. 22
(5) Recovery of costs as a debt 23
The costs incurred by an owners corporation in carrying out any work referred to in 24
this section may be recovered by the owners corporation as a debt. 25
121 Provision of letterbox 26
(1) An owners corporation must construct and maintain at or near the street alignment of 27
the parcel a letterbox suitable to receive mail and other documents. 28
(2) The name of the owners corporation is to be clearly shown on the letterbox. 29
Division 4 Powers to enter premises and carry out work 30
122 Power of owners corporation to enter property in order to carry out work 31
(1) An owners corporation for a strata scheme may, by its agents, employees or 32
contractors, enter on any part of the parcel of the scheme for the purpose of carrying 33
out the following work: 34
(a) work required or authorised to be carried out by the owners corporation in 35
accordance with this Act (including work relating to window safety devices 36
and rectification work carried out under Part 11), 37
(b) work required to be carried out by the owners corporation by a notice given to 38
it by a public authority, 39
(c) work required or authorised to be carried out by the owners corporation by an 40
order under this Act. 41
(2) An owners corporation for a strata scheme may, by its agents, employees or 42
contractors, enter on any part of the parcel for the purpose of determining whether 43
any work is required to be carried out by the owners corporation in accordance with 44
this Act. 45
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Part 6 Property management
(3) In an emergency, the owners corporation may enter any part of the parcel for those 1
purposes at any time. 2
(4) In a case that is not an emergency, the owners corporation may enter any part of the 3
parcel for those purposes with the consent of any occupier of that part of the parcel 4
or, if the occupier does not consent, in accordance with an order of the Tribunal under 5
this Division. 6
(5) A person must not obstruct or hinder an owners corporation in the exercise of its 7
functions under this section. 8
Maximum penalty: 5 penalty units. 9
(6) An owners corporation is liable for any damage to a lot or any of its contents caused 10
by or arising out of the carrying out of any work, or the exercise of a power of entry, 11
referred to in this section unless the damage arose because the owners corporation 12
was obstructed or hindered. 13
123 Access for fire safety inspections 14
(1) A person authorised to carry out an inspection under the Environmental Planning 15
and Assessment Act 1979 of a building or premises that is part of a strata scheme for 16
purposes relating to fire safety may give a written notice to the owners corporation 17
requiring the owners corporation to ensure that access is provided, within a period or 18
at a time specified in the notice, to the common property of the strata scheme and, if 19
so specified, some or all of the lots in the strata scheme. 20
(2) An owners corporation must comply with a requirement of a notice given to the 21
owners corporation under this section. 22
Maximum penalty: 20 penalty units. 23
(3) It is a defence to a prosecution for an offence against this section consisting of a 24
failure to ensure that access is provided to a lot in a strata scheme if the owners 25
corporation establishes that the owner or occupier of the lot refused to allow the 26
access or could not be contacted by the owners corporation. 27
124 Orders by Tribunal relating to entry to carry out work or inspections 28
(1) The Tribunal may, on application by an owners corporation for a strata scheme, make 29
an order requiring the occupier of a lot or part of a lot in the scheme to allow access 30
to the lot for any of the following purposes: 31
(a) to enable the owners corporation to carry out work referred to in section 118, 32
119, 120 or 122 or to determine whether such work needs to be carried out, 33
(b) to enable an entry or inspection referred to in section 122 or 123 or Part 11 to 34
be carried out. 35
(2) This section does not limit the power of an owners corporation to enter a lot under 36
this Division in an emergency without applying for an order. 37
Division 5 Goods left on common property 38
125 Disposal of abandoned goods on common property 39
The regulations may make provision for or with respect to the following matters: 40
(a) conferring power on an owners corporation to store or dispose of, or authorise 41
the disposal of, goods left on common property, 42
(b) notices to owners and other persons as to disposal or proposed disposal of 43
goods by an owners corporation, 44
(c) the passing of title to any goods on disposal by an owners corporation, 45
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Part 6 Property management
(d) the payment of the proceeds of disposal of goods by an owners corporation, 1
(e) conferring jurisdiction on the Tribunal to make directions and orders relating 2
to the disposal of goods, including orders for the payment of compensation and 3
as to the payment of the costs of disposing of goods. 4
Division 6 Orders about property 5
126 Orders relating to alterations and repairs to common property and other property 6
(1) Order requiring owners corporation to carry out work on common property 7
The Tribunal may, on application by a lessor of a leasehold strata scheme or an owner 8
of a lot in a strata scheme, order the owners corporation to consent to work proposed 9
to be carried out by an owner of a lot if the Tribunal considers that the owners 10
corporation has unreasonably refused its consent and the work relates to any of the 11
following: 12
(a) minor renovations or other alterations to common property directly affecting 13
the owner's lot, 14
(b) carrying out repairs to common property or any other property of the owners 15
corporation directly affecting the owner's lot. 16
(2) Order consenting to owner's work on owners corporation property 17
The Tribunal may, on application by a lessor of a leasehold strata scheme or an owner 18
of a lot in a strata scheme, make an order (a work approval order) approving of minor 19
renovations or alterations or repairs already made by an owner to common property 20
or any other property of the owners corporation directly affecting the owner's lot if 21
the Tribunal considers that the owners corporation unreasonably refused its consent 22
to the minor renovations or alterations or repairs. 23
(3) A work approval order is taken to be the consent of the owners corporation to the 24
renovations, alterations or repairs and may provide that it has effect from a day 25
specified in the order that occurred before the order was made. 26
(4) In deciding whether to grant a work approval order or to provide for the order to have 27
effect from a day that occurred before the date of the order, the Tribunal may take 28
into account the conduct of the parties in the proceedings, for example, if an owner 29
did not first seek the consent of the owners corporation before carrying out the 30
renovations, alterations or repairs. 31
(5) Responsibility for ongoing repair and maintenance of affected property 32
The Tribunal may specify in an order under this section whether the owners 33
corporation or the owner of the lot has the ongoing responsibility for the repair and 34
maintenance of any additional property arising out of a minor renovation or alteration 35
or repair to common property approved under the order. 36
(6) If an order provides for the owner of a lot to have the ongoing responsibility for the 37
repair and maintenance of any such additional property, the order also has effect in 38
relation to any subsequent owner of the lot. 39
127 Order relating to cosmetic work or minor renovations 40
The Tribunal may, on application by an owner of a lot in a strata scheme, make an 41
order declaring that specified work is cosmetic work for the purposes of section 109 42
or a minor renovation for the purposes of section 110. 43
128 Order consequent on alteration of building 44
(1) The Tribunal may, on application by a lessor of a leasehold strata scheme, an owners 45
corporation or an owner of a lot in a strata scheme, make an order directing an owner 46
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Part 6 Property management
to lodge in the office of the Registrar-General the plan and certificate referred to in 1
section 19 of the Strata Schemes Development Act 2015 if the Tribunal is satisfied 2
that the owner has failed to comply with that provision. 3
(2) The order must specify the time within which the plan and certificate must be lodged. 4
129 Orders relating to window safety devices 5
(1) The Tribunal may, on application by an interested person (other than an owners 6
corporation), order an owners corporation to exercise a function under section 118 if 7
the Tribunal considers that the owners corporation has failed to do so. 8
(2) For the purposes of this section, an owners corporation is taken to have failed to 9
exercise a function if application is made to it to exercise the function and it fails for 10
2 months after the making of the application to exercise the function. 11
(3) The Tribunal may, on application by an owners corporation, order an owner of a lot 12
in the strata scheme to comply with section 118 (4) if the Tribunal considers that the 13
owner has failed to do so. 14
130 Orders relating to personal property 15
(1) The Tribunal may, on application by an owner of a lot in a strata scheme, make one 16
of the following orders if the Tribunal considers that an acquisition, or a proposed 17
acquisition, by the owners corporation of personal property is unreasonable: 18
(a) that the personal property acquired be sold or otherwise disposed of by the 19
owners corporation within a specified time, 20
(b) that the personal property not be acquired. 21
(2) The Tribunal may, on application by an owner of a lot in a strata scheme, order the 22
owners corporation to acquire personal property if the Tribunal considers that the 23
owners corporation has unreasonably refused to acquire the personal property. 24
131 Order granting certain licences 25
(1) The Tribunal may, on application by an owner of a lot in a strata scheme, order that 26
the owner and any occupier of the lot may use specified common property in the 27
manner, for the purposes, and on the terms and conditions (if any), that are specified 28
in the order. 29
(2) The Tribunal must not make the order unless satisfied: 30
(a) that the lot would otherwise be incapable of reasonable use and enjoyment by 31
the current owner or occupier of the lot or generally by an owner or occupier 32
of the lot, and 33
(b) that the owners corporation has refused to grant a licence to use common 34
property in a manner, for purposes, and on terms and conditions that would 35
enable the current owner or occupier, or generally any owner or occupier, 36
reasonably to use and enjoy that lot, and 37
(c) in the case of a leasehold strata scheme, that the lessor of the scheme has, 38
before the making of the order, been given an opportunity to make 39
representations to the Tribunal with respect to the application for the order. 40
(3) An order under this section, when recorded under section 246, has effect as if its 41
terms were a by-law (but subject to any relevant order made by a superior court). 42
132 Rectification where work done by owner 43
(1) The Tribunal may, on application by an owners corporation for a strata scheme, make 44
either of the following orders if the Tribunal is satisfied that work carried out by or 45
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Part 6 Property management
for an owner or occupier on any part of the parcel of the scheme has caused damage 1
to common property or another lot: 2
(a) an order that the owner or occupier performs the work or takes other steps as 3
specified in the order to repair the damage, 4
(b) an order that the owner or occupier pay to the owners corporation or the owner 5
of the lot a specified amount for the cost of repairs of the damage and any 6
associated costs, including insurance and legal costs. 7
(2) An amount payable by an owner or occupier to an owners corporation under this 8
section is payable, and may be recovered, under this Act as if it were an amount of 9
unpaid contributions. 10
Note. Section 86 provides for the recovery of unpaid contributions. 11
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Part 7 By-laws for strata schemes
Part 7 By-laws for strata schemes 1
Division 1 Interpretation 2
133 Definitions 3
In this Part: 4
change the by-laws for a strata scheme means amend or repeal the by-laws or add to 5
the by-laws. 6
previous law means: 7
(a) Division 3 of Part 5 of Chapter 2 of the Strata Schemes Management Act 1996, 8
as in force immediately before its repeal, or 9
(b) Division 1 of Part 2 of the Strata Schemes (Freehold Development) Act 1973, 10
as in force immediately before its repeal, or 11
(c) Division 1 of Part 2 of the Strata Schemes (Leasehold Development) Act 1986, 12
as in force immediately before its repeal. 13
Division 2 Establishment and effect of by-laws 14
134 By-laws that apply to strata schemes 15
(1) New strata schemes 16
The by-laws in force for a strata scheme that came into existence after the 17
commencement of this section are the by-laws adopted by or lodged with the strata 18
plan registered by the Registrar-General for the strata scheme, as changed in 19
accordance with this Act. 20
(2) Strata schemes 1997 to commencement of section 21
The by-laws in force for a strata scheme that came into existence after the 22
commencement of the Strata Schemes Management Act 1996 and before the 23
commencement of this section are the by-laws adopted by or lodged with the strata 24
plan registered by the Registrar-General for the strata scheme, including any changes 25
to the by-laws made in accordance with that Act or in accordance with this Act. 26
Note. The Strata Schemes Management Act 1996 commenced on 1 July 1997. 27
(3) Strata schemes before 1996 28
The by-laws in force for a strata scheme that was in existence before the 29
commencement of the Strata Schemes Management Act 1996 are the by-laws set out 30
in the regulations for the purposes of this section, including any changes to the 31
by-laws made in accordance with a previous law or in accordance with this Act. 32
135 Requirement to comply with by-laws 33
(1) The by-laws for a strata scheme bind the owners corporation and the owners of lots 34
in the strata scheme and any mortgagee or covenant chargee in possession, or tenant 35
or occupier, of a lot to the same extent as if the by-laws: 36
(a) had been signed and sealed by the owners corporation and each owner and 37
each such mortgagee, covenant chargee, tenant and occupier, and 38
(b) contained mutual covenants to observe and perform all the provisions of the 39
by-laws. 40
(2) There is an implied covenant by the tenant of a lot or common property to comply 41
with the by-laws for the strata scheme. 42
Note. The effect of having been taken to have signed and sealed a by-law is that the person 43
is always taken to have known about it. 44
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Part 7 By-laws for strata schemes
136 Matters by-laws can provide for 1
(1) By-laws may be made in relation to the management, administration, control, use or 2
enjoyment of the lots or the common property and lots of a strata scheme. 3
(2) A by-law has no force or effect to the extent that it is inconsistent with this or any 4
other Act or law. 5
137 Occupancy limits 6
(1) A by-law may limit the number of adults who may reside in a lot by reference to the 7
number of bedrooms of the residence. 8
(2) The limit may not be fewer than 2 adults per bedroom. 9
(3) The by-law has no effect: 10
(a) to the extent to which it is inconsistent with any planning approval or other law 11
applicable to the lot, or 12
(b) in any other circumstances prescribed by the regulations for the purposes of 13
this section. 14
(4) To avoid doubt, the Tribunal may make an order under Division 5 about a by-law 15
made under this section. 16
(5) The regulations may provide for the circumstances when a person is a resident of a 17
lot for the purposes of a by-law made under this section. 18
(6) For the purposes of this section, a bedroom is a room approved for use as a bedroom 19
under, or indicated as a bedroom in any plans the subject of, a planning approval and 20
includes any other room prescribed by the regulations as a bedroom for the purposes 21
of this section. 22
138 Model by-laws 23
The regulations may prescribe model by-laws that may be adopted as the by-laws for 24
a strata scheme. 25
139 Restrictions on by-laws 26
(1) By-law cannot be unjust 27
A by-law must not be harsh, unconscionable or oppressive. 28
Note. Any such by-law may be invalidated by the Tribunal (see section 150). 29
(2) By-law cannot prevent dealing relating to lot 30
No by-law is capable of operating to prohibit or restrict the devolution of a lot or a 31
transfer, lease, mortgage or other dealing relating to a lot. 32
(3) By-law resulting from order cannot be changed 33
If an order made by the Tribunal under this Act has effect as if its terms were a 34
by-law, that by-law is not capable of being amended or repealed except by a by-law 35
made in accordance with a unanimous resolution of the owners corporation and, in 36
the case of a leasehold strata scheme, with the consent of the lessor of the scheme. 37
(4) By-law cannot restrict children 38
A by-law for a residential strata scheme has no force or effect to the extent to which 39
it purports to prohibit or restrict persons under 18 years of age occupying a lot. This 40
subsection does not apply to a by-law for a strata scheme for a retirement village or 41
housing exclusively for aged persons. 42
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Part 7 By-laws for strata schemes
(5) By-law cannot prevent keeping of assistance animal 1
A by-law has no force or effect to the extent to which it purports to prohibit or restrict 2
the keeping on a lot of an assistance animal (as referred to in section 9 of the 3
Disability Discrimination Act 1992 of the Commonwealth) used by an owner or 4
occupier of the lot as an assistance animal or the use of an assistance animal for that 5
purpose by a person on a lot or common property. 6
(6) A by-law may require a person who keeps an assistance animal on a lot to produce 7
evidence to the owners corporation that the animal is an assistance animal as referred 8
to in section 9 of the Disability Discrimination Act 1992 of the Commonwealth. 9
(7) Community management and precinct management statements prevail over 10
by-laws 11
A community management statement or a precinct management statement prevails 12
to the extent of any inconsistency with a by-law for a strata scheme that is also part 13
of a community scheme or precinct scheme. 14
140 Restrictions on by-laws during initial period 15
(1) An owners corporation for a strata scheme must not, during the initial period, change 16
the by-laws so that a right is conferred or an obligation is imposed on one or more, 17
but not all, owners or in respect of one or more, but not all, lots in the scheme. 18
(2) An owners corporation may recover from the original owner of the strata scheme, as 19
damages for breach of statutory duty, any loss suffered by the owners corporation as 20
a result of a contravention of this section. 21
(3) An owner of a lot in a strata scheme may recover, as damages for breach of statutory 22
duty, any loss suffered by the owner as a result of a contravention of this section. 23
(4) It is a defence to an action under this section for damages if it is proved that the 24
original owner: 25
(a) did not know of the contravention on which the action is based, or 26
(b) was not in a position to influence the conduct of the owners corporation in 27
relation to the contravention, or 28
(c) used due diligence to prevent the contravention. 29
(5) A remedy available under this section does not affect any other remedy. 30
141 Procedure for changes to by-laws 31
(1) An owners corporation may, in accordance with a special resolution of the owners 32
corporation, change the by-laws of the strata scheme. 33
(2) A change to the by-laws of a strata scheme has no effect until: 34
(a) the owners corporation has lodged a notification with the Registrar-General in 35
the manner approved by the Registrar-General, and 36
(b) the Registrar-General has made an appropriate recording of the notification in 37
the folio of the Register for the common property. 38
(3) The secretary of the owners corporation must keep a consolidated up to date copy of 39
the by-laws for the strata scheme. 40
(4) A notification cannot be lodged in the Registrar-General's office more than 6 months 41
after the passing of the resolution to make the by-law. 42
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Strata Schemes Management Bill 2015 [NSW]
Part 7 By-laws for strata schemes
Division 3 By-laws conferring rights or privileges over common 1
property 2
142 Common property rights by-law 3
For the purposes of this Act, a common property rights by-law is a by-law that 4
confers on the owner or owners of a specified lot or lots in the strata scheme: 5
(a) a right of exclusive use and enjoyment of the whole or any specified part of the 6
common property, or 7
(b) special privileges in respect of the whole or any specified part of the common 8
property (including, for example, a licence to use the whole or any specified 9
part of the common property in a particular manner or for particular purposes), 10
or that changes such a by-law. 11
143 Requirements and effect of common property rights by-laws 12
(1) An owners corporation may make a common property rights by-law only with the 13
written consent of each owner on whom the by-law confers rights or special 14
privileges. 15
Note. Any addition to the by-laws will require a special resolution (see section 141). 16
(2) A common property rights by-law may confer rights or special privileges subject to 17
conditions specified in the by-law (such as a condition requiring the payment of 18
money by the owner or owners concerned, at specified times or as determined by the 19
owners corporation). 20
(3) A common property rights by-law may be made even though the person on whom the 21
right of exclusive use and enjoyment or the special privileges are to be conferred had 22
that exclusive use or enjoyment or enjoyed those special privileges before the making 23
of the by-law. 24
(4) After 2 years from the making, or purported making, of a common property rights 25
by-law, it is conclusively presumed that all conditions and preliminary steps 26
precedent to the making of the by-law were complied with and performed. 27
144 Common property rights by-law must provide for maintenance of property 28
(1) A common property rights by-law must: 29
(a) provide that the owners corporation is to continue to be responsible for the 30
proper maintenance of, and keeping in a state of good and serviceable repair, 31
the common property or the relevant part of it, or 32
(b) impose on the owner or owners of the lots the responsibility for that 33
maintenance and upkeep. 34
(2) Any money payable under a common property rights by-law by more than one owner 35
to the owners corporation or to any person for or towards the maintenance or upkeep 36
of any common property is payable by those owners proportionately according to the 37
relative proportions of their respective unit entitlements of their lots unless the 38
by-law otherwise provides. 39
(3) To the extent to which a common property rights by-law makes a person directly 40
responsible for the proper maintenance of, and keeping in a state of good and 41
serviceable repair, any common property, it discharges the owners corporation from 42
its obligations to maintain and repair the property under this Act. 43
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Part 7 By-laws for strata schemes
145 Common property rights by-law binding on owners for time being 1
(1) A common property rights by-law, while it remains in force, continues to operate for 2
the benefit of, and is binding on, the owner or owners for the time being of the lot or 3
lots specified in the by-law. 4
(2) If a person becomes the owner of a lot when, under a by-law or under this subsection, 5
a former owner is liable to pay money to the owners corporation, the person who 6
becomes the owner is jointly and severally liable with the former owner to pay the 7
money to the owners corporation. 8
(3) Any money payable by an owner to the owners corporation under a common property 9
rights by-law or under subsection (2) may be recovered, as a debt in a court of 10
competent jurisdiction, by the owners corporation. 11
Division 4 Enforcement of by-laws 12
146 Notice by owners corporation to owner or occupier 13
(1) An owners corporation for a strata scheme may give a notice, in a form approved by 14
the Secretary, to the owner or occupier of a lot in the scheme requiring the owner or 15
occupier to comply with a specified by-law if the owners corporation is satisfied that 16
the owner or occupier has contravened that by-law. 17
(2) The notice must contain a copy of the specified by-law. 18
(3) A notice must not be given unless a resolution approving the issue of the notice, or 19
the issue of notices for the type of contravention concerned, has first been passed by 20
the owners corporation at a general meeting or by the strata committee of the owners 21
corporation. 22
(4) Subsection (3) does not apply to the giving of a notice by a strata managing agent if 23
that function has been delegated to the strata managing agent in accordance with this 24
Act. 25
147 Civil penalty for breach of by-laws 26
(1) The Tribunal may, on application by an owners corporation, order a person to pay a 27
monetary penalty of up to 10 penalty units if the Tribunal is satisfied that: 28
(a) the owners corporation gave a notice under this Division to the person 29
requiring the person to comply with a by-law, and 30
(b) the person has since contravened the by-law. 31
(2) The Tribunal may, on application by an owners corporation, order a person to pay a 32
monetary penalty of up to 20 penalty units if the Tribunal is satisfied that the person 33
has contravened a by-law within 12 months after the Tribunal had imposed a 34
monetary penalty on the person for a previous breach of the by-law. 35
(3) Despite subsections (1) and (2), the Tribunal may, in dealing with a contravention of 36
a by-law made under section 137, impose a monetary penalty of up to 50 penalty 37
units under subsection (1) and a monetary penalty of up to 100 penalty units under 38
subsection (2). 39
(4) An application for an order under subsection (1) must be made not later than 40
12 months after the notice was given. 41
(5) An owners corporation is not required to give notice under this Division before 42
applying for an order under subsection (2). 43
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Part 7 By-laws for strata schemes
(6) A monetary penalty is payable to the owners corporation, unless the Tribunal 1
otherwise orders. 2
Note. The penalty may be registered as a judgment debt and will be enforceable accordingly 3
(see section 78 of the Civil and Administrative Tribunal Act 2013). 4
Division 5 Orders about by-laws 5
148 Order revoking amendment of by-law or reviving repealed by-law 6
(1) The Tribunal may, on application by a person entitled to vote on the amendment or 7
repeal of a by-law or addition of a new by-law or the lessor of a leasehold strata 8
scheme, make one of the following orders: 9
(a) an order that the amendment be revoked, 10
(b) an order that the repealed by-law be revived, 11
(c) an order that the additional by-law be repealed. 12
(2) The Tribunal may make an order only if the Tribunal considers that, having regard 13
to the interest of all owners of lots in a strata scheme in the use and enjoyment of their 14
lots or the common property, the change to the by-laws should not have been made 15
by the owners corporation. 16
(3) An order under this section, when recorded under section 246, has effect as if its 17
terms were a by-law (but subject to any relevant order made by a superior court). 18
(4) When making an order under this section in relation to a common property rights 19
by-law, the Tribunal may direct the payment by the owners corporation of 20
compensation to the owner of the lot, or owners of the lots, referred to in the by-law. 21
Note. Section 78 of the Civil and Administrative Tribunal Act 2013 provides for the recovery 22
as a judgment debt of amounts ordered to be paid by the Tribunal. 23
(5) An order under this section operates on and from the date on which it is so recorded 24
or from an earlier date specified in the order. 25
149 Order with respect to common property rights by-laws 26
(1) The Tribunal may make an order prescribing a change to a by-law if the Tribunal 27
finds: 28
(a) on application made by an owner of a lot in a strata scheme, that the owners 29
corporation has unreasonably refused to make a common property rights 30
by-law, or 31
(b) on application made by an owner or owners corporation, that an owner of a lot, 32
or the lessor of a leasehold strata scheme, has unreasonably refused to consent 33
to the terms of a proposed common property rights by-law, or to the proposed 34
amendment or repeal of a common property rights by-law, or 35
(c) on application made by any interested person, that the conditions of a common 36
property rights by-law relating to the maintenance or upkeep of any common 37
property are unjust. 38
(2) In considering whether to make an order, the Tribunal must have regard to: 39
(a) the interests of all owners in the use and enjoyment of their lots and common 40
property, and 41
(b) the rights and reasonable expectations of any owner deriving or anticipating a 42
benefit under a common property rights by-law. 43
(3) The Tribunal must not determine an application by an owner on the ground that the 44
owners corporation has unreasonably refused to make a common property rights 45
by-law by an order prescribing the making of a by-law in terms to which the applicant 46
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Part 7 By-laws for strata schemes
or, in the case of a leasehold strata scheme, the lessor of the scheme is not prepared 1
to consent. 2
(4) The Tribunal may determine that an owner has unreasonably refused consent even 3
though the owner already has the exclusive use or privileges that are the subject of 4
the proposed by-law. 5
(5) An order under this section, when recorded under section 246, has effect as if its 6
terms were a by-law (but subject to any relevant order made by a superior court). 7
