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Strata Schemes Management Regulation 2010
The Strata Schemes Management Regulation 2005 underwent a five-yearly review prior to its automatic repeal on 1 September 2010. A draft Strata Schemes Management Regulation 2010 (the Regulation) was released for public comment in early July. The final version of the regulation was published on 27 August 2010 and came into effect on 1 September 2010. 

The Regulation is similar to the 2005 Regulation with some amendments which are summarised below. Of particular note are the changes to the numbering and content of the various schedules to the Regulation (which contain the wording of the model by-laws) and also to the form and content of section 109 reports. Note that clause 28(1) of the Regulations provides that “… A certificate given by an owners corporation under section 109 of the Act must be in or to the effect of Form 1 in Schedule 8." 


Changes in the Regulation

  • Clause 6 - retains the existing requirements for receipts, except the address of lot owner is no longer required
  • Clause 6(3) - the wording regarding the treasurer’s obligations has been streamlined
  • Clause 10 - any building valuation obtained by the original owner is now an ‘additional document’ to be given to the owners corporation at the first AGM
  • Clause 14 - for large strata schemes increases the prescribed limit before quotations are required from $25,000 to $30,000
  • Clause 15 - exemptions from need for approval for certain legal action – increases limits for the exemption to $1,000 (from $750) per lot or $12,500 (from $10,000). Includes an exemption for costs of recovery of overdue levies
  • Clause 19 - fees – a new Schedule 1 now contains all fees payable under the Act
  • Clause 21 - time limit for certain applications to vary or revoke order of Tribunal - now clarifies that 28 day limit for application commences on the day a copy of the order is served
  • Clause 25 - costs – a new clause that requires each party to mediation to pay their own costs
  • Clause 29 - forms and certificates – some forms have been renumbered
  • Clause 30 - monetary limit on exercise of priority vote – priority vote cannot be exercised unless matter involves prescribed amount of $1,000 (up from $200) x number of lots - before mortgagee or covenant charge can use priority vote
  • Clause 31 - extension of section 75A of Act to all owners corporations – sets out timetable for staged introduction of 10-year sinking fund plan requirements for all strata schemes
  • Model by-laws. The schedules to the regulation containing the model by-laws have all been re-numbered
  • Schedule 2 - model by-laws for residential strata schemes:
    • By-law 10 - Hanging of washing by-law, has been amended to provide a new default position allowing hanging of washing, without owners corporation consent, on any part of the lot “provided that the washing will not be visible from street level outside the parcel”. Previously, washing could not be visible from “outside the building”.
    • By-law 5 - Damage to Common Property. By-law 5(3) which previously have allowed common property to be ‘damaged’ to permit an owner or occupier to install “locking or other safety devices” and “screens or other devices” is now qualified by the requirement that such changes cannot be made if “… the device is likely to affect the operation of fire safety devices in the lot or to reduce the level of safety in the lots or common property.”
    • New by-law 11 - Preservation of fire safety. A new by-law 11 has been inserted (modeled on the provisions previously contained in other model by-laws such as the model by-laws for industrial, hotel/resort schemes, commercial/retail and mixed use schemes which were contained in the 2005 Regulation). The new by-law states:
"Preservation of fire safety
The owner or occupier of a lot must not do any thing or permit any invitees of the owner or occupier to do any thing on the lot or common property that is likely to affect the operation of fire safety devices in the parcel or to reduce the level of fire safety in the lots or common property."

    • New by-law 22 - Service of documents on owner of lot by owners corporation - allowing electronic service of documents on lot owners by the owners corporation where the lot owner has provided an email address for that purpose
  • Schedule 3 – model by-laws for retirement villages schemes
    • Contains similar amendments to the residential by-laws amendments in relation to fire safety (see by-laws 5 and 11).
    • Contains similar amendments with respect to the hanging out of washing (see by-law 9)
    • New by-law 21 - Service of documents on owner of lot by owners corporation – same wording as clause in the model by-laws for residential schemes
  • Schedule 4 – model by-laws for industrial schemes
    • New by-law 15 - Service of documents on owner of lot by owners corporation – same wording as clause in the model by-laws for residential schemes
  • Schedule 5 – model by-laws for hotel/resort schemes
    • New by-law 14 - Service of documents on owner of lot by owners corporation – same wording as clause in the model by-laws for residential schemes
  • Schedule 6 - model by-laws for commercial/retail schemes
    • New by-law 15 - Service of documents on owner of lot by owners corporation – same wording as clause in the model by-laws for residential schemes 
  • Schedule 7 - model by-laws for mixed use schemes
    • Contains amendments with respect to the hanging out of washing (see by-law 10) 
    • New by-law 24 - Service of documents on owner of lot by owners corporation – same wording as clause in the model by-laws for residential schemes
  • Schedule 8 - Forms
    • Section 109 certificate has been redesigned to be more ‘user friendly'; and is now titled ‘form 1’
    • Form 2 is now the proxy appointment, and no longer requires proxy to sign the form

The Regulation can currently be downloaded here and should shortly be available on www.legislation.nsw.gov.au  

Members are advised to immediately ensure that the section 109 reports used for their owners corporations comply with the Regulation.

REINSW lodged a submission on behalf of members in early August 2010 and some of the recommendations made by the REINSW have been incorporated into the 2010 Regulation. However, the lack of time from gazettal of the Regulation by the NSW Government to the the commencement of the regulation is regrettable and insufficient.