The property owners in NSW’s 87,000 strata schemes will benefit from reforms going live today which will improve protections for owners, enhance the accountability of strata management services, and make strata living easier for residents, including by making it easier for residents to do minor renovations.

Owners in strata schemes, which include most apartments, townhouses, villas and duplexes, will benefit from the reforms, which ban unfair contract terms in strata or building management, cleaning, and gardening contracts.

This includes terms that allow one party but not the other to end or change the terms of the contracts.

Owners will be given more of a say in how their scheme is run, with contracts for the supply of electricity through an embedded network now ending at the first Annual General Meeting (AGM) or three years from the start date of the agreement – instead of no limit applying under the old laws.

The new laws will also make it easier for owners with disability to install accessibility infrastructure, as well as keep assistance animals.

There will also be an increased focus on sustainability measures by requiring owners to consider the annual energy and water consumption and expenditure for the building.

Under the new reforms, the penalty for failing to provide important information about the construction of the building, including planning approvals, compliance certificates, fire safety certificates, insurance policies, and maintenance schedules ahead of the AGM, will remain at $11,000, but developers will also incur a $220 per day penalty until all the required documents are produced.

There will also be increased penalties from $1,100 to $11,000 for developers not holding an AGM.

The reforms will also cut down unnecessary delays to minor renovations by requiring, subject to the rules of the scheme itself, strata committees to decide a lot owner’s request for minor renovations within three months or the application will default to a decision of approved.

For more information on the reforms, please visit https://www.nsw.gov.au/housing-and-construction/strata/serving-on-a-committee/strata-laws.

Minister for Better Regulation and Fair Trading Anoulack Chanthivong said, “Protection for owners living in strata communities is one of the top priorities of the Minns Government.

“The building of strata communities is a significant part of the NSW Government’s plan to increase housing in NSW with more than 50 per cent of Sydney’s population predicted to live in strata by 2040.

“These changes will make it fairer for residents living in strata communities by banning unfair contract terms in strata, making it easier to install accessibility infrastructure, obtain minor renovation approvals, and keep assistance animals.”

NSW Strata Commissioner Angus Abadee said, “Strata schemes come in all sizes – from a duplex and townhouses, all the way through to apartment towers housing hundreds of people, and these reforms demonstrate the commitment to modernising regulations to support the developing market.

“Dedicated resources from the Strata and Property Services Taskforce in NSW Fair Trading, including inspectors and investigators, will be leading education on these reforms for those living and working in strata, as well as undertaking intelligence-led surveillance and targeted audits to ensure compliance with the new regulations.”