(6) An order under this section operates on and from the date on which it is so recorded 8
or from an earlier date specified in the order. 9
150 Order invalidating by-law 10
(1) The Tribunal may, on the application of a person entitled to vote on the motion to 11
make a by-law or the lessor of a leasehold strata scheme, make an order declaring a 12
by-law to be invalid if the Tribunal considers that an owners corporation did not have 13
the power to make the by-law or that the by-law is harsh, unconscionable or 14
oppressive. 15
(2) The order, when recorded under section 246, has effect as if its terms were a by-law 16
repealing the by-law declared invalid by the order (but subject to any relevant order 17
made by a superior court). 18
(3) An order under this section operates on and from the date on which it is so recorded 19
or from an earlier date specified in the order. 20
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Strata Schemes Management Bill 2015 [NSW]
Part 8 Obligations of owners, occupiers and others relating to lots
Part 8 Obligations of owners, occupiers and others relating to 1
lots 2
Division 1 Obligations relating to lots 3
151 Owners, occupiers and other persons not to interfere with support or shelter 4
provided by lot or with services 5
An owner, mortgagee or covenant chargee in possession, tenant or occupier of a lot 6
in a strata scheme must not do anything or permit anything to be done on or in 7
relation to that lot so that: 8
(a) any support or shelter provided by that lot for another lot or common property 9
is interfered with, or 10
(b) the passage or provision of water, sewage, drainage, gas, electricity, garbage, 11
artificially heated or cooled air, heating oil and other services (including 12
telephone, internet, radio and television services) through or by means of any 13
pipes, wires, cables or ducts for the time being in the lot is interfered with. 14
152 Owner must notify owners corporation of alteration to lot structure 15
The owner of a lot in a strata scheme must not alter the structure of a lot without 16
giving to the owners corporation, not later than 14 days before commencement of the 17
alteration, a written notice describing the proposed alteration. 18
Note. The right of an owner to alter the structure of a lot is also subject to other provisions of 19
this Act relating to approvals that are required to carry out work affecting the common property. 20
153 Owners, occupiers and other persons not to create nuisance 21
(1) An owner, mortgagee or covenant chargee in possession, tenant or occupier of a lot 22
in a strata scheme must not: 23
(a) use or enjoy the lot, or permit the lot to be used or enjoyed, in a manner or for 24
a purpose that causes a nuisance or hazard to the occupier of any other lot 25
(whether that person is an owner or not), or 26
(b) use or enjoy the common property in a manner or for a purpose that interferes 27
unreasonably with the use or enjoyment of the common property by the 28
occupier of any other lot (whether that person is an owner or not) or by any 29
other person entitled to the use and enjoyment of the common property, or 30
(c) use or enjoy the common property in a manner or for a purpose that interferes 31
unreasonably with the use or enjoyment of any other lot by the occupier of the 32
lot (whether that person is an owner or not) or by any other person entitled to 33
the use and enjoyment of the lot. 34
Note. Depending on the circumstances in which it occurs, the penetration of smoke from 35
smoking into a lot or common property may cause a nuisance or hazard and may interfere 36
unreasonably with the use or enjoyment of the common property or another lot. 37
(2) This section does not operate to prevent the due exercise of rights conferred on a 38
developer by the operation of section 82 of the Strata Schemes Development 39
Act 2015. 40
Note. Division 1 of Part 6 contains provisions about the circumstances in which owners of lots 41
may carry out work that affects common property. 42
Division 2 Agents for owners 43
154 Appointment of agents by corporations to exercise functions in relation to lots 44
(1) A corporation may authorise an individual (a company nominee) to exercise on its 45
behalf any function conferred by or under this Act on the corporation as owner or 46
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Part 8 Obligations of owners, occupiers and others relating to lots
mortgagee of a lot or as a covenant chargee having the benefit of a covenant charge 1
affecting a lot. The corporation may revoke the authority of any individual so 2
authorised. 3
(2) A function exercised with respect to a lot by a company nominee of an owner, 4
mortgagee or covenant chargee is taken to have been exercised with respect to the lot 5
by the owner, mortgagee or covenant chargee. 6
(3) This section does not affect any liability or obligation imposed by or under this Act 7
on a corporation which is an owner or mortgagee of a lot or a covenant chargee. 8
(4) A document under the seal of a corporation purporting to be an authorisation under 9
this section or to be a revocation of an authorisation is admissible in evidence and is, 10
unless the contrary is proved, taken to be an authorisation or revocation. 11
155 Owner may appoint agent if not able to deal with notices 12
(1) An owner of a lot in a strata scheme may appoint an agent to receive notices and other 13
documents under this Act if the owner is unable to deal with those notices because of 14
intellectual impairment or physical impairment, illiteracy or an inability to read or 15
write English sufficiently well or absence from the lot. 16
(2) A person must not be appointed as an agent unless the person is a resident of 17
Australia. 18
(3) An appointment of an agent may be made at any time and may be revoked at any 19
time. 20
(4) However, the appointment or revocation has no effect until communicated to the 21
owners corporation and recorded in the strata roll. 22
(5) If an agent for an owner has been so appointed and the name and address for service 23
of the agent is recorded on the strata roll, notices or other documents required to be 24
given to the owner under this Act are to be given to the agent. 25
Division 3 Keeping of animals on lots 26
156 Order for removal of an animal not permitted under by-laws 27
(1) The Tribunal may, on application by an interested person, order a person to cause an 28
animal to be removed from a parcel within a specified time, and to be kept away from 29
the parcel, if the Tribunal considers that the person is keeping an animal on the parcel 30
in contravention of the by-laws. 31
(2) An order under this section ceases to have effect if the keeping of the animal is 32
subsequently authorised in accordance with the by-laws. 33
157 Order permitting keeping of animal 34
(1) The Tribunal may, on application by the owner or occupier (with the consent of the 35
owner) of a lot in a strata scheme, make an order declaring that the applicant may 36
keep an animal on the lot or common property. 37
(2) The Tribunal must not make the order unless it is satisfied that: 38
(a) the by-laws permit the keeping of an animal with the approval of the owners 39
corporation and provide that the owners corporation cannot unreasonably 40
withhold consent to the keeping of an animal, and 41
(b) the owners corporation has unreasonably withheld its approval to the keeping 42
of the animal on the lot or common property. 43
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Part 8 Obligations of owners, occupiers and others relating to lots
158 Order for removal of an animal permitted under by-laws 1
(1) The Tribunal may, on application by an interested person, make an order against a 2
person who is keeping an animal on a lot or common property in accordance with the 3
by-laws for a strata scheme, if the Tribunal considers that the animal causes a 4
nuisance or hazard to the owner or occupier of another lot or unreasonably interferes 5
with the use or enjoyment of another lot or of the common property. 6
(2) The Tribunal may order that the person: 7
(a) cause the animal to be removed from the parcel within a specified time, and be 8
kept away from the parcel, or 9
(b) within a time specified in the order, take such action as, in the opinion of the 10
Tribunal, will terminate the nuisance or hazard or unreasonable interference. 11
159 Effect of orders 12
An order under this Division binds the following persons, despite any by-law of the 13
strata scheme: 14
(a) each owner and occupier of a lot in the strata scheme and the owners 15
corporation for the strata scheme, 16
(b) each person who is bound by the strata management statement for the building 17
and its site, 18
(c) in the case of a leasehold strata scheme, the lessor of the scheme. 19
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Strata Schemes Management Bill 2015 [NSW]
Part 9 Insurance
Part 9 Insurance 1
Division 1 Owners corporation insurance obligations 2
160 Owners corporation to insure building 3
(1) The owners corporation for a strata scheme for the whole of a building must insure 4
the building and keep the building insured under a contract of insurance, in 5
accordance with this Division, that insures the building if it is destroyed or damaged 6
by fire, lightning, explosion or any other occurrence specified in the policy (a 7
damage policy). 8
Maximum penalty: 5 penalty units. 9
(2) The owners corporation for each strata scheme for part of a building and any other 10
person in whom is vested an estate in fee simple in part of the building that is not 11
included in the parcel of the strata scheme must insure the building and keep the 12
building insured under a damage policy. 13
Maximum penalty: 5 penalty units. 14
(3) In any proceedings for an offence under subsection (2), it is a defence to establish 15
that the defendant was willing to join in the insurance of a building under a damage 16
policy but that the policy could not be taken out because another person specified in 17
that subsection was unwilling to join in the application for that policy. 18
(4) This section does not apply to an owners corporation for a strata scheme comprising 19
2 lots if: 20
(a) the owners corporation so determines by unanimous resolution, and 21
(b) the buildings comprised in one of those lots are physically detached from the 22
buildings comprised in the other lot, and 23
(c) no building or part of a building in the strata scheme is situated outside those 24
lots. 25
(5) A damage policy may consist of one or more policies of insurance. 26
161 Requirements for damage policy 27
(1) General requirements 28
The damage policy for a building must be with an approved insurer, be in the name 29
of the owners corporation, and any other person required to insure under section 160 30
and provide for the following: 31
(a) the building is to be insured for at least the amount determined in accordance 32
with the regulations, 33
(b) if the building is destroyed, the building is to be rebuilt or replaced so that the 34
condition of every part of the rebuilt or replacement building is not worse or 35
less extensive than that part when new, 36
(c) if the building is damaged but not destroyed, the damaged part of the building 37
is to be repaired or restored so that the condition of the repaired or restored part 38
is not worse or less extensive than that part when new, 39
(d) expenses incurred in removing debris are payable, 40
(e) the remuneration of architects and other persons whose services are necessary 41
as an incident to the rebuilding, replacement, repair or restoration is payable. 42
(2) Limited sum liability 43
Instead of providing for work and payments being made if a building is destroyed or 44
damaged, the damage policy may limit the liability of the insurer in that event to an 45
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Strata Schemes Management Bill 2015 [NSW]
Part 9 Insurance
amount specified in the policy. The amount must not be less than an amount 1
calculated in accordance with the regulations. 2
(3) Parts of building to be covered 3
The parts of a building to be covered by a damage policy include the following: 4
(a) owners' improvements and owners' fixtures forming part of the building, 5
(b) a building consisting entirely of common property, 6
(c) anything prescribed by the regulations as forming part of a building for the 7
purposes of this section. 8
(4) Parts of building not required to be covered 9
The following parts of a building are not required to be covered by a damage policy: 10
(a) fixtures removable by a tenant at the expiration of a tenancy, 11
(b) owners' improvements and fixtures comprising paint, wallpaper and 12
temporary wall, floor and ceiling coverings, 13
(c) anything prescribed by the regulations as not forming part of a building for the 14
purposes of this section. 15
162 Insurance premiums where strata scheme is for part only of building 16
(1) This section applies if a requirement is imposed on an owners corporation for a strata 17
scheme for part of a building and any other person to insure the building under a 18
damage policy. 19
(2) The premium for a damage policy is to be paid by the owners corporation or other 20
person according to the proportion that the replacement value of the part (or parts) of 21
the building subject to the strata scheme or held in fee simple by the other person 22
bears to the replacement value of the whole building. 23
(3) The Tribunal may, on application by an owners corporation or other person liable to 24
pay a proportion of a premium, determine the replacement value and proportion 25
payable. The determination is binding on each person liable to pay a proportion. 26
(4) The Tribunal may, on application by any person liable under this section to pay a 27
proportion of a premium, make an order adjusting the proportion payable by a person 28
to reflect that the use to which a part of a building in which that person has the fee 29
simple is put causes an insurance premium under this section to be greater than it 30
would be if it were not put to that use. 31
163 Use of insurance money by owners corporation 32
(1) An owners corporation that receives money from an insurer for the destruction of or 33
damage to a building must immediately apply that money in rebuilding, replacing, 34
repairing or restoring the building. 35
(2) This section does not apply to an owners corporation if the owners corporation 36
determines, by unanimous resolution, that the money is not to be so applied. 37
(3) This section is subject to any order made under the Strata Schemes Development 38
Act 2015. 39
164 Other mandatory insurance requirements for owners corporation 40
(1) An owners corporation must take out the following insurance with an approved 41
insurer, in addition to any other requirements of this Part: 42
(a) insurance in respect of any occurrence against which it is required by law to 43
insure, including any insurance required by the Workers Compensation 44
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Strata Schemes Management Bill 2015 [NSW]
Part 9 Insurance
Act 1987 and the Workplace Injury Management and Workers Compensation 1
Act 1998 to be taken out, 2
(b) insurance in respect of damage to property, death or bodily injury for which 3
the owners corporation could become liable in damages, 4
(c) insurance against the possibility of the owners becoming jointly liable because 5
of a claim arising in respect of any other occurrence against which the owners 6
corporation, in accordance with a special resolution, decides to insure, 7
(d) insurance against any damages for which the owners corporation could 8
become liable because, without fee or reward or any expectation of fee or 9
reward, a person acting on behalf of the owners corporation does work in a 10
building or on the common property in the strata scheme, 11
(e) insurance of any other class prescribed by the regulations for the purposes of 12
this subsection. 13
Maximum penalty: 5 penalty units. 14
(2) Insurance taken out in accordance with subsection (1) (b) must be for a cover of not 15
less than $10,000,000 for each event for which any claim or claims may be made or, 16
if the regulations provide for another amount, that other amount. 17
(3) The regulations may provide that the amount is to be calculated or determined in the 18
manner prescribed by the regulations. 19
165 Owners corporation may take out other insurance 20
(1) An owners corporation may insure any property that it is not required to insure by 21
this Part and in which it has an insurable interest. 22
(2) An owners corporation may take out insurance, at its own expense, in respect of any 23
of the following: 24
(a) damage to property, death or bodily injury for which a person holding the 25
office of chairperson, secretary or treasurer of the owners corporation or of a 26
member of the strata committee of the owners corporation could become liable 27
in damages because of an act or omission, committed or omitted in good faith, 28
in performing the functions of that office, 29
(b) misappropriation of money or other property of the owners corporation. 30
(3) Any insurance taken out under this section must be taken out with an approved 31
insurer. 32
166 Strata managing agent to obtain insurance quotations 33
A strata managing agent must provide the owners corporation with not less than 34
3 quotations from different providers for each type of insurance proposed by the 35
agent to the owners corporation or provide written reasons to the owners corporation 36
if less than 3 quotations are provided. 37
Division 2 Insurance claims and other matters affecting insurance 38
167 Part does not limit owner's insurance rights 39
(1) This Part does not limit any right of an owner of a lot in a strata scheme to take out 40
insurance. 41
(2) Insurance taken out by an owner of a lot in a strata scheme does not affect, and is not 42
to be taken into consideration in determining, the amount payable to an owners 43
corporation under a contract of insurance entered into between it and an insurer in 44
accordance with this Part. This subsection has effect despite anything contained in 45
the relevant contract of insurance. 46
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168 Insurable interests 1
(1) A person (including an owners corporation) is taken to have an insurable interest in 2
the subject-matter of a contract of insurance entered into by the person in accordance 3
with this Part. 4
(2) The owner of a lot is taken to have an insurable interest in a building comprised in 5
the lot while the building is subject to a determination referred to in section 160 (4). 6
(3) This section applies despite the provisions of section 23 of the Imperial Acts 7
Application Act 1969 or any other law relating to insurance. 8
169 Insurance of mortgaged lot 9
(1) An owner of a lot in a strata scheme may take out insurance in respect of damage to 10
the lot for an amount equal to the amount secured at the date of the contract of 11
insurance by mortgages of and any covenant charges affecting the lot. 12
(2) The following provisions apply to the payment of an amount under the contract 13
(subject to the terms of the contract): 14
(a) any payment to be made by the insurer in respect of damage must be made to 15
the mortgagees and any covenant chargees whose interests are noted in the 16
contract in order of their respective priorities, 17
(b) the amount must be the amount stated in the contract, the amount of the loss, 18
or an amount sufficient, at the date of the loss, to discharge mortgages of and 19
any covenant charges affecting the lot, whichever is the least amount, 20
(c) if the amount paid by the insurer equals the amount necessary to discharge a 21
mortgage of the lot, the insurer is entitled to an assignment of that mortgage, 22
(d) if the amount paid by the insurer is less than the amount necessary to discharge 23
a mortgage of the lot, the insurer is entitled to a sub-mortgage of that mortgage 24
to secure the amount paid on terms and conditions agreed on as provided by 25
subsection (3) or, failing agreement, on the same terms and conditions as those 26
contained in the mortgage by the owner. 27
(3) For the purposes of subsection (2) (d), any insurer and mortgagee may at any time, 28
whether before or after a contract of insurance referred to in subsection (1) has been 29
entered into by an owner of a lot, agree on the terms and conditions of the 30
sub-mortgage. 31
(4) The contract of insurance is not liable to be brought into contribution with any other 32
such contract of insurance except another contract of insurance that is in respect of 33
damage to the same lot and relates to the same debt. 34
170 Insurance claim where owner at fault 35
If an insurer of an owners corporation accepts a claim by the owners corporation 36
based on an act or omission by an owner of a lot in the strata scheme, the insurer has 37
no right of subrogation in relation to the owner based on that act or omission unless 38
it is proved that the act or omission was wilful. 39
171 Action against owners corporation by owner 40
An owner of a lot may bring any action against the owners corporation of which the 41
owner is a member that the owner might have brought against the owners corporation 42
if the owner had not been such a member. 43
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Part 9 Insurance
Division 3 Orders about insurance 1
172 Exemption by Tribunal from building insurance requirements 2
(1) The Tribunal may, on application by a person required by this Part to insure a 3
building or structure, by order exempt the applicant: 4
(a) from compliance with the requirements to insure unconditionally, or 5
(b) with the written consent of the applicant, from compliance with those 6
requirements subject to a condition that the applicant takes out insurance for 7
the building that is specified in the order. 8
(2) The Tribunal must not make an order unless: 9
(a) it is of the opinion that compliance with the requirements to insure is 10
unnecessary or impracticable, and 11
(b) each other person required to insure the building has consented in writing to 12
the making of the order or has, before the making of the order, been given an 13
opportunity to make representations to the Tribunal with respect to the 14
application for the order. 15
(3) An owners corporation may apply for an order, or give a consent for the purposes of 16
this section, only in accordance with a unanimous resolution. 17
(4) If an owners corporation is required by a positive covenant to insure the building, an 18
order must not be made until: 19
(a) at least 21 days after the Tribunal has given notice to the authority having the 20
benefit of the covenant of the intention to make the order, and 21
(b) the Tribunal has considered any representations made during the 21-day 22
period to the Tribunal by the authority in relation to the intended order. 23
173 Effect of exemption from building insurance requirements 24
(1) A person exempted by the Tribunal from the requirement to insure a building is not 25
under a duty to comply with the requirement or any corresponding requirement of a 26
positive covenant. 27
(2) However, if the exemption was granted subject to a condition, the person is under the 28
duty, if in breach of that condition. 29
174 Order to make or pursue insurance claim 30
(1) The Tribunal may, on application, order any person who is entitled to the benefit of 31
insurance taken out under this Act to make or pursue an insurance claim in relation 32
to damage to the building or any other property to which the insurance relates, if the 33
Tribunal considers the person has unreasonably refused to make or pursue the claim. 34
(2) An application for an order may be made by any of the following: 35
(a) an owner or tenant of a lot in the strata scheme for the building or part of the 36
building, 37
(b) the lessor of a leasehold strata scheme for the building or part of the building, 38
(c) if part of the building is included in a part strata parcel, any person in whom is 39
vested an estate in fee simple or a leasehold estate, registered under the Real 40
Property Act 1900 in any part of the building or its site that is not included in 41
a part strata parcel. 42
175 Orders requiring damage policy 43
(1) The Tribunal may, on application, order that a damage policy must be taken out for 44
a specified amount, if the Tribunal is satisfied that there is a dispute about the amount 45
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for which any such insurance should be taken out or the proportions in which the 1
premium should be paid. 2
(2) The order may require insurance to be taken out in accordance with the order for a 3
period of up to 90 days, but does not affect the requirement made by this Act to keep 4
the building insured after that period. 5
(3) The Tribunal may, on application, order that the amount of any insurance taken out 6
for a damage policy or under section 164 (1) (c) must be varied to a specified amount, 7
if the Tribunal considers that the amount of the current insurance is unreasonable. 8
(4) An order must specify by whom the insurance is to be taken out or varied and (if the 9
building is included in a part strata parcel) the proportions in which the premium is 10
to be paid. 11
(5) An application for an order under this section may be made by any of the following: 12
(a) an owner or a mortgagee of a lot shown on the strata roll, or a person having 13
an interest in a lot, in a strata scheme for the whole or any part of the building 14
concerned, 15
(b) the lessor of a leasehold strata scheme for the building or any part of the 16
building concerned or by any owner or sublessee of the common property, 17
(c) if part of the building is included in a part strata parcel, any person in whom is 18
vested (or who has an interest in) an estate in fee simple in any part of the 19
building or its site that is not included in a part strata parcel or any mortgagee 20
under a mortgage registered under the Real Property Act 1900 of any such 21
estate or interest, 22
(d) an authority having the benefit of a positive covenant affecting the building or 23
its site. 24
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Part 10 Records and information about strata schemes
Part 10 Records and information about strata schemes 1
Division 1 Strata roll and other records 2
176 Form of records 3
A strata roll or any other record required to be made or stored by an owners 4
corporation may be made or stored in the form determined by the owners 5
corporation. 6
177 Owners corporation must prepare strata roll 7
An owners corporation must prepare and maintain a strata roll in accordance with this 8
Division. 9
Maximum penalty: 5 penalty units. 10
178 Content of strata roll 11
(1) Information about lots 12
The following information must be recorded in the strata roll in relation to a 13
particular lot in the strata scheme: 14
(a) the name of the holder of the estate in fee simple in the lot (in the case of a 15
freehold strata scheme) or the holder of the leasehold estate in the lot (in the 16
case of a leasehold strata scheme), 17
(b) an address for service of notices, 18
(c) an Australian postal address, and an email address if the holder has one, if not 19
provided as the address for service, 20
(d) the name of the holder's agent (if any) appointed in accordance with this Act 21
and the agent's address for service of notices, 22
(e) information provided under a strata interest notice, 23
(f) information provided under a tenancy notice. 24
(2) Information about common property and strata scheme 25
The following information must be recorded in the strata roll in relation to the 26
common property of the strata scheme and the scheme in general: 27
(a) the strata plan number and the address of the strata scheme building, 28
(b) the names of the original owner and any strata managing agent of the owners 29
corporation and their addresses for service of notices, 30
(c) the aggregate unit entitlement of the scheme and the unit entitlement of each 31
lot, 32
(d) particulars of insurance taken out by the owners corporation, including the 33
following: 34
(i) the name of the insurance company, 35
(ii) the number of the insurance policy, 36
(iii) the nature of the risk insured, 37
(iv) the amount of the insurance, 38
(v) the due date for payment of the premium, 39
(vi) the date on which the premium was last paid, 40
(e) the by-laws for the time being in force for the strata scheme, 41
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(f) if the scheme was registered before the commencement of Part 10 of the Strata 1
Schemes Development Act 2015, whether that Part applies to the scheme. 2
(3) Sources of information for strata roll 3
The owners corporation may make or amend entries in the strata roll on the basis of 4
information contained in the Register or provided under a strata interest notice or a 5
tenancy notice (to the extent that information so provided is not inconsistent with 6
information contained in the Register). Information provided under any such notice 7
may be presumed to be consistent with information contained in the Register until 8
the contrary is evident. 9
179 Notices and orders to be kept 10
An owners corporation must cause the following to be recorded: 11
(a) particulars of any notice given to the owners corporation under this or any 12
other Act, any order under this Act given to the owners corporation and any 13
order made by a court or tribunal and given to the owners corporation, 14
(b) the date on which it was given and the manner in which it was given, 15
(c) the part of the parcel to which it relates, 16
(d) the date by which compliance is required, 17
(e) the date on which it is complied with. 18
Maximum penalty: 5 penalty units. 19
180 Certain records to be retained for prescribed period 20
(1) An owners corporation must cause the following to be retained for 7 years: 21
(a) any records, notices and orders required to be kept under this Division or 22
Part 10 of the Strata Schemes Development Act 2015, 23
(b) minutes of meetings required to be kept under Schedule 1 or Schedule 2, 24
(c) its financial statements and accounting records, 25
(d) copies of correspondence received and sent by the owners corporation, 26
(e) notices of meetings of the owners corporation and its strata committee, 27
(f) proxies delivered to the owners corporation, 28
(g) voting papers relating to motions for resolutions by the owners corporation 29
and to the election of officers or the establishment of a strata renewal 30
committee (under Part 10 of the Strata Schemes Development Act 2015), 31
(h) a copy of any signed strata managing agent agreement or building manager 32
agreement entered into by the owners corporation, 33
(i) records given to the owners corporation by the strata managing agent relating 34
