Author: Lindsey

Audio Visual Links for Witnessing Documents

Posted on by Lindsey

 

The Electronic Transactions Amendment (COVID-19 Witnessing of Documents) Regulation 2020 (NSW) (The Regulation) is another government initiative in response to COVID-19. The Regulation officially came into force on 22 April 2020 and aims to provide clarity on how some documents can be witnessed by an eligible witness via audio visual link.

One of the most critical aspects of the Regulation is that it does away with the requirement for a witness to be physically present to witness the execution of documents.

What does audio visual link mean?

Audio visual link means any technology that enables audio and visual communication between two persons who are not physically present in the same room. This usually consists of the classic video conferencing platforms such as Zoom, WhatsApp, Skype and FaceTime.

What documents can be witnessed by audio visual link?

The Electronic Transactions Amendment (COVID-19 Witnessing of Documents) Regulation 2020 makes the following changes:

  • Documents that require a witness may be witnessed by audio visual link (AVL)
  • Tasks in relation to witnessing a document may be performed by AVL

The below documents can now be witnessed through an audio-visual platform:

  • a will;
  • a Power of Attorney or Enduring Power of Attorney;
  • an Appointment of Enduring Guardian;
  • a deed or agreement;
  • an affidavit (including any annexure or exhibit to an affidavit) except for the purposes of divorce; and
  • a statutory declaration.

So, what is actually meant by witnessing documents being signed by AVL?

Under the new regulation, a witness must see a person signing the document in real time to confirm the signature is legitimate, which they can now do by viewing the act of signing by one of the many face to face video conferencing methods.

The witness can then sign the document, or a copy of the document, to confirm they witnessed the signature.

This could be done on a hard copy that is scanned and sent to the witness or on an identical counterpart of the document that the signatory signs. The witness must be reasonably satisfied that the document they sign is the same document, or a copy of the document signed by the signatory. Also, the witness must endorse the document with a statement that specifies the method used to witness the signature and that it was witnessed in accordance with the new regulation.

Written oaths, declarations or affidavits required for a purpose specified in section 26 of the Oaths Act 1900 may be taken or made before an Australian legal practitioner.

What is meant by this amendment is that a New South Wales Legal Practitioner will not be the only legal practitioner that can witness an Oath, Declaration or Affidavit in New South Wales, any licensed Australian Legal Practitioner will be accepted.

Statutory declarations may be made before the Commonwealth’s expanded definition of whom a statutory declaration under the Statutory Declarations Act 1959 (Cth) may be made. This list includes:

  • architect
  • chiropractor
  • dentist
  • financial advisor or planner
  • legal practitioner, with or without a practicing certificate
  • medical practitioner
  • midwife
  • psychologist
  • veterinary surgeon
  • Justice of the Peace
  • optometrist
  • occupational therapist
  • nurse
  • migration agent registered under the Migration Act 1958
  • pharmacist
  • physiotherapist
  • trademark attorney
  • patent attorney

Agents need to be sure that documents that they are collecting or preparing for property transactions have been witnessed by an appropriate person, to ensure the validity of the process.

How do I witness a document by audio visual link?

In order to have a validly witnessed document it is imperative that the Regulation is followed correctly and carefully.

In accordance with the Regulations, a person witnessing the signing of a document using an audio-visual link must:

  1. Observe the person signing the document in real time (i.e. not via a pre-recorded video) to confirm the signature is legitimate.
  2. Next, the person witnessing the document must sign the document (or a copy) as soon as possible after the witnessing via audio visual link to confirm they witnessed the signature. This could be done on a hard copy of the original document that the signatory signed which is either sent in the post or electronically to the witness.
    • It is important to note that the person witnessing the document must be reasonably satisfied that the document signed by the witness is the same document signed by the signatory.
  3. The person witnessing must then state on the document the method