New South Wales Consolidated Acts

STRATA SCHEMES (FREEHOLD DEVELOPMENT) ACT 1973 - SECT 28W

28W Effect of strata management statement

(1) A registered strata management statement, as in force for the time being, relating to the management of a building has effect as an agreement under seal containing the covenants referred to in subsection (2) entered into by each person who for the time being is:

(a) a body corporate of a strata scheme for part of the building, or

(b) a proprietor, mortgagee in possession or lessee for the time being of any of the lots in such a strata scheme, and

(c) any other person in whom the fee simple of any part of that building or its site (being a part affected by the statement) is vested for the time being, or the mortgagee in possession or lessee of any such part.

(2) The covenants referred to in this section are:

(a) a covenant by which those persons jointly and severally agree to carry out their obligations under the registered strata management statement as from time to time in force, and

(b) a covenant by which those persons jointly and severally agree to permit the carrying out of those obligations.

(3) The agreement ceases to have effect under this Division:

(a) in relation to a person who is described in subsection (1) (b) or (c), on that person ceasing to be a person so described, and

(b) in relation to all of the persons described in subsection (1), on termination of all strata schemes to which the strata management statement relates.

(4) Subsection (3) does not prejudice or affect any obligation that was incurred by a person, or any right that accrued to a person, under the agreement while the agreement was in force.

(5) A strata management statement has no effect to any extent to which it is inconsistent with any condition imposed on a development consent relating to the site of the building to which the statement relates, with an order under Chapter 5 of the Strata Schemes Management Act 1996 or with any other Act or other law.

(6) Except as may be provided otherwise by this Act or the regulations, a provision in any instrument under which the agreement is excluded, modified or restricted is void.

(6A) Without limiting subsection (6), a provision of a strata development contract relating to a strata scheme is void to the extent (if any) that it is inconsistent with any provision of a strata management statement relating to that scheme.

(7) A covenant entered into under the agreement does not merge in a transfer of a lot.

(8) Chapter 5 of the Strata Schemes Management Act 1996 applies to or in relation to matters arising under the agreement.

(9) Except as provided by subsection (8), nothing in this section affects any right or remedy that a person may have under a strata management statement apart from a right or remedy under this Division.