to the exercise of functions by the agent, 35
(j) any other documents prescribed by the regulations for the purposes of this 36
section. 37
Maximum penalty: 5 penalty units. 38
(2) The regulations may prescribe a different period for which any or all of the things 39
referred to in subsection (1) are required to be retained. 40
181 Owners corporation may require certain persons to produce records, accounts and 41
property of the owners corporation 42
(1) If the strata committee of an owners corporation gives a notice to a person who has 43
possession or control of property (including records) of the owners corporation 44
requiring the person to deliver the property to the strata committee, the person must, 45
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not later than 14 days after the notice is given, deliver that property to a member of 1
the strata committee specified in the notice. 2
Maximum penalty: 20 penalty units. 3
(2) If the strata committee of an owners corporation gives a notice to a person who has 4
possession or control of property (including records) of the owners corporation 5
advising of the decision of the owners corporation to terminate the person's 6
appointment as strata managing agent, the person must, not later than 14 days after 7
the notice is given, deliver that property to a member of the strata committee 8
specified in the notice. 9
Maximum penalty: 20 penalty units. 10
(3) This section does not take away or affect any just claim or lien which a strata 11
managing agent may have against or on any records or other property of an owners 12
corporation. 13
(4) This section does not affect the operation of the Property, Stock and Business Agents 14
Act 2002. 15
Note. The Property, Stock and Business Agents Act 2002 contains requirements relating to 16
the keeping of records under that Act. 17
Division 2 Provision of information about strata schemes 18
182 Requests for inspection of records of owners corporation 19
(1) Persons who may inspect 20
An owner, mortgagee or covenant chargee of a lot in a strata scheme, or a person 21
authorised by the owner, mortgagee or covenant chargee, may request the owners 22
corporation to allow an inspection to be carried out under this section. 23
(2) Form of request 24
The request must be made by written notice given to the owners corporation and be 25
accompanied by the fee prescribed by the regulations. 26
(3) Items to be made available for inspection 27
The owners corporation must make the following items available for inspection by 28
the person who makes the request or the person's agent: 29
(a) the strata roll, 30
(b) any other records or documents required to be kept under this Part, 31
(c) the plans, specifications, certificates, diagrams and other documents required 32
to be delivered to the owners corporation before its first annual general 33
meeting by the original owner or the lessor of a leasehold strata scheme, 34
(d) if in its custody or under its control, the certificate of title comprising the 35
common property or, in the case of a leasehold strata scheme, the certificate of 36
title for the lease of the common property, 37
(e) any applicable 10-year capital works fund plan, 38
(f) the last financial statements prepared, 39
(g) every current policy of insurance taken out by the owners corporation and the 40
receipt for the premium last paid for each such policy, 41
(h) if a strata managing agent has been appointed, a copy of the instrument of 42
appointment, 43
(i) if a strata renewal plan has been given to owners for their consideration under 44
Part 10 of the Strata Schemes Development Act 2015, a copy of the plan, 45
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(j) any other record or document in the custody or under the control of the owners 1
corporation, 2
(k) if the duties of the owners corporation under this subsection have been 3
delegated to a strata managing agent, any other records (including records of 4
the strata managing agent) relating to the strata scheme that are prescribed by 5
the regulations, 6
(l) if a building manager agreement is in force or has been entered into but has not 7
yet commenced, a copy of the building manager agreement, 8
(m) particulars of any service agreement entered into by the owners corporation, 9
(n) particulars of any agreement entered into with a local council for a strata 10
parking area, 11
(o) if the request is made within 5 years after the end of the initial period, 12
particulars of any orders made under section 27 and copies of any related 13
contracts or other documents. 14
Maximum penalty: 5 penalty units. 15
(4) Meeting inspections 16
For the purpose of complying with requirements for the giving of notice of a meeting 17
of the owners corporation, the original owner (whether or not having ceased to be an 18
owner) or an agent authorised in writing by the original owner is entitled to inspect 19
the strata roll without payment on making a written application. 20
183 Inspection of owners corporation documents 21
(1) An inspection under this Division is to take place at the time and place, or by the 22
means, agreed on and, failing agreement, at the parcel at a time and on a date, or by 23
the means, fixed by the owners corporation under this section. 24
(2) If an applicant and the owners corporation fail to reach an agreement within 3 days 25
after the owners corporation receives the application, the owners corporation must 26
immediately give the applicant a written notice fixing a specified time (between 9 am 27
and 8 pm) on a specified date (not later than 10 days after the owners corporation 28
receives the application), or a specified means, for the inspection to take place. 29
(3) The means for inspecting documents may be in person or through electronic access 30
to the documents or any other means agreed on or fixed under this section. 31
(4) A person entitled to inspect a document may take extracts from, or make a copy of, 32
the document but must not, without the consent of the owners corporation, remove 33
the document from the custody of the owners corporation. 34
184 Certificate by owners corporation as to financial and other matters relating to lot 35
(1) Persons who may request certificate 36
An owner, mortgagee or covenant chargee of a lot in a strata scheme, or a person 37
authorised by the owner, mortgagee or covenant chargee, may request the owners 38
corporation for the strata scheme to give a certificate under this section (a strata 39
information certificate) in relation to a particular lot. 40
(2) Form of request 41
The request must be made by written notice given to the owners corporation and be 42
accompanied by the fee prescribed by the regulations. 43
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(3) Information relating to lot to be included in strata information certificate 1
The strata information certificate must specify the following information in respect 2
of the lot and the strata scheme: 3
(a) the amount of any regular periodic contributions for the lot determined by the 4
owners corporation under this Act, the periods for which those contributions 5
are payable and any discounts applicable for early payment, 6
(b) whether there is any amount unpaid of any contributions determined for the lot 7
and, if so, the amount unpaid and, in the case of a contribution levied for the 8
capital works fund, the date on which the contribution was levied, 9
(c) whether there is any amount unpaid by an owner under a common property 10
rights by-law or a by-law made under section 108, 11
(d) whether there is any amount unpaid of any contribution levied under 12
section 81 (4) for the lot and, if so, the amount unpaid and the date on which 13
it was levied, 14
(e) any amount and rate of interest payable in relation to any unpaid contribution 15
referred to in this subsection, 16
(f) whether there is any amount recoverable from the owner of that lot for work 17
carried out by the owners corporation, 18
(g) the proposals for funding the matters set out in the 10-year capital works fund 19
plan, 20
(h) whether or not a strata renewal committee has been established in relation to 21
the strata scheme under the Strata Schemes Development Act 2015, 22
(i) any other information that is required to complete the certificate. 23
(4) Information relating to management of strata scheme to be included in strata 24
information certificate 25
The strata information certificate must state, as at the date of the certificate, the name 26
and address of each member of the strata committee and of any strata managing agent 27
and building manager appointed under this Act for the strata scheme. 28
(5) Extra information required in relation to community schemes 29
If the strata scheme is part of a community scheme, the strata information certificate 30
must also include the following information: 31
(a) the amount of any regular periodic contributions required to be made to the 32
administrative fund and the capital works fund of the community association 33
and the respective periods to which they relate, 34
(b) the amount of any such contribution that has not been paid, 35
(c) the date on which any regular periodic contribution to the administrative fund, 36
and the capital works fund, of the association was levied, 37
(d) if the strata scheme is also part of a precinct scheme--the same information in 38
relation to the precinct scheme as is required by this section in relation to the 39
community scheme. 40
(6) Form of strata information certificate 41
The strata information certificate must be in the form prescribed by the regulations. 42
(7) When strata information certificate must be given 43
An owners corporation must give a strata information certificate under this section 44
not later than 14 days after receipt by it of an application for the certificate. 45
Maximum penalty: 5 penalty units. 46
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185 Strata information certificate is evidence of matters stated in it 1
A strata information certificate is conclusive evidence, as at the date of the certificate, 2
of the matters stated in it in favour of a person (whether or not the applicant for the 3
certificate or a person referred to in the certificate) taking for valuable consideration: 4
(a) an estate or interest in a lot in a freehold strata scheme to which the certificate 5
relates, or 6
(b) an estate or interest in a lease of a lot in a leasehold strata scheme to which the 7
certificate relates. 8
186 Provision of strata scheme information to tenants 9
(1) The lessor or sub-lessor of a lot or common property in a strata scheme must give the 10
tenant of the lot or common property a copy of the by-laws and any strata 11
management statement affecting the lot or common property, not later than 14 days 12
after the tenant becomes entitled to possession of the lot. 13
Maximum penalty: 5 penalty units. 14
(2) The lessor or sub-lessor of a lot or common property in a strata scheme must, if the 15
by-laws of the strata scheme are, or any strata management statement affecting the 16
lot or common property is, changed, give the tenant of the lot or common property a 17
copy of the changed by-laws not more than 14 days after the change takes effect. 18
Maximum penalty: 5 penalty units. 19
(3) This section does not apply to a strata scheme that is part of a community scheme. 20
Division 3 Orders about strata roll and records 21
187 Order confirming information for strata roll 22
(1) The Tribunal may, on application by an owners corporation, owner or other person 23
having or acquiring an estate or interest in a lot in a strata scheme, order an owners 24
corporation to enter information contained in a strata interest notice in the strata roll 25
if a person fails to provide the required written confirmation of the notice. 26
(2) In making the order, the Tribunal may amend the information in the strata interest 27
notice to which the order relates in any manner the Tribunal thinks fit. 28
(3) The Tribunal must dismiss an application for an order if the Tribunal considers that 29
the rights of any person would be prejudiced if the order were made. 30
(4) A copy of an order under this section given to an owners corporation is taken to be a 31
strata interest notice given to the owners corporation and information entered on a 32
strata roll in accordance with the order is taken to have been entered from a notice 33
with any written confirmation required. 34
188 Order to supply information or documents 35
(1) The Tribunal may, on application by a person, order an owners corporation, strata 36
managing agent, officer or former strata managing agent of an owners corporation to 37
supply to the applicant information that the Tribunal considers that the owners 38
corporation, strata managing agent, officer or former strata managing agent has 39
wrongfully withheld from the applicant and to which the applicant is entitled under 40
this Act. 41
(2) The Tribunal may, on application by a person, order an owners corporation, strata 42
managing agent, officer or former strata managing agent of an owners corporation to 43
supply or make available to the applicant a record or document if: 44
(a) the Tribunal considers that the owners corporation, strata managing agent, 45
officer or former strata managing agent has wrongfully failed to make the 46
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Part 10 Records and information about strata schemes
record or document available for inspection by the applicant or the applicant's 1
agent, and 2
(b) the applicant is entitled under this Act to inspect the record or document. 3
(3) The order may specify the manner in which information is to be supplied or made 4
available. 5
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Part 11 Building defects
Part 11 Building defects 1
Division 1 Preliminary 2
189 Definitions 3
In this Part: 4
building bond--see section 207 (1). 5
building inspector--see section 193 (1). 6
contract price means the price determined as the contract price in accordance with 7
the regulations. 8
developer means the developer of the strata scheme by whom or on whose behalf 9
building work to which this Part applies was carried out. 10
final report means a report prepared under section 201. 11
interim report means a report prepared under section 199. 12
residential building work has the same meaning as it has in the Home Building 13
Act 1989. 14
190 Interpretation provisions--building work 15
(1) In this Part: 16
builder responsible for defective building work means: 17
(a) the person (the principal contractor) who contracted to do the building work 18
and who contracted with another person (a subcontractor) to do the work for 19
the principal contractor, or 20
(b) the principal contractor, if the principal contractor did not contract with a 21
subcontractor to do the work. 22
building work means any work involved in, or involved in co-ordinating or 23
supervising any work involved in: 24
(a) the construction of a building, or 25
(b) the making of alterations or additions to a building, or 26
(c) the repairing, renovation, decoration or protective treatment of a building. 27
defective building work means building work that: 28
(a) is residential building work done in such a way that it constitutes a breach of 29
a statutory warranty applicable to the work under Part 2C of the Home 30
Building Act 1989, or 31
(b) is building work done in such a way that it would constitute such a breach if 32
the building work were residential building work. 33
(2) For the purposes of this Part, the completion of building work to which this Part 34
applies occurs on the date specified for the completion of residential building work 35
for the construction of a new building for a strata scheme in the Home Building Act 36
1989 (whether or not the work is residential building work) or on the occurrence of 37
some other event that is prescribed by the regulations as constituting completion of 38
the work. 39
191 Building work to which Part applies 40
(1) This Part applies to building work carried out on a building, or a part of a building, 41
that is part of the parcel of a strata scheme, being work that is: 42
(a) residential building work, or 43
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Part 11 Building defects
(b) carried out on a building, or a part of a building, used or proposed to be used 1
for mixed use purposes that include residential purposes. 2
Note. The parcel of a strata scheme includes common property and lots in a strata scheme. 3
(2) This Part applies to building work only if the building work was carried out for the 4
purposes of, or contemporaneously with, the registration of a strata plan or a strata 5
plan of subdivision of a development lot. 6
(3) This Part does not apply to building work if the work is subject to the requirement to 7
obtain insurance under the Home Building Compensation Fund in relation to the 8
work or is not subject to that requirement only because the contract price does not 9
exceed the amount referred to in section 92 (3) of the Home Building Act 1989. 10
(4) The regulations may prescribe additional building work to which this Part does not 11
apply. 12
(5) In this section: 13
insurance under the Home Building Compensation Fund means insurance under a 14
contract of insurance required to be entered into by or under Part 6 of the Home 15
Building Act 1989. 16
192 Owners corporation decisions 17
The approval or consent of an owners corporation under this Part is to be given by a 18
resolution of the owners corporation at a general meeting. 19
Note. A resolution at a meeting is to be determined by a simple majority (see clause 14 (1) of 20
Schedule 1). A developer, or lessor of a leasehold strata scheme, is not entitled to vote, or 21
exercise a proxy vote, on a matter concerning building defects (see clause 15 of Schedule 1). 22
Division 2 Inspection reports 23
193 Building inspectors 24
(1) In this Part, building inspector means a person appointed for the purposes of this Part 25
as a building inspector for building work. 26
(2) A person is qualified to be appointed as a building inspector only if the person is a 27
member of a class of persons prescribed by the regulations for the purposes of this 28
section. 29
194 Obligations of developer 30
(1) If the initial period of a strata scheme ends not later than 12 months after the 31
completion of building work, the developer of the strata scheme must within that 32
period of 12 months: 33
(a) appoint a qualified person as a building inspector to carry out an inspection of, 34
and to report on, the building work and give the Secretary written notice of the 35
appointment not later than 14 days after making the appointment, or 36
(b) if the developer fails for any reason to appoint a building inspector within that 37
period of 12 months, give the Secretary written notice of the fact not later than 38
21 days after the end of that period. 39
Maximum penalty: 200 penalty units. 40
(2) If the initial period for a strata scheme does not end within 12 months after the 41
completion of building work, the developer of the strata scheme must give the 42
Secretary written notice of that fact not later than 21 days after the end of that period. 43
Maximum penalty: 200 penalty units. 44
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Part 11 Building defects
195 Approval of building inspector appointment by owners corporation 1
(1) The developer of a strata scheme must not appoint a building inspector under section 2
194 to carry out an inspection and to report on building work unless the appointment 3
is approved by the owners corporation by a resolution at a general meeting of the 4
owners corporation. 5
Maximum penalty: 200 penalty units. 6
(2) If a building inspector proposed to be appointed by a developer to carry out any such 7
inspection has been employed by, or by a contractor of, the developer at any time 8
within the prescribed period preceding the proposed appointment, the developer and 9
the proposed building inspector must disclose that fact to the owners corporation 10
before the owners corporation determines whether or not to approve the appointment. 11
Maximum penalty: 200 penalty units. 12
Note. Notice of other connections is also required to be given to the owners corporation under 13
section 197 (4). 14
(3) An owners corporation may refuse to approve the appointment of a building 15
inspector on any grounds. 16
(4) The owners corporation must, not later than 14 days after deciding to approve or 17
refuse to approve the appointment of a building inspector by a developer, give the 18
developer and the Secretary written notice of the decision. 19
Maximum penalty: 5 penalty units. 20
196 When building inspector for interim inspection arranged by Secretary 21
(1) On notification by a developer that the developer has not appointed a building 22
inspector in accordance with section 194 or if the Secretary otherwise becomes aware 23
that a developer has not done so: 24
(a) the Secretary is to arrange for the appointment of a qualified person as a 25
building inspector to carry out an inspection of, and to report on, the building 26
work in accordance with this Part, and 27
(b) must give written notice of the appointment to the developer and the owners 28
corporation as soon as practicable after the appointment is made. 29
Note. The regulations may provide for a fee for an appointment by the Secretary, see 30
section 204. 31
(2) An owner of a lot in a strata scheme who objects to an approval of the appointment 32
of a building inspector by the owners corporation may, not later than 14 days after 33
the approval, give the Secretary written notice of the objection and the grounds for 34
the objection. 35
(3) On receiving the objection, the Secretary may, if the Secretary thinks it appropriate 36
in the circumstances and the building inspector has not carried out an interim 37
inspection: 38
(a) arrange for the appointment of another qualified person as the building 39
inspector to carry out an inspection of, and to report on, the building work in 40
accordance with this Part, and 41
(b) give written notice of the appointment to the developer and the owners 42
corporation as soon as practicable after the appointment is made. 43
(4) The Secretary must give written notice of a decision not to arrange the appointment 44
of a building inspector to the person who made the objection, the developer, the 45
owners corporation and the building inspector approved by the owners corporation. 46
(5) The appointment of a building inspector arranged by the Secretary under this Part is 47
not required to be approved by the owners corporation. 48
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197 Building inspector must not be connected with developer 1
(1) The developer of a strata scheme must not appoint a building inspector to inspect 2
building work for the scheme if the building inspector is, or was at any time in the 3
2 years immediately before the appointment, connected with the developer. 4
Maximum penalty: 200 penalty units. 5
(2) In addition to the circumstances set out in section 7, a building inspector is connected 6
with a developer if the inspector: 7
(a) has been involved in the design or any aspect of the construction or 8
certification of the building work or any part of the building work to be 9
reported on, or 10
(b) is connected with any person who has been so involved, or 11
(c) has a pecuniary interest in any aspect of the building work. 12
(3) A building inspector is not connected with a developer merely because the inspector 13
has been or is appointed by the developer to carry out a report under this Part on other 14
building work. 15
(4) A person who is connected with a developer of a strata scheme and who is proposed 16
for appointment as a building inspector under this Part in connection with that 17
scheme must give written notice of the connection to the person making or arranging 18
the appointment, and to the owners corporation before the appointment. 19
Maximum penalty: 100 penalty units. 20
198 Obligations of building inspector 21
(1) A building inspector carrying out functions under this Part cannot and does not 22
represent the interests of the developer of a strata scheme and has a duty to act 23
impartially in carrying out the functions of a building inspector under this Part. This 24
subsection has effect despite any condition of the appointment of the building 25
inspector and whether or not the inspector was appointed by the developer. 26
(2) A building inspector must not, on an understanding that the building inspector will 27
act otherwise than impartially in the course of the building inspector's functions as a 28
building inspector under this Act, seek or accept, or offer or agree to accept, any 29
benefit of any kind, whether on the building inspector's own behalf or on behalf of 30
any other person. 31
Maximum penalty: 200 penalty units. 32
(3) A person must not, on an understanding that a building inspector will act otherwise 33
than impartially in the exercise of the building inspector's functions as a building 34
inspector under this Act, give, or offer to give, any benefit of any kind, whether to 35
the building inspector or any other person. 36
Maximum penalty: 200 penalty units. 37
199 Interim report 38
(1) A building inspector appointed under this Division is to carry out an inspection of the 39
building work, and provide an interim report, not earlier than 15 months and not later 40
than 18 months after the completion of the building work. 41
(2) The interim report must: 42
(a) be in the form and contain the matters prescribed by the regulations for the 43
purposes of this section, and 44
(b) without limiting paragraph (a), identify any defective building work of a kind 45
required by the regulations to be reported on, and 46
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Part 11 Building defects
(c) if reasonably practicable, identify the cause of that defective building work. 1
200 Obligation to arrange final inspection and report 2
(1) The developer of a strata scheme must, not later than 18 months after completion of 3
the building work: 4
(a) arrange for the building inspector who prepared the interim report on the 5
building work to carry out a final inspection of, and provide a final report on, 6
the building work and give written notice to the Secretary of the arrangement 7
not later than 14 days after making the arrangement, or 8
(b) if the original building inspector is not available, give the Secretary written 9
notice of that fact not later than 14 days after becoming aware that the building 10
inspector is not available, or 11
(c) make an application to the Secretary under this section. 12
Maximum penalty: 200 penalty units. 13
(2) On notification under this section that the original building inspector is not available 14
or if the Secretary otherwise becomes aware that a developer has not complied with 15
subsection (1), the Secretary: 16
(a) is to arrange for the appointment of a qualified person as a building inspector 17
to carry out the final inspection of, and provide the final report on, the building 18
work, and 19
(b) must give written notice to the developer and the owners corporation of the 20
appointment as soon as practicable after it is made. 21
(3) The Secretary is not required to arrange for a final inspection and report under this 22
section if the interim report was prepared by a building inspector arranged by the 23
Secretary and the report did not identify any defective building work. 24
(4) The Secretary may, on application by a developer, determine that the developer is not 25
required to arrange for a final report under this section if the interim report did not 26
identify any defective building work and the Secretary thinks it appropriate in the 27
circumstances of the case to make the determination. 28
(5) The Secretary must give written notice of any decision that a final inspection and 29
report is not required to the owners corporation and the developer not later than 30
28 days after the decision is made. 31
(6) In any case in which a final report is not required, the interim report is taken to be the 32
final report for the purposes of this Part. 33
201 Final report 34
(1) A building inspector appointed to carry out a final inspection is to carry out a final 35
inspection of the building work, and provide a final report, not earlier than 21 months 36
and not later than 2 years after the completion of the building work. 37
(2) The final report must: 38
(a) be in the form and contain the matters prescribed by the regulations for the 39
purposes of this section, and 40
(b) without limiting paragraph (a), identify defective building work identified in 41
the interim report that has not been rectified, and 42
(c) identify any defective building work arising from rectification of defective 43
building work previously identified in the interim report, and 44
(d) specify how the defective building work identified in the report should be 45
rectified. 46
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(3) The final report must not contain matters that relate to defective building work not 1
identified in the interim report, other than work arising from rectification of defective 2
building work identified in the interim report. 3
202 Persons who are to be provided with copies or notice of reports 4
(1) A building inspector must give a copy of an interim report or a final report to the 5
following persons not later than 14 days after completing the report: 6
(a) the developer, 7
(b) the owners corporation, if the initial period has ended, 8
(c) the Secretary, 9
(d) the builder responsible for any defective building work identified in the report. 10
(2) An owners corporation must give written notice to the owners of lots in the strata 11
scheme of the receipt of an interim report or a final report on building work in 12
connection with the scheme not later than 14 days after receiving the report. 13
(3) The notice must contain the particulars, if any, prescribed by the regulations for the 14
purposes of this section. 15
Maximum penalty: 5 penalty units. 16
203 Powers of building inspector 17
(1) A building inspector appointed to prepare a report under this Division may enter and 18
inspect any part of the parcel of the strata scheme. 19
(2) The building inspector must give at least 14 days written notice to the owners 20
corporation and the owner and any occupier of any affected lot of an intention to 21
enter any part of the parcel of the strata scheme. 22
(3) The owners corporation, any person who has exclusive use of common property, a 23
strata managing agent, any building manager or manager of the common property 24
and any owner or occupier of a lot must provide any assistance that is reasonable to 25
