NSW Strata Laws Undergo Largest Reform in 50 years
By Peter Sarmas on 13 Nov 2013
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The NSW state government says tenants who ignore complaints about smoking on apartment balconies could face fines from the Consumer, Trader and Tenancy Tribunal.
This would occur under a raft of sweeping changes to NSW’s strata laws, scheduled to come into effect next year.
The dramatic shake up, said to be the biggest overhaul of strata laws in more than 50 years, was announced this week by NSW Fair Trading Minister Anthony Roberts. It will also prevent strata schemes from barring tenants from having pets, as well as address noise issues surrounding timber and tiled floors before they are installed, rather than post-installation.
Mr Roberts said the old strata laws “were devised when a typical apartment block was a 12-unit, two-storey walk-up.”
“We need to change them to reflect the way we live now.”
“There are more than 72,000 strata plans in NSW, which affect around 30 per cent of the state’s population.”
According to Mr Roberts, there are more than 72,000 strata plans in NSW, which affect around 30 per cent of the state’s population. Due to the fact that so many people live in such close proximity, complaints over drifting cigarette smoke have been a pressing issue for a number of years.
“If smoking on balconies is particularly impacting other certain residents then it should be within the power of the owner’s corporation to issue a no smoking order,” independent MP Alex Greenwich told the Sydney Morning Herald.
In addition to the smoking ban and lax laws on pets, the new strata changes will also include an end to proxy harvesting – where a single owner has dominance over the building thanks largely to votes from absentee landlords.
The practice of proxy harvesting has been abolished in many other states as it is well-known to create mistrust and resentment amongst owners and occupants in a building.
“The new strata changes will also include an end to proxy harvesting – where a single owner has dominance over the building…”
Instead, Mr Roberts said the new laws will restrict proxy votes in schemes of more than 20 units to 5 per cent of the ownership, while secret ballots and teleconferencing will be introduced for a greater transparency.
Strata managers, building managers, caretakers and agent will also no longer be allowed to sit on executive committees.
Furthermore, the new laws will address the issue of ‘phoenix companies’. These occur when shady developers deliberately enter into voluntary insolvency to avoid paying out damages for poor work and defective construction.
Often these companies rise from the ashes under a new name, with the same directors, after declaring bankruptcy.
“There will be serious consequences and ultimately offenders will be removed completely from the industry,” said Mr Roberts. “This is frankly a disgusting practice and there will be zero tolerance.”
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