Contents
Page
New South Wales
Strata Management Legislation
Amendment Act 2008 No 38
1 Name of Act 2
2 Commencement 2
3 Amendment of Strata Schemes Management Act 1996
No 138 2
4 Amendment of Home Building Act 1989 No 147 2
5 Repeal of Act 2
Schedule 1 Amendment of Strata Schemes Management Act 1996 3
Schedule 2 Amendment of Home Building Act 1989 7
Act No 38, 2008
Strata Management Legislation
Amendment Act 2008 No 38
New South Wales
An Act to amend the Strata Schemes Management Act 1996 and the Home Building
Act 1989 to provide further rights and protections for owners of lots who are not
developers; and for other purposes. [Assented to 25 June 2008]
Page 2
Strata Management Legislation Amendment Act 2008 No 38Section 1
The Legislature of New South Wales enacts:
1 Name of Act
This Act is the Strata Management Legislation Amendment Act 2008.
2 Commencement
This Act commences on a day or days to be appointed by proclamation.
3 Amendment of Strata Schemes Management Act 1996 No 138
The Strata Schemes Management Act 1996 is amended as set out in
Schedule 1.
4 Amendment of Home Building Act 1989 No 147
The Home Building Act 1989 is amended as set out in Schedule 2.
5 Repeal of Act
(1) This Act is repealed on the day following the day on which all of the
provisions of this Act have commenced.
(2) The repeal of this Act does not, because of the operation of section 30
of the Interpretation Act 1987, affect any amendment made by this Act.
Page 3
Strata Management Legislation Amendment Act 2008 No 38
Amendment of Strata Schemes Management Act 1996 Schedule 1
Schedule 1 Amendment of Strata Schemes
Management Act 1996
(Section 3)
[1] Section 40A Who is a caretaker?
Insert after section 40A (3):
(4) For the purposes of this Act, a person is taken to be a caretaker
for a strata scheme if the person meets the description of a
caretaker set out in this section, regardless of whether the title
given to the person’s position is caretaker, building manager,
resident manager or any other title.
[2] Section 56 Certain by-laws relating to parking may be made during initial
period
Omit the section.
[3] Schedule 2 Meetings and procedure of owners corporation
Insert after clause 11 (7):
(7AA) An original owner or a person connected with the original owner
may not cast a vote by means of a proxy or power of attorney
given by another owner of a lot in the strata scheme concerned if
the proxy or power of attorney was given pursuant to a term of
the sale contract for the lot or pursuant to another contract or
arrangement that is ancillary to the sale contract.
(7AB) Any contract or arrangement referred to in subclause (7AA) is
unenforceable to the extent that it requires the giving of any such
proxy or power of attorney.
(7AC) Subclauses (7AA) and (7AB) do not apply to a proxy or power of
attorney given by a person to another person connected with him
or her.
[4] Schedule 3 Constitution of executive committee of the owners
corporation and meetings of executive committee
Insert after clause 3:
3A Disclosure of certain interests by candidates for executive
committee elections and acting members
(1) A person who is connected with the original owner or caretaker
of a strata scheme is not eligible to be elected as a member of an
executive committee for the strata scheme unless:
Strata Management Legislation Amendment Act 2008 No 38
Schedule 1 Amendment of Strata Schemes Management Act 1996
Page 4
(a) the person discloses the connection that the person has
with the original owner or caretaker, and
(b) the disclosure is made at the meeting of the owners
corporation at which the executive committee is to be
elected and before the election is conducted.
(2) A disclosure made under subclause (1) is to be included in the
minutes of the meeting at which the disclosure is made.
(3) A person who is connected with the original owner or caretaker
of a strata scheme is not eligible for appointment to act in the
place of a member of the executive committee unless:
(a) the person discloses any connection that the person has
with the original owner or caretaker, and
(b) the disclosure is made in writing to the executive
committee before the consent of the executive committee
is given under clause 3.
(4) A person who becomes connected with the original owner or
caretaker of a strata scheme after being appointed as, or to act in
the place of, a member of the executive committee must disclose
any connection that the person has with the original owner or
caretaker to the secretary or, if the person is the secretary, to the
chairperson. The disclosure must be made as soon as possible
after the person becomes aware of the connection.
(5) The secretary or chairperson to whom a disclosure is made under
subclause (4) must ensure that the disclosure is included on the
agenda for the next general meeting of the owners corporation.
[5] Schedule 3, clause 4 (4)
Insert after clause 4 (3):
(4) If a motion is proposed to determine that a person’s office as a
member of the executive committee should be vacated:
(a) the original owner or, where the original owner is a
corporation, a company nominee of the corporation has
one vote for each 3 lots in respect of which the original
owner is entitled to vote (ignoring any fraction) unless the
original owner is the owner of less than one-half of the lots,
and
(b) the original owner or, where the original owner is a
corporation, a company nominee of the corporation is not
entitled to vote on the motion as a proxy for any person.
