Strata Legislation

In NSW two important pieces of legislation set out the regulations for strata schemes. Watson and Watson strata lawyers have years of experience interpreting and applying this legislation.

The Strata Schemes Management Act

This Act sets out the rights and responsibilities of the Owners Corporation, and of the individual owners and occupiers within the Strata Scheme.

This includes the procedures for meetings by the Owners Corporation, such as record-keeping, the appointment and role of the Executive Committee, financial management (including the sinking fund), key management areas (like maintenance and repairs), insurance requirements, and a disputes resolution process. If there is a Strata Managing Agent, their role is also clearly set out in this Act.

Details about ‘by-laws’ are also included, which are the Owners Corporation’s regulations regarding the behaviour of owners and occupiers, and the way common property may be used. By-laws may be amended or added with the approval of the Owners Corporation.

By-laws can be made in relation to:

  • safety and security measures
  • parking
  • pets
  • garbage disposal
  • behaviour
  • architectural and landscaping guidelines
  • floor coverings
  • details about restrictions on the use of common property

The Strata Schemes (Freehold Development) Act

The Strata Schemes (Freehold Development) Act

This Act sets out the law in relation to the system of ownership within a Strata Scheme. Strata title gives an individual exclusive ownership of part of a building (ie. their ‘lot’), as well as some rights over the ‘common property’ parts of the building.

The Act includes details about how lots may be subdivided and strata plans registered, and the way common property may be leased, transferred, or acquired.


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