Strata Schemes Management Act 2015 No 50
Current version for 1 July 2020 to date (accessed 7 July 2020 at 17:04)
Part 6
Part 6 Property management
Division 1 Common property
106   Duty of owners corporation to maintain and repair property
(1)  An owners corporation for a strata scheme must properly maintain and keep in a state of good and serviceable repair the common property and any personal property vested in the owners corporation.
(2)  An owners corporation must renew or replace any fixtures or fittings comprised in the common property and any personal property vested in the owners corporation.
(3)  This section does not apply to a particular item of property if the owners corporation determines by special resolution that—
(a)  it is inappropriate to maintain, renew, replace or repair the property, and
(b)  its decision will not affect the safety of any building, structure or common property in the strata scheme or detract from the appearance of any property in the strata scheme.
(4)  If an owners corporation has taken action against an owner or other person in respect of damage to the common property, it may defer compliance with subsection (1) or (2) in relation to the damage to the property until the completion of the action if the failure to comply will not affect the safety of any building, structure or common property in the strata scheme.
(5)  An owner of a lot in a strata scheme may recover from the owners corporation, as damages for breach of statutory duty, any reasonably foreseeable loss suffered by the owner as a result of a contravention of this section by the owners corporation.
(6)  An owner may not bring an action under this section for breach of a statutory duty more than 2 years after the owner first becomes aware of the loss.
(7)  This section is subject to the provisions of any common property memorandum adopted by the by-laws for the strata scheme under this Division, any common property rights by-law or any by-law made under section 108.
(8)  This section does not affect any duty or right of the owners corporation under any other law.
107   Common property memorandum
(1)  The by-laws for a strata scheme may adopt a common property memorandum prescribed by the regulations for the purposes of this section.
(2)  The common property memorandum is to specify whether an owner of a lot or the owners corporation is responsible for the maintenance, repair or replacement of any part of the common property.
(3)  The by-laws may modify the common property memorandum only to provide that it does not apply to specified items, being items that are not common property for the purposes of the particular strata scheme or that are the subject of a common property rights by-law or a by-law made under section 108.
(4)  The provisions of a common property rights by-law or a by-law made under section 108 for a strata scheme prevail, to the extent of any inconsistency, over the provisions of a common property memorandum adopted by the by-laws of the strata scheme.
108   Changes to common property
(1) Procedure for authorising changes to common property An owners corporation or an owner of a lot in a strata scheme may add to the common property, alter the common property or erect a new structure on common property for the purpose of improving or enhancing the common property.
(2)  Any such action may be taken by the owners corporation or owner only if a special resolution has first been passed by the owners corporation that specifically authorises the taking of the particular action proposed.
(3) Ongoing maintenance A special resolution under this section that authorises action to be taken in relation to the common property by an owner of a lot may specify whether the ongoing maintenance of the common property once the action has been taken is the responsibility of the owners corporation or the owner.
(4)  If a special resolution under this section does not specify who has the ongoing maintenance of the common property concerned, the owners corporation has the responsibility for the ongoing maintenance.
(5)  A special resolution under this section that allows an owner of a lot to take action in relation to certain common property and provides that the ongoing maintenance of that common property after the action is taken is the responsibility of the owner has no effect unless—
(a)  the owners corporation obtains the written consent of the owner to the making of a by-law to provide for the maintenance of the common property by the owner, and
(b)  the owners corporation makes the by-law.
(6)  The by-law—
(a)  may require, for the maintenance of the common property, the payment of money by the owner at specified times or as determined by the owners corporation, and
(b)  must not be amended or repealed unless the owners corporation has obtained the written consent of the owner concerned.
(7)  Sections 143 (2), 144 (2) and (3) and 145 apply to a by-law made for the purposes of this section in the same way as they apply to a common property rights by-law.
Note.
 A new by-law or other changes to the by-laws for a strata scheme must be approved by a special resolution of the owners corporation (see section 141).
109   Cosmetic work by owners
(1)  The owner of a lot in a strata scheme may carry out cosmetic work to common property in connection with the owner’s lot without the approval of the owners corporation.
(2)  Cosmetic work includes but is not limited to work for the following purposes—
(a)  installing or replacing hooks, nails or screws for hanging paintings and other things on walls,
(b)  installing or replacing handrails,
(c)  painting,
(d)  filling minor holes and cracks in internal walls,
(e)  laying carpet,
(f)  installing or replacing built-in wardrobes,
(g)  installing or replacing internal blinds and curtains,
(h)  any other work prescribed by the regulations for the purposes of this subsection.
(3)  An owner of a lot must ensure that—
(a)  any damage caused to any part of the common property by the carrying out of cosmetic work by or on behalf of the owner is repaired, and
(b)  the cosmetic work and any repairs are carried out in a competent and proper manner.
(4)  The by-laws of a strata scheme may specify additional work that is to be cosmetic work for the purposes of this section.
(5)  This section does not apply to the following work—
(a)  work that consists of minor renovations for the purposes of section 110,
(b)  work involving structural changes,
(c)  work that changes the external appearance of a lot, including the installation of an external access ramp,
(d)  work that detrimentally affects the safety of a lot or common property, including fire safety systems,
(e)  work involving waterproofing or the plumbing or exhaust system of a building in a strata scheme,
(f)  work involving reconfiguring walls,
(g)  work for which consent or another approval is required under any other Act,
(h)  any other work prescribed by the regulations for the purposes of this subsection.
(6)  Section 108 does not apply to cosmetic work carried out in accordance with this section.
110   Minor renovations by owners
(1)  The owner of a lot in a strata scheme may carry out work for the purposes of minor renovations to common property in connection with the owner’s lot with the approval of the owners corporation given by resolution at a general meeting. A special resolution authorising the work is not required.
(2)  The approval may be subject to reasonable conditions imposed by the owners corporation and cannot be unreasonably withheld by the owners corporation.
(3)  Minor renovations include but are not limited to work for the purposes of the following—
(a)  renovating a kitchen,
(b)  changing recessed light fittings,
(c)  installing or replacing wood or other hard floors,
(d)  installing or replacing wiring or cabling or power or access points,
(e)  work involving reconfiguring walls,
(f)  any other work prescribed by the regulations for the purposes of this subsection.
(4)  Before obtaining the approval of the owners corporation, an owner of a lot must give written notice of proposed minor renovations to the owners corporation, including the following—
(a)  details of the work, including copies of any plans,
(b)  duration and times of the work,
(c)  details of the persons carrying out the work, including qualifications to carry out the work,
(d)  arrangements to manage any resulting rubbish or debris.
(5)  An owner of a lot must ensure that—
(a)  any damage caused to any part of the common property by the carrying out of minor renovations by or on behalf of the owner is repaired, and
(b)  the minor renovations and any repairs are carried out in a competent and proper manner.
(6)  The by-laws of a strata scheme may provide for the following—
(a)  additional work that is to be a minor renovation for the purposes of this section,
(b)  permitting the owners corporation to delegate its functions under this section to the strata committee.
(7)  This section does not apply to the following work—
(a)  work that consists of cosmetic work for the purposes of section 109,
(b)  work involving structural changes,
(c)  work that changes the external appearance of a lot, including the installation of an external access ramp,
(d)  work involving waterproofing,
(e)  work for which consent or another approval is required under any other Act,
(f)  work that is authorised by a by-law made under this Part or a common property rights by-law,
(g)  any other work prescribed by the regulations for the purposes of this subsection.
(8)  Section 108 does not apply to minor renovations carried out in accordance with this section.
Note.
 Section 132 enables rectification orders to be made against owners of lots for damage caused by work done by owners.
111   Work by owners of lots affecting common property
An owner of a lot in a strata scheme must not carry out work on the common property unless the owner is authorised to do so—
(a)  under this Part, or
(b)  under a by-law made under this Part or a common property rights by-law, or
(c)  by an approval of the owners corporation given by special resolution or in any other manner authorised by the by-laws.
112   Owners corporation may grant licence to use common property
(1)  An owners corporation may grant a licence to an owner or occupier of a lot in the strata scheme or another person to use common property in a particular manner or for particular purposes if the owners corporation has approved the granting of the licence by a special resolution.
(2)  A licence may be granted subject to terms and conditions.
Note.
 Division 3 of Part 7 enables owners corporations to make common property rights by-laws granting exclusive use rights and special privileges (including licences) in relation to common property.
(3)  Without limiting this section, a licence may be granted under an agreement with the local council for a strata parking area under section 650A of the Local Government Act 1993.
113   Agreement for payment to owner of consideration on transfer or lease of common property
An owners corporation may, in accordance with a special resolution, make an agreement with an owner for the payment to the owner of—
(a)  the whole or any part of the consideration under any transaction proposed to be entered into by the owners corporation under Division 6 of Part 2 of the Strata Schemes Development Act 2015, or
(b)  any money payable to the owners corporation under a common property rights by-law.
114   Functions subject to strata development contract
The exercise by an owners corporation of functions under this Act is subject to the provisions of any strata development contract affecting common property for the strata scheme concerned and to the operation of this Act and the Strata Schemes Development Act 2015 in relation to the strata development contract.
115   Initial maintenance schedule must be prepared
(1)  The original owner must cause an initial maintenance schedule to be prepared for the maintenance of the common property of a strata scheme.
Note.
 The purpose of the initial maintenance schedule is to provide information to the owners corporation about obligations and costs relating to the maintenance of common property.
(2)  The initial maintenance schedule must comply with the requirements prescribed by the regulations for the purposes of this subsection.
(3)  An owners corporation is not required by this Act to comply with the initial maintenance schedule for the maintenance of common property vested in it.
(4)  The initial maintenance schedule may be considered in any proceedings for the purpose of determining whether or not a defect in or damage to a building could have been avoided by the taking of specified action.
Division 2 Dealings with property
116   Powers to deal with property
(1)  An owners corporation may dispose of or otherwise deal with any lot vested in the owners corporation as a result of a subdivision effected under section 13 of the Strata Schemes Development Act 2015.
(2)  The owners corporation may acquire or dispose of personal property or otherwise deal with personal property of the owners corporation.
(3)  Section 50 (1) (d) of the Interpretation Act 1987 does not apply to an owners corporation.
Note.
 Section 50 (1) (d) of the Interpretation Act 1987 provides that a statutory corporation may, for the purpose of enabling it to exercise its functions, purchase, exchange, take on lease, hold, dispose of and otherwise deal with property.
Division 3 Work carried out by owners corporation
117   Provision of amenities and services to lot
An owners corporation may enter into an agreement with an owner or occupier of a lot to provide amenities or services to the lot or to the owner or occupier of the lot.
118   Window safety devices—child safety
(1)  An owners corporation for a strata scheme to which this section applies must ensure that there are complying window safety devices for all windows of each building in the strata scheme that are windows to which this section applies.
Maximum penalty—5 penalty units.
(2)  An owners corporation is to carry out work related to its functions under this section at its own expense and may, for the purposes of this section, carry out work on any part of the parcel.
(3)  An owner of a lot in a strata scheme to which this section applies may install a complying window safety device on a window to which this section applies (other than a window on another owner’s lot).
(4)  An owner of a lot who installs a window safety device under this section must—
(a)  repair any damage caused to any part of the common property by the installation of the device, and
(b)  ensure that the device is installed in a competent and proper manner and has an appearance, after it has been installed, in keeping with the appearance of the building.
(5)  An owners corporation or an owner of a lot may carry out work authorised by this section despite any other provision of this Act, the regulations or any by-law of the scheme.
(6)  The regulations may make provision for or with respect to the following—
(a)  the strata schemes and windows to which this section applies,
(b)  the devices or other things that are complying window safety devices for the purposes of this section,
(c)  notification to the owners corporation by owners who install window safety devices.
(7)  A regulation may apply this section to a window located on any part of a parcel.
119   Work to rectify certain defects
(1)  An owners corporation for a strata scheme may carry out work that is necessary to rectify any of the following defects—
(a)  any structural defect in any part of a building comprised in a lot in the scheme that affects or is likely to affect the support or shelter provided by that lot for another lot in the building or the common property,
(b)  any defect in any pipe, wire, cable or duct that provides, or through which passes, any water, sewage, drainage, gas, electricity, garbage, artificially heated or cooled air, heating oil or other service (including telephone, internet, radio or television services) within a lot.
(2)  An owners corporation may carry out the work at its own expense if the cost of the work cannot be recovered from some other person.
120   Owners corporation may carry out work required to be carried out by others
(1) Work required by public authority If an owner of a lot in a strata scheme fails to carry out work that is required to be carried out under a notice given to the owner by a public authority, the owners corporation may carry out the work and recover the cost of carrying out the work from the owner or any person who, after the work is carried out, becomes the owner.
(2) Work required to be carried out under term or condition of by-law If a person who is the owner, mortgagee or covenant chargee in possession, tenant or occupier of a lot in the strata scheme fails to carry out work that is required to be carried out by the person under a term or condition of a by-law of the scheme, the owners corporation may carry out the work and recover the cost of carrying out the work from that person, the owner of the lot (if the person is not the owner) or any person who, after the work is carried out, becomes the owner of that lot.
(3) Work that is duty of owner or occupier to carry out If a person who is the owner, mortgagee or covenant chargee in possession, tenant or occupier of a lot in the strata scheme fails to carry out work in order to remedy a breach of a duty imposed by Part 8, the owners corporation may carry out the work and recover the cost of the work from that person.
(4) Work required to be carried out under order If a person fails to carry out work required to be carried out under an order made under this Act, the owners corporation may carry out the work and recover the cost of carrying out the work from the person against whom the order was made.
(5) Recovery of costs as a debt The costs incurred by an owners corporation in carrying out any work referred to in this section may be recovered by the owners corporation as a debt.
121   Provision of letterbox
(1)  An owners corporation must construct and maintain at or near the street alignment of the parcel a letterbox suitable to receive mail and other documents.
(2)  The name of the owners corporation is to be clearly shown on the letterbox.
Division 4 Powers to enter premises and carry out work
122   Power of owners corporation to enter property in order to carry out work
(1)  An owners corporation for a strata scheme may, by its agents, employees or contractors, enter on any part of the parcel of the scheme for the purpose of carrying out the following work—
(a)  work required or authorised to be carried out by the owners corporation in accordance with this Act (including work relating to window safety devices and rectification work carried out under Part 11),
(b)  work required to be carried out by the owners corporation by a notice given to it by a public authority,
(c)  work required or authorised to be carried out by the owners corporation by an order under this Act.
(2)  An owners corporation for a strata scheme may, by its agents, employees or contractors, enter on any part of the parcel for the purpose of determining whether any work is required to be carried out by the owners corporation in accordance with this Act.
(3)  In an emergency, the owners corporation may enter any part of the parcel for those purposes at any time.
(4)  In a case that is not an emergency, the owners corporation may enter any part of the parcel for those purposes with the consent of any occupier of that part of the parcel or, if the occupier does not consent, in accordance with an order of the Tribunal under this Division.
(5)  A person must not obstruct or hinder an owners corporation in the exercise of its functions under this section.
Maximum penalty—5 penalty units.
(6)  An owners corporation is liable for any damage to a lot or any of its contents caused by or arising out of the carrying out of any work, or the exercise of a power of entry, referred to in this section unless the damage arose because the owners corporation was obstructed or hindered.
123   Access for fire safety inspections
(1)  A person authorised to carry out an inspection under the Environmental Planning and Assessment Act 1979 of a building or premises that is part of a strata scheme for purposes relating to fire safety may give a written notice to the owners corporation requiring the owners corporation to ensure that access is provided, within a period or at a time specified in the notice, to the common property of the strata scheme and, if so specified, some or all of the lots in the strata scheme.
(2)  An owners corporation must comply with a requirement of a notice given to the owners corporation under this section.
Maximum penalty—20 penalty units.
(3)  It is a defence to a prosecution for an offence against this section consisting of a failure to ensure that access is provided to a lot in a strata scheme if the owners corporation establishes that the owner or occupier of the lot refused to allow the access or could not be contacted by the owners corporation.
124   Orders by Tribunal relating to entry to carry out work or inspections
(1)  The Tribunal may, on application by an owners corporation for a strata scheme, make an order requiring the occupier of a lot or part of a lot in the scheme to allow access to the lot for any of the following purposes—
(a)  to enable the owners corporation to carry out work referred to in section 118, 119, 120 or 122 or to determine whether such work needs to be carried out,
(b)  to enable an entry or inspection referred to in section 122 or 123 or Part 11 to be carried out.
(2)  This section does not limit the power of an owners corporation to enter a lot under this Division in an emergency without applying for an order.
Division 5
125  (Repealed)
Division 6 Orders about property
126   Orders relating to alterations and repairs to common property and other property
(1) Order requiring owners corporation to carry out work on common property The Tribunal may, on application by a lessor of a leasehold strata scheme or an owner of a lot in a strata scheme, order the owners corporation to consent to work proposed to be carried out by an owner of a lot if the Tribunal considers that the owners corporation has unreasonably refused its consent and the work relates to any of the following—
(a)  minor renovations or other alterations to common property directly affecting the owner’s lot,
(b)  carrying out repairs to common property or any other property of the owners corporation directly affecting the owner’s lot.
(2) Order consenting to owner’s work on owners corporation property The Tribunal may, on application by a lessor of a leasehold strata scheme or an owner of a lot in a strata scheme, make an order (a work approval order) approving of minor renovations or alterations or repairs already made by an owner to common property or any other property of the owners corporation directly affecting the owner’s lot if the Tribunal considers that the owners corporation unreasonably refused its consent to the minor renovations or alterations or repairs.
(3)  A work approval order is taken to be the consent of the owners corporation to the renovations, alterations or repairs and may provide that it has effect from a day specified in the order that occurred before the order was made.
(4)  In deciding whether to grant a work approval order or to provide for the order to have effect from a day that occurred before the date of the order, the Tribunal may take into account the conduct of the parties in the proceedings, for example, if an owner did not first seek the consent of the owners corporation before carrying out the renovations, alterations or repairs.
(5) Responsibility for ongoing repair and maintenance of affected property The Tribunal may specify in an order under this section whether the owners corporation or the owner of the lot has the ongoing responsibility for the repair and maintenance of any additional property arising out of a minor renovation or alteration or repair to common property approved under the order.
(6)  If an order provides for the owner of a lot to have the ongoing responsibility for the repair and maintenance of any such additional property, the order also has effect in relation to any subsequent owner of the lot.
127   Order relating to cosmetic work or minor renovations
The Tribunal may, on application by an owner of a lot in a strata scheme, make an order declaring that specified work is cosmetic work for the purposes of section 109 or a minor renovation for the purposes of section 110.
128   Order consequent on alteration of building
(1)  The Tribunal may, on application by a lessor of a leasehold strata scheme, an owners corporation or an owner of a lot in a strata scheme, make an order directing an owner to lodge with the Registrar-General the plan and certificate referred to in section 19 of the Strata Schemes Development Act 2015 if the Tribunal is satisfied that the owner has failed to comply with that provision.
(2)  The order must specify the time within which the plan and certificate must be lodged.
129   Orders relating to window safety devices
(1)  The Tribunal may, on application by an interested person (other than an owners corporation), order an owners corporation to exercise a function under section 118 if the Tribunal considers that the owners corporation has failed to do so.
(2)  For the purposes of this section, an owners corporation is taken to have failed to exercise a function if application is made to it to exercise the function and it fails for 2 months after the making of the application to exercise the function.
(3)  The Tribunal may, on application by an owners corporation, order an owner of a lot in the strata scheme to comply with section 118 (4) if the Tribunal considers that the owner has failed to do so.
130   Orders relating to personal property
(1)  The Tribunal may, on application by an owner of a lot in a strata scheme, make one of the following orders if the Tribunal considers that an acquisition, or a proposed acquisition, by the owners corporation of personal property is unreasonable—
(a)  that the personal property acquired be sold or otherwise disposed of by the owners corporation within a specified time,
(b)  that the personal property not be acquired.
(2)  The Tribunal may, on application by an owner of a lot in a strata scheme, order the owners corporation to acquire personal property if the Tribunal considers that the owners corporation has unreasonably refused to acquire the personal property.
131   Order granting certain licences
(1)  The Tribunal may, on application by an owner of a lot in a strata scheme, order that the owner and any occupier of the lot may use specified common property in the manner, for the purposes, and on the terms and conditions (if any), that are specified in the order.
(2)  The Tribunal must not make the order unless satisfied—
(a)  that the lot would otherwise be incapable of reasonable use and enjoyment by the current owner or occupier of the lot or generally by an owner or occupier of the lot, and
(b)  that the owners corporation has refused to grant a licence to use common property in a manner, for purposes, and on terms and conditions that would enable the current owner or occupier, or generally any owner or occupier, reasonably to use and enjoy that lot, and
(c)  in the case of a leasehold strata scheme, that the lessor of the scheme has, before the making of the order, been given an opportunity to make representations to the Tribunal with respect to the application for the order.
(3)  An order under this section, when recorded under section 246, has effect as if its terms were a by-law (but subject to any relevant order made by a superior court).
132   Rectification where work done by owner
(1)  The Tribunal may, on application by an owners corporation for a strata scheme, make either of the following orders if the Tribunal is satisfied that work carried out by or for an owner or occupier on any part of the parcel of the scheme has caused damage to common property or another lot—
(a)  an order that the owner or occupier performs the work or takes other steps as specified in the order to repair the damage,
(b)  an order that the owner or occupier pay to the owners corporation or the owner of the lot a specified amount for the cost of repairs of the damage and any associated costs, including insurance and legal costs.
(2)  An amount payable by an owner or occupier to an owners corporation under this section is payable, and may be recovered, under this Act as if it were an amount of unpaid contributions.
Note.
 Section 86 provides for the recovery of unpaid contributions.
Division 7 Service agreements for property
132A   Agreements for supply of electricity, gas or other utilities
(1)  An agreement (including any additional term under an option to renew) for the supply of electricity, gas or any other utility with an owners corporation expires (if the term of the agreement does not end earlier or is not ended earlier for any other reason)—
(a)  at the conclusion of the first annual general meeting of the owners corporation if the agreement was executed before the meeting, or
(b)  in any other case, 3 years after the date on which the agreement commenced.
(2)  Nothing in subsection (1) prevents the owners corporation from renewing an agreement for the supply of electricity, gas or any other utility by resolution at a general meeting on or after the expiry of the agreement.
(3)  An agreement for the supply of electricity, gas or any other utility in relation to a strata scheme that commenced before the commencement of this section expires 10 years after the date on which the agreement commenced (unless the term of the agreement ends earlier or is ended earlier for any other reason).
(4)  This section does not affect any agreement to supply electricity to residents in a strata scheme through an embedded network.