There have recently been a number of legislative changes in ‘Strata Land’. There are even more expected legislative changes in the works, involving new powers for regulators to inspect common property in your strata scheme to ensure your Owners Corporation is complying with Section 106 of the Strata Schemes Management Act 2015. Section 106 provides a ‘strict liability’ for owners to maintain common property.
Proposed Changes: The proposed changes to law would allow the regulator to issue penalties and orders for non-compliance, reinforcing the critical need for proactive management.
What do you need to do: Owners Corporations must maintain and repair common property proactively immediately. It will be crucial for Owners Corporations to maintain accurate financial forecasting to meet these obligations. Failing to have a routine maintenance plan and adequate budgeting will lead to breaches and deterioration of your property.
What happens if we do not take any action: Failure to put maintenance plans in place will lead to ongoing special
levies, damages claims, increased insurance premiums (or complete cancellation of the policy) and statutory penalties.
Direct Strata Management provide expert guidance to their clients on maintaining their strata schemes integrity and value. We are here to help you establish an appropriate maintenance plan and budget for your Owners Corporation. Direct Strata Management continue to promote best industry practises and education for its clients.
Please contact us for a chat if you would like to discuss this topic further – 02 8007 7300.
Nicholas Johnson – Managing Director