New South Wales Consolidated Acts

STRATA SCHEMES MANAGEMENT ACT 1996

- As at 17 June 2009
- Act 138 of 1996

TABLE OF PROVISIONS

           Long Title

CHAPTER 1 - PRELIMINARY
           Note

   1.      Name of Act
   2.      Commencement
   3.      Objects of Act
   4.      Application of Act to strata schemes under the Strata Schemes (Leasehold Development) Act 1986
   5.      Act binds Crown
   6.      Definitions
   7.      Notes

CHAPTER 2 - MANAGEMENT OF STRATA SCHEMES
           Note

   PART 1 - INTRODUCTION
   Note

   8.      Who manages a strata scheme?
   9.      Who else may be involved in managing a strata scheme?
   10.     What rules govern a strata scheme?

   PART 2 - THE PRINCIPAL MANAGER-THE OWNERS CORPORATION
   Note

   11.     Constitution of owners corporation
   12.     Functions of owners corporation
   13.     Owners corporation may employ persons to assist in exercise of functions
   14.     Meetings and procedure of owners corporation
   15.     Termination of strata scheme

   PART 3 - OTHERS INVOLVED IN MANAGEMENT-THE EXECUTIVE COMMITTEE
   Note

           Division 1 - Constitution of the executive committee

   16.     Owners corporation to appoint executive committee
   17.     What happens if executive committee is not appointed?
   18.     Executive committee to appoint chairperson, secretary and treasurer
   19.     What happens if chairperson, secretary and treasurer are not appointed?
   20.     Provisions relating to constitution of executive committee, appointment of office holders and meetings of executive committee
   21.     Executive committee’s decisions to be decisions of owners corporation

           Division 2 - Members and office holders of the executive committee

   22.     What are the functions of the secretary of an owners corporation?
   23.     What are the functions of the treasurer of an owners corporation?
   24.     Who can exercise functions relating to the finances and accounts of the owners corporation?
   25.     Can members of the executive committee be paid?

   PART 4 - OTHERS INVOLVED IN MANAGEMENT-STRATA MANAGING AGENTS
   Note

           Division 1 - Appointment of strata managing agent

   26.     What is a strata managing agent?
   27.     How is a strata managing agent appointed?

           Division 2 - Functions of strata managing agent

   28.     What functions of an owners corporation can a strata managing agent exercise?
   29.     Can a strata managing agent exercise the functions of the chairperson, secretary and treasurer or the executive committee?
   29A.    Functions that may only be delegated to member of executive committee or strata managing agent
   30.     Breach of duty by strata managing agent
   31.     Strata managing agent to record exercise of functions
   32.     Exercise of functions of strata managing agent appointed by an Adjudicator

           Division 3 - Accountability of strata managing agent

   33.     Information may be required relating to strata managing agent’s trust account
   34.     Information may be required relating to other accounts of the strata managing agent
   35.     Information may be required relating to money received by the strata managing agent from the owners corporation
   36.     Information may be required relating to transactions entered into by a strata managing agent for an owners corporation
   37.     Procedure for requiring information from strata managing agent
   38.     Who is responsible for providing information if a strata managing agent ceases to hold a licence or dies?
   39.     Exemption for information relating to certain transactions
   40.     Certain provisions of other Acts requiring agents to provide information not to apply to affairs of owners corporation

   PART 4A - OTHERS ASSISTING IN MANAGEMENT-CARETAKERS

   40A.    Who is a caretaker?
   40B.    How is a caretaker appointed?
   40C.    With which functions of an owners corporation can a caretaker assist?

   PART 5 - BY-LAWS
   Note

           Division 1 - What by-laws apply to a strata scheme?

   41.     What by-laws apply to new strata schemes?
   42.     What by-laws apply to old strata schemes?
   43.     What can by-laws provide for?

           Division 2 - How are the by-laws enforced?

   44.     Who is required to comply with the by-laws?
   45.     How can an owners corporation enforce the by-laws?
   46.     How does a lessee get information about the by-laws?

           Division 3 - Amendment or repeal of by-laws

   47.     Can an owners corporation add to or amend the by-laws?
   48.     What steps must an owners corporation take to make an amendment effective?
   49.     Restrictions on by-laws
   50.     Restrictions on by-laws during initial period

           Division 4 - Special provisions for by-laws conferring certain rights or privileges

   51.     Application of Division
   52.     How does an owners corporation make, amend or repeal by-laws conferring certain rights or privileges?
   53.     Can a by-law contain conditions?
   54.     By-law must provide for maintenance of property
   55.     What is the effect of a by-law?
   56.     (Repealed)

           Division 5 - Special provisions for strata schemes that are part of community schemes

   57.     Application of Division
   58.     What happens if by-laws are inconsistent with management statements?
   59.     Obligation of lessee to comply with management statements
   60.     How does a lessee get information about management statements?

