STRATA LEGISLATION HANDBOOK NSW 2016–17 ThomsonReuters(Professional)AustraliaLimited 19HarrisStreetPyrmontNSW2009 Tel:(02)85877000Fax:(02)85877100 [email protected] legal.thomsonreuters.com.au Forallcustomerinquiriespleasering1300304195 (forcallswithinAustraliaonly) INTERNATIONALAGENTS&DISTRIBUTORS NORTHAMERICA ASIAPACIFIC ThomsonReuters ThomsonReuters Eagan Sydney UnitedStatesofAmerica Australia LATINAMERICA EUROPE ThomsonReuters ThomsonReuters SãoPaulo London Brazil UnitedKingdom STRATA LEGISLATION HANDBOOK NSW 2016–17 ALEX ILKIN LAWBOOK CO. 2017 PublishedinSydneyby ThomsonReuters(Professional)AustraliaLimitedABN64 058914668 19HarrisStreet,Pyrmont,NSW NationalLibraryofAustralia Cataloguing-in-Publicationentry StrataLegislationHandbookNSW2016–17 AlexIlkin ISBN:9780455500164(paperback) Includesindex. Realproperty(Law) ©2017ThomsonReuters(Professional)AustraliaLimited Thispublicationiscopyright.Otherthanforthepurposesofandsubjecttotheconditionsprescribedunderthe Copyright Act, no part of it may in any form or by any means (electronic, mechanical, microcopying, photocopying,recordingorotherwise)bereproduced,storedinaretrievalsystemortransmittedwithoutprior writtenpermission.Inquiriesshouldbeaddressedtothepublishers. Alllegislativematerialhereinisreproducedbypermissionbutdoesnotpurporttobetheofficialorauthorised version. It is subject to Commonwealth of Australia copyright. The Copyright Act 1968 permits certain reproductionandpublicationofCommonwealthlegislation.Inparticular,s182AoftheActenablesacomplete copytobemadebyoronbehalfofaparticularperson.Forreproductionorpublicationbeyondthatpermittedby theAct,permissionshouldbesoughtinwriting.Requestsshouldbesubmittedonlineatwww.ag.gov.au/cca,faxed to (02) 6250 5989 or mailed to Commonwealth Copyright Administration, Attorney-General’s Department, RobertGarranOffices,NationalCircuit,BartonACT2600. FormsincludedinthisbookhavebeenreproducedwiththepermissionoftheOfficeoftheRegistrarGeneral, LandandPropertyInformation,NSW Editors:NickJewlachow,NikkiSavvides,PatrickWu ProductDeveloper:BeatriceMarett-Bird Publisher:AnneMurphy PrintedbyLigarePtyLtd,Riverwood,NSW Disclaimer: This book does not replace legal advice.You should seek legal advice regarding any of the issues referredto.Thisareaoflawisregularlyamendedandnewcasesdecided,requiringinformationtobeupdated. Thisbookdoesnotincludeallpossiblesteps,remediesandtimelimitations. This book has been printed on paper certified by the Programme for the Endorsement of Forest Certification (PEFC). PEFC is committed to sustainable forest management through third party forest certification of responsiblymanagedforests.Formoreinfoseewww.pefc.org ABOUT THE AUTHOR AND LEGAL SERVICES AlexIlkin AlexIlkinisasolicitoroftheSupremeCourtofNewSouthWaleswithover40yearslegalexperience specialisinginallaspectsofstratatitle,communitytitleandbuidlingdisputes.Heisanacknowledged specialistintheseareasoflaw. AlexregularlygiveslecturesonthoselegalspecialtiesatseminarsconductedfortheUniversityofNew South Wales, the Australian College of Community Association Lawyers, the College of Law (Australasia)StrataCommunityAustralia(formerlyknownastheInstituteofStrataTitleManagement), theRealEstateInstituteofNewSouthWales,LegalWiseSeminarsandthefomerHomeUnitOwners Association of New South Wales. For many years he has also taught strata law at the University of Western Sydney and various colleges throughout Sydney.Alex is a Fellow of theAustralian College of CommunityAssociationLawyersandacurrentmemberoftheStrataCommitteeAustralia.Heservedas a member of both the New South Wales Government’s Strata Titles Act Review Committee – which recommendedtoParliamentappropriateamendmentstotheStrataTitlesAct1973(NSW)andtheStrata Schemes Management Act 1996 (NSW) – and of the Strata Management Chapter of the Real Estate Institute. Heactsaslegaladvisorforownerscorporations,developers,stratamanagers,solicitors,barristersand judgesinstratamatters.HisplainEnglishstyleofcommunicationhasprovenverypopularwithclients. Heistheauthoroftheleading,reader-friendlytextbookonstrataandcommunitytitlelaw,NSWStrata andCommunitySchemesandtheLaw,publishedbyThomsonReuters(nowinitsfourthedition)which isoftencalledthe“StrataBible”andistherecommendedtextformanyuniversitycoursesonstratatitles. AlexIlkinpractisesunderthefirmnameof: AlexIlkin&Co(Lawyers) Suite3,13MortsRoad,Mortdale,NSW2223 Telephone:(02)95809199 Facsimile:(02)95809738 Website:www.alexilkin.com Email: [email protected] Hismissionstatementforclientsis: 1. Firstly,toamicablysettledisputesbetweentheclientandopponentsinthemostexpeditiousand practical manner possible at the least expense. As a result, Alex’s settlement success rate far exceedsthatofmanyotherlawyers. 2. Secondly,failingsettlement,ifrequestedbytheclient,tovigorouslypursuelegislationtoacheive aresultasfavouableascanbetotheclientinaccordancewiththelaw. 