enable an inspection to be carried out in accordance with this Division. 26
(4) A person must not, without reasonable excuse, refuse a building inspector access to 27
any part of the parcel of a strata scheme or a lot in the strata scheme, or obstruct or 28
hinder a building inspector, in the exercise of the inspector's functions under this 29
Act. 30
Maximum penalty: 10 penalty units. 31
204 Costs of reports and appointment 32
(1) The costs of obtaining an inspection and report by a building inspector under this 33
Division are to be borne by the developer, whether or not the building inspector was 34
appointed by the developer. 35
(2) The regulations may provide for the fees that may be charged for an inspection or a 36
report under this Division. 37
(3) The regulations may provide for a fee for the arrangement by the Secretary of the 38
appointment of a building inspector under this Division. 39
205 Effect of inspection report 40
(1) A report prepared under this Division must be considered by the Tribunal for the 41
purposes of determining a building claim under Part 3A of the Home Building 42
Act 1989 and by any other court in proceedings relating to the building work the 43
subject of the report, if the report is brought to the attention of the Tribunal or the 44
court in the proceedings. 45
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(2) The report does not bind the Tribunal or court. 1
206 Rectification of defects 2
(1) The builder who is responsible for defective building work, or an employee, agent or 3
contractor of any such person, (the builder) may, at any time after the completion of 4
the building work, enter any part of the parcel of the strata scheme that the person 5
may reasonably require for the purpose of or in connection with rectifying the 6
building work. 7
Note. See sections 122 and 123 for other powers to enter the parcel of a strata scheme. 8
(2) The builder must give at least 14 days written notice to the owners corporation, the 9
developer and the owner and any occupier of any affected lot of an intention to enter 10
any part of the strata parcel for the purpose of or in connection with rectifying 11
defective building work. 12
(3) A builder who enters a lot after giving notice in accordance with this section may 13
enter the lot only at a time that is reasonable in the circumstances or at a time agreed 14
with the owner or, if the owner is not the occupier of the lot, the occupier. 15
(4) The builder is not bound by any provision of a report under this Division for the 16
purpose of or in connection with rectifying defective building work. 17
(5) A person must not, without reasonable excuse, refuse access to a builder to any part 18
of the parcel of the strata scheme or a lot in a strata scheme if that access is permitted 19
by this section. 20
Maximum penalty: 10 penalty units. 21
(6) The duty under section 18BA of the Home Building Act 1989 to allow reasonable 22
access does not require a builder to be given reasonable access to the parcel of a strata 23
scheme at any time while a building inspector is carrying out a final inspection under 24
this Part on any part of the parcel. 25
(7) If the builder who is responsible for defective building work is unavailable because 26
the builder has died, is insolvent, has ceased to exist or is unavailable for any other 27
reason prescribed by the regulations for the purposes of this section, the developer 28
may appoint another person to rectify building work under this section. Any such 29
person is taken to be the builder for the purposes of this section. 30
Division 3 Building bonds 31
207 Bond to be given 32
(1) The developer of a strata scheme must give the Secretary a security (a building bond) 33
for building work to which this Part applies before an occupation certificate is issued 34
under the Environmental Planning and Assessment Act 1979 for any part of a 35
building for which the building work was done. 36
(2) The amount secured by a building bond is to be 2% of the contract price for the 37
building work. 38
(3) The purpose of the building bond is to secure funding for the payment (up to the 39
amount of the bond) of the costs of rectifying defective building work identified in a 40
final report under this Part. 41
(4) If the building work to which this Part applies comprises only part of the building 42
work to which a contract price applies, the amount secured is to be 2% of the part of 43
the contract price applicable to the building work to which this Part applies. 44
(5) A developer must not fail to comply with this section. 45
Maximum penalty: 200 penalty units. 46
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208 Form of building bond 1
A building bond may be in one or more of the following forms: 2
(a) a bank guarantee, 3
(b) a bond, 4
(c) another form of security that is prescribed by the regulations for the purposes 5
of this section. 6
209 When amount secured by building bond payable 7
(1) The whole or part of the amount secured by a building bond may be claimed or 8
realised by the Secretary for payment as follows: 9
(a) to the owners corporation to meet the costs of rectifying defective building 10
work identified in the final report on the work, if the report identifies the 11
defective building work, 12
(b) to the owners corporation, with the consent of the developer, on application to 13
the Secretary by the owners corporation and the developer. 14
(2) An application under subsection (1) (b) must be made within the period prescribed 15
by the regulations for the purposes of this section. 16
(3) A building bond must be claimed or realised under this section: 17
(a) 2 years after the date of completion of building work for which it is given, or 18
(b) within 60 days after the final report on the building work is given to the 19
Secretary by the building inspector, 20
whichever is the later. 21
(4) The developer must take any necessary steps to enable the Secretary to claim or 22
realise an amount of building bond given by the developer and required for payment 23
in accordance with this Division. 24
Maximum penalty: 10 penalty units. 25
(5) The Secretary may refuse to claim or realise an amount, or reduce the amount 26
otherwise payable, under this section if the Secretary is satisfied that the developer 27
or the builder responsible for defective building work was unreasonably refused 28
access to the strata parcel for the purposes of rectifying that work. 29
(6) The Secretary must give the owners corporation and the developer of a strata scheme 30
written notice of any proposed payment under this section in relation to the strata 31
scheme. 32
210 Use of amounts secured by building bond 33
(1) Purposes for which bond amount may be used 34
An owners corporation for a strata scheme that is paid the whole or part of an amount 35
secured by a building bond must, within a reasonable time, use the amount paid: 36
(a) for or in connection with rectifying the defective building work identified in 37
the final report (whether or not the work affects the common property or any 38
other part of the parcel), or 39
(b) for costs related to the rectification. 40
(2) An amount secured by a building bond cannot be used to meet the costs of an 41
inspection or a report under Division 2, including any fee for the appointment of a 42
building inspector by the Secretary, except in the circumstances (if any) specified by 43
the regulations for the purposes of this section. 44
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(3) Repayment of excess amounts to developer 1
An owners corporation must repay to the developer any amount of a building bond 2
that is not required for a purpose specified in subsection (1) and must give the 3
developer written notice of the completion of the rectification of the defective 4
building work. 5
Maximum penalty: 10 penalty units. 6
(4) Owner not entitled to building bond 7
This Act does not confer on the owner of a lot any entitlement to be paid any part of 8
an amount secured by a building bond that is paid in respect of defective building 9
work affecting the owner's lot. 10
(5) Payments with consent not affected 11
This section does not prevent the owners corporation from retaining any part of a 12
building bond, and using it for any purposes, with the consent of the developer. 13
211 Tribunal may make orders as to access and contract price 14
(1) The Tribunal may, on application, make an order requiring the occupier of a lot or 15
part of a lot in a strata scheme or any other person to allow access to the lot or any 16
other part of the parcel for the purpose of or in connection with an inspection under 17
this Part or rectifying defective building work. 18
(2) An application under subsection (1) may be made by an owners corporation, the 19
developer, a building inspector or a person entitled to enter any part of a parcel of a 20
strata scheme under section 203 or 206. 21
(3) The Tribunal may, on application by an owners corporation, the developer or the 22
Secretary, make an order specifying the amount of the contract price of building 23
work for the purpose only of determining the amount of a building bond. 24
(4) An application under this section is to be made to, and determined by, the Supreme 25
Court (and not the Tribunal) if the matter is incidental to other proceedings being 26
dealt with by the Court. 27
(5) A determination under this section of the amount of the contract price of building 28
work does not bind a court or tribunal in any other proceedings. 29
Division 4 Miscellaneous 30
212 Variation of times for reports and other matters 31
(1) The Secretary may, on the Secretary's own motion or on application by the 32
developer, owners corporation or a building inspector, vary the period within which 33
an interim report or a final report is to be provided, or any other action is to be done, 34
under this Part, if the Secretary considers it appropriate to do so in the circumstances 35
of the case. 36
(2) The Secretary must give written notice to the developer, owners corporation or 37
building inspector of the following: 38
(a) any application under this section, 39
(b) a decision by the Secretary under this section. 40
(3) The Secretary is not required to give notice of an application to any person who made 41
the application. 42
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213 Review of decisions 1
(1) Right to apply for review 2
An interested person may apply to the Secretary for a review of a reviewable 3
decision. 4
(2) The following persons are interested persons in relation to a reviewable decision: 5
(a) the developer of a strata scheme to which the decision is related, 6
(b) the owners corporation of a strata scheme to which the decision is related, 7
(c) the owner of a lot in a strata scheme to which the decision is related, 8
(d) any other person prescribed by the regulations for the purposes of this section. 9
(3) Reviewable decisions 10
The regulations may prescribe decisions under this Part that are to be the reviewable 11
decisions for the purposes of this section. 12
(4) Applications 13
An application for a review is to be made in accordance with the regulations. 14
(5) Individuals who may carry out reviews 15
An application for a review of a decision is to be dealt with by an individual other 16
than the person who made the decision who is (if the reviewer is not the Secretary) 17
approved by the Secretary. 18
(6) The reviewer must be, as far as practicable, an individual: 19
(a) who was not substantially involved in the process of making the decision 20
under review, and 21
(b) who is a member of staff of the Department of Finance, Services and 22
Innovation, and 23
(c) who is suitably qualified to deal with the issues raised by the application. 24
(7) Powers on review 25
In reviewing a decision, the reviewer is to consider any relevant material submitted 26
by the applicant. 27
(8) Following the review of the decision, the reviewer may: 28
(a) affirm the decision, or 29
(b) vary the decision, or 30
(c) set aside the decision and make a decision in substitution for the decision that 31
is set aside. 32
(9) In exercising a function under subsection (8), a reviewer is taken for all purposes to 33
have the right to exercise the same functions in law that the person who made the 34
decision had in making the decision being reviewed. 35
(10) Reviewer to notify relevant decision maker of decision 36
A reviewer must notify the Secretary of the result of, and the reasons for, his or her 37
decision under subsection (8) as soon as is practicable after making the decision. 38
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(11) Statement of reasons 1
For the purposes of this section, an applicant is notified of the reasons for a decision 2
in a review only if the applicant is given a statement of reasons setting out the 3
following: 4
(a) the findings on material questions of fact, referring to the evidence or other 5
material on which those findings were based, 6
(b) the understanding of the reviewer of the applicable law, 7
(c) the reasoning processes that led the reviewer to the conclusions the reviewer 8
made. 9
(12) Status of decisions made on review 10
For the purposes of this Act, a reviewable decision that is affirmed, varied or set aside 11
and substituted under this section is: 12
(a) taken to have been made by the person who made the original decision (as 13
affirmed, varied or substituted by the reviewer), and 14
(b) taken to have been made on the date under which the applicant is given a 15
notice of the decision under this section. 16
(13) No reviews of decisions previously reviewed under this section 17
A person is not entitled to a review under this section of any decision previously 18
reviewed under this section or a decision made under subsection (8). 19
214 Regulations 20
(1) Regulations may be made for or with respect to the following: 21
(a) building bonds, 22
(b) the appointment of a building inspector by the Secretary if a building inspector 23
is no longer available or is not qualified or is otherwise not suitable, 24
(c) additional circumstances in which the Secretary, rather than the developer, is 25
to appoint a building inspector, 26
(d) information required to be provided to the Secretary by the developer or the 27
owners corporation in relation to building inspectors and other matters arising 28
from this Part, 29
(e) nomination of building inspectors for approval by owners corporations, 30
(f) matters to be disclosed to the owners corporation by a developer seeking 31
approval of a building inspector and the period within which disclosure is to 32
be made, 33
(g) meetings of owners corporations to consider the approval of the appointment 34
of a building inspector, 35
(h) the provision of information to a building inspector for the purposes of an 36
inspection or report, 37
(i) applications to the Secretary for a determination that a final inspection and 38
report are not required, 39
(j) requirements to be observed in relation to the conduct of a review under 40
section 213. 41
(2) Without limiting subsection (1) (a), the regulations may provide for the following: 42
(a) requirements for the provision and maintenance of a building bond, 43
(b) requirements for additional information or documents to be provided relating 44
to the amount of a building bond, 45
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Part 11 Building defects
(c) how the contract price is to be determined for the purposes of the amount of a 1
building bond, 2
(d) when a building bond lapses or need not be maintained, 3
(e) procedures relating to applications for, and the payment of, amounts secured 4
by a building bond, 5
(f) the period of notice to be given of a proposed payment of an amount secured 6
by a building bond, 7
(g) fees relating to the provision of building bonds under this Part. 8
215 Relationship of Part to other remedies 9
(1) A building bond is payable in respect of defective building work under this Part 10
whether or not: 11
(a) Part 2C of the Home Building Act 1989 applies to the work, or 12
(b) the developer is liable to the owners corporation or the owner of a lot in respect 13
of the work. 14
(2) A developer may recover the amount of any building bond paid to an owners 15
corporation in respect of defective building work for which the developer is not 16
otherwise liable from any person against whom the developer has a cause of action 17
in respect of the defective building work. 18
(3) Any thing done or omitted to be done under this Part does not affect any action that 19
may be taken, or remedy that may be sought, by or in respect of building work under 20
any other law. 21
(4) However, any court, tribunal or other body may take into account any payment made, 22
rectification work done or any other action taken in relation to building work under 23
this Part when it is determining a matter relating to the work. 24
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Part 12 Disputes and Tribunal powers
Part 12 Disputes and Tribunal powers 1
Introductory note. This Part gives power to the Tribunal to make orders to settle disputes about certain 2
matters relating to the operation and management of a strata scheme. It also contains general provisions 3
about the powers of the Tribunal and some other order-making powers of the Tribunal. 4
Initially, an application for an order is processed by the registrar. The registrar must refuse to deal with a 5
matter if satisfied that mediation was appropriate and was not attempted. 6
A person may either apply to the Secretary for mediation of a matter or make other arrangements for 7
mediation. If mediation of a matter is unsuccessful or a matter is not appropriate for mediation, the registrar 8
may accept the application for the order. 9
The following table describes the types of orders that may be made and who may apply for them. 10
11
To do what? Who may apply? Section
Orders relating to meetings and decisions of owners corporation
To require original owner to provide things to Owners corporation 17
owners corporation
To require meeting to be held Owner 20
Owners corporation
Mortgagee
To invalidate resolution or election Owner 24
First mortgagee of lot
To nullify resolution of owners corporation on Person entitled to vote on resolution 25
ground that person was denied vote or notice
was not given
To require meeting to be held if no officers or Owner 48
committee after first AGM Mortgagee
Covenant chargee
Orders relating to covenants and other restrictions
To waive, vary or extinguish restriction Owners corporation 27
relating to initial period or to authorise any Original owner
matter to be done in relation to the waiving,
varying or extinguishing of such a restriction Owner
To comply with obligation imposed by Authority having benefit of positive covenant 234
positive covenant
To refrain from breaching restriction on use of Owners corporation 235
utility lot Lessor of leasehold strata scheme
Owner
Occupier of lot
To refrain from breaching restriction on use of Relevant local council 235
utility lot within area of local council
Orders relating to strata managing agents and building managers
To terminate strata managing agent or Owners corporation 72
building manager agreement or make other
order about an agreement
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To do what? Who may apply? Section
To appoint strata managing agent Person who obtained order under this Act that 237
imposed duty on owners corporation or office
holder that has not been complied with
Person having estate or interest in lot or, in the
case of leasehold strata scheme, lease of lot
Authority having benefit of positive covenant
that imposes duty on owners corporation
Judgment creditor to whom owners
corporation owes judgment debt
Orders relating to contributions and funds
To allocate payment of surplus money Owners corporation 77
Covenant chargee
Owner
Mortgagee
To alter amount of contributions Owners corporation 82
Lessor of leasehold strata scheme
Owner
Mortgagee in possession
To prevent owners corporation charging Owner 85
interest for late payment of contribution
To require original owner to compensate for Owners corporation 89
inadequate estimates/contributions Owner
Orders relating to property
To require occupier of lot to allow owners Owners corporation 124
corporation to enter lot
To get consent to existing or proposed Lessor of leasehold strata scheme 126
alterations or repair of common property Owner
To declare work to be cosmetic work or minor Owner 127
renovation
To direct owner to lodge documents under Owners corporation 128
section 19 of Strata Schemes Development Act Lessor of leasehold strata scheme
2015
Owner
To require owner to comply with window Owners corporation 129
safety device obligation
To require owners corporation to carry out Interested person (other than owners 129
window safety device function corporation)
To require owners corporation to dispose of Owner 130
personal property
To prevent owners corporation acquiring Owner 130
personal property
To require owners corporation to acquire Owner 130
personal property
To use specified common property for Owner 131
specified purposes
To require owner or occupier to repair damage Owners corporation 132
or compensate for damage
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To do what? Who may apply? Section
To reallocate unit entitlements Owners corporation 236
Lessor of leasehold strata scheme
Owner of lot (whether or not development lot)
Local council
Public authority or statutory body representing
the Crown, that is empowered to impose a rate,
tax or other charge by reference to a valuation
of land
Orders relating to by-laws
To revoke amendment to by-laws, revive Person entitled to vote on motion relating to 148
repealed by-law or repeal new by-law by-law
Lessor of leasehold strata scheme
To change by-law conferring exclusive rights Owners corporation 149
or privileges over common property Lessor of leasehold strata scheme
Owner
Interested person
To invalidate by-law Person entitled to vote on motion relating to 150
by-law
Lessor of leasehold strata scheme
Order relating to keeping of animals
To require removal of animal wrongly kept on Interested person 156
lot
To allow person to keep animal on lot Owner 157
Occupier
To remove animal causing nuisance or hazard Interested person 158
To terminate nuisance, hazard or unreasonable Interested person 158
nuisance caused by animal
Orders relating to insurance
To adjust proportion of insurance premium to Person liable to pay premium 162
be paid
To exempt from requirement to insure Person required to insure 172
To require person to make or pursue insurance Owner 174
claim Lessor of a leasehold strata scheme
Sublessee in a leasehold strata scheme
Person in whom is vested estate in fee simple
or a leasehold estate (in case where part of
building is included in part strata parcel) of
part of building not included in part strata
parcel
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To do what? Who may apply? Section
To require insurance to be taken out Owner 175
Enrolled mortgagee or person having interest
in lot
Lessor of leasehold strata scheme
Sublessee of common property in a leasehold
strata scheme
Person in whom is vested estate in fee simple
or a leasehold estate (in case where part of
building is included in part strata parcel) of
part of building not included in part strata
parcel
Authority having benefit of a positive
covenant affecting building or site
Orders relating to records of owners corporation
To allow owners corporation to enter Owners corporation 187
information on strata roll Owner
Person having or acquiring estate or interest in
lot
To require owners corporation, strata Person entitled to inspect records or 188
managing agent or office holder to supply documents
records or documents for inspection
Orders relating to defective building work
To permit access to lot for inspection or Owners corporation 211
building work Developer
Building inspector
Person entitled to enter
Secretary
To specify contract price Owners corporation 211
Developer
Secretary
General orders for settlement of disputes
To resolve dispute or complaint Interested person 232
Original owner
Building manager
To resolve dispute between contiguous strata Owners corporation 233
schemes
Orders relating to strata committee
To remove person from strata committee Interested person 238
To remove person from office Interested person 238
To prohibit strata committee from determining Interested person 238
a matter
Division 1 Internal dispute resolution 1
216 Internal dispute resolution procedures for strata schemes 2
(1) An owners corporation for a strata scheme may establish, by any means it thinks fit, 3
a voluntary process for resolving disputes between any one or more owners of lots in 4
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the scheme, other interested persons, the owners corporation, the strata committee, 1
the strata managing agent and the building manager. 2
(2) The fact that a person has or has not participated in any such process, or the fact that 3
a person has done or omitted to do anything in the course of or as a result of any such 4
process, is not to be considered for the purposes of any mediation or other 5
proceedings under this Act and does not prevent mediation occurring, or proceedings 6
being taken, in any such case. 7
Division 2 Alternative dispute resolution by Secretary 8
217 Definitions 9
In this Part: 10
mediation means a structured negotiation process in which the mediator, as a neutral 11
and independent party, assists the parties to a dispute to achieve their own resolution 12
of the dispute. 13
mediation session means a meeting arranged for the mediation of a matter under this 14
Part and, for the purposes of the provisions of this Division relating to privilege, 15
disclosure and admissibility, includes steps taken in the course of arranging or 16
following-up a session. 17
mediator means the Secretary or any person approved by the Secretary in writing to 18
be a mediator for the purposes of this Division. 19
218 Matters that may be subject to mediation 20
(1) A person may apply to the Secretary for mediation of any matter for which an order 21
may be sought from the Tribunal under this Act. 22
(2) On receipt of an application for mediation, the Secretary must, if the Secretary thinks 23
the circumstances of the case are appropriate, arrange for mediation in accordance 24
with the regulations. 25
(3) The Secretary may dismiss an application for mediation if the Secretary believes that 26
the application is frivolous, vexatious, misconceived or lacking in substance. 27
219 Mediation involving disputes about part strata parcels 28
The Secretary may arrange mediation under section 218 of a dispute or complaint 29
relating to the management of a building or its site where part of the building is a part 30
strata parcel only: 31
(a) if any applicable strata management statement provides for the mediation, or 32
determination by the Tribunal, of disputes, or 33
(b) with the consent of all parties to the dispute, 34
but is not required to arrange mediation before exercising any other function under 35
this Act, the by-laws or a strata management statement. 36
220 Representation of parties 37
A party to a dispute is not entitled to be represented by another person at a mediation 38
session under this Division unless all the other parties consent to the representation. 39
221 Effect of Division on other agreements or arrangements 40
This Division does not affect the enforceability of any other agreement or 41
arrangement that may be made, whether or not arising out of a mediation session, in 42
relation to the matters the subject of a mediation session. 43
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222 Privilege 1
(1) The same privilege with respect to defamation as exists with respect to judicial 2
proceedings and a document produced in judicial proceedings exists with respect to: 3
(a) a mediation session, and 4
(b) a document or other material sent to, or produced at an office of, the Secretary 5
for the purpose of enabling a mediation session to be arranged. 6
(2) The privilege conferred only extends to a publication made: 7
(a) at a mediation session, or 8
(b) as provided by subsection (1) (b), or 9
(c) as a disclosure permitted by this Division. 10
223 Evidence of mediation sessions not admissible 11
(1) Evidence of anything said or of any admission made in a mediation session is not 12
admissible in any proceedings before any court, tribunal or body. 13
(2) A document prepared for the purposes of, or in the course of, or as a result of, a 14
mediation session, or any copy of any such document, is not admissible in evidence 15
in any proceedings before any court, tribunal or body. 16
(3) This section does not apply to any evidence or document: 17
(a) if the persons in attendance at, or identified during, the mediation session and, 18
in the case of a document, all persons identified in the document, consent to 19
the admission of the evidence or document, or 20
(b) in proceedings instituted with respect to any act or omission in connection 21
with which a disclosure has been made under this Division on the ground 22
specified in section 224 (c). 23
224 Confidentiality 24
A mediator may disclose information obtained in connection with the administration 25
or execution of this Division only in one or more of the following circumstances: 26
(a) with the consent of the person from whom the information was obtained, 27
(b) in connection with the administration or execution of this Division, 28
(c) if there are reasonable grounds to believe that the disclosure is necessary to 29
prevent or minimise the danger of injury to any person or damage to any 30
property, 31
(d) if the disclosure is reasonably required for the purpose of referring any party 32
or parties to a mediation session to any person, agency, organisation or other 33
body and the disclosure is made with the consent of the parties to the mediation 34
session for the purpose of aiding in the resolution of a dispute between those 35
parties or assisting the parties in any other manner, 36
(e) in accordance with a requirement imposed by or under a law of the State (other 37
than a requirement imposed by a subpoena or other compulsory process) or the 38
Commonwealth. 39
225 Exoneration from liability for mediators 40
No matter or thing done or omitted to be done by a mediator subjects the mediator to 41
any action, liability, claim or demand if the matter or thing was done or omitted to be 42
done in good faith for the purposes of a mediation session under this Division. 43
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Division 3 Procedures for applications to Tribunal 1
226 Interested persons 2
(1) The following persons are interested persons for the purpose of making an 3
