Since the introduction of the new strata laws, the industry has been looking for more practical and specific guidance from regulatory bodies on the implementation of strata renewal reforms. The limited scope of available information has left many strata managers in the dark regarding the strata renewal process.
However, in late 2018, new guidelines and resources were supplied by the Office of the Registrar General (the ORG) on its website.
“If you are looking for guidance on strata renewal or collective sales, the ORG is a great place to start,” says Leisha de Aboitiz, partner at commercial law firm, Massons.
“You can find helpful guidance on the process, as well as relevant forms and information regarding specific requirements under the relevant legislation.”
The forms include a guide to the preparation of a strata renewal plan, strata renewal information sheet and support notice relating to a strata renewal plan and withdrawal.
de Aboitiz says the information now available doesn’t answer REINSW’s queries regarding tenant compensation.
“But it does confirm that the ORG (and not NSW Fair Trading) will be taking on responsibility for the regulation of strata renewal, and that strata managers should be dealing with the ORG in relation to strata renewal enquiries and implementation. In fact the NSW Fair Trading website now refers readers to the ORG website for more information,” she says.
According to the ORG website, the strata renewal process includes six steps:
- Vote to opt into the process
- Initiate the collective sale/renewal process
- Form a strata renewal committee
- Develop a strata renewal plan
- Consider the plan
- Approval of the plan
The strata renewal process automatically applies to schemes registered on or after 30 November 2016. However, for existing schemes (registered before 30 November 2016), more than 50 per cent of the owners corporation must agree (by resolution) that the strata renewal process applies to their scheme.
Want more?