3. FInally,forallothermatters,tofinalisethemquickly,practicallyandatleastexpense. Alex personally handles each matter with a proactive hands-on approach as if it is his own personal problemtosolve. v StrataLegislationHandbookNSW2016–17 Hiscorevaluesforclientsare: • practicality; • expedition;and • leastexpense. SomeofhisleadingNewSouthWalescasesinclude: 1. Buzrio Pty Ltd v Consumer,Trader andTenancyTribunal (No 4) [2010] NSWSC 41 (Interim orders,compulsorystratamanagingagent,certiorari,indemnityforagent’scostsandlegalcosts) 2. BuzrioPtyLtdvConsumer,TraderandTenancyTribunal[2009]NSWSC836(Interimorders, denialofproceduralfairness,andcompulsorystratamanagingagent) 3. The Owners – Strata Plan No 35042 v Selwa (Australia) Pty Ltd [2007] NSWCA 36 (Maintenanceandrepairofcommonproperty,CTTTjurisdiction,lotboundarydefinition,rent lossclaim,mandatoryinjunction) 4. Riana Pty Ltd v The Owners – Strata Plan No 22336 [2007] NSWSC 1033 (Challenge unit entitlements,Makitaprinciples,erroroflaw) 5. SymesvTheProprietors–StrataPlanNo31731[2003]NSWCA7(Commonpropertydamage, maintenanceandrepair,lotboundarydefinition,erroroflaw) 6. Eventang Development (Pyrmont) Pty Ltd v The Owners – Strata Plan No 51573 [2001] NSWSC452(Proxies,quashboard’sdecision,invaliedresolutions,waiverandestoppel) 7. Smith v The Body Corporate – Strata Plan No 22669 [1997] NSW Titles Cases 80-046 (Outstandingandretrospectivelevies,compulsorystratamanagingagent’spowerandmeetings) PleasetakethetimetofullyinvestigateAlex’swebsiteandfeelfreetocontactuswithanylegalqueries. vi AUTHOR ACKNOWLEDGMENTS IgratefullyacknowledgeandthankJohnVernonofNSWFairTradingforansweringsomeofmyqueries andthetimehetooktodiscussmattersinthenewstratalegislationandthepublication“StrataLiving: GetInvolved”issuedbyNSWFairTrading.Thatpublicationisasourceofinformationandifreaders need more detailed information then this Handbook provides a ready source of information, pending publicationofthe5theditionoftheauthor’stextbook“NSWStrataSchemesManagement&theLaw” publishedbyThomsonReuters.IalsogratefullyacknowledgetheworkofmysecretariesatAlexIlkin& Co being Jill Lennon, Deborah Cooper, Julie Cirjak and Shelley O’Toole who patiently and diligently typedtheamendmentstothemanuscriptofthisHandbookwhilstrunningabusylegalpracticeyetstill maintainedacalmdemeanour.Finally,IwouldliketothankBeatriceMarett-Bird,NicholasJewlachow andNikkiSavvidesofThomsonReuterswhopainstakinglydealtwithmymanycommunicationsabout the Handbook and who persevered with a number of changes by me and still maintained a calm and pleasantdemeanour. vii TABLE OF CONTENTS AbouttheAuthorandLegalServices....................................................................................................v Authoracknowledgments..................................................................................................................vii Aboutthispublication.......................................................................................................................xi TableofAbbreviations......................................................................................................................xv TableofCases................................................................................................................................xvii TableofStatutes.............................................................................................................................xix ComparativeTables.....................................................................................................................xxxvii Part 1 Commentary BackgroundtotheStrataSchemesManagementAct2015andStrataSchemesDevelopment Act2015.......................................................................................................................... 3 CommentaryontheStrataSchemesManagementAct2015......................................... 27 CommentaryontheStrataSchemesDevelopmentAct2015....................................... 169 PrecedentForms.......................................................................................................... 237 Part 2 Legislation StrataSchemesManagementAct2015........................................................................ 277 StrataSchemesManagementRegulation2016............................................................ 415 StrataSchemesDevelopmentAct2015........................................................................461 StrataSchemesDevelopmentRegulation2016............................................................ 571 Part 3 Forms PlanForms................................................................................................................... 595 ApprovedForms.......................................................................................................... 605 PracticeNote............................................................................................................... 633 Index............................................................................................................................................657 ix