- Major reforms to strata laws have been passed and are expected to commence on 1 July 2016.
- The reforms are designed to increase transparency, simplify meeting processes and increase the accountability of those involved in managing the scheme.
- The reforms include changes to governance structures, by-laws, dispute resolution procedures and a new regime for building defects and a strata renewal process.
On 5 November 2015, the Strata Schemes Development Act 2015 (the Development Act) and the Strata Schemes Management Act 2015 (the Management Act) were assented to.
By 2020 it is estimated that 50 per cent of NSW residents will live or work in strata. The expected commencement date is 1 July 2016, with draft regulations expected early this year. Key reforms are outlined below.
Statutory duty of strata committee members
The Management Act establishes a duty requiring strata committee (previously executive committee) members to carry out their functions for the benefit, so far as practicable, of the owners corporation (OC) and with due care and diligence. Liability for their acts or omissions will attach to the OC provided they were done in good faith for the purpose of executing their functions.