Demystify Strata Series #2
In this series, we will cover property entitlements, what happens when a committee member is defeated, who ensures adherence to short-term rental accommodation (STRA) regulations, and the rules surrounding the archiving of digital documents.
As the CEO of Premium Strata, I often receive questions during General Meetings, in publications, and through direct messages that seem straightforward but are made more complex by evolving regulations and the multi-faceted responsibilities in strata schemes. To provide clarity, I’m launching a blog series to demystify strata management and tackle these practical questions head-on. Stay informed and empowered with our Demystify Strata Series.
Please note, the following posts address specific scenarios and may not apply to your scheme. Feel free to reach out to us if you have any further questions.
In the complex world of Strata Management understanding property entitlements can be challenging.
You’ve purchased a unit where the seller had previously swapped garage locations with another owner. Now, your garage is inconveniently located at the opposite end of the building, while most garages are directly underneath their respective units. The previous owner mentioned swapping garages with another lot owner, but how does this work? Is it a decision for the owners corporation? The only guide you have is a hand-drawn layout of the unit, which includes the garage but not its location. The garages are merely numbered in freehand on the basement slab. How can you determine which garage is rightfully yours and what steps can you take to change this?
Typically, garages are detailed on the strata plan and are considered private property. However, in older strata schemes, it’s not uncommon for these spaces to be common property, with exclusive use allocated by registered by-law. To clarify your garage’s status, you’ll need to obtain a copy of the strata plan and the registered by-laws. Understanding this will help determine if a change is possible and the process involved in changing your garage’s location.
Dealing with such ambiguities can be perplexing, but understanding your rights and the legal framework can provide clarity.
Navigating the intricacies of Strata Management can sometimes feel like a puzzle. Today, we address a vital aspect of committee elections.
During the Annual General Meeting (AGM), a motion is set to outline the current committee members and numbers. But, what if this motion is defeated? Does this mean the owners corporation will be left without a strata committee? Would there be a need to call for nominations and hold an election? Could this process be done at an Extraordinary General Meeting (EGM), and is it possible to hold an election via paper or electronic vote?
If the “committee member” motion fails at the AGM, it doesn’t necessarily leave the owners corporation without a committee. According to Section 35 of the Strata Schemes Management Act 2015 (NSW), the current committee members hold office until a new committee is elected at a subsequent meeting. In such a situation, the owners corporation can call for nominations and hold a general meeting to appoint a new committee. However, a meeting held wholly by pre-meeting electronic or paper vote is not permitted, although electronic voting during the meeting is allowed.
This highlights the importance of understanding the legal framework governing strata committees and the election process. It ensures that transitions in committee membership are handled smoothly and in accordance with the law.
Strata living brings with it a myriad of unique situations that require careful navigation, particularly when it comes to the use of residential lots for short-term rental accommodation (STRA).
Picture a bustling 61-unit complex over the festive season, brimming with unfamiliar cars and new faces. Units are being used for STRA letting, even accommodating large families with pets in spaces too small for their numbers. The pool gate is jammed open with hats for free access, and the visitor parking is overrun. The community newsletter has addressed the need for STRA registration and compliance, as per government guidelines, but who ensures adherence to these rules? Complaints to the Planning Department only result in action for major transgressions, and the question arises: What role does the Owners Corporation play in mitigating these issues and managing the extra wear and tear on the complex?
Under the Strata Schemes Management Act 2015 (NSW), Section 137A, the Owners Corporation has the capacity to introduce by-laws that can restrict the use of lots for STRA, especially if the lot isn’t the principal place of residence of the owner. While the Owners Corporation’s role is pivotal, the enforcement of STRA regulations is complex and often requires legal expertise.
If your scheme is facing similar challenges, a by-law tailored to regulate STRA within the legal framework may be the solution. This requires a nuanced approach that balances individual owner rights with the collective wellbeing of the strata community. Legal advice from strata experts is essential to navigate these waters and implement enforceable rules that protect the interests of all residents.
As the digital transformation reshapes strata management, the practice of incurring annual fees for storing physical documents is under the microscope, especially with the upcoming mandate for electronic documentation by June 2024.
With the transition to digital records, the necessity and cost-efficiency of maintaining physical archives are being questioned. Strata managers argue for the continued storage of certain documents, like minute books and correspondence, in physical form, alongside the common seal. However, the legislative requirement for a seven-year retention period for strata records doesn’t inherently negate the presence of physical documents, even as we embrace digital solutions. It’s noteworthy that digital storage also incurs costs related to cloud or server space.
The storage of the common seal in archives presents a practical dilemma due to its regular use for document execution, prompting a reconsideration of its accessibility.
The pivot to digital documentation invites a critical examination of both storage methods. Strata communities must assess the relevance of physical archives against digital efficiency and cost. The balance between legal compliance for record-keeping and operational practicality becomes paramount. This transition period offers a prime opportunity for strata schemes to optimise document management practices, potentially reducing costs and improving accessibility.
As strata schemes navigate this digital shift, prioritising discussions on the most efficient and cost-effective document storage solutions is essential. This includes exploring the balance between digital and physical records and ensuring easy access to frequently used items like the common seal.
