NSW strata laws get a makeover

NSW strata laws get a makeoverReforms to antiquated strata laws were passed by NSW Parliament last week, paving the way for much-needed urban renewal throughout the state.The first major reform of strata laws since the Strata Titles Act was established in 1973, the Strata Development Bill 2015, is set to deliver sweeping reforms that will affect both residential and commercial properties.The Bill covers 90-plus changes to existing laws, including collective sale, renovations, proxy farming, defects and parking.The Property Council’s NSW executive director Glenn Byres says the reforms, which the Property Council has advocated for two decades, will cut red tape and boost housing stocks.”It now takes only 75 per cent approval to terminate and renew a strata scheme – breaking the 100 per cent deadlock that has prevented tired old buildings from being refreshed and stifled vital urban renewal,” Byres says.”In the commercial sector, the reforms will make the job of aggregating sites and producing contemporary, sustainable stock with larger floorplates easier,” Byres adds.New South Wales currently has around 75,000 strata schemes worth $3 billion in assets. NSW Minister for innovation and better Regulation Victor Dominello says the new laws will come into effect in July 2016.”Today more than two million people live and work in strata. The new laws will cater for the needs of 21st century strata living,” Dominello says.”The new laws will modernise collective decision making processes, increase protections against unresolved building defects and improve outdated regulation impacting on renovations.”Other states are preparing to overhaul their laws too.In Western Australia, the Barnett Government is poised to introduce a sliding scale for termination of strata titles based on the age of the building, while the Victorian Government is considering the 75 per cent threshold in its review of strata title legislation. In South Australia, an inquiry is underway, while the Giles Government in the Northern Territory is drafting a proposed review of strata laws.More information about the NSW reforms is available from the NSW Fair Trading website.