Strata laws require all schemes to review their by-laws by 30 November 2017 and insurance brokers should talk to their clients about conducting reviews.
If, as a result of the review, a scheme proposes changes to the by-laws, these must be put to a special resolution vote at a meeting of the owners corporation. The new by-laws must also be registered with the NSW Office of the Registrar General within six months after the special resolution has been passed.
This can be done by lodging a Consolidation/Change of By-laws form on the Land and Property Information website and tenants must also be informed of any change in by-laws. If no changes are needed as a result of the review of a scheme’s by-laws, nothing further needs to be done.
Strata owners can inspect the owners corporation’s records to confirm what by-laws are in place. Potential owners can get a copy of the by-laws by obtaining a section 184 Certificate, which is required to finalise financial matters concerning the sale of a strata property.
Landlords must give their tenants a copy of the current by-laws within seven days of the tenancy agreement being signed.
This is also a good time to remind clients that the strata building bond and inspections scheme commences 1 January 2018. Under the new scheme, developers of new residential and mixed use high-rise strata developments which are four storeys or higher will be required to lodge a building bond with NSW Fair Trading.
The amount secured by a building bond is to be 2 per cent of the contract price for the building work. Any defective building work identified between 15 and 18 months but not rectified by the builder before the end of 24 months may be rectified using an amount secured by the building bond.