CHAPTER 3 - KEY MANAGEMENT AREAS
           Note

   PART 1 - INTRODUCTION
   Note

   61.     What are the key management areas for a strata scheme?

   PART 2 - MAINTENANCE, REPAIRS, ALTERATION AND USE OF COMMON PROPERTY AND FIRE SAFETY INSPECTIONS
   Note

   62.     What are the duties of an owners corporation to maintain and repair property?
   63.     What power does an owners corporation have to carry out work and recover costs?
   64.     What power does an owners corporation have to carry out work at its own expense?
   65.     Can an owners corporation enter property in order to carry out work?
   65A.    Owners corporation may make or authorise changes to common property
   65B.    Owners corporation may grant licence to use common property
   65C.    What are the duties of an owners corporation in relation to fire safety inspections

   PART 3 - FINANCES OF STRATA SCHEME
   Note

           Division 1 - Administrative and sinking funds and account of owners corporation

   66.     Administrative fund to be established
   67.     What money is to be paid into the administrative fund?
   68.     What money can be paid out of the administrative fund?
   69.     Sinking fund to be established
   70.     What money is to be paid into the sinking fund?
   71.     What money can be paid out of the sinking fund?
   72.     Distribution of surplus money in administrative fund or sinking fund
   73.     Can money in administrative fund or sinking fund be invested?
   74.     Account of owners corporation

           Division 2 - Levy of contributions

   75.     Estimates to be prepared of contributions to administrative and sinking funds
   75A.    Owners corporation to prepare 10-year sinking fund plans
   76.     Owners corporation to set levy for contributions to administrative and sinking funds
   77.     Effect of use of lot on insurance premiums
   78.     Manner of levying contributions
   79.     Interest and discounts on contributions
   80.     How does an owners corporation recover unpaid contributions and interest?

           Division 3 - Restrictions on spending

   80A.    Limit on spending by executive committees of large strata schemes
   80B.    Quotations to be obtained for certain items of expenditure by large strata schemes
   80C.    Exceptions in relation to emergencies
   80D.    Legal action to be approved by general meeting

   PART 4 - INSURANCE
   Note

           Division 1 - Definitions

   81.     Building
   82.     Damage policy

           Division 2 - Insurance of buildings

   83.     Owners corporation to insure building
   84.     Responsibility of owners corporation to insure where strata scheme is for part only of building
   85.     Valuations to be obtained for the purposes of insurance
   86.     Can a person be exempted from the requirement to insure?

           Division 3 - Other insurance

   87.     What other insurance must an owners corporation take out?
   88.     What other insurance may an owners corporation take out?
   88A.    Insurance must be taken out with approved insurer

           Division 4 - Insurance claims and other matters affecting insurance

   89.     Can an owner take out insurance?
   90.     Insurable interests
   91.     Insurance of mortgaged lot
   92.     Insurance claim where owner at fault
   93.     Action against owners corporation by owner
   94.     Owners corporation to rebuild
   95.     Approved insurers

   PART 5 - RECORDS AND ACCOUNTS
   Note

           Division 1 - The strata roll

   96.     Owners corporation must keep a strata roll
   97.     What is the form of the strata roll?
   98.     What must be recorded in the strata roll?
   99.     What information can the owners corporation rely on when making entries in the strata roll?

           Division 2 - Other records and accounts required to be kept by owners corporation

   100.    What are the duties of an owners corporation to keep other records and documents?
   101.    Notices and orders to be kept
   102.    Minutes of meetings
   103.    Accounting records
   104.    Certain records to be retained for prescribed period
   105.    Owners corporation may require certain persons to produce records, accounts and property of the owners corporation

           Division 3 - Preparation and auditing of financial statements

   106.    Owners corporation must prepare financial statements
   107.    Auditing of accounts and financial statements

           Division 4 - Inspection of records and issue of certificates

   108.    Inspection of records of owners corporation
   109.    Certificate by owners corporation as to financial and other matters relating to lot

   PART 6 - OTHER PROVISIONS RELATING TO FUNCTIONS OF THE OWNERS CORPORATION
   Note

   110.    What powers does an owners corporation have to borrow money and otherwise deal with property?
   111.    Can an owners corporation provide amenities and services to a lot?
   112.    Agreement for payment to owner of consideration on transfer or lease of common property
   113.    Restrictions on powers of owners corporation during initial period
   114.    Owners corporation to construct and maintain letterbox
   115.    What effect does a strata development contract have on the functions of an owners corporation?
   115A.   Owners corporation to give information on contributions payable

