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High-Rise Living New strata title laws for 100 or more units. |
Big apartment complexes are booming and there are now special laws to govern how they are run. These are the most significant changes to strata title laws since they were introduced in 1961.
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The new laws are par t of a process over the past few years to overhaul the management of strata schemes in NSW. Their most important aspect is the creation of a new category of strata title scheme - the large strata scheme. |
Until now, laws about strata titles applied equally to all schemes, irrespective of their size. There are now differences for large strata schemes with 100 or more lots (not including parking or utility lots), particularly with regard to finances and the conduct of meetings. |
At the annual general meeting, an owners corporation of a large strata scheme must now prepare an estimate of contributions and expenditures on each item it intends to expend money on, or on which it is aware money is likely to be spent, over the period before the next AGM. |
The executive committee of an owners corporation cannot spend more than ten per cent above the estimate given on any one item before the next AGM without the resolution of the owners corporation, and an owners corporation must obtain two quotes before it spends anything on any one item above $25,000. There are exceptions for emergency situations, such as the repair of burst or blocked pipes or an unexpected electrical or security system failure.
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The accounts of an owners corporation of a large strata scheme must now be audited, whereas it is optional in other strata schemes at the request of the owners corporation. Provisions for notice and minutes of meetings and proxy voting also differ. |
There are other changes to strata legislation generally. Certain documents and plans must be handed over by a developer at the first annual general meeting. All records required to be kept must be retained for five years. And all insurance taken out by an owners corporation must be with a government-approved insurer. |
Also, all new strata developments must establish a ten-year sinking fund plan of anticipated major expenditure, and the plan must be reviewed regularly. |
julia.scully@cmlawyers.com.au
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