As of 11 December 2023, the NSW implemented new law reforms to the existing strata regulations. These changes were made with the aim of improving the lives of those living in strata by addressing pain points put forth by the community. The most notable of these changes include: 

Strata Renewal Process 

1. Owners must disclose any interest (financial or other) they have in a strata renewal proposal as a renewal plan is developed. 
2. The Court can consider potential conflicts of interest for applications and objections before approving a plan or endorsing an objection. 
3. The Court can award costs against owners who act in bad faith during the renewal process. 
4. The court can approve a renewal plan where the renewal process has not been strictly followed, provided the injustice is not substantial. 

Pets and Assistance Animals 

1. Owners‘ corporations cannot charge residents a fee or bond for a pet or require insurance for a pet kept on a property. 

Strata Committees: 

1. Committee members are not allowed to vote on a matter where they have a financial interest, except for the strata renewal process. 

2. Committee members can now be removed by a majority vote of the owner’s corporation. 
3. Once being removed, a committee member will not be allowed to serve on a strata committee for one year. 

Finances and Notices: 

1. When a resident’s health or safety is at risk by a serious or imminent threat, schemes may require payment in 14 days as opposed to 30 days for the repairs to be performed. 

2. Two independent quotes are required for all strata schemes with proposed expenditure over $30,000. 

3. A copy of any changes to the by-laws and strata management statement must be given to the tenant within 14 days of the change starting. 

Managing Agents: 

1. Managing agents are required to give notice of the expiry of their contract within three to six months before contract expiry. 

If you would like to know more about the strata reforms or are thinking of purchasing a strata property please don’t hesitate to contact one of our lawyers on  (02) 4969 1522 or send an email to reception@baleboshev.com.au