application to the Tribunal under this Act: 4
(a) the owners corporation, 5
(b) an officer of the owners corporation, 6
(c) a strata managing agent for the scheme, 7
(d) an owner of a lot in the scheme, a person having an estate or interest in a lot or 8
an occupier of a lot, 9
(e) if the strata scheme is a leasehold strata scheme, the lessor of the scheme. 10
(2) The interested persons for the purpose of making an application to the Tribunal 11
under this Act relating to a strata scheme for a part strata parcel also include the 12
following: 13
(a) the owners corporation or a strata managing agent for, an owner of a lot in, a 14
person having any other estate or interest in a lot in, or an occupier of a lot in, 15
any other scheme affecting the building, 16
(b) any other person for the time being bound by any strata management statement 17
for the building. 18
227 Certain applications cannot be accepted without prior mediation 19
(1) A registrar must not accept an application made to the Tribunal under this Act unless: 20
(a) mediation by the Secretary under Division 2 or otherwise has been attempted 21
but was not successful, or 22
(b) a party refused to participate in the mediation, or 23
(c) the registrar considers that mediation is unnecessary or inappropriate in the 24
circumstances. 25
(2) The registrar must inform an applicant that the applicant should arrange for 26
mediation if the registrar rejects an application under this section. 27
(3) The applicant may arrange for mediation under Division 2 or otherwise. 28
(4) This section does not apply to applications for the following orders: 29
(a) an order to appoint, or requiring the appointment of, a strata managing agent, 30
(b) an order varying or revoking an order that varies or revokes another order by 31
the Tribunal, 32
(c) an order with respect to waiving, varying or extinguishing a restriction relating 33
to the initial period, 34
(d) an order allocating unit entitlements, 35
(e) an order with respect to access to a lot by the owners corporation to inspect or 36
repair common property, 37
(f) an order seeking provision of records to an owners corporation by a former 38
strata managing agent for the strata scheme, 39
(g) an order with respect to the inspection of records of an owners corporation, 40
(h) an order imposing a monetary penalty and any associated order as to the 41
payment of costs. 42
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228 Notice of applications to Tribunal 1
(1) The registrar must give the named parties to the application, and any other person 2
who in the registrar's opinion would be affected, a copy of an application for an order 3
(other than an order imposing a monetary penalty). 4
(2) On receipt of an application, an owners corporation given notice of an application for 5
an order must: 6
(a) immediately cause a copy of the application to be prominently displayed on 7
any notice board required to be maintained by or under the by-laws on some 8
part of the common property, and 9
(b) so display the copy for the period specified in the notice for the making of 10
submissions. 11
Division 4 Orders that may be made by Tribunal 12
229 General order-making power of Tribunal 13
The Tribunal may, in any proceedings before it under this Act, make any one or more 14
of the following orders or other decisions: 15
(a) an order or decision that provides for any ancillary or consequential matter the 16
Tribunal thinks appropriate, 17
(b) an interlocutory decision within the meaning of the Civil and Administrative 18
Tribunal Act 2013. 19
230 Agreements and arrangements arising from mediation sessions 20
(1) The Tribunal may make orders to give effect to any agreement or arrangement arising 21
out of a mediation session. 22
(2) An order may be made whether or not the mediation was carried out in accordance 23
with this Part or by a mediator within the meaning of this Part. 24
(3) Without limiting subsection (1), the Tribunal may make an order that gives effect to 25
the terms of a written agreement signed during a mediation session by persons who 26
were parties to the mediation. 27
(4) A mediator may request the registrar to refer a matter to the Tribunal for the making 28
of an order under this section, but only with the consent of the parties to the 29
mediation. 30
(5) This Part does not affect the enforceability of any other agreement or arrangement 31
that may be made, whether or not arising out of a mediation session, in relation to the 32
matters the subject of a mediation session. 33
231 Interim orders 34
(1) If an applicant for an order by the Tribunal under this Act requests the making of an 35
interim order and the Tribunal is satisfied on reasonable grounds that urgent 36
considerations justify the making of the order, the Tribunal may: 37
(a) make an interim order in the form of any order that could otherwise be made 38
by the Tribunal, and 39
(b) renew the interim order by giving notice that the order is renewed if a request 40
for its renewal is made not later than 3 months after the order was made. 41
(2) The Tribunal may revoke an interim order, or a renewal of an order. 42
(3) The Tribunal must give notice that the order has been revoked. 43
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(4) A person must not in, or in connection with, a request for an interim order or for the 1
renewal of an interim order make a statement that the person knows is false or 2
misleading in a material respect. 3
Maximum penalty: 5 penalty units. 4
(5) An interim order may be made or renewed even if: 5
(a) since receipt of the application, any procedure under this Act has not been 6
followed or a function of the Tribunal has not been exercised in relation to the 7
application, or 8
(b) the time, or extended time, for making written submissions on the application 9
has not expired, or 10
(c) a right of appearance or representation has not been exercised. 11
(6) An interim order continues in force until: 12
(a) the end of the period of 3 months that commenced with the making of the order 13
or any earlier date specified in the order, or 14
(b) if application is duly made for its renewal--until the renewal is granted or 15
refused, or 16
(c) if it is renewed--the end of the period of 6 months that commenced with the 17
making of the order or any earlier date specified in the order. 18
(7) Subsection (6) does not apply if the order is revoked by the Tribunal or the 19
application is determined in accordance with another provision of this Act. 20
232 Orders to settle disputes or rectify complaints 21
(1) Orders relating to complaints and disputes 22
The Tribunal may, on application by an interested person, original owner or building 23
manager, make an order to settle a complaint or dispute about any of the following: 24
(a) the operation, administration or management of a strata scheme under this Act, 25
(b) an agreement authorised or required to be entered into under this Act, 26
(c) an agreement appointing a strata managing agent or a building manager, 27
(d) an agreement between the owners corporation and an owner, mortgagee or 28
covenant chargee of a lot in a strata scheme that relates to the scheme or a 29
matter arising under the scheme, 30
(e) an exercise of, or failure to exercise, a function conferred or imposed by or 31
under this Act or the by-laws of a strata scheme, 32
(f) an exercise of, or failure to exercise, a function conferred or imposed on an 33
owners corporation under any other Act. 34
(2) Failure to exercise a function 35
For the purposes of this section, an owners corporation, strata committee or building 36
management committee is taken not to have exercised a function if: 37
(a) it decides not to exercise the function, or 38
(b) application is made to it to exercise the function and it fails for 2 months after 39
the making of the application to exercise the function in accordance with the 40
application or to inform the applicant that it has decided not to exercise the 41
function in accordance with the application. 42
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(3) Other proceedings and remedies 1
A person is not entitled: 2
(a) to commence other proceedings in connection with the settlement of a dispute 3
or complaint the subject of a current application by the person for an order 4
under this section, or 5
(b) to make an application for an order under this section if the person has 6
commenced, and not discontinued, proceedings in connection with the 7
settlement of a dispute or complaint the subject of the application. 8
(4) Disputes involving management of part strata parcels 9
The Tribunal must not make an order relating to a dispute involving the management 10
of a strata scheme for a part strata parcel or the management of the building 11
concerned or its site if: 12
(a) any applicable strata management statement prohibits the determination of 13
disputes by the Tribunal under this Act, or 14
(b) any of the parties to the dispute fail to consent to its determination by the 15
Tribunal. 16
(5) The Tribunal must not make an order relating to a dispute involving a matter to which 17
a strata management statement applies that is inconsistent with the strata 18
management statement. 19
(6) Disputes relating to consent to development applications 20
The Tribunal must consider the interests of all the owners of lots in a strata scheme 21
in the use and enjoyment of their lots and the common property in determining 22
whether to make an order relating to a dispute concerning the failure of an owners 23
corporation for a strata scheme to consent to the making of a development 24
application under the Environmental Planning and Assessment Act 1979 relating to 25
common property of the scheme. 26
(7) Excluded complaints and disputes 27
This section does not apply to a complaint or dispute relating to an agreement that is 28
not an agreement entered into under this Act, or the exercise of, or failure to exercise, 29
a function conferred or imposed by or under any other Act, if another Act confers 30
jurisdiction on another court or tribunal with respect to the subject-matter of the 31
complaint or dispute and the Tribunal has no jurisdiction under a law (other than this 32
Act) with respect to that subject-matter. 33
233 Order for settlement of dispute between strata schemes 34
(1) The Tribunal may, on application by an owners corporation for a strata scheme, make 35
an order to settle a dispute between that strata scheme and another strata scheme if: 36
(a) the strata schemes are contiguous or the dispute relates to a lease of land, or 37
other arrangement relating to property, of one of the schemes, and 38
(b) the matter in dispute is not regulated by or under any other Act. 39
(2) In this section, a strata scheme is contiguous with another strata scheme even if it is 40
divided by, or separated from the other scheme by, a natural feature (such as a 41
watercourse), a railway, a road, a public reserve or a drainage reserve. 42
234 Order enforcing positive covenant 43
(1) The Tribunal may, on application by an authority having the benefit of a positive 44
covenant, order an owners corporation for or owner of a lot in a strata scheme to 45
comply with an obligation imposed by the covenant and relating to the maintenance, 46
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use, repair or insurance of a building or lot in the scheme, if the Tribunal considers 1
that the owners corporation or owner has failed to comply with the obligation. 2
(2) If the authority has been refused an injunction under section 88H of the 3
Conveyancing Act 1919, the Tribunal must not make an order to the same effect as 4
the injunction refused. 5
235 Orders enforcing restrictions on uses of utility lots 6
(1) The Tribunal may, on application by an owners corporation, the lessor under a 7
leasehold strata scheme or an owner or occupier of a lot in a strata scheme, order the 8
owner of a utility lot and any other person who received notice of the application to 9
refrain from committing a breach of a restriction imposed under section 63 of the 10
Strata Schemes Development Act 2015 on the use of the utility lot. 11
(2) The Tribunal may, on application by the local council, order the owner of a utility lot 12
and any other person who received notice of the application to refrain from 13
committing a breach of a restriction imposed under section 63 of the Strata Schemes 14
Development Act 2015 on the use of the utility lot. 15
236 Order for reallocation of unit entitlements 16
(1) Tribunal may make order allocating unit entitlements 17
The Tribunal may, on application, make an order allocating unit entitlements among 18
the lots that are subject to a strata scheme in the manner specified in the order if the 19
Tribunal considers that the allocation of unit entitlements among the lots: 20
(a) was unreasonable when the strata plan was registered or when a strata plan of 21
subdivision was registered, or 22
(b) was unreasonable when a revised schedule of unit entitlement was lodged at 23
the conclusion of a development scheme, or 24
(c) became unreasonable because of a change in the permitted land use, being a 25
change (for example, because of a rezoning) in the ways in which the whole 26
or any part of the parcel could lawfully be used, whether with or without 27
planning approval. 28
(2) Matters to be taken into consideration 29
In making a determination under this section, the Tribunal is to have regard to the 30
respective values of the lots and to such other matters as the Tribunal considers 31
relevant. 32
(3) Persons who may apply for order 33
An application for an order under this section may be made by any of the following: 34
(a) an owner of a lot (whether or not a development lot) within the parcel for the 35
strata scheme, 36
(b) the owners corporation, 37
(c) the lessor, in the case of a leasehold strata scheme, 38
(d) the local council, or by any other public authority or statutory body 39
representing the Crown, being an authority or body that is empowered to 40
impose a rate, tax or other charge by reference to a valuation of land. 41
(4) Application to be accompanied by valuation 42
An application for an order must be accompanied by a certificate specifying the 43
valuation, at the relevant time of registration or immediately after the change in the 44
permitted land use, of each of the lots to which the application relates. 45
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(5) Qualifications of person making valuation 1
The certificate must have been given by a a person who is a qualified valuer within 2
the meaning of the Strata Schemes Development Act 2015. 3
(6) Ancillary orders that may be made if original valuation unsatisfactory 4
The Tribunal may, if it makes an order allocating unit entitlements that were not 5
allocated in accordance with a valuation of a qualified valuer and, in the opinion of 6
the Tribunal, were allocated unreasonably by an original owner, also order: 7
(a) the payment by the original owner to the applicant for the order of the costs 8
incurred by the applicant, including fees and expenses reasonably incurred in 9
obtaining the valuation and the giving of evidence by a qualified valuer, and 10
(b) the payment by the original owner to any or all of the following people of the 11
amounts (if any) assessed by the Tribunal to represent any overpayments (due 12
to the unreasonable allocation) for which liability arose not earlier than 6 years 13
before the date of the order: 14
(i) the lessor, in the case of a leasehold strata scheme, 15
(ii) the owners corporation, 16
(iii) the owners of lots. 17
(7) Lodgment of order 18
The owners corporation must ensure that a copy of an order made by the Tribunal 19
under this section is lodged in the Registrar-General's office no more than 6 months 20
after the order is made. Nothing in this section prevents a person who is entitled to 21
apply for an order under this section from lodging a copy of an order made under this 22
section. 23
Note. Section 246 contains provisions with respect to the recording of an order made under 24
this section. 25
237 Orders for appointment of strata managing agent 26
(1) Order appointing or requiring the appointment of strata managing agent to 27
exercise functions of owners corporation 28
The Tribunal may, on its own motion or on application, make an order appointing a 29
person as a strata managing agent or requiring an owners corporation to appoint a 30
person as a strata managing agent: 31
(a) to exercise all the functions of an owners corporation, or 32
(b) to exercise specified functions of an owners corporation, or 33
(c) to exercise all the functions other than specified functions of an owners 34
corporation. 35
(2) Order may confer other functions on strata managing agent 36
The Tribunal may also, when making an order under this section, order that the strata 37
managing agent is to have and may exercise: 38
(a) all the functions of the chairperson, secretary, treasurer or strata committee of 39
the owners corporation, or 40
(b) specified functions of the chairperson, secretary, treasurer or strata committee 41
of the owners corporation, or 42
(c) all the functions of the chairperson, secretary, treasurer or strata committee of 43
the owners corporation other than specified functions. 44
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(3) Circumstances in which order may be made 1
The Tribunal may make an order only if satisfied that: 2
(a) the management of a strata scheme the subject of an application for an order 3
under this Act or an appeal to the Tribunal is not functioning or is not 4
functioning satisfactorily, or 5
(b) an owners corporation has failed to comply with a requirement imposed on the 6
owners corporation by an order made under this Act, or 7
(c) an owners corporation has failed to perform one or more of its duties, or 8
(d) an owners corporation owes a judgment debt. 9
(4) Qualifications of person appointed 10
A person appointed as a strata managing agent as a consequence of an order made by 11
the Tribunal must: 12
(a) hold a strata managing agent's licence issued under the Property, Stock and 13
Business Agents Act 2002, and 14
(b) have consented in writing to the appointment, which consent, in the case of a 15
strata managing agent that is a corporation, may be given by the Secretary or 16
other officer of the corporation or another person authorised by the corporation 17
to do so. 18
(5) Terms and conditions of appointment 19
A strata managing agent may be appointed as a consequence of an order under this 20
section on the terms and conditions (including terms and conditions relating to 21
remuneration by the owners corporation and the duration of appointment) specified 22
in the order making or directing the appointment. 23
(6) Return of documents and other records 24
A strata managing agent appointed as a consequence of an order under this section 25
must cause a general meeting of the owners corporation to be held not later than 26
14 days before the end of the agent's appointment and must on or before that meeting 27
make arrangements to return to the owners corporation all documents and other 28
records of the owners corporation held by the agent. 29
(7) Revocation of certain appointments 30
An order may be revoked or varied on application and, unless sooner revoked, ceases 31
to have effect at the expiration of the period after its making (not exceeding 2 years) 32
that is specified in the order. 33
(8) Persons who may make an application 34
The following persons may make an application under this section: 35
(a) a person who obtained an order under this Act that imposed a duty on the 36
owners corporation or on the strata committee or an officer of the owners 37
corporation and that has not been complied with, 38
(b) a person having an estate or interest in a lot in the strata scheme concerned or, 39
in the case of a leasehold strata scheme, in a lease of a lot in the scheme, 40
(c) the authority having the benefit of a positive covenant that imposes a duty on 41
the owners corporation, 42
(d) a judgment creditor to whom the owners corporation owes a judgment debt. 43
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238 Orders relating to strata committee and officers 1
(1) The Tribunal may, on its own motion or on application by an interested person, make 2
any of the following orders: 3
(a) an order removing a person from a strata committee, 4
(b) an order prohibiting a strata committee from determining a specified matter 5
and requiring the matter to be determined by resolution of the owners 6
corporation, 7
(c) an order removing one or more of the officers of an owners corporation from 8
office and from the strata committee. 9
(2) Without limiting the grounds on which the Tribunal may order the removal from 10
office of a person, the Tribunal may remove a person if it is satisfied that the person 11
has: 12
(a) failed to comply with this Act or the regulations or the by-laws of the strata 13
scheme, or 14
(b) failed to exercise due care and diligence, or engaged in serious misconduct, 15
while holding the office. 16
Division 5 General provisions relating to Tribunal powers and orders 17
239 Orders relating to title to land 18
(1) The Tribunal may determine a question of title to land only for the purpose of 19
deciding a matter under this Act. 20
(2) Any determination under this section does not have any force or effect except as 21
provided by this Act. 22
240 Tribunal may make order of another kind 23
The Tribunal may deal with an application for an order under a specified provision 24
of this Act by making an order under a different provision of this Act if it considers 25
it appropriate to do so. 26
241 Tribunal may prohibit or direct taking of specific actions 27
The Tribunal may order any person the subject of an application for an order to do or 28
refrain from doing a specified act in relation to a strata scheme. 29
242 Dismissal of application on certain grounds 30
The Tribunal may dismiss an application for an order if: 31
(a) the ground for the application is the absence of a quorum at a meeting or a 32
defect, irregularity or deficiency of notice or time, and 33
(b) the Tribunal believes no substantial injustice has resulted. 34
243 Copies of orders 35
(1) The Tribunal is to cause a copy of an order under this Act to be given to the owners 36
corporation for the strata scheme to which the order relates (whether or not the 37
owners corporation is a party to the proceedings). 38
(2) The owners corporation must: 39
(a) display the copy of the order in a prominent position on the notice board of the 40
owners corporation within 3 days after receiving it, and for 14 days after that, 41
or 42
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(b) if the owners corporation does not have a notice board, cause a further copy of 1
the order to be given to each person whose name appears on the strata roll. 2
244 Tribunal to be provided with strata report and inspections 3
(1) An owners corporation must, if required to do so by the Tribunal for the purposes of 4
its functions under this Act, provide to the Tribunal: 5
(a) information under Division 2 of Part 10, or 6
(b) an opportunity to inspect items under that Division. 7
Maximum penalty: 5 penalty units. 8
(2) The Tribunal is not liable to pay a fee for any information provided or inspection 9
under this section. 10
245 Effect of certain orders imposing obligations on owners corporation 11
(1) The terms of the following orders, to the extent to which they impose a requirement 12
on an owners corporation, are taken to have effect as a resolution of the owners 13
corporation to do what is needed to comply with the requirement: 14
(a) an order relating to a resolution under section 25 (except subsection (4)), 15
(b) an order relating to interest or contributions under section 85 or 87, 16
(c) an order relating to property under section 126, 127, 128, 129 or 130, 17
(d) an order relating to insurance under section 174 or 175, 18
(e) an order under section 232 in which the Tribunal declares that the order is to 19
have effect as a decision of the owners corporation. 20
(2) The owners corporation must cause the terms of any such order to be recorded in its 21
minute book when it is given a copy of the order by the registrar. 22
(3) If any such order specifies a period (a limitation period) during which a resolution 23
of an owners corporation purporting to alter the effect of the order would be 24
inoperative, a resolution passed by the owners corporation during that period has no 25
force or effect unless: 26
(a) it is a unanimous resolution, or 27
(b) it is passed on a motion submitted to a general meeting after being authorised, 28
by order, by the Tribunal. 29
(4) A resolution that is so authorised and passed may amend or revoke an order before 30
the end of a limitation period. 31
(5) An application to the Tribunal for an order authorising a motion for submission to a 32
general meeting may be made by any person who, at the time of the application, 33
could have applied for the order to which the proposed motion relates. 34
246 Recording in Register of effect of certain orders 35
(1) The Registrar-General is to make any recordings in the Register with respect to an 36
order under this Act that appear to the Registrar-General to be necessary or proper to 37
give effect to the order if: 38
(a) a copy of the order, certified by the Tribunal as a true copy, has been lodged 39
in the office of the Registrar-General, and 40
(b) the copy is accompanied by the certificate of title comprising the common 41
property in the strata scheme, and 42
(c) any fee payable for the recordings has been paid. 43
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(2) The Registrar-General may waive the requirement for the certificate of title under 1
subsection (1) if: 2
(a) the certificate of title has not been lodged within 21 days after written notice 3
is given by the person lodging the copy of the order to the owners corporation 4
requesting the lodging of the certificate of title, or 5
(b) an application under section 111 of the Real Property Act 1900 for the issue of 6
a new certificate of title has not been made within that period. 7
247 Changes to Register after orders allocating unit entitlements 8
(1) This section applies if: 9
(a) a copy of an order allocating unit entitlements among lots in a strata plan is 10
lodged with the Registrar-General in accordance with this Act, or 11
(b) a copy of an order made by a superior court with respect to any such order is 12
lodged with the Registrar-General and is certified by the appropriate officer of 13
that court to be a true copy. 14
(2) The Registrar-General must amend the schedule of unit entitlement recorded in the 15
folio of the Register comprising the common property to which the order relates, to 16
the extent necessary to give effect to the order. 17
248 Recovery of unpaid civil penalty 18
Any civil penalty imposed by the Tribunal as a result of a contravention of an order 19
under this Act that is to be paid by an owner of a lot to the owners corporation may 20
be recovered under this Act as if it were an amount of unpaid contributions. 21
Note. Section 72 (3) of the Civil and Administrative Tribunal Act 2013 provides for a civil 22
penalty for a contravention of an order of the Tribunal. A monetary penalty of up to $11,000 for 23
an individual and $22,000 for a corporation may be imposed for the contravention and may be 24
recovered as a debt due to the Crown in a court of competent jurisdiction (see section 77 of 25
that Act). Other penalties ordered to be paid by the Tribunal may also be recovered as debts 26
under that Act (see section 78 of that Act). 27
Note. Section 86 of this Act provides for the recovery of unpaid contributions. 28
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Part 13 Offences and proceedings 1
Division 1 Offences and enforcement 2
249 Investigations by Secretary 3
(1) The Secretary may, if the Secretary believes on reasonable grounds that an offence 4
under this Act has been or may be committed, exercise the following powers to 5
investigate the grounds for the belief: 6
(a) enter common property, 7
(b) enter a lot at a reasonable time on notice given to the occupier, 8
(c) if the strata scheme concerned is for part of a building, enter any lot in any part 9
strata parcel that includes part of the building concerned and any other part of 10
the building or its site at a reasonable time on notice given to the occupier of 11
that lot or other part, 12
(d) request an owners corporation to provide information to the Secretary and 13
allow the Secretary to inspect its records under Division 2 of Part 10. 14
(2) When exercising a power under this section, the Secretary may, if the Secretary 15
thinks fit, be accompanied by: 16
(a) a member of the strata committee of the owners corporation, or 17
(b) a member of the building management committee (if any) for the building, or 18
(c) the strata managing agent (if any) for the strata scheme. 19
(3) A person must not obstruct or hinder the Secretary, or a delegate of the Secretary, in 20
the exercise of powers conferred by this section. 21
Maximum penalty: 5 penalty units. 22
(4) An owners corporation must not fail to comply with a request under 23
subsection (1) (d). 24
Maximum penalty: 5 penalty units. 25
(5) No charge is payable by the Secretary in connection with a request made under 26
subsection (1) (d). 27
Note. The Secretary may delegate his or her functions under this Act (see section 257). 28
250 Penalty notices 29
(1) An authorised officer may serve a penalty notice on a person if it appears to the 30
officer that the person has committed an offence against this Act or the regulations, 31
being an offence prescribed by the regulations as a penalty notice offence. 32
(2) A penalty notice is a notice to the effect that, if the person served does not wish to 33
have the matter determined by a court, the person can pay, within the time and to the 34
person specified in the notice, the amount of the penalty prescribed by the regulations 35
for the offence if dealt with under this section. 36
(3) A penalty notice under this section is declared to be a penalty notice for the purposes 37
of the Fines Act 1996. 38
(4) A penalty notice may be served personally or by post. 39
(5) If the amount of penalty prescribed for an alleged offence is paid under this section, 40
no person is liable to any further proceedings for the alleged offence. 41
(6) Payment under this section is not to be regarded as an admission of liability for the 42
purpose of, and does not in any way affect or prejudice, any civil claim, action or 43
proceeding arising out of the same occurrence. 44
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(7) The regulations may: 1
