Strata law in NSW serves as the legal framework governing the ownership structure and management responsibilities of strata-titled properties. It delineates the rights and obligations of individual owners within the strata community.

Whilst some alterations within the 4 walls of a lot may not need approval, it is inevitable that most alterations require this. At the very least, any alterations that are visible externally, or require waterproofing, a DA or any structural work, must be approved by special resolution with a by-law. Other changes may need approval as well. Carrying out works without approval can be a costly exercise, with stop work orders, orders to reinstate or orders to approve a by-law.

Strata levies are determined based on legal criteria such as unit entitlements, covering common expenses mandated by the law. These expenses include maintenance, insurance, and administrative costs, with the owners’ corporation holding the legal authority to set the levy amount.

Legal avenues for dispute resolution include communication, mediation, and if necessary, seeking assistance from the NSW Civil and Administrative Tribunal (NCAT). Familiarity with the strata by-laws is essential to navigate these legal processes effectively. The Moirs Law team are experts in providing advice and attending NCAT in order to resolve or settle disputes in strata.

The owners’ corporation bears legal responsibility for managing the common property, making legally binding decisions on behalf of all owners, and ensuring compliance with strata laws. This legally formed entity plays a pivotal role in the governance structure of strata schemes.

When an owner falls into arrears, the strata manager will usually send 2-3 formal reminders, starting with a more friendly reminder, but becoming more severe. It is important for all owners to pay their levies, otherwise they are relying on the other owners to fund the scheme. There are various options for a fair recovery process, including paying an annual fee for legal work on these.

The establishment of a strata scheme involves a series of legal procedures, including the preparation of a strata plan, compliance with the Strata Schemes Development Act 2015, and registration with the Land and Property Information (LPI). Legal guidance is crucial during this process to ensure adherence to all statutory requirements.

By-laws, integral to the governance of a strata scheme, are legally formulated during the initial setup. Legal professionals play a pivotal role in drafting by-laws that align with the Strata Schemes Management Act 2015, and are consistent with the type of building. Once formulated, these by-laws must be registered with the NSW Land Registry Services (LRS).

Developers navigating the conversion of a property into a strata scheme must adhere to legal considerations outlined in the Strata Schemes Development Act 2015. Legal expertise is crucial to navigate zoning regulations, obtain necessary approvals, and ensure compliance with all legal requirements throughout the conversion process, safeguarding the integrity of the strata scheme.

The most important aspects are (1) making the scheme straightforward to run for their appointed strata manager, (2) protecting themselves as best they can and (3) ensuring they are enforceable. Many sets of by-laws prepared in property departments deal with (2), but not (1) and (3). Often, the simpler yet tried and tested by-laws are the best option, rather than long and complex sets that may offend recent cases on by-laws, like pre-approving fitouts, forcing OCs to follow the initial maintenance schedule, and allowing fines or the recovery of costs against owners or tenants. The same applies to SMSs, which are prepared when there is a stratum development with a BMC.

This usually occurs when a developer buys all the units in an older building, or a building which has been rezoned to allow much higher density development. Knocking down the building does not extinguish the strata title, so that somewhat nitpicky process needs to be taken care of as well.