CHAPTER 4 - OWNERS, OCCUPIERS AND OTHER PERSONS WITH INTERESTS IN LOTS
           Note

   PART 1 - RESPONSIBILITIES OF OWNERS, OCCUPIERS AND OTHER PERSONS RELATING TO LOTS

   116.    Owners, occupiers and other persons not to interfere with structure of lot or services to lot
   117.    Owners, occupiers and other persons not to create nuisance

   PART 2 - NOTICES REQUIRED TO BE GIVEN BY OWNERS, OCCUPIERS AND OTHER PERSONS

   118.    Notice to be given to owners corporation of right to cast vote at meeting
   119.    Notice to be given to owners corporation of leases or subleases
   120.    Notice to be given to owners corporation of mortgagee taking possession of lot

   PART 3 - REPRESENTATIVES OF OWNERS AND OTHER PERSONS

   121.    Can an owner of a lot appoint an agent for dealings with the owners corporation?
   122.    How can a corporation exercise functions in relation to a lot?

CHAPTER 5 - DISPUTES AND ORDERS OF ADJUDICATORS AND TRIBUNAL
           Note

   PART 1 - APPLICATION FOR ORDER TO RESOLVE ISSUE RELATING TO STRATA SCHEME
   Note

   123.    What action can be taken if there is a dispute, complaint or problem concerning a strata scheme?
   124.    Applications for order to be made to Registrar
   125.    Registrar to be satisfied that mediation has been attempted before accepting application
   126.    Mediation may be arranged for disputes or complaints concerning stratum parcels

   PART 2 - MEDIATION AND RESOLUTION OF DISPUTES BY DIRECTOR-GENERAL
   Note

   127.    Definitions
   128.    Mediation of disputes relating to strata schemes
   129.    Mediation of certain building management disputes
   130.    Director-General may dismiss certain applications
   131.    Agreements and arrangements arising from mediation sessions
   132.    Privilege
   133.    Secrecy
   134.    Exoneration from liability for mediators

   PART 3 - PROCEDURE AFTER REGISTRAR RECEIVES APPLICATION

   135.    Notice of application to be given
   136.    Owners corporation to display and give certain notices
   137.    Procedure after time for making submissions has expired
   137A.   Procedure for orders under Part 6

   PART 4 - ORDERS OF ADJUDICATOR

           Division 1 - General power of Adjudicator to make orders

   138.    General power of Adjudicator to make orders to settle disputes or rectify complaints
   139.    Order for settlement of dispute between adjoining strata schemes

           Division 2 - Orders relating to property

   140.    Order relating to alterations and repairs to common property and other property
   141.    Order consequent on alteration of building
   142.    Order relating to personal property acquired or to be acquired by owners corporation
   143.    Order requiring owners corporation to acquire personal property
   144.    Order granting certain licences
   145.    Order for entry to lot

           Division 3 - Orders relating to insurance

   146.    Order to make or pursue insurance claim
   147.    Order relating to insurance

           Division 4 - Orders relating to contributions

   148.    Order varying rates of interest on contribution
   149.    Order for variation of contributions levied or manner of payment of contributions

           Division 5 - Orders relating to keeping of animals

   150.    Order relating to keeping of animals
   151.    Order relating to animal kept in accordance with by-laws

           Division 6 - Orders relating to meetings and decisions of owners corporation

   152.    Order for variation of time at which annual general meeting must be held
   153.    Order invalidating resolution of owners corporation
   154.    Order where voting rights denied or due notice of item of business not given

           Division 7 - Orders relating to records of owners corporation

   155.    Order confirming information for strata roll
   156.    Order to supply information or documents

           Division 8 - Orders relating to by-laws

   157.    Order revoking amendment of by-law or reviving repealed by-law
   158.    Order with respect to by-laws conferring exclusive rights or privileges over common property
   159.    Order invalidating by-law

           Division 9 - Orders relating to covenants and other restrictions

   160.    Order enforcing positive covenant
   161.    Order enforcing restriction on use of utility lot

           Division 10 - Orders appointing strata managing agents

   162.    Order appointing strata managing agent to exercise certain functions

           Division 11 - Provisions relating to orders of Adjudicator

   162A.   Applications for orders generally
   163.    Dismissal of application on certain grounds
   164.    Matters that may be referred to Tribunal
   165.    Power of Adjudicator to decide type of order to be made
   166.    Order to be in writing
   167.    Investigations by Adjudicator
   168.    Order may not be made until submission time has expired
   169.    Ancillary orders
   170.    Interim orders
   171.    Variation or revocation of order by Adjudicator
   172.    Duration of order by Adjudicator
   173.    Adjudicator to have regard to strata management statement
   174.    Copy of order to be served
   175.    Adjudicator may inspect certain records
   176.    Adjudicator not to make order with respect to certain matters