(a) prescribe an offence for the purposes of this section by specifying the offence 2
or by referring to the provision creating the offence, and 3
(b) prescribe the amount of penalty payable for the offence if dealt with under this 4
section, and 5
(c) prescribe different amounts of penalties for different offences or classes of 6
offences. 7
(8) The amount of a penalty prescribed under this section for an offence is not to exceed 8
the maximum amount of penalty that could be imposed for the offence by a court. 9
(9) This section does not limit the operation of any other provision of, or made under, 10
this or any other Act relating to proceedings that may be taken in respect of offences. 11
(10) In this section, authorised officer means a person employed in the Department of 12
Finance, Services and Innovation authorised in writing by the Secretary as an 13
authorised officer for the purposes of this section. 14
251 Nature of proceedings for offences 15
Proceedings for an offence under this Act or the regulations may be dealt with 16
summarily before the Local Court. 17
252 Proof of reasonable excuse 18
In any proceedings for an offence against a provision of this Act or the regulations, 19
the onus of proving that a person had a reasonable excuse (as referred to in the 20
provision) lies with the defendant and must be proved on the balance of probabilities. 21
Division 2 Other proceedings 22
253 Other rights and remedies not affected by this Act 23
(1) Nothing in this Act derogates from any rights or remedies that an owner, mortgagee 24
or chargee of a lot in a strata scheme or an owners corporation or covenant chargee 25
may have in relation to any lot or common property apart from this Act. 26
(2) In any proceedings to enforce any such right or remedy, the court in which the 27
proceedings are taken must order the plaintiff to pay the defendant's costs if the court 28
is of the opinion that, having regard to the subject-matter of the proceedings, the 29
taking of the proceedings was not justified because this Act or Part 4 of the 30
Community Land Management Act 1989 makes adequate provision for the 31
enforcement of those rights or remedies. 32
(3) The defendant's costs are to be as determined by the court. 33
254 Owners corporation may represent owners in certain proceedings 34
(1) This section applies to proceedings in relation to common property. 35
(2) If the owners of the lots in a strata scheme are jointly entitled to take proceedings 36
against any person or are liable to have proceedings taken against them jointly, the 37
proceedings may be taken by or against the owners corporation. 38
(3) Any judgment or order given or made in favour of or against the owners corporation 39
in any such proceedings has effect as if it were a judgment or order given or made in 40
favour of or against the owners. 41
(4) A contribution required to be made by an owner of a lot to another owner in relation 42
to the judgment debt is to bear the same proportion to the judgment debt as the unit 43
entitlement of the contributing owner bears to the aggregate unit entitlement. 44
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255 Structural defects--proceedings as agent 1
(1) An interested person may take proceedings for the rectification of the condition of a 2
part of a building, or a part of the site of a building, if that condition affects or is likely 3
to affect the support or shelter provided by that part to any other part of the building 4
or its site. 5
(2) The proceedings may be taken only if: 6
(a) they could have been taken by an owner of a lot or by another person in whom 7
is vested an estate in fee simple in a part of the building or its site, and 8
(b) they have not been taken by the owner or other person within a reasonable 9
time. 10
(3) The proceedings are taken by an interested person as agent for the person who might 11
have taken the proceedings and at the cost of the interested person. 12
(4) In this section, interested person means: 13
(a) the owners corporation for the strata scheme for the building or, if part of the 14
building is included in a part strata parcel, of any strata scheme for part of the 15
building, or 16
(b) the lessor, in the case of a leasehold strata scheme, or 17
(c) any person in whom is vested an estate in fee simple or, in the case of a 18
leasehold strata scheme, a leasehold estate, registered under the Real Property 19
Act 1900 in any part of the building or its site that is not included in a part strata 20
parcel. 21
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Part 14 Miscellaneous
Part 14 Miscellaneous 1
256 Functions of Secretary 2
The functions of the Secretary under this Act include the following: 3
(a) investigating and carrying out research into matters relating to or affecting 4
strata schemes, 5
(b) investigating and attempting to resolve complaints and disputes relating to 6
strata schemes and taking any action that the Secretary thinks appropriate, 7
(c) prosecuting any offence established by or under this Act, 8
(d) providing information to owners or occupiers of lots in strata schemes, owners 9
corporations, lessors of leasehold strata schemes, strata managing agents and 10
the public about this Act and the services provided by the Secretary and the 11
Tribunal, 12
(e) investigating and reporting on any matters, or making inquiries in relation to 13
any matters, referred to the Secretary by the Minister in connection with this 14
Act. 15
257 Delegation by Secretary 16
The Secretary may delegate the exercise of any function of the Secretary under this 17
Act (other than this power of delegation) to: 18
(a) any member of staff of the Department of Finance, Services and Innovation, or 19
(b) any person, or any class of persons, authorised for the purposes of this section 20
by the regulations. 21
258 Tenancy notice to be given to owners corporation of leases or subleases 22
(1) If a lot is leased, the lessor must give notice of the lease, in accordance with this 23
section, to the owners corporation not later than 14 days after the commencement of 24
the lease. 25
Maximum penalty: 5 penalty units. 26
(2) If a lot is subleased, the sub-lessor must give notice of the sublease, in accordance 27
with this section, to the owners corporation not later than 14 days after the 28
commencement of the sublease. 29
Maximum penalty: 5 penalty units. 30
(3) If a lease or sublease of a lot is assigned, the assignor must give notice of the 31
assignment, in accordance with this section, to the owners corporation not later than 32
14 days after the execution of the assignment. 33
Maximum penalty: 5 penalty units. 34
(4) The notice must be in writing and specify: 35
(a) the name of the tenant and an address for service of the tenant, and 36
(b) the date of commencement or assignment of the lease or sublease, as the case 37
requires, and 38
(c) the name of any agent acting for the owner in respect of the lease or sublease. 39
Note. An address for service of notices may be an Australian postal address or other 40
electronic address, including an email address (see section 261). 41
(5) This section does not apply to the lease of a lot by the lessor of a strata leasehold 42
scheme to a lessee who is the owner of a lot. 43
(6) A notice under this section is to be given to the original owner if it is given during 44
the initial period of the owners corporation for a strata scheme. 45
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259 Notice to be given to owners corporation of mortgagee taking possession of lot 1
If a mortgagee of a lot takes possession of the lot, the mortgagee must give written 2
notice of that fact to the owners corporation within 14 days of taking possession of 3
the lot. 4
Maximum penalty: 5 penalty units. 5
260 Personal liability 6
(1) A matter or thing done or omitted to be done by any of the following persons, or a 7
person acting under the direction of any of those persons, does not, if the matter or 8
thing was done or omitted to be done in good faith for the purpose of executing 9
functions as such a person under this or any other Act, subject any of the following 10
persons or person so acting personally to any action, liability, claim or demand: 11
(a) an officer of an owners corporation, 12
(b) a member of a strata committee. 13
(2) Any such liability of an officer of an owners corporation or a member of a strata 14
committee attaches instead to the owners corporation. 15
261 Address for service 16
An address for service given under this Act may be an Australian postal address, an 17
email address or a facsimile number. 18
262 Service of documents on an owners corporation 19
(1) A summons or other legal process may be given to an owners corporation by leaving 20
it with the chairperson or secretary of the owners corporation, any member of the 21
strata committee or the strata managing agent (if any) or by posting it, by prepaid 22
mail, to the owners corporation at its address recorded in the folio of the Register 23
comprising the common property. 24
(2) A document other than a summons or other legal process may be given to an owners 25
corporation: 26
(a) by leaving it with the chairperson or secretary of the owners corporation or a 27
member of the strata committee or in the letterbox of the owners corporation, 28
or 29
(b) by posting it, by prepaid mail, to the owners corporation at its address recorded 30
in the folio of the Register comprising the common property, or 31
(c) by sending it by electronic transmission to an address or location nominated 32
(in correspondence or otherwise) by the chairperson or secretary of the owners 33
corporation or a member of the strata committee as an address or location to 34
which correspondence can be sent. 35
263 Service of documents by owners corporation and others 36
(1) Application of section 37
This section applies to a notice or other document required or authorised under this 38
Act or the by-laws to be given by the Secretary, the Tribunal, an owners corporation, 39
the lessor of a leasehold strata scheme, the original owner, a strata committee, the 40
secretary of an owners corporation or a strata managing agent and is subject to the 41
other provisions of this Act. 42
(2) Service on occupier of lot 43
A notice or other document may be given to the occupier of a lot: 44
(a) by post at the address of the lot, or 45
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(b) by leaving it at the address of the lot with a person apparently of or above the 1
age of 16 years. 2
(3) Service where address is included in strata roll 3
If an address for the service of notices on a person is recorded in the strata roll or has 4
been notified in a tenancy notice, a document may be given to the person: 5
(a) in the case of a postal address, by post at that address, or 6
(b) by sending it by electronic transmission to an address or location nominated 7
(in correspondence or otherwise) by the person as an address or location to 8
which correspondence can be sent, or 9
(c) by leaving it at that address with a person apparently of or above the age of 10
16 years. 11
(4) Service on owner of lot 12
A document may be given to the owner of a lot in accordance with subsection (3) or 13
if no address for service is recorded on the strata roll: 14
(a) personally, or 15
(b) by post at the address of the lot, or 16
(c) by leaving it on a part of the lot that is the owner's place of residence or 17
business (otherwise than on a part of the lot provided for the accommodation 18
of a vehicle or as a storeroom), or 19
(d) by leaving it in a place provided on the parcel for receiving mail posted to the 20
lot, or 21
(e) in any other manner authorised by the by-laws for the service of notices on 22
owners. 23
(5) Service of notice to produce certain records and property 24
Notice under section 182 may be given to a person: 25
(a) personally or by post, or 26
(b) by leaving it with a person apparently of or above the age of 16 years at the 27
place of residence or place of business of the person who is to be given the 28
notice. 29
(6) Service on person where building included in part strata parcel 30
A document may be given to a person in whom is vested an estate in fee simple, or, 31
in the case of a leasehold strata scheme, a leasehold estate registered under the Real 32
Property Act 1900, in part of a building or its site, another part of which is included 33
in a part strata parcel, in any manner provided by section 170 of the Conveyancing 34
Act 1919. 35
264 Service of documents 36
(1) A document that is authorised or required by this Act or the regulations to be given 37
to any person (other than as required by section 262 or 263) may be given by: 38
(a) in the case of an individual: 39
(i) delivering it to the person personally, or 40
(ii) sending it by post to the address specified by the person for the giving 41
of documents or, if no such address is specified, the residential or 42
business address of the person last known to the person giving the 43
document, or 44
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Part 14 Miscellaneous
(iii) sending it by electronic transmission to an address or location 1
nominated (in correspondence or otherwise) by the person as an address 2
or location to which correspondence can be sent, or 3
(b) in the case of a body corporate: 4
(i) leaving it with a person apparently of or above the age of 16 years at, or 5
by sending it by post to, the head office, a registered office or a principal 6
office of the body corporate or to an address specified by the body 7
corporate for the giving or service of documents, or 8
(ii) sending it by electronic transmission to an address or location 9
nominated (in correspondence or otherwise) by the body corporate as an 10
address or location to which correspondence can be sent. 11
(2) Nothing in this section affects the operation of any provision of a law or of the rules 12
of a court authorising a document to be given to a person in any other manner. 13
265 Change of owners corporation's address 14
(1) An owners corporation may change its address for the service of notices by deciding 15
in general meeting to make the change and lodging in the office of the 16
Registrar-General a notice in the form approved under the Real Property Act 1900 of 17
the change of address. 18
(2) On receiving the notice, the Registrar-General is to make the recordings that the 19
Registrar-General considers appropriate in the folio of the Register comprising the 20
common property for the scheme. 21
(3) If the strata scheme relates to a part strata parcel, the owners corporation must give 22
notice in writing of the change to the building management committee. 23
(4) If the strata scheme is part of a community scheme, the owners corporation must give 24
notice in writing of the change to the community association and, in the case of a 25
strata scheme that is also part of a precinct scheme, to the precinct association. 26
(5) A change of address does not take effect until it is recorded in the Register in 27
accordance with this section. 28
266 Dividing fences 29
(1) The owners corporation for a strata scheme for a parcel that is not a part strata parcel 30
is taken to be the owner of the land constituting the parcel for the purposes of the 31
Dividing Fences Act 1991. 32
(2) The owners corporation for each strata scheme for a part strata parcel including part 33
of a building and each person in whom is vested an estate in fee simple in a part of 34
the building or its site that is not included in the part strata parcel are taken to be the 35
owners of the land constituting the building and its site. 36
(3) This section does not apply to land that is part of a community scheme or to any part 37
of a parcel that is the subject of a lease accepted or acquired by an owners corporation 38
under section 25 of the Strata Schemes Development Act 2015. 39
(4) A strata management statement may apportion liability arising under the Dividing 40
Fences Act 1991, but only between persons bound by the statement. 41
267 Apportionment of statutory charges 42
(1) This section applies to expenditure by a public authority that would, because of any 43
Act or of anything done under the authority of any Act (including the registration of 44
a covenant charge), be a charge on the land comprised in a parcel if the parcel were 45
not the subject of a strata scheme. 46
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(2) The expenditure is a charge on: 1
(a) in the case of a freehold strata scheme, each lot in the strata scheme for an 2
amount bearing to the whole of that expenditure the same proportion as the 3
unit entitlement of that lot bears to the aggregate unit entitlement, or 4
(b) in the case of a leasehold strata scheme, the lease of each lot in the strata 5
scheme for an amount bearing to the whole of that expenditure the same 6
proportion as the unit entitlement of that lot bears to the aggregate unit 7
entitlement. 8
(3) The owner or mortgagee of a lot the subject of a charge referred to in this section may 9
pay to the authority entitled to the charge the amount of the charge and on payment: 10
(a) the lot or the lease and the appurtenant beneficial interest in the common 11
property are freed from the charge, and 12
(b) the authority has no legal rights against the owner of the lot or lease or 13
appurtenant beneficial interest in common property in relation to the 14
subject-matter of the charge. 15
268 Powers of entry by public authority or public officer 16
A public authority or public officer authorised by any Act to enter on part of a parcel 17
for the purpose of exercising any power conferred on it may enter on any other part 18
of that parcel (and, if it is a part strata parcel, any other part of the building concerned 19
or its site, whether or not it is part of a parcel) if it is necessary to do so in order to 20
exercise that power. 21
269 Notices under Real Property Act 1900 to owners corporation taken to be notices to 22
owners 23
A notice given to an owners corporation under Part 2, 4 or 15 of the Real Property 24
Act 1900 is taken to have been given to each owner of a lot in the strata scheme 25
concerned in the absence of evidence that the contents of the notice were not 26
communicated by the owners corporation to any owner of such a lot. 27
270 Contracting out prohibited 28
(1) The provisions of this Act and the regulations have effect despite any stipulation to 29
the contrary in any agreement, contract or arrangement entered into after the 30
commencement of this section. 31
(2) No agreement, contract or arrangement, whether oral or wholly or partly in writing, 32
entered into after the commencement of this section operates to annul, vary or 33
exclude any of the provisions of this Act or the regulations. 34
271 Regulations 35
(1) The Governor may make regulations, not inconsistent with this Act, for or with 36
respect to any matter that by this Act is required or permitted to be prescribed or that 37
is necessary or convenient to be prescribed for carrying out or giving effect to this 38
Act. 39
(2) In particular, the regulations may make provision for or with respect to the following: 40
(a) the forms to be used for the purposes of this Act, 41
(b) the fees to be paid for applications made to the Secretary under this Act and 42
the remission of fees, 43
(c) the nomination and election of members of strata committees, 44
(d) alternative dispute resolution under this Act, 45
(e) the procedure for meetings of the owners corporation of a large strata scheme, 46
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(f) the delegation of functions of the owners corporation of a large strata scheme, 1
(g) the decisions or classes of decisions that may or may not be made by the strata 2
committee of a large strata scheme, 3
(h) the functions of officers of an owners corporation of a large strata scheme, 4
(i) the management of the administrative fund or capital works fund of the owners 5
corporation of a large strata scheme, 6
(j) the exclusion of a particular class or classes of strata scheme from any or all 7
of the provisions of Part 12, 8
(k) requiring information and other matters to be brought to the attention of 9
owners and strata committee members in respect of the provision of legal 10
services to an owners corporation, 11
(l) requirements for agreements between owners corporations and local councils 12
relating to strata parking areas under section 650A of the Local Government 13
Act 1993, 14
(m) the service of documents by electronic means under this Act, 15
(n) the form in which documents required to be provided or delivered under this 16
Act may be so provided or delivered. 17
272 Persons who may keep seals of owners corporations 18
(1) If an owners corporation has only one owner, the seal of the owners corporation must 19
be kept by the owner or by the strata managing agent of the owners corporation. 20
(2) If an owners corporation has 2 or more owners, the seal of the owners corporation 21
must be kept: 22
(a) by an owner, or member of the strata committee, that the owners corporation 23
determines is to keep the seal or, in the absence of a determination, by the 24
secretary of the owners corporation, or 25
(b) by the strata managing agent of the owners corporation. 26
(3) A strata managing agent is entitled to custody of the seal of an owners corporation 27
only to permit the exercise of the strata managing agent's functions. 28
(4) Section 50 (2) and (3) of the Interpretation Act 1987 do not apply to an owners 29
corporation. 30
Note. Section 50 (1) (b) of the Interpretation Act 1987 provides that statutory corporations are 31
to have a seal. Section 50 (2) and (3) of the Interpretation Act 1987 contain provisions relating 32
to the keeping of the seal of a statutory corporation and the authentication of documents by a 33
statutory corporation. 34
273 Affixing of seal of owners corporation 35
(1) The seal of an owners corporation that has only one owner or 2 owners must not be 36
affixed to any instrument or document except in the presence of the owner or owners 37
or the strata managing agent of the owners corporation. 38
(2) The seal of an owners corporation that has more than 2 owners must not be affixed 39
to any instrument or document except in the presence of: 40
(a) 2 persons, being owners of lots or members of the strata committee, that the 41
owners corporation determines for the purpose or, in the absence of a 42
determination, the secretary of the owners corporation and any other member 43
of the strata committee, or 44
(b) the strata managing agent of the owners corporation. 45
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(3) The strata managing agent must attest the fact and date of the affixing of the seal: 1
(a) by his or her signature, or 2
(b) if the strata managing agent is a corporation, by the signature of the president, 3
chairperson or other principal officer of the corporation or by any member of 4
staff of the corporation authorised to do so by the president, chairperson or 5
other principal officer. 6
(4) A strata managing agent who has affixed the seal of the owners corporation to any 7
instrument or document is taken to have done so under the authority of a delegation 8
from the owners corporation. 9
(5) Subsection (4) does not operate so as to enable a person to fraudulently obtain a 10
benefit. 11
(6) A person is taken not to have fraudulently obtained a benefit from the operation of 12
subsection (4) if the benefit was, without any fraud by the person, obtained before the 13
seal was affixed. 14
274 Act to bind Crown 15
(1) This Act binds the Crown in right of New South Wales and, in so far as the legislative 16
power of the Parliament of New South Wales permits, the Crown in all its other 17
capacities. 18
(2) However, Division 5 of Part 2 and Parts 3, 4, 5, 6 (except sections 122, 123 and 124 19
and Division 6), 8, 9 and 10 do not apply to or in respect of a strata scheme if the 20
Crown is the owner of all lots in the scheme. 21
Note. The reference to the Crown covers statutory bodies representing the Crown and NSW 22
Government agencies. 23
275 Repeals 24
The following are repealed: 25
(a) the Strata Schemes Management Act 1996 No 138, 26
(b) the Strata Schemes Management Regulation 2010. 27
276 Review of Act 28
(1) The Minister is to review this Act to determine whether the policy objectives of the 29
Act remain valid and whether the terms of the Act remain appropriate for securing 30
those objectives. 31
(2) The review is to be undertaken as soon as possible after the period of 5 years from 32
the date of assent to this Act. 33
(3) A report on the outcome of the review is to be tabled in each House of Parliament 34
within 12 months after the end of the period of 5 years. 35
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Schedule 1 Meeting procedures of owners corporation
Schedule 1 Meeting procedures of owners corporation 1
(Section 23) 2
Part 1 Preliminary 3
1 Meetings to which Schedule applies 4
This Schedule applies to annual general meetings and other general meetings of an 5
owners corporation for a strata scheme. 6
2 Application to large strata schemes 7
The provisions of this Schedule are subject to the regulations, but only to the extent 8
that the regulations relate to large strata schemes. 9
3 Interpretation 10
(1) In this Schedule: 11
owner means an owner of a lot in the strata scheme for which a meeting is held or 12
proposed to be held. 13
priority vote--see clause 24 (1). 14
(2) In this Schedule, a reference to a person entitled to vote at a meeting is a reference 15
to a person entitled to vote on a motion other than a motion requiring a unanimous 16
resolution. 17
Part 2 Agendas, nominations and notices 18
4 Inclusion of matters on agenda 19
(1) Any owner, or any person entitled to vote at a general meeting of an owners 20
corporation, may require a motion to be included in the agenda of the next general 21
meeting of the owners corporation. 22
(2) The requirement is to be made by written notice given to the secretary of the owners 23
corporation that: 24
(a) sets out the required motion, and 25
(b) states the name of the person making the requirement, and 26
(c) includes an explanation of the motion of not more than 300 words in length. 27
(3) The secretary must give effect to the requirement. 28
(4) However, if the requirement is made after notice has been given of the meeting, the 29
secretary must include the motion in the agenda for the next subsequent meeting. 30
(5) An owner or a person may make a requirement even if the owner or person cannot 31
vote because the owner is an unfinancial owner. 32
5 Nomination of candidates for election prior to meeting 33
(1) The written notice of an annual general meeting is to include a call for nominations 34
for members of the strata committee at least 7 days before the annual general meeting 35
of an owners corporation. 36
(2) Any owner, or any person entitled to vote at a general meeting of an owners 37
corporation, may nominate a person for election as a member of the strata committee. 38
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(3) The nomination is to be made by written notice given to the secretary of the owners 1
corporation or, in the case of the first annual general meeting, to the convenor of the 2
meeting, that states the name of: 3
(a) the person nominated, and 4
(b) the person making the nomination and that the person nominated consents to 5
the nomination. 6
(4) The secretary must include the nomination in the notice of the meeting at which the 7
election is to take place. Notice of any subsequent nomination is to be given by the 8
secretary at the meeting. 9
(5) A nomination may be made at any time before the election is held and may be made 10
at the meeting. 11
(6) An owner or a person may make a nomination even if the owner or person cannot 12
vote because the owner is an unfinancial owner. 13
6 Required items of agenda for AGM 14
The agenda for each annual general meeting must include the following items: 15
(a) an item to decide if any matter or type of matter is to be determined only by 16
the owners corporation in general meeting, 17
(b) an item to prepare or review the 10-year plan for the capital works fund, 18
(c) an item to consider the annual fire safety statement (if one is required for the 19
building) under the Environmental Planning and Assessment Act 1979 and 20
arrangements for obtaining the next annual fire safety statement, 21
(d) until the end of warranty periods for applicable statutory warranties under the 22
Home Building Act 1989 for buildings of the strata scheme, an item to consider 23
building defects and rectification. 24
7 Notice of general meetings other than first AGM 25
(1) This clause applies to general meetings other than the first annual general meeting of 26
an owners corporation. 27
(2) Written notice of a meeting must, at least 7 days before the meeting, be given to each 28
owner. 29
(3) Notice of a meeting must also be given, at least 7 days before the meeting, to each 30
first mortgagee or covenant chargee on the strata roll if an item on the agenda is one 31
in which the mortgagee or covenant chargee may cast a priority vote. 32
Note. A priority vote may be cast in the circumstances set out in clause 24. 33
(4) Nothing in this Part requires an owner to give notice of a meeting to himself or 34
herself. 35
8 Matters that must be included in notice of general meetings 36
(1) The following matters must be included in, or accompany, the notice given of all 37
general meetings: 38
(a) a form of motion to confirm the minutes of the last general meeting of any 39
kind, 40
(b) a form of motion for the election of the strata committee, if the meeting is for 41
that purpose, 42
(c) a form of motion for each other motion to be considered at the meeting, 43
(d) whether a motion requires a special resolution or a unanimous resolution to be 44
passed, 45
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(e) a statement that a vote by an owner does not count if a priority vote is cast for 1
the lot in relation to the same matter, 2
(f) a statement that an unfinancial owner, mortgagee or covenant chargee cannot 3
vote at a meeting on a motion (other than a motion requiring a unanimous 4
resolution) unless payment has been made before the meeting of all 5
contributions levied on the owner, and any other amounts recoverable from the 6
owner, in relation to the lot, 7
(g) a statement that voting or other rights may be exercised in person (if the 8
addressee is an individual) or by a company nominee (if the addressee is a 9
corporation), or by a proxy appointed by the addressee, 10
(h) the provisions of this Act for determining a quorum at meetings. 11
(2) A copy of the minutes of the previous general meeting must be given to an owner 12
