Yesterday the new Strata legislation passed through NSW Parliament, with only minor amendments to the Bills as introduced. Although not confirmed, the current expectation is for Commencement on 1st July 2016. Strata Renewal (“forced sales”) – 75% support is enough This may be a source of disappointment to those hoping for the hurdle to Strata Renewal (‘forced sales’) to be set at level of agreement higher than 75%. The timeline for a plan to be accepted or rejected was shortened from the draft of the Development Bill that was exhibited earlier in the year, disclosure requirements were slightly increased and other minor…

The long-awaited Bills for Strata Schemes Management and Strata Schemes Development were finally introduced to parliament two days ago. Many of the proposed reforms are no surprise to those who reviewed the exposure drafts, including limiting Proxy ‘farming’;  new processes for classifying and approving renovations; permitting electronic service of notices; flexible meeting practices allowing for remote participation as well as for secret ballots; permitting a by-law to limit the maximum number of occupants; special requirements for new Schemes intended to help identify defects; and more. Observations discussed below are based on the Bills as introduced, and relevant sections may be…

I was recently asked about forced sales in strata, enabling blocks to be redeveloped with less than unanimous consent. An associate of a developer encouraged a Lot Owner to fall into line with a proposed redevelopment and agree to sell his unit, claiming that the redevelopment was pretty much a done-deal because of agreements already in place with other owners - and the new legislation. Understandably, having heard reference to the strata reform and a new process for managing collective sale and renewal, the Lot Owner was quite concerned. The arguments for and against this reform – not so clear...