STRATA SCHEMES MANAGEMENT ACT 1996 - As at 30 November 2016 - Act 138 of 1996

Table of Provisions

• Long Title

CHAPTER 1 - PRELIMINARY

• 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

PART 1 - INTRODUCTION

• 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

• 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

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

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

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

PART 1 - INTRODUCTION

• 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

• 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?
• 64A Window safety devices--child safety
• 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

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

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. (Repealed)
• 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

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

• 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

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

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

• 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 principal registrar
• 125 Principal 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

• 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 PRINCIPAL 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
• 140A Order requiring owners corporation to install window safety devices
• 140B Order requiring owner to comply with window safety device duties
• 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
178-180. (Repealed)
• 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. (Repealed)
• 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
192-194. (Repealed)
• 195 Copy of order made by Tribunal to be displayed
196-198. (Repealed)
• 199 Tribunal may not make order where title to land in question

Division 3 - (Repealed)

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

PART 1 - FUNCTIONS OF DIRECTOR-GENERAL UNDER THIS ACT

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 (Repealed)

PART 2 - STRATA SCHEMES ADJUDICATORS

• 217 Appointment of Strata Schemes Adjudicators
• 218 General functions of Adjudicators
219. (Repealed) PARTS 3, 4 - (Repealed) None

CHAPTER 7 - GENERAL

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
• SCHEDULE 99 Dictionary