with notice of a meeting if the owner has not previously been given a copy of the 13
minutes or has requested but not received a copy before the notice is given. 14
9 Additional matters to be included in notice of AGM 15
The following matters must also be included in, or accompany, the notice given of 16
annual general meetings: 17
(a) a copy of the last statements of key financial information for the administrative 18
fund, the capital works fund and any other fund prepared by the owners 19
corporation and any relevant auditor's report, 20
(b) a form of motion for adoption of the financial statements, 21
(c) a form of motion to consider the appointment of an auditor and the taking out 22
of insurance of the kind referred to in section 165 (2), if insurance of that kind 23
has not already been taken out, 24
(d) particulars of each insurance policy taken out by the owners corporation (as 25
required to be specified in the strata roll), 26
(e) a form of motion to decide the number of members of the strata committee, 27
(f) a form of motion for the election of the strata committee, including the names 28
of any persons nominated for election before the notice is given, 29
(g) if there is a strata managing agent, a form of motion to consider the report by 30
the agent as to whether, and what, commissions or training services have been 31
provided or paid for or are likely to be so provided to or paid for the agent for 32
the following 12 months, 33
(h) a form of motion to decide how to deal with any overdue contributions payable 34
to the owners corporation, 35
(i) a form of motion to decide if any matter or type of matter is to be determined 36
by the owners corporation in general meeting. 37
10 Financial statements to be provided on request 38
(1) The owners corporation must, at the request of an owner or a mortgagee or covenant 39
chargee of a lot, give to the owner, mortgagee or covenant chargee a copy of the last 40
financial statements prepared for the administrative fund, the capital works fund and 41
any other fund of the owners corporation by the owners corporation at least 2 days 42
before the meeting at which the statements are to be presented. 43
(2) This Schedule does not prevent the owners corporation from determining that a copy 44
of the last financial statements prepared for the administrative fund, the capital works 45
fund or other fund is to be included in, or to accompany, the notice of an annual 46
general meeting. 47
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11 Notice to be given to tenants 1
(1) A copy of the agenda for a meeting must, at least 7 days before the meeting is held: 2
(a) be given to each tenant, who has been notified to the owners corporation in 3
accordance with this Act as a tenant of the lot, or 4
(b) be prominently displayed on any notice board required to be maintained by or 5
under the by-laws on some part of the common property. 6
(2) Copies of other documents relating to a meeting may be given to each tenant of a lot 7
if the owners corporation so decides. 8
Part 3 General meeting procedure 9
12 Chairing of meetings 10
(1) Chairperson to preside 11
The chairperson of the owners corporation is to preside at any meeting at which the 12
chairperson is present. 13
(2) Presiding member where chairperson absent 14
In the chairperson's absence from a meeting, the persons present at that meeting and 15
entitled to vote on motions submitted at that meeting (other than unfinancial owners) 16
may elect one of their number to preside at that meeting and the person so elected is, 17
while so presiding, taken to be the chairperson of the owners corporation. 18
(3) Chairperson does not have casting vote 19
The chairperson does not have a casting vote in relation to any motion but may vote 20
in his or her own right if otherwise entitled. 21
(4) Chairperson may be only person present 22
A meeting is, subject to the provisions of this Schedule relating to the quorum, 23
validly held even though the only person present at the meeting is the chairperson of 24
the owners corporation. 25
13 Chairperson to announce names of persons entitled to vote 26
If requested to do so by a person present and entitled to vote at a meeting, the 27
chairperson must, before submitting a motion to the meeting or the holding of the 28
election of members of the strata committee, announce the names of the persons who 29
are entitled to vote on that motion or at that election. 30
14 Decisions at meetings 31
(1) Simple majority vote to generally apply 32
A motion put to a meeting, or an election of officers of the owners corporation or 33
members of the strata committee, is to be decided according to a majority in number 34
of the votes cast for and against the motion with each person having one vote for each 35
lot in respect of which the person is entitled to vote. 36
(2) Vote of original owner who owns more than half of lots to be reduced 37
For the purposes of determining an election for officers of the owners corporation or 38
members of the strata committee or appointing a strata managing agent (other than 39
in the case of a poll), if the total unit entitlement of lots of the original owner is not 40
less than half of the aggregate unit entitlement, the value of the vote in respect of the 41
lots held by the original owner is taken to be reduced by two-thirds (ignoring any 42
fraction). 43
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(3) Value of votes to apply for poll 1
If a poll is demanded by a person present and entitled to vote on a motion or for the 2
election of officers of the owners corporation or members of the strata committee at 3
the meeting, the motion is to be decided according to the value of the votes cast for 4
and against the motion and the value of a vote cast by a person entitled to vote in 5
respect of a lot is equal to the unit entitlement of that lot. However, the value of the 6
vote of an original owner is to be calculated in the same way as for a special 7
resolution. 8
Note. Section 5 sets out the manner in which a special resolution is determined. 9
(4) Polls 10
A poll may be demanded immediately before or after a vote decided by a majority in 11
number has been taken. The demand for a poll may be withdrawn by the person who 12
made it. 13
15 Developer or lessor excluded from votes relating to building defects 14
The developer or lessor of a leasehold strata scheme is not entitled to vote, or exercise 15
a proxy vote, on a matter concerning building defects in, or the rectification of 16
building defects in, building work to which Part 11 of this Act applies. 17
16 Chairperson's declaration of vote 18
(1) The chairperson must declare the result of the voting on any motion at a meeting or 19
an election at a meeting at the meeting if it is possible to do so. 20
(2) The declaration of the chairperson of the result of the voting on any motion at a 21
meeting, otherwise than on a poll, is conclusive without proof of the votes recorded 22
for and against the motion. 23
17 Quorum 24
(1) Quorum required for motion or election 25
A motion submitted at a meeting must not be considered, and an election must not be 26
held at a meeting, unless there is a quorum present to consider and vote on the motion 27
or on the election. 28
(2) When quorum exists 29
A quorum is present at a meeting only in the following circumstances: 30
(a) if not less than one-quarter of the persons entitled to vote on the motion or 31
election are present either personally or by duly appointed proxy, 32
(b) if not less than one-quarter of the aggregate unit entitlement of the strata 33
scheme is represented by the persons who are present either personally or by 34
duly appointed proxy and who are entitled to vote on the motion or election, 35
(c) if there are 2 persons who are present either personally or by duly appointed 36
proxy and who are entitled to vote on the motion or election, in a case where 37
there is more than one owner in the strata scheme and the quorum otherwise 38
calculated under this subclause would be less than 2 persons. 39
(3) A person who has voted, or intends to vote, on a motion or at an election at a meeting 40
by a permitted means other than a vote in person is taken to be present for the 41
purposes of determining whether there is a quorum. 42
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(4) Procedure if no quorum 1
If no quorum is present within the next half-hour after the relevant motion or business 2
arises for consideration at the meeting, the chairperson must: 3
(a) adjourn the meeting for at least 7 days, or 4
(b) declare that the persons present either personally or by duly appointed proxy 5
and who are entitled to vote on the motion or election constitute a quorum for 6
considering that motion or business and any subsequent motion or business at 7
the meeting. 8
(5) Quorum for adjourned meeting 9
If a quorum is not present within the next half-hour after the time fixed for the 10
adjourned meeting, the persons who are present either personally or by duly 11
appointed proxy and who are entitled to vote on the motion or election constitute a 12
quorum for considering that motion or business and any subsequent motion or 13
business at the meeting. 14
18 Motions require notice 15
A motion must not be submitted at a general meeting if any requirement of this Act 16
to include the form of the motion in the notice of the meeting has not been complied 17
with, unless the motion is a motion to amend a motion of which notice has been so 18
given. 19
19 Chairperson may rule certain motions out of order 20
The chairperson at a meeting may rule a motion out of order if: 21
(a) the chairperson considers that the motion, if carried, would conflict with this 22
Act or the by-laws of the strata scheme or would otherwise be unlawful or 23
unenforceable, or 24
(b) any requirement of this Act to include the form of the motion in the notice of 25
the meeting has not been complied with. 26
20 Adjournments 27
(1) A meeting may be adjourned for any reason if a motion is passed at the meeting for 28
the adjournment. 29
(2) The time and place at which a meeting adjourned under this Part is to be resumed 30
must be fixed by the person who was presiding at the meeting or, if the meeting was 31
adjourned because of a lack of a quorum, by the person who would have presided at 32
the meeting but for the lack of the quorum. 33
(3) The secretary of the owners corporation must give to the members of the owners 34
corporation, at least 1 day before the resumed meeting, a written notice specifying: 35
(a) the time and place of the meeting, and 36
(b) the provisions of this Act for determining the quorum at a meeting. 37
21 Tenants at meetings 38
(1) A tenant who has been notified in accordance with this Act to the owners corporation 39
as a tenant of a lot in the strata scheme is entitled to attend a meeting but is not 40
entitled to vote at a meeting unless the tenant is the holder of a duly appointed proxy. 41
(2) A tenant is not entitled to address a meeting unless authorised to do so by a resolution 42
of the owners corporation. 43
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(3) The owners corporation may, at any meeting or for the purpose of all meetings, 1
determine that tenants (other than tenants who hold duly appointed proxies) are not 2
entitled to be present when the following matters are being discussed or determined: 3
(a) financial statements and auditor's reports, 4
(b) levying of contributions, 5
(c) recovery of unpaid contributions, 6
(d) a strata renewal proposal under Part 10 of the Strata Schemes Development 7
Act 2015 or any related matter, 8
(e) any other financial matter specified by the regulations for the purposes of this 9
clause. 10
22 Minutes 11
(1) Records to be kept 12
The owners corporation must keep full and accurate minutes of its meetings that 13
include minutes of all motions passed at its meetings. 14
(2) Distribution of minutes and records of motions 15
Within 14 days after a meeting, the owners corporation must provide copies of the 16
minutes of the meeting in the following manner: 17
(a) by giving each member of the strata committee a copy, 18
(b) by giving each owner a copy, if the strata scheme is not a large strata scheme, 19
(c) by giving an owner a copy, if the strata scheme is a large strata scheme and the 20
owner requests a copy within the period of 14 days. 21
Maximum penalty: 5 penalty units. 22
Part 4 Voting rights and voting procedures 23
Division 1 General rights to vote 24
23 Persons entitled to vote at general meetings 25
(1) Persons who have right to vote 26
Each owner, and each person entitled to a priority vote, has voting rights that may be 27
exercised at a general meeting of the owners corporation, but only if the owner or 28
person is shown on the strata roll and, in the case of a corporation, the company 29
nominee is shown on the strata roll. 30
(2) Exercise of voting rights by joint first mortgagees or joint covenant chargees 31
Voting rights may be exercised at the meeting by joint first mortgagees or joint 32
covenant chargees only by proxy (who may be one of them) duly appointed by all of 33
them jointly. 34
(3) Exercise of voting rights by owner, first mortgagee or covenant chargee 35
The voting rights of an owner or first mortgagee or covenant chargee of a lot (other 36
than a co-owner, mortgagee or covenant chargee) may be exercised: 37
(a) unless the owner, mortgagee or covenant chargee is a corporation--in person 38
or by proxy, or 39
(b) if the owner, mortgagee or covenant chargee is a corporation--by the 40
company nominee in person, or by proxy appointed by the corporation. 41
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(4) Exercise of voting rights by co-owners to be by proxy 1
The voting rights of co-owners of a lot may not be exercised by them individually but 2
may be exercised: 3
(a) by a proxy (who may be one of them), or 4
(b) as provided by subclause (5). 5
(5) Other circumstances in which co-owners may exercise voting rights 6
If, on a vote at a general meeting, the rights of co-owners of a lot are not exercised 7
by a proxy as referred to in subclause (4), one of them may act as such a proxy: 8
(a) if the other co-owners are absent or those who are present give their consent, or 9
(b) if paragraph (a) does not apply--if he or she is the owner first named on the 10
strata roll as one of the co-owners. 11
(6) Exercise of voting rights by owners of successive estates in lot 12
If there are owners of successive estates in a lot, only the owner of the first estate may 13
vote at a general meeting. 14
(7) Exercise of voting rights where owner holds lot as trustee 15
If the owner of a lot holds it as trustee, a person beneficially entitled may not vote at 16
a general meeting. 17
(8) Voting rights cannot be exercised if contributions not paid 18
A vote at a general meeting (other than a vote on a motion requiring a unanimous 19
resolution) by an owner of a lot or a person with a priority vote in respect of the lot 20
does not count if the owner of the lot was an unfinancial owner at the date notice of 21
the meeting was given and did not pay the amounts owing before the meeting. 22
(9) Effect of failure to give strata interest notice 23
This clause does not confer a right to vote on a person deprived of the right by failing 24
to comply with the requirement to give a strata interest notice. 25
24 Priority votes 26
(1) A priority vote is a vote cast on a motion by a person whose vote has priority under 27
this clause. 28
(2) A priority vote may be cast on any of the following motions: 29
(a) a motion that relates to insurance, budgeting or the fixing of a levy, 30
(b) a motion that will require expenditure by the owners corporation of an amount 31
that exceeds the amount prescribed by the regulations for the purposes of this 32
clause, 33
(c) a motion that requires a special resolution or unanimous resolution. 34
(3) If a priority vote is cast in relation to a lot, a vote on the same matter by the owner of 35
the lot does not count. However, a priority vote has no effect unless at least 2 days 36
written notice of intention to exercise the priority vote at the particular meeting has 37
been given to the owner of the lot. 38
(4) A priority vote may be cast in respect of a lot by: 39
(a) the mortgagee of the lot under a mortgage shown on the strata roll as having 40
priority over any other mortgage, and over any covenant charge, shown on the 41
strata roll in relation to the lot, or 42
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(b) the covenant chargee of the lot under a covenant charge shown on the strata 1
roll as having priority over any mortgage shown on the roll in relation to the 2
lot, or 3
(c) the covenant chargee of the lot under a covenant charge shown on the strata 4
roll without any mortgage being shown on the roll in relation to the lot. 5
Note. Clause 28 allows a vote to be cast in person or by other means. 6
25 Rights of proxies and limits on votes by proxies 7
(1) Proxy may demand poll 8
A duly appointed proxy may vote on a show of hands or demand a poll. 9
(2) Powers of proxies 10
A person duly appointed as a proxy: 11
(a) if entitled to vote otherwise than as a proxy--may also vote in the person's 12
own right, and 13
(b) if appointed as proxy for more than one person--may vote separately as a 14
proxy in each case. 15
(3) Proxy cannot vote if person appointing proxy votes 16
A proxy cannot exercise a vote in relation to a matter if the person who appointed the 17
proxy is exercising personally a power to vote on that matter. 18
(4) Proxy limited by instrument of appointment 19
If the instrument appointing a proxy limits the manner in which the proxy may vote 20
at a meeting, a vote by the proxy that does not observe the limitation is invalid. 21
(5) No proxy vote pursuant to contract for sale by original owner 22
An original owner or a person connected with the original owner cannot cast a vote 23
by means of a proxy or power of attorney given by another owner of a lot in the strata 24
scheme if the proxy or power of attorney was given pursuant to a term of the sale 25
contract for the lot or pursuant to another contract or arrangement that is ancillary or 26
related to the sale contract. 27
(6) Subclause (5) does not apply to a proxy or power of attorney given by a person to 28
another person connected with him or her. 29
(7) Limits on exercise of proxy by building manager, on-site residential property 30
manager or strata managing agent 31
A vote by a proxy who is a building manager, an on-site residential property manager 32
or a strata managing agent is invalid if it would obtain or assist in obtaining a 33
pecuniary interest for, or confer or assist in conferring any other material benefit on, 34
the proxy. 35
(8) For the purposes of subclause (7), material benefit includes, but is not limited to, the 36
following: 37
(a) an extension of the term or an additional term of appointment of the proxy as 38
building manager, on-site residential property manager or strata managing 39
agent, 40
(b) an increase in the remuneration of the proxy, 41
(c) a decision of the owners corporation not to proceed with, to withdraw, to 42
delay, to compromise or to settle litigation or other legal proceedings relating 43
to the proxy, 44
(d) any other decision of the owners corporation that affects litigation or other 45
legal proceedings relating to the proxy. 46
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Division 2 Appointment of proxies 1
26 Appointment of proxies 2
(1) Duly appointed proxy 3
A person is a duly appointed proxy for the purposes of this Part if the person is 4
appointed as a proxy by an instrument in the form prescribed by the regulations and 5
the form is signed by the person appointing the proxy or executed in any other 6
manner permitted by the regulations. 7
(2) Form of proxy 8
The prescribed form is to make provision for the giving of instructions on: 9
(a) whether the person appointing the proxy intends the proxy to be able to vote 10
on all matters and, if not, the matters on which the proxy will be able to vote, 11
and 12
(b) how the person appointing the proxy wants the proxy's vote to be exercised on 13
a motion for the appointment or continuation in office of a strata managing 14
agent. 15
(3) Proxy to be given to secretary of owners corporation 16
The instrument is ineffective unless it contains the date on which it was made and it 17
is given to the secretary of the owners corporation at least 24 hours before the first 18
meeting in relation to which the instrument is to operate (in the case of a large 19
corporation) or at or before the first meeting in relation to which the instrument is to 20
operate (in any other case). 21
(4) Period for which proxy effective 22
An instrument appointing a proxy has effect for the period commencing with the day 23
on which it takes effect and ending with the later of the first anniversary of that day 24
and the conclusion of the second annual general meeting held after that day, unless 25
it is sooner revoked or a shorter period is provided by the instrument. 26
(5) Proxy cannot vote if person appointing proxy votes 27
A proxy cannot exercise a vote in relation to a matter if the person who appointed the 28
proxy is exercising personally a power to vote on that matter. 29
(6) Effect of subsequent proxy 30
An instrument made by a person appointing a proxy has no effect if the person makes 31
a later instrument appointing a proxy and delivers it to the secretary of the owners 32
corporation in accordance with subclause (3). 33
(7) Limit on number of proxies that may be held 34
The total number of proxies that may be held by a person (other than proxies held by 35
the person as the co-owner of a lot) voting on a resolution are as follows: 36
(a) if the strata scheme has 20 lots or less, one, 37
(b) if the strata scheme has more than 20 lots, a number that is equal to not more 38
than 5% of the total number of lots. 39
27 Certain provisions unenforceable 40
A provision of a contract for the sale of a lot in a strata scheme, or of any ancillary 41
or related contract or arrangement, is void and unenforceable to the extent that it: 42
(a) requires the purchaser of a lot, or any other person, to cast a vote at a meeting 43
of the owners corporation at the direction of another person, or 44
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(b) requires the purchaser to give a proxy at the direction of another person for the 1
purpose of voting at a meeting of the owners corporation. 2
Division 3 Manner of voting 3
28 Manner of voting 4
(1) A vote at a meeting by a person entitled to vote or by a proxy must be cast in person 5
unless the owners corporation, by resolution passed at a general meeting, determines 6
that a vote may be cast by some other specified means. 7
(2) The regulations may make provision for or with respect to the following: 8
(a) the means of voting (other than in person) that may be adopted by an owners 9
corporation, 10
(b) without limiting paragraph (a), procedures for voting by those means, 11
(c) prohibiting or requiring the use of specified means of voting. 12
29 Secret ballots 13
(1) Voting on a motion or for an election at a meeting may be carried out by a secret 14
ballot if: 15
(a) the strata committee determines that the motion or matter is to be so 16
determined, or 17
(b) at least one-quarter of the persons entitled to vote on the motion or election 18
agree that the motion or matter is to be so determined. 19
(2) The regulations may make provision for or with respect to the procedures for a secret 20
ballot. 21
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Schedule 2 Meeting procedures of strata committees
Schedule 2 Meeting procedures of strata committees 1
(Section 40) 2
Part 1 Preliminary 3
1 Meetings to which Schedule applies 4
This Schedule applies to meetings of the strata committee of an owners corporation. 5
2 Application to large strata schemes 6
The provisions of this Schedule are subject to the regulations, but only to the extent 7
that the regulations relate to large strata schemes. 8
3 Definitions 9
In this Schedule: 10
owner means an owner of a lot in the strata scheme for which a meeting is held or 11
proposed to be held. 12
tenant member means a tenant representative nominated for a strata committee 13
under section 33. 14
Part 2 Notices of meetings 15
4 Notice of meetings for large strata schemes 16
(1) The secretary of the owners corporation of a large strata scheme must give notice of 17
a meeting to each other member of the strata committee (including any tenant 18
member) at least 3 days before the meeting and to each owner. 19
(2) Notice is to be given in accordance with section 263 and by displaying the notice on 20
the notice board (if any) maintained by the owners corporation. 21
5 Notice of meetings for other strata schemes 22
(1) The secretary of the owners corporation of a strata scheme that is not a large strata 23
scheme must give notice of a meeting to each other member of the strata committee 24
at least 3 days before the meeting and to each owner. 25
(2) Notice is to be given by displaying the notice on the notice board maintained by the 26
owners corporation or in accordance with section 263. 27
6 Owner not required to serve notice on self 28
Nothing in this Part requires an owner to give notice of a meeting to himself or 29
herself. 30
7 Matters that must be included in notice of meetings 31
The notice of a meeting must include a detailed agenda for the meeting. 32
Part 3 Meeting procedure 33
8 Chairperson to preside 34
(1) Chairperson to preside 35
The chairperson of the owners corporation is to preside at any meeting at which the 36
chairperson is present. 37
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(2) Presiding member where chairperson absent 1
In the chairperson's absence from a meeting, the members of the strata committee 2
present at that meeting may elect one of their number to preside at that meeting and 3
the person so elected is, while so presiding, taken to be the chairperson. 4
(3) Chairperson does not have casting vote 5
The chairperson does not have a casting vote in relation to any motion but may vote 6
in his or her own right if otherwise entitled. 7
(4) Chairperson may be only person present 8
A meeting is, subject to the provisions of this Schedule relating to the quorum, 9
validly held even though the only person present at the meeting is the chairperson of 10
the owners corporation. 11
9 Decisions at meetings 12
(1) Voting at meetings 13
A motion put to a meeting is to be decided according to a majority of the number of 14
the votes cast for and against the motion by the members present (other than any 15
tenant member) or in the manner set out in subclause (2). If there is only one member 16
of the strata committee, the decision of the strata committee is the decision of that 17
member. 18
(2) Voting in writing 19
A motion proposed to be put to a meeting is taken to have been validly passed even 20
if the meeting was not held if: 21
(a) notice was given of the meeting in accordance with this Schedule, and 22
(b) a copy of the motion was given to each member of the strata committee, and 23
(c) the motion was approved in writing by a majority of the members of the 24
committee (other than the tenant member). 25
(3) Decisions to have no effect if opposed by more than specified owners 26
A decision of a strata committee has no force or effect if, before the decision is made, 27
notice is given to the secretary of the owners corporation by one or more owners, the 28
sum of whose unit entitlements exceeds one-third of the aggregate unit entitlement, 29
that the making of the decision is opposed by those owners. 30
(4) Voting rights cannot be exercised if contributions not paid 31
A member of the strata committee is not entitled to vote on any motion put or 32
proposed to be put to the strata committee if the member was, or was nominated as a 33
member by a member who was, an unfinancial owner of a lot in the strata scheme at 34
the date notice of the meeting was given and the amounts owed by the unfinancial 35
owner were not paid before the meeting. 36
(5) Tenant member not entitled to vote 37
A tenant member of a strata committee is not entitled to vote on any motion put or 38
proposed to be put to a strata committee. 39
10 Manner of voting 40
(1) A vote at a meeting by a person entitled to vote must be cast in person unless the 41
strata committee, by resolution, determines that a vote may be cast by some other 42
specified means. 43
Note. A person may be present at a meeting even if not actually at the meeting (see 44
section 4 (1), definition of person present). 45
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(2) The regulations may make provision for or with respect to the following: 1
(a) the means of voting (other than in person) that may be adopted by a strata 2
committee, 3
(b) without limiting paragraph (a), procedures for voting by such means, 4
(c) prohibiting the use of specified means of voting. 5
11 Chairperson's declaration of vote 6
The declaration of the chairperson of the result of the voting on any motion at a 7
meeting is conclusive without proof of the votes recorded for and against the motion. 8
12 Quorum 9
(1) Quorum required for motion 10
A motion submitted at a meeting of a strata committee must not be considered unless 11
there is a quorum present to consider and vote on the motion. 12
(2) When quorum exists 13
A quorum is present at a meeting only in the following circumstances: 14
(a) in the case of a strata committee which has only one member, if the member 15
is present, 16
(b) in any other case, if not less than one-half of the persons entitled to vote on the 17
motion are present. 18
(3) A person who has voted, or intends to vote, on a motion or at an election at a meeting 19
by a permitted means other than a vote in person is taken to be present for the 20
purposes of determining whether there is a quorum. 21
(4) The quorum for meetings of a strata committee is to be calculated on the basis of the 22
number of members last determined by the owners corporation for the committee. 23
13 Non-member owner may attend 24
An owner or, if the owner of a lot is a corporation, any company nominee of that 25
corporation is entitled to attend a meeting but is not entitled to address the meeting 26
unless authorised to do so by resolution of the strata committee. 27
14 Only person who may vote can move motion 28
A person is not entitled to move a motion unless the person is entitled to vote on the 29
motion. 30
15 Chairperson may rule certain motions out of order 31
The chairperson at a meeting may rule a motion out of order if the chairperson 32
considers that the motion, if carried, would conflict with this Act or the by-laws of 33
the strata scheme or would otherwise be unlawful or unenforceable. 34
