ByLawyers News and Updates

Strata schemes – NSW

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Amendments to the Strata Schemes Management Act 2015 have commenced. They make permanent the previous COVID-related changes which permit procedural and service requirements to be met electronically.

Section 263 as amended allows owners corporations and strata managers to serve documents on owners and occupiers in strata schemes via electronic transmission.

The seal of an owners corporation can be kept and affixed electronically. The regulations can prescribe the requirements for storing the seal in electronic form, affixing the seal, and record keeping.

Owners corporations and strata committees are able to meet and vote in ways other than by physical attendance. The amendments enable the regulations to govern how voting is conducted, voting procedures and reasonable steps taken to allow participation and voting at meetings.

The amending Act provides for these arrangements to be reviewed after 18 months to assess whether the amendments assist strata schemes to operate effectively and efficiently.

The By Lawyers 1001 Conveyancing Answers publication been amended to reflect these changes, with updated links to the new legislative sections.

Strata title amendment – WA

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Significant strata title amendment has been introduced in Western Australia.

The Strata Title Amendment Act 2018 and the Strata Titles (General) Regulations 2019 commenced on 1 May 2020.

The changes to the strata title regime include increased seller disclosure obligations and the introduction of leasehold strata.

Increased disclosure requirements

Before a buyer signs the offer and acceptance contract, the seller must provide information including:

  • Estimated strata levy contributions over a 12-month period.
  • The most recent statement of accounts of the strata scheme.
  • The minutes from the most recent Annual General Meeting of the strata company or any other general meeting that’s been held since.

Disclosure requirements are set out in s 156 of the Strata Title Act 1985.

A seller must also give the buyer information about certain variations to the scheme as they happen, after the buyer signs the contract and before settlement.

Leasehold strata

Leasehold strata title is essentially a strata or survey-strata scheme that is set up for a fixed term between 20 and 99 years.

The majority of the Strata Titles Act 1985 applies to leasehold schemes in the same way as it applies to freehold schemes.

The owner of a lot in a leasehold scheme has a long-term lease of a lot. A leasehold lot that is the subject of a strata lease within a leasehold scheme will have its own certificate of title, and a separate certificate of title is issued for the registered proprietor of the parcel of land over which the leasehold scheme is registered. The owner of a lot in a leasehold scheme can transfer the lot and the strata lease, and mortgage the lot without the lessor’s consent. Owners of the lots are members of the strata company and decide how to run the leasehold scheme.

Staged developments

Schemes no longer require a Management Statement to accompany and form part of the by-laws.

Details of staged development are now set out in the scheme by-laws and are called ‘staged subdivision by-laws’.

The amendments ensure the rights of lot owners who have already bought into earlier stages of the scheme are protected, while making the process more efficient for developers.

Updates

The By Lawyers Conveyancing – Sale and Purchase of land Guides have been updated accordingly.

A second stage of reforms introducing community title are expected to commence towards the end of this year.

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