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  • Strata Schemes Management Regulation

    2016

    Submission

    OWNERS CORPORATION NETWORK OF AUSTRALIA

    Level 5, 275 George St SYDNEY NSW 2000

    P (02) 8197 9919

    E eo@ocn.org.au secretary@ocn.org.au W www.ocn.org.au

    mailto:eo@ocn.org.au mailto:secretary@ocn.org.au

  • 2

    Summary of Recommended Changes Documents and records to be provided to owners corporation before first AGM (clause 6) 4 Tenant representatives (clauses 7 and 8) ..................................................................................... 4 Voting (clauses 14 through 18) ....................................................................................................... 5

    Handling amended motions - additional clause .................................................................. 5 Other means of voting - clause (1) (a) ................................................................................. 5 Postal voting (clauses 16(5)(c) and 16(6)(b)) ..................................................................... 5

    Payment plans for unpaid contributions (clause 19) .................................................................... 5 Accounting records (clause 23)....................................................................................................... 6 Common property memorandum (clause 27) ............................................................................... 7 Minor renovations by owners (clause 28) ...................................................................................... 8

    Introduction (clause 28) .......................................................................................................... 8 Removal of carpet (clause 28(a)) .......................................................................................... 8 Installing a clothesline (clause 28(c)) ................................................................................... 9 Installing a solar panel (clause 28(e)) .................................................................................. 9 Installing a rainwater tank, air conditioner or heat pump (clause 28 (b,d,f)) .................. 9

    Initial maintenance schedule (clause 29) .................................................................................... 10 Disposal of abandoned goods and payment of proceeds (clauses 32 and 33) .................... 11

    Disposal Notice (clause 32(3)(e)) ....................................................................................... 11 Recovery of costs (clause 32 and 33) ................................................................................ 11

    Removal of motor vehicles (clause 34) ........................................................................................ 11 Disposal Notice (clause 34(3)(e)) ....................................................................................... 11 Recovery of costs (clause 34) ............................................................................................. 11

    By-laws for schemes before 1996 (clause 35) ........................................................................... 12 Occupancy limit by-laws (clauses 36 and 37) ............................................................................ 12

    Intent of section 137 of the Act ............................................................................................ 12 Exemption for related adults (clause 36) ........................................................................... 12 Exemption for occupancy limits - residents (clause 37) .................................................. 13

    Records and information about strata schemes ......................................................................... 13 Electronic voting records (clause 41) ........................................................................................... 13

    A mediator may direct (clause 41(3)) ................................................................................. 13 Building Defects (clauses 44 through 56) .................................................................................... 14

    Interpretation .......................................................................................................................... 14 Building inspectors ................................................................................................................ 14 Disclosure of previous employment by the developer ..................................................... 14 Interim reports section 199 (2) of Act ................................................................................. 15 Final Report section 201 (2) of Act ..................................................................................... 15 Building Bonds ....................................................................................................................... 15 Additional documents to be lodged with the building bond ............................................. 15 Payment of Building Bond .................................................................................................... 15 Review of Decisions .............................................................................................................. 16

    Strata information certificate (Form 4 of Schedule 1) ................................................................ 16 10 year capital works plan - Part 7 ..................................................................................... 16 Pending By-laws - Part 15 .................................................................................................... 16 Distinguishing Model By-laws - Schedule 2 ...................................................................... 17 Distinguishing Model By-laws - Schedule 3 ...................................................................... 17 Model By-law 1 - Vehicles .................................................................................................... 17

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    Model By-law 2 - Damage to common property ............................................................... 18 Model By-law 5 - Keeping of animals ................................................................................. 18 Model By-law 7 - Behaviour of owners, occupiers and invitees ..................................... 18 Model By-law 9 - Smoke penetration ................................................................................. 18 Model By-law 14 - Hanging out of washing ....................................................................... 19 Model By-law 15 - Disposal of waste ................................................................................. 19 Model By-law 16 - Change in use or occupation to be notified ...................................... 19 Model By-law 17 - Compliance with planning and other requirements ......................... 20

    Additional matters to be covered in the Regulation ................................................................... 21 Dealing with proxies disallowed by Sch 1 Pt 4 Division 2 of the Act ............................. 21 Duty under section 106 (1) of the Act ................................................................................. 22

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    Documents and records to be provided to owners corporation before first AGM (clause 6) While the original owner or lessor is prevented by section 26 of the Act from entering into contracts for the maintenance or management of the common property for a period beyond the first AGM, the original owner or lessor will have put in place agreements for services. The original owner or lessor should be obliged to provide to the owners corporation before the first AGM all agreements relating to utility services for water, gas and electricity.

    Tenant representatives (clauses 7 and 8) Generally There needs to be further clarity in relation to:

     The responsibilities of the representative

     That the maximum number of persons permitted on a strata committee excludes the tenants’ representative

    Clause 7 (1) The tenants’ meeting is required to be convened by ‘the person who convenes the Annual General Meeting.’ The implication of this is that the tenants meeting can only be convened once the Annual General Meeting has been convened. The period of Notice for convening the AGM is 7 days under the Act. Just who convenes the AGM may therefore be decided well after the expiry of the period for calling the tenants’ meeting. A literal interpretation of this clause would mean that the AGM would need to be convened no later than the last day for calling of the tenants’ meeting, leading to a minimum 21 days Notice instead of the statutory 7 days for convening an AGM. Clearly this is not the intent of the Regulation. To remedy this the clause should be amended to read: ‘A person entitled to convene an annual general meeting....’ Clause 7 (2) There is no date set before which a tenant’s meeting cannot be convened. The calling of the tenant’s meeting should be within a reasonable period of the convening of the AGM This clause should be amended to read ‘The person must give notice to each eligible tenant not more than 2 months before and not later than 21 days before the...’ Clause 7 (3) The tenants meeting should be chaired by the Chair or Secretary of the strata committee, or the strata managing agent. This provides some flexibility and conforms with meeting practice.

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    Voting (clauses 14 through 18)

    Handling amended motions - additional clause

    U

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