16 Adjournments 35
(1) A meeting may be adjourned for any reason if a motion is passed at the meeting for 36
the adjournment. 37
(2) The time and place at which a meeting adjourned under this Part is to be resumed 38
must be fixed by the person who was presiding at the meeting. 39
(3) The secretary of the owners corporation must give to the members of the owners 40
corporation, at least 1 day before the resumed meeting, a notice specifying the time 41
and place of the meeting. 42
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(4) Notice is to be given by displaying the notice on the notice board maintained by the 1
owners corporation or, if there is no notice board, in writing (including by email or 2
other electronic means). 3
17 Minutes and other records 4
(1) Records to be kept 5
A strata committee must cause to be kept a record of its decisions, any notices given 6
under this Schedule and full and accurate minutes of its meetings. 7
(2) The minutes must include minutes of all resolutions passed in accordance with this 8
Schedule. 9
(3) Distribution of minutes and records of motions 10
Within 7 days after a meeting of a strata committee or the passing of a resolution by 11
the strata committee, the strata committee must provide copies of the minutes of the 12
meeting or of the resolution in the following manner: 13
(a) by giving each member of the strata committee a copy, 14
(b) by giving each owner a copy, if the strata scheme is not a large strata scheme, 15
(c) by giving an owner a copy, if the strata scheme is a large strata scheme and the 16
owner requests a copy within the period of 7 days. 17
18 Disclosure of pecuniary interests 18
(1) If: 19
(a) a member of a strata committee has a direct or indirect pecuniary interest in a 20
matter being considered or about to be considered at a meeting, and 21
(b) the interest appears to raise a conflict with the proper performance of the 22
member's duties in relation to the consideration of the matter, 23
the member must, as soon as possible after the relevant facts have come to the 24
member's knowledge, disclose the nature of the interest at a meeting of the strata 25
committee. 26
Maximum penalty: 10 penalty units. 27
(2) A disclosure by a member at a meeting of the strata committee that the member: 28
(a) is a member, or is in the employment, of a specified corporation or other body, 29
or 30
(b) is a partner, or is in the employment, of a specified person, or 31
(c) has some other specified interest relating to a specified corporation or other 32
body or to a specified person, 33
is a sufficient disclosure of the nature of the interest in any matter relating to that 34
corporation or other body or to that person which may arise after the date of the 35
disclosure and which is required to be disclosed under subclause (1). 36
(3) Particulars of any disclosure made under this clause must be recorded by the strata 37
committee in a book kept for the purpose and that book must be open at all reasonable 38
hours to inspection by any person on payment of the fee determined by the strata 39
committee. 40
(4) After a member has disclosed the nature of an interest in any matter, the member 41
must not, unless the strata committee otherwise determines: 42
(a) be present during any deliberation of the strata committee with respect to the 43
matter, or 44
(b) take part in any decision of the strata committee with respect to the matter. 45
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(5) For the purposes of the making of a determination by the strata committee under 1
subclause (4), a member who has a direct or indirect pecuniary interest in a matter to 2
which the disclosure relates must not: 3
(a) be present during any deliberation of the strata committee for the purpose of 4
making the determination, or 5
(b) take part in the making by the strata committee of the determination. 6
(6) A contravention of this clause does not invalidate any decision of the strata 7
committee. 8
(7) Without limiting subclause (1), a person has an indirect pecuniary interest in a matter 9
if a person connected with the person has a direct interest in the matter. 10
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Schedule 3 Savings, transitional and other provisions 1
Part 1 General 2
1 Regulations 3
(1) The regulations may contain provisions of a savings or transitional nature consequent 4
on the enactment of this Act or any Act that amends this Act. 5
(2) Any such provision may, if the regulations so provide, take effect from the date of 6
assent to the Act concerned or a later date. 7
(3) To the extent to which any such provision takes effect from a date that is earlier than 8
the date of its publication on the NSW legislation website, the provision does not 9
operate so as: 10
(a) to affect, in a manner prejudicial to any person (other than the State or an 11
authority of the State), the rights of that person existing before the date of its 12
publication, or 13
(b) to impose liabilities on any person (other than the State or an authority of the 14
State) in respect of anything done or omitted to be done before the date of its 15
publication. 16
(4) The regulations under this Part have effect despite anything to the contrary in this 17
Schedule. 18
(5) The regulations under this Part may make separate savings and transitional 19
provisions or amend this Schedule to consolidate the savings and transitional 20
provisions. 21
Part 2 Provisions consequent on enactment of this Act 22
2 Definitions 23
In this Part: 24
existing strata scheme means a strata scheme in existence immediately before the 25
commencement of this clause. 26
former Act means the Strata Schemes Management Act 1996. 27
3 General savings 28
(1) Any act, matter or thing done or omitted to be done under a provision of the former 29
Act and having any force or effect immediately before the commencement of a 30
provision of this Act that replaces that provision is, on that commencement, taken to 31
have been done or omitted to be done under the provision of this Act. 32
(2) This clause does not apply: 33
(a) to the extent that its application is inconsistent with any other provision of this 34
Schedule or a provision of a regulation made under this Schedule, or 35
(b) to the extent that its application would be inappropriate in a particular case. 36
4 By-laws 37
(1) An owners corporation of an existing strata scheme is to review the by-laws for the 38
scheme not later than 12 months after the commencement of section 134. 39
(2) Despite any other provision of this Act, a by-law continued in force by this Act is 40
taken to be a valid by-law if it was a valid by-law immediately before the 41
commencement of this clause. 42
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5 Existing owners corporations 1
An owners corporation constituted, or taken to have been constituted, under 2
section 11 of the former Act is taken to have been constituted under section 8 of this 3
Act. 4
6 Existing executive committees 5
(1) A person who, immediately before the commencement of this clause, was a member 6
of the executive committee of an owners corporation is, on that commencement, 7
taken to have been appointed to be a member of the strata committee of the owners 8
corporation for the balance of the person's term as a member of the executive 9
committee. 10
(2) A person who, immediately before the commencement of this clause, was an officer 11
of an executive committee is, on that commencement, taken to have been appointed 12
as an officer of the same kind of the owners corporation for the balance of the 13
person's term as an officer. 14
7 Existing proceedings 15
Any proceedings commenced but not determined or finalised under a provision of the 16
former Act are to be dealt with and determined as if the former Act had not been 17
repealed. 18
8 Adjudicators 19
(1) A person who held office as an Adjudicator under the former Act immediately before 20
the commencement of this clause ceases to hold the office on that commencement. 21
(2) Despite subclause (1), an Adjudicator determining proceedings to which clause 7 22
applies continues to hold office until the proceedings are determined. 23
(3) An Adjudicator who ceases to be an Adjudicator under this clause is not entitled to 24
any compensation for loss of office. 25
9 Existing orders under former Act 26
An order made by an Adjudicator or a Tribunal under the former Act, and in force 27
immediately before the commencement of this clause, is taken to have been made by 28
the Tribunal under the corresponding provision of this Act. 29
10 Contributions 30
Any contributions levied under the former Act are taken to have been levied under 31
this Act and this Act applies to the recovery and payment of any unpaid 32
contributions. 33
11 Approved insurers 34
An insurer that was an approved insurer under the former Act immediately before the 35
commencement of section 160 of this Act is taken to be an approved insurer under 36
this Act. 37
12 Previous decisions by owners corporations and executive committees 38
(1) A decision, consent or approval of an owners corporation under the former Act, or 39
that is taken to have been made under the former Act, is taken to have been made by 40
the owners corporation under this Act. 41
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(2) A decision, consent or approval of the executive committee of an owners corporation 1
under the former Act, or that is taken to have been made under the former Act, is 2
taken to have been made by the strata committee of the owners corporation under this 3
Act. 4
13 Window safety devices 5
(1) Despite any other provision of this Act, an owners corporation is not required to 6
comply with section 118 until 13 March 2018. 7
(2) Accordingly, an order cannot be sought under section 129 in respect of a failure to 8
exercise a function under section 118 until on or after 13 March 2018. 9
14 Terms of appointment of strata managing agents 10
(1) The term of appointment (including any reappointment) of a strata managing agent 11
appointed before the commencement of section 50 (1) of this Act ends on the day that 12
is 3 years after the day that the term commenced or that is 6 months after the 13
commencement of this clause, whichever is the later. 14
(2) Section 50 (1) applies to the term of any reappointment of the strata managing agent 15
after that commencement. 16
(3) Section 49 (3) does not apply to a strata managing agent appointed before the 17
commencement of that subsection. 18
15 Caretakers and building managers 19
(1) An agreement in force immediately before the commencement of this clause is taken 20
to be a building manager agreement for the purposes of this Act, despite any of the 21
provisions of the agreement, if: 22
(a) the agreement provides for the appointment of a person to carry out any of the 23
functions specified in section 66 (1) in relation to the owners corporation for a 24
strata scheme, and 25
(b) the primary purpose of the agreement is to provide for that appointment and 26
related matters, and 27
(c) the person is not entitled to exclusive possession of a lot or common property 28
in the strata scheme. 29
(2) Any such building manager agreement expires 10 years after the commencement of 30
this clause unless the terms of the agreement provide that it expires on an earlier day 31
or the agreement is terminated on an earlier day. 32
(3) A reference in any instrument to a caretaker in relation to a strata scheme is taken to 33
be a reference to a building manager in relation to that scheme. 34
16 Building defects 35
Part 11 of this Act does not apply to building work if the contract for carrying out the 36
building work was entered into before the commencement of this clause or, if there 37
is no contract for the carrying out of the building work, the building work 38
commenced before the commencement of this clause. 39
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Schedule 4 Amendment of Acts 1
4.1 City of Sydney Act 1988 No 48 2
[1] Section 14 Definitions 3
Omit "Strata Schemes Management Act 1996" from section 14 (1) (e). 4
Insert instead "Strata Schemes Management Act 2015". 5
[2] Section 14 (1) (e), note 6
Omit the note. 7
4.2 Civil and Administrative Tribunal Act 2013 No 2 8
Schedule 4 Consumer and Commercial Division 9
Omit "Strata Schemes Management Act 1996" from clause 3 (1). 10
Insert instead "Strata Schemes Management Act 2015". 11
4.3 Civil Procedure Act 2005 No 28 12
[1] Part 8, Division 3, Subdivision 2, heading 13
Omit "income" from the heading to the Subdivision. Insert instead "wages or salary". 14
[2] Part 8, Division 3, Subdivision 2A 15
Insert after section 122: 16
Subdivision 2A Enforcement by owners corporations against rent 17
122A Definitions 18
In this Subdivision: 19
owners corporation means an owners corporation within the meaning of the 20
Strata Schemes Management Act 2015 or an association within the meaning of 21
the Community Land Management Act 1989. 22
real estate agent and trust account have the same meanings as they have in 23
the Property, Stock and Business Agents Act 2002. 24
unpaid contribution means a contribution under the Strata Schemes 25
Management Act 2015 or Community Land Management Act 1989 that has not 26
been paid when it becomes due and payable to an owners corporation and 27
includes any interest payable on the unpaid contribution and any expenses of 28
the owners corporation incurred in recovering any such amounts. 29
122B Application of Subdivision 30
This Subdivision does not apply unless the judgment creditor is an owners 31
corporation and the judgment debt relates to an unpaid contribution. 32
122C Operation of garnishee order in relation to rental income 33
(1) Subject to section 122E and the uniform rules, a garnishee order operates to 34
attach, to the extent of the amount outstanding under the judgment: 35
(a) any rent for the property to which the unpaid contribution relates that, 36
while the order is in force, is held by a real estate agent in a trust account 37
for the benefit of the judgment debtor, or 38
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(b) if the judgment debt becomes the subject of an instalment order, such 1
amounts from any such rent as are equivalent to the instalments payable 2
under the instalment order. 3
(2) An instalment order with respect to a judgment debt the subject of a garnishee 4
order takes effect in relation to the amounts payable under the garnishee order 5
as from the time the instalment order is served on the garnishee. 6
(3) A garnishee order ceases to have effect, in relation to the rent held for the 7
benefit of a judgment debtor, when the judgment debt is satisfied. 8
122D Time within which payment to be made 9
Payment of an amount with respect to rent attached by a garnishee order must 10
be made within 14 days after the date on which the rent is paid into the trust 11
account. 12
122E Minimum income of judgment debtor 13
(1) This section applies if a judgment debtor satisfies a court that rent attached by 14
a garnishee order is the only source of income of the judgment debtor. 15
(2) The amounts attached under one or more garnishee orders must not, in total, 16
reduce the net weekly amount of the rent received by the judgment debtor from 17
the garnishee to less than $447.70 as adjusted under Division 6 of Part 3 of the 18
Workers Compensation Act 1987. 19
(3) The amount of $447.70 referred to in subsection (2) is an adjustable amount 20
for the purposes of Division 6 of Part 3 of the Workers Compensation Act 21
1987. 22
(4) In this section: 23
net weekly amount, in relation to the rent payable to a judgment debtor, means 24
the amount of rent for each week that is payable to the judgment debtor after 25
deducting any taxes or other sums that, pursuant to any Act (including any 26
Commonwealth Act), are required to be deducted from any such money. 27
[3] Section 123 Payments by garnishee 28
Omit "or 120" from section 123 (2) (a). Insert instead ", 120 or 122D". 29
[4] Section 124 Procedure where garnishee order not complied with 30
Insert "or rent" after "salary" wherever occurring in section 124 (1) and (3) (b). 31
4.4 Coastal Protection Act 1979 No 13 32
Section 4 Definitions 33
Omit "Strata Schemes Management Act 1996" from the definition of landowner or owner 34
of land in section 4 (1). 35
Insert instead "Strata Schemes Management Act 2015". 36
4.5 Community Land Development Act 1989 No 201 37
[1] Section 3 Definitions 38
Omit "Strata Schemes Management Act 1996" from paragraph (a) of the definition of initial 39
period in section 3 (1). 40
Insert instead "Strata Schemes Management Act 2015". 41
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[2] Section 3 (1), definition of "special resolution" 1
Omit paragraph (d) of the definition. Insert instead: 2
(d) that is a special resolution within the meaning of the Strata Schemes 3
Management Act 2015. 4
[3] Section 3 (1), definition of "strata corporation" 5
Omit "by section 11 of the Strata Schemes Management Act 1996". 6
Insert instead "under the Strata Schemes Management Act 2015". 7
4.6 Community Land Management Act 1989 No 202 8
[1] Section 3 Definitions 9
Omit "Strata Schemes Management Act 1996" from paragraph (b) of the definition of 10
by-laws in section 3 (1). 11
Insert instead "Strata Schemes Management Act 2015". 12
[2] Section 3 (1), definition of "initial period" 13
Omit "Strata Schemes Management Act 1996" from paragraph (a) of the definition. 14
Insert instead "Strata Schemes Management Act 2015". 15
[3] Section 3 (1), definition of "special resolution" 16
Omit paragraph (d) of the definition. Insert instead: 17
(d) that is a special resolution within the meaning of the Strata Schemes 18
Management Act 2015. 19
[4] Section 3 (1), definition of "strata corporation" 20
Omit "by section 11 of the Strata Schemes Management Act 1996". 21
Insert instead "under the Strata Schemes Management Act 2015". 22
[5] Section 120 Other rights and remedies not affected 23
Omit "Strata Schemes Management Act 1996" from section 120 (1). 24
Insert instead "Strata Schemes Management Act 2015". 25
[6] Section 120 (3) 26
Omit "Chapter 5 of the Strata Schemes Management Act 1996". 27
Insert instead "the Strata Schemes Management Act 2015". 28
[7] Section 122 Regulations 29
Omit section 122 (1A). Insert instead: 30
(1A) In particular, the regulations may make provision for or with respect to the 31
following matters: 32
(a) fees payable under this Act, including the waiver or refund of the whole 33
or part of any fee, 34
(b) requirements for agreements between associations and councils relating 35
to community scheme parking areas under section 650A of the Local 36
Government Act 1993. 37
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4.7 Contracts Review Act 1980 No 16 1
Section 4 Definitions 2
Omit "section 11 of the Strata Schemes Management Act 1996" from section 4 (2) (a). 3
Insert instead "the Strata Schemes Management Act 2015". 4
4.8 Conveyancing Act 1919 No 6 5
[1] Section 88F Effect of certain positive covenants 6
Omit "Strata Schemes Management Act 1996" from section 88F (7). 7
Insert instead "Strata Schemes Management Act 2015". 8
[2] Section 88H Injunctions 9
Omit "section 160 of the Strata Schemes Management Act 1996" from section 88H (8). 10
Insert instead "section 234 of the Strata Schemes Management Act 2015". 11
4.9 Duties Act 1997 No 123 12
Section 221A Definitions 13
Omit "Strata Schemes Management Act 1996" from paragraph (a) of the definition of 14
private dwelling house. 15
Insert instead "Strata Schemes Management Act 2015". 16
4.10 Environmental Planning and Assessment Act 1979 No 203 17
Section 146A Smoke alarms in buildings providing sleeping accommodation 18
Omit "Strata Schemes Management Act 1996" from section 146A (2) (f). 19
Insert instead "Strata Schemes Management Act 2015". 20
4.11 Fair Trading Act 1987 No 68 21
Section 79D Definitions 22
Omit "Strata Schemes Management Act 1996" from paragraph (d) of the definition of 23
consumer. 24
Insert instead "Strata Schemes Management Act 2015". 25
4.12 Home Building Act 1989 No 147 26
[1] Section 3C Date of completion of new buildings in strata schemes 27
Omit "Strata Schemes Management Act 1996" from section 3C (1). 28
Insert instead "Strata Schemes Management Act 2015". 29
[2] Section 18E Proceedings for breach of warranty 30
Insert after section 18E (1): 31
(1A) If a building bond has been lodged for building work under Part 11 of the 32
Strata Schemes Management Act 2015, the period of 2 years specified for 33
commencing proceedings for a breach of a statutory warranty for that work is 34
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Schedule 4 Amendment of Acts
extended until the end of 90 days after the end of the period within which a 1
final inspection report on the building work under that Part is required. 2
(1B) Subsection (1A) does not limit any other law that permits the period for 3
commencement of proceedings to be extended. 4
[3] Section 48C Notification of building dispute 5
Omit "Strata Schemes Management Act 1996" from section 48C (2) (a). 6
Insert instead "Strata Schemes Management Act 2015". 7
[4] Section 48C (3) and (4) 8
Insert after section 48C (2): 9
(3) A person cannot notify a dispute under this Division in relation to residential 10
building work or specialist work if any action required in relation to the work 11
under Part 11 of the Strata Schemes Management Act 2015 has not been 12
completed. 13
(4) Subsection (3) does not prevent the President of the Tribunal from making a 14
direction about the work under section 48J (b). 15
[5] Section 48D Investigation of dispute 16
Omit "Strata Schemes Management Act 1996" from section 48D (3). 17
Insert instead "Strata Schemes Management Act 2015". 18
4.13 Industrial Relations Act 1996 No 17 19
Section 379 Small claims procedures 20
Omit "Strata Schemes Management Act 1996" from section 379 (6) (b). 21
Insert instead "Strata Schemes Management Act 2015". 22
4.14 Law Enforcement (Powers and Responsibilities) Act 2002 No 103 23
Section 67B Notice to adjoining occupiers of execution of covert search warrant 24
Omit "Strata Schemes Management Act 1996" from the definition of adjoining premises in 25
section 67B (6). 26
Insert instead "Strata Schemes Management Act 2015". 27
4.15 Local Court Act 2007 No 93 28
Section 34A Jurisdiction in company title home unit disputes 29
Omit "Strata Schemes Management Act 1996" from section 34A (4). 30
Insert instead "Strata Schemes Management Act 2015". 31
4.16 Local Government Act 1993 No 30 32
[1] Section 54C Definitions 33
Omit "Strata Schemes Management Act 1996" from the definition of owners corporation. 34
Insert instead "Strata Schemes Management Act 2015". 35
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[2] Section 54K Special provisions relating to strata buildings 1
Omit "Strata Schemes Management Act 1996" from section 54K (5). 2
Insert instead "Strata Schemes Management Act 2015". 3
[3] Section 650A 4
Insert after section 650: 5
650A Strata parking areas and community scheme parking areas 6
(1) The driver of a vehicle parked in a strata parking area or a community scheme 7
parking area established under this section otherwise than as permitted by a 8
notice or sign erected by the council is guilty of an offence. 9
Maximum penalty: 5 penalty units. 10
(2) The terms of the notice or sign may relate to any one or more of the following: 11
(a) the time during which residents or visitors may use the parking area, 12
(b) the maximum period for which a vehicle may be parked in the parking 13
area (or in any part of the parking area), 14
(c) the designation of a parking space within the free parking area as a space 15
for the sole use of persons with disabilities. 16
(3) For the purposes of this section, a vehicle parked otherwise than as permitted 17
by any such notice or sign includes a vehicle parked in a parking space 18
designated as a space for the sole use of persons with disabilities, unless: 19
(a) a parking authority for a person with disabilities is displayed on the 20
vehicle in the manner specified in the authority, and 21
(b) the conditions specified in the authority are being observed, and 22
(c) the authority is in force. 23
(4) If spaces in which a vehicle may be parked in a strata parking area or 24
community scheme parking area are marked by the council or the owners 25
corporation or association (for example, by means of painted lines or by studs, 26
pads or plates), a person must not cause a vehicle to be parked in the parking 27
area: 28
(a) otherwise than in such a parking space, or 29
(b) in a parking space in which another vehicle is parked, or 30
(c) so that any part of the vehicle is on or across (or partly on or across) any 31
line, stud, pad, plate or other mark defining the space or so that the 32
vehicle is not wholly within the space. 33
Maximum penalty: 5 penalty units. 34
(5) The driver of a vehicle in a strata parking area or community scheme parking 35
area must at all times observe and comply with any reasonable direction of any 36
authorised person regarding the parking or movement of the vehicle within the 37
parking area. 38
Maximum penalty: 5 penalty units. 39
(6) The owners corporation of a strata scheme under the Strata Schemes 40
Management Act 2015 may enter into an agreement with the council under 41
which part of the common property of the scheme is set aside for use as a strata 42
parking area and the council exercises functions under this section, including 43
the erection of notices and signs. 44
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(7) The association of a community, precinct or neighbourhood scheme under the 1
Community Land Management Act 1989 may enter into an agreement with the 2
council under which part of the land within the scheme is set aside for use as 3
a community scheme parking area and the council exercises functions under 4
this section, including the erection of notices and signs. 5
(8) It is the duty of the Director-General to establish guidelines to be followed by 6
councils in relation to agreements of the kind referred to in subsection (6) 7
or (7), including guidelines as to: 8
(a) the circumstances in which a council may enter into an agreement, and 9
(b) the matters for which an agreement must or must not make provision, 10
and 11
(c) the exercise by a council of any functions conferred on it by an 12
agreement. 13
(9) An agreement for a strata parking area, and any other agreement conferring 14
functions on a council in relation to a strata parking area, must be approved by 15
special resolution of the owners corporation and must comply with any 16
requirements for such schemes prescribed by regulations under the Strata 17
Schemes Management Act 2015. 18
(10) An agreement for a community scheme parking area, and any other agreement 19
conferring functions on a council in relation to a community scheme parking 20
area, must be approved by special resolution of the association and must 21
comply with any requirements for such schemes prescribed by regulations 22
under the Community Land Management Act 1989. 23
[4] Section 651 Liability of vehicle owner for certain offences 24
Omit "or 650 (1) or (4)" from section 651 (1). 25
Insert instead ", 650 (1) or (4) or 650A (1) or (4)". 26
[5] Dictionary 27
Omit "Strata Schemes Management Act 1996" from paragraph (b) (iii) of the definition of 28
owner. 29
Insert instead "Strata Schemes Management Act 2015". 30
4.17 Parents and Citizens Associations Incorporation Act 1976 No 50 31
Section 19 Public liability insurance 32
Omit paragraph (a) of the definition of approved insurer in section 19 (2). Insert instead: 33
(a) that is an approved insurer for the purposes of Part 9 of the Strata 34
Schemes Management Act 2015, or 35
4.18 Parking Space Levy Act 2009 No 5 36
Section 4 Definitions 37
Omit "section 11 of the Strata Schemes Management Act 1996" from paragraph (e) of the 38
definition of owner in section 4 (1). 39
Insert instead "the Strata Schemes Management Act 2015". 40
Page 140
Strata Schemes Management Bill 2015 [NSW]
Schedule 4 Amendment of Acts
4.19 Property, Stock and Business Agents Act 2002 No 66 1
[1] Section 3 Definitions 2
Omit "Strata Schemes Management Act 1996" from the definition of strata managing 3
agent in section 3 (1). 4
Insert instead "Strata Schemes Management Act 2015". 5
[2] Section 109 Additional requirements for managing agents 6
Omit "Strata Schemes Management Act 1996" from the definition of owners corporation 7
in section 109 (3). 8
Insert instead "Strata Schemes Management Act 2015". 9
[3] Section 190 Application of money for purposes of certain Acts 10
Omit "Strata Schemes Management Act 1996" wherever occurring in section 190 (1) (a) 11
and (3). 12
Insert instead "Strata Schemes Management Act 2015". 13
4.20 Residential (Land Lease) Communities Act 2013 No 97 14
Section 8 Places to which this Act does not apply 15
Omit "Strata Schemes Management Act 1996" from the definition of strata scheme in 16
section 8 (2). 17
Insert instead "Strata Schemes Management Act 2015". 18
4.21 Retail Leases Act 1994 No 46 19
Section 3 Definitions 20
Omit "Strata Schemes Management Act 1996" from the definition of strata levies. 21
Insert instead "Strata Schemes Management Act 2015". 22
4.22 Retirement Villages Act 1999 No 81 23
[1] Section 4 Definitions 24
Omit "Strata Schemes Management Act 1996" from the definition of strata scheme in 25
section 4 (1). 26
Insert instead "Strata Schemes Management Act 2015". 27
[2] Section 45 Application of Division 28
Omit "Strata Schemes Management Act 1996" from the note to the section. 29
Insert instead "Strata Schemes Management Act 2015". 30
[3] Section 74 Meeting of residents 31
Omit "Strata Schemes Management Act 1996" from the note to section 74 (5). 32
Insert instead "Strata Schemes Management Act 2015". 33
Page 141
Strata Schemes Management Bill 2015 [NSW]
Schedule 4 Amendment of Acts
[4] Section 77 Proxies 1
Omit "Strata Schemes Management Act 1996" from the note to section 77 (3). 2
Insert instead "Strata Schemes Management Act 2015". 3
[5] Section 79 Effect of certain votes 4
Omit "Strata Schemes Management Act 1996" wherever occurring in the note to the 5
section. 6
Insert instead "Strata Schemes Management Act 2015". 7
[6] Section 108 Determination by Tribunal 8
Omit "Strata Schemes Management Act 1996" from section 108 (4) (f). 9
Insert instead "Strata Schemes Management Act 2015". 10
[7] Section 128 Order of Tribunal 11
Omit "Strata Schemes Management Act 1996" from section 128 (1) (k1). 12
Insert instead "Strata Schemes Management Act 2015". 13
4.23 Road Transport Act 2013 No 18 14
Section 195 Penalty notices for certain offences 15
Insert "or 650A (1) or (4)" after "or (4)" in section 195 (1) (c). 16
Page 142
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