How are Strata By-Laws Created?

How are Strata By-Laws Created?

An owners corporation of a strata scheme can repeal and/or amend existing strata by-laws or create new strata by-laws. Most strata by-laws can be repealed, amended or created by special resolution passed at a general meeting of the owners corporation. If the strata by-law confers rights of exclusive use or special privileges, it is necessary to obtain the written consent of the owners concerned namely, the owners benefited by the strata by-law.

After the motion for repeal, amendment or creation of the new strata by-law is passed by special resolution, the strata by-law must be registered at the Registrar General’s Office of NSW Land and Property Information (“LPI”) within 2 years. This can be done by lodging for registration an LPI “Change of By-Laws” dealing form. The “Change of By-Laws” dealing form contains a certificate of the owners corporation which should be completed by inserting the strata plan number of the owners corporation, the date on which the special resolution was passed and the relevant section of the Strata Schemes Management Act 1996 under which the by-law was made e.g. section 47, section 52, section 65A, etc.

It is important to remember that all strata by-laws are allocated a number and any new strata by-law should be numbered consecutively commencing with the number “Special By-law No. //insert no.//”. The strata by-laws conditions should be set out in the space provided on the dealing form.  Lastly, the owners corporation’s common seal must be affixed to the dealing form pursuant to section 238 of the Strata Schemes Management Act 1996.

As at the date of this article, the cost to register a Change of By-Laws dealing form at LPI is $108.00.  This LPI filing fee is in addition to solicitor’s professional costs to draft the strata by-law and prepare the Change of By-Law form dealing.

Common Traps

An owners corporation cannot change or create a strata by-law, which confers a benefit or imposes obligations on some, but not all, of the owners during the initial period for the strata scheme.  Further, a strata by-law cannot prohibit guide dogs or hearing dogs from a strata scheme, cannot prevent children from occupying a lot within the scheme and cannot be inconsistent with the Strata Schemes Management Act 1996, any other Act or the law.

If you need any assistance repealing and/or replacing your strata by-laws or the creation of new strata by-laws including the preparation of a Change of By-Law dealing form at competitive fixed fee, please feel free to contact our strata law specialist Michael Pobi on (02) 8710 3430.

Please note that the information contained in this article is not legal advice and should not be relied upon. You should obtain legal advice before you take any action or otherwise rely upon the contents of this article.