Note. A determination by an owners corporation that a person’s office as
member of the executive committee is vacated requires a special
Page 5
Strata Management Legislation Amendment Act 2008 No 38
Amendment of Strata Schemes Management Act 1996 Schedule 1
resolution which is defined as a resolution which is passed at a duly
convened general meeting of an owners corporation and against which
not more than one-quarter in value, ascertained in accordance with
clause 18 (2) and (3) of Part 2 of Schedule 2, of votes is cast.
[6] Schedule 4 Savings, transitional and other provisions
Insert at the end of clause 1 (1):
Strata Management Legislation Amendment Act 2008
[7] Schedule 4, Part 6
Insert after Part 5:
Part 6 Provisions consequent on enactment of
Strata Management Legislation
Amendment Act 2008
23 Definition
In this Part, amending Act means the Strata Management
Legislation Amendment Act 2008.
24 Exclusive by-laws relating to parking
(1) The repeal of section 56 by the amending Act does not affect any
by-law that was recorded by the Registrar-General before that
repeal.
(2) Section 56 as in force immediately before its repeal by the
amending Act is taken to continue to apply to a proposed by-law
for which written approval was given under that section before
that repeal but that was not recorded by the Registrar-General
before that repeal.
25 Existing proxies and powers of attorney
(1) An amendment made to this Act by the amending Act does not
affect the casting of a vote by means of any proxy or power of
attorney in force immediately before the commencement of the
amendment.
(2) However, subclause (1) does not operate in relation to the casting
of a vote in any period during which the proxy or power of
attorney is in force because of a renewal or extension of its term
that took place after the commencement of the amendment
concerned.
Strata Management Legislation Amendment Act 2008 No 38
Schedule 1 Amendment of Strata Schemes Management Act 1996
Page 6
[8] Dictionary
Insert in alphabetical order in Part 1:
caretaker means a person described in section 40A as a caretaker.
[9] Dictionary, Part 2
Insert after clause 6:
7 References to a person connected with another person
(1) For the purposes of this Act, a person (the principal person) is
connected with another person if the other person:
(a) is a relative (within the meaning of the Local Government
Act 1993) of the principal person or, where the principal
person is a corporation, is a relative of the holder of an
executive position in the corporation, or
(b) is employed or engaged by the principal person or is a
partner of the principal person, or
(c) where the principal person is a corporation, holds an
executive position in the corporation, or
(d) is the employer of the principal person, or
(e) is employed or engaged by, or holds an executive position
in, a corporation that also employs or engages the principal
person or in which the principal person holds an executive
position, or
(f) has any other connection or relationship with the principal
person of a kind prescribed by the regulations.
(2) However, the principal person is not connected with another
person who is a member of an owners corporation, or the
executive committee of an owners corporation, merely because
of any dealing, contact or arrangement the other person has with
the principal person in the other person’s capacity as such a
member.
(3) In this clause, executive position in a corporation means the
position of director, manager or secretary of the corporation, or
any other executive position of the corporation, however those
positions are designated.
Page 7
Strata Management Legislation Amendment Act 2008 No 38
Amendment of Home Building Act 1989 Schedule 2
Schedule 2 Amendment of Home Building Act 1989
(Section 4)
[1] Section 48C Notification of building dispute
Insert at the end of the section:
(2) Without limiting subsection (1), a notification under that
subsection may be made by:
(a) an owner of a lot in a strata scheme (within the meaning of
the Strata Schemes Management Act 1996) about
residential building work or specialist work relating to
common property in the strata scheme, or
(b) a proprietor of a lot in a scheme (within the meaning of the
Community Land Management Act 1989) about residential
building work or specialist work relating to association
property in the scheme.
[2] Section 48D Investigation of dispute
Insert after section 48D (2):
(3) For the purposes of making an investigation in relation to
common property in a strata scheme (within the meaning of the
Strata Schemes Management Act 1996), an inspector may enter
and inspect the common property at the request of the owner of a
lot in the scheme concerned.
(4) The owners corporation, any person who has exclusive use of the
common property concerned and any caretaker or manager of the
common property are to provide such assistance as is reasonable
to enable an inspection of that common property to be carried out
by an inspector under this section.
(5) For the purposes of making an investigation in relation to
association property in a scheme (within the meaning of the
Community Land Management Act 1989), an inspector may enter
and inspect the association property at the request of the
proprietor of a lot in the scheme concerned.
(6) The relevant association that has the use of the association
property concerned and, if the use of that association property has
been restricted to a particular proprietor or proprietors, any such
proprietor, and any caretaker or manager of the association
property are to provide such assistance as is reasonable to enable
an inspection of that association property to be carried out by an
inspector under this section.
[Agreement in principle speech made in Legislative Assembly on 15 May 2008
Second reading speech made in Legislative Council on 4 June 2008]
BY AUTHORITY
Page 8
Strata Management Legislation Amendment Act 2008 No 38
Schedule 2 Amendment of Home Building Act 1989
(7) For the avoidance of doubt, a person may be authorised under
section 126 by the Director-General for the purposes of this
section.
