In New South Wales there are three Acts of Parliament that regulate the strata. Taken together, these acts are commonly referred to as “strata scheme legislation”. The three laws are the Strata Schemes (Freehold Development) Act 1973 (NSW), which began on July 1, 1974; the Strata Schemes (Leashold Development) Act 1986 (NSW), which came into force on March 1, 1989; and the Strata Scheme Management Act 1996 (NSW), which came into force on July 1, 1997.
As of June 30, 2006 there were approximately 63,660 schemes in New South Wales, housing over a million people and it is expected that by 2020 over 50% of Sydney’s residential population will be staying in this type of accommodation. A freehold scheme is a scheme in which a person can purchase ownership of a plot in the scheme, while a leasing scheme does not allow a person to do this but rather allows him to purchase a plot on lease in the scheme. .
When it comes to managing the plan, there are a number of functions that are given to the Director General of the Department of Commerce. The functions of the Director General can be summarized as including ‘first and foremost’ a role of providing information and education. The law establishes that the Director General must provide information to owners, occupants, owner corporations, landlords of lease plans, managing agents and the public about the Law and the services provided by the Director General. The Director General’s response to a query letter regarding a strata scheme can sometimes resolve a potential dispute, thus saving time and money for all concerned.
The law also provides that the Director General must organize the mediation of disputes or complaints within one scheme or, if they consent, for two adjoining tier schemes. Finally, the Director General may intervene in proceedings before the Court if the Director General is of the opinion that it would be in the public interest to do so.
Having a working knowledge of the workings of this complex Law, its regulations and statutes is essential for owners who wish to participate in the day-to-day control, management and administration of a strata scheme. This knowledge will also help owners effectively exercise the rights available to them. The first step in acquiring this practical knowledge is knowing the design of the legislation.
The Law is divided into six chapters containing approximately 249 sections, four annexes and a dictionary. The Chapters deal first with what is considered ‘preliminary’. It then deals with the management of strata schemes, then key areas of management, then owners, occupants and others with an interest in lots, then disputes and court adjudicator orders, then administration of the act itself, and then general matters.
This is just a brief summary of how strata scheme legislation operates in New South Wales. If you want more information, feel free to contact the author.
