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On 1 December 2021 the following new community schemes laws will commence in NSW:

  1. Community Land Management Act 2021
  2. Community Land Development Act 2021  
  3. Community Land Management Regulation 2021
  4. Community Land Development Regulation 2021 

The new laws were designed to be in alignment with, and ensure consistency with, the Strata Schemes Management Act 2015 and the Strata Schemes Development Act 2015.  

Upon commencement of the above new Acts, the existing Community Land Management Act 1989 and the Community Land Development Act 1989 will be repealed.

The following provisions will apply to community schemes which are in existence before the commencement of the Community Land Management Act 2021:

4   Existing management statements and by-laws

(1)  The management statement of an existing scheme, as in force immediately before the commencement of section 127, continues in force and is taken to have been made in accordance with this Act.

(2)  Despite any other provision of this Act, a by-law continued in force by this Act is taken to be a valid by-law if it was a valid by-law immediately before the commencement of section 128.

5   Existing executive committees

(1)  A person who, immediately before the commencement of this clause, was a member of an executive committee of an association is, on that commencement, taken to have been appointed as a member of the association committee of the association for the balance of the person’s term as a member of the executive committee.

(2)  A person who, immediately before the commencement of this clause, was an officer of an executive committee of an association is, on that commencement, taken to have been appointed as an officer of the same kind of the association for the balance of the person’s term as an officer.

6   Existing proceedings

Any proceedings commenced but not determined or finalised under a provision of the former Act are to be dealt with and determined as if the former Act had not been repealed.

7   Adjudicators

(1)  A person who held office as an Adjudicator under the former Act immediately before the commencement of this clause ceases to hold the office on a day appointed by the Secretary, being a day not earlier than the determination or finalisation of all proceedings referred to in clause 6.

(2)  An Adjudicator who ceases to be an Adjudicator under this clause is not entitled to any compensation for loss of office.

8   Existing orders under former Act

An order made by an Adjudicator or the Tribunal under the former Act, and in force immediately before the commencement of this clause, is taken to have been made by the Tribunal under the corresponding provision of this Act.

9   Contributions

Any contributions levied under the former Act are taken to have been levied under this Act and this Act applies to the recovery and payment of any unpaid contributions.

10   Approved insurers

An insurer that was an approved insurer for the purposes of section 39 of the former Act immediately before the commencement of section 149 of this Act is taken to be an approved insurer under this Act.

11   Previous decisions by associations and executive committees

(1)  A decision, consent or approval of an association under the former Act, or that is taken to have been made under the former Act, is taken to have been made by the association under this Act.

(2)  A decision, consent or approval of the executive committee of an association under the former Act, or that is taken to have been made under the former Act, is taken to have been made by the association committee of the association under this Act.

12   Terms of appointment of managing agents

(1)  The term of appointment (including any reappointment) of a managing agent appointed before the commencement of section 54 of this Act ends on the day that is 3 years after the term commenced or that is 6 months after the commencement of this Act, whichever is the later.

(2)  This Act applies to the term of any reappointment of the managing agent after that commencement.

13   Caretakers and facilities managers

(1)  An agreement in force immediately before the commencement of this clause is taken to be a facilities manager agreement for the purposes of this Act, despite any of the provisions of the agreement, if—

(a)  the agreement provides for the appointment of a person to carry out any of the functions specified in section 70(1) in relation to the association for a scheme, and

(b)  the primary purpose of the agreement is to provide for that appointment and related matters, and

(c)  the person is not entitled to exclusive possession of a lot or association property in the scheme.

(2)  Any such facilities manager agreement expires 10 years after the commencement of this clause unless the terms of the agreement provide that it expires on an earlier day or the agreement is terminated on an earlier day.

(3)  A reference in any instrument to a caretaker in relation to an existing scheme is taken to be a reference to a facilities manager in relation to that scheme.

If you have any queries about the new community schemes laws, we can assist.

Disclaimer: This is commentary published by Pobi Lawyers for general information purposes only and should not be relied upon as specific legal advice. You should obtain your own legal advice specific to your circumstances before you take any action or otherwise rely upon the contents of this article. The content of this article is subject to change.

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