This article is from the Australian Property Journal archive
THE NSW government is going ahead with reforms to strata laws, acting on recommendations made in a 2021 report on laws impacting living arrangements like apartment buildings or townhouses.
The new legislation will be brought before the NSW parliament this week, with the first phase of reforms committing to bringing immediate benefits to those living in strata arrangements across the state.
“There are currently over 85,000 strata schemes in NSW compared to just 50,000 in 1996, so getting this right will be critical. As the number of strata schemes in the state has grown rapidly, the rules haven’t kept pace,” said Anoulack Chanthivong, minister for fair trading and better regulation.
According to the Australasian Strata Insights Report 2022, there has been 7% growth in the number of strata-titled lots in Australia over the past two years, totalling more than 200,000, with at least one in six Australians now living in strata-titled properties such as apartments and townhouses.
Firstly, the reforms will make the strata collective sale and renewal process more transparent by making it law that owners must disclose conflicts of interest, with courts able award costs against those acting unreasonably.
Additionally, it will be easier and fairer for residents to keep pets by banning fees, bonds or insurance as a condition of having a pet.
With goods and services to be obtained at competitive prices by requiring owners corporations to get a second opinion when the bill for work will be over $30,000.
Currently, only large strata schemes are required to obtain two quotes.
Finally, the reforms will see Fair Trading given the power to ask the NSW Civil and Administrative Tribunal to appoint a compulsory strata managing agent to help manage dysfunctional strata schemes.
“We are now seeing safeguards that were intended to support owners in renewing their strata schemes being used against them,” said Jihad Dib, minister for customer service and digital government.
“This reform will help restore balance, improve transparency and boost protections for owners in the collective sale and redevelopment process.”
The reforms will also see John Minns add strata to his responsibilities, becoming the state’s strata and property services commissioner.
“The appointment of John Minns is a genuine reflection of the government’s authentic commitment to the strata sector and consumers. Strata is the engine room for solving the housing supply crisis and having an experienced and engaged commissioner such as John is welcome news to the industry,” said Chris Duggan, president of the Strata Community Association.
“John has excelled in his role as Property Services Commissioner through active industry and consumer engagement and advocacy and a deep understanding of the challenges and opportunities presented to community living.”