           Division 12 - Appeals against orders of Adjudicator

   177.    Appeal against order of Adjudicator
   178.    How is an appeal made?
   179.    Procedure after appeal is lodged
   180.    Stay of operation of order
   181.    Determination of appeal from order of Adjudicator

   PART 5 - ORDERS OF TRIBUNAL

           Division 1 - Matters for which orders may be made by Tribunal

   182.    Order to authorise certain acts during initial period
   183.    Order for reallocation of unit entitlements
   183A.   Orders relating to caretaker agreements
   183B.   Orders for appointment of strata managing agent
   184.    Tribunal’s jurisdiction to deal with applications referred by Adjudicator

           Division 2 - Provisions relating to orders of Tribunal

   185.    Dismissal of application on certain grounds
   186.    Investigations and proceedings before the Tribunal
   187.    Power of Tribunal to decide type of order to be made
   188.    Ancillary orders
   189.    Variation or revocation of orders by Tribunal
   190.    Tribunal may vary order to correct error, for clarification or to extend time limit
   191.    Tribunal may vary or revoke order in certain circumstances
   192.    Orders relating to costs
   193.    Representation before the Tribunal
   194.    Intervention by Director-General
   195.    Copy of order to be served
   196.    Witness may be summoned before Tribunal
   197.    Tribunal may administer oath
   198.    Contempt of Tribunal
   199.    Tribunal may not make order where title to land in question

           Division 3 - Appeals against orders of Tribunal

   200.    Appeal to District Court
   201.    No appeal available from Tribunal except as provided by this Division

   PART 6 - ENFORCEMENT OF ORDERS OF ADJUDICATORS AND TRIBUNAL AND CERTAIN NOTICES

   202.    Civil penalties for contravention of orders under this Chapter
   203.    Civil penalties for contravention of notice of owners corporation
   204.    Order as to costs
   205.    Payment of penalties or costs
   206.    Unpaid pecuniary penalty is charge on lot

   PART 7 - EFFECT OF ORDERS OF ADJUDICATORS AND TRIBUNAL

   207.    Effect of certain orders
   208.    Resolution purporting to alter effect of order
   209.    Recording in Register of effect of certain orders
   210.    Time at which order takes effect

CHAPTER 6 - ADMINISTRATION
           Note

   PART 1 - FUNCTIONS OF DIRECTOR-GENERAL UNDER THIS ACT

   211.    (Repealed)
   212.    Functions of Director-General
   213.    Staff
   214.    Delegation of functions
   215.    Investigations by Director-General
   216.    Annual report of Director-General

   PART 2 - STRATA SCHEMES ADJUDICATORS

   217.    Appointment of Strata Schemes Adjudicators
   218.    General functions of Adjudicators
   219.    Delegation of functions of Adjudicators

   PART 3 - PROCEEDINGS BEFORE TRIBUNAL

           220, 221. (Repealed)
   222.    Proceedings before Tribunal

   PART 4 - REGISTRAR

   223.    (Repealed)
   224.    Delegation

CHAPTER 7 - GENERAL
           Note

   PART 1 - MATTERS RELATING TO PROCEEDINGS

   225.    Proceedings for offences
   226.    Other rights and remedies not affected by this Act
   227.    Owners corporation may represent owners in certain proceedings
   228.    Structural defects-proceedings as agent
   229.    Costs in proceedings by owners against owners corporation
   230.    Restrictions on owners corporation levying contributions for expenses

   PART 1A - LEGAL COSTS

   230A.   Disclosure of matters relating to legal costs

   PART 2 - LEGAL ASSISTANCE

   231.    Applications for legal assistance
   232.    Procedure when Director-General receives application
   233.    Investigation of application for legal assistance
   234.    Grant of legal assistance

   PART 3 - SERVICE OF DOCUMENTS

   235.    Service of documents on an owners corporation
   236.    Service of documents by owners corporation and others

   PART 4 - SEAL OF OWNERS CORPORATION

   237.    Who may keep seal of owners corporation?
   238.    How should the seal of the owners corporation be affixed?

   PART 5 - MISCELLANEOUS

   239.    Change of owners corporation’s address
   240.    Dividing fences
   241.    Apportionment of statutory charges
   242.    Powers of entry by public authority
   243.    Notices under Real Property Act 1900 to owners corporation taken to be notices to owners
   244.    Protection of Director-General and Adjudicator
   245.    Contracting out prohibited
   246.    Regulations
   247.    Savings, transitional and other provisions
   248.    Review of Act
           SCHEDULE 1
           SCHEDULE 2
           SCHEDULE 3
           SCHEDULE 4
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