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NSW Strata laws Shelved Until 2015

The NSW government has delayed strata law changes that were to come into force by July 1.

The Strata Schemes Management Act, first proposed in 2011, will not be presented to parliament until early next year with an earliest possible start date of the beginning of 2016, providing the government wins the March election.

A media release from the fair trading ministry says the government intends to make all the changes to the community title laws at the same time.

In reality the musical chairs of fair trading ministers has not helped the push for law changes.

Since Anthony Roberts, the architect of the new strata act, changed portfolios, Stuart Ayres and incumbent Matthew Mason-Cox have all had to deal with the controversial legislation.

The strata industry insiders believe strong anticipated opposition is behind the delay.

The most controversial aspect of the Strata Schemes Management Act is the proposal to allow 75 per cent of owners in an aging building to agree to sell it to developers even if a minority of owners oppose the sale. At present a unanimous vote by all owners is required for a strata scheme can be cancelled.

Another challenge is likely to be is to the 2 per cent developer bond to offset any claims for defects that might arise after buildings are completed. Other changes include pro-pet by-laws, proxy farming – where one owner or group rules unchallenged using votes of uninterested and disengaged owners and commissions paid to strata managers.

The delay comes on top of the Home Building Amendment Act that was passed through parliament in June that redefined building “defects” that many in the strata industry believe could prevent legitimate claims. The Home Building Amendment Act is expected to come into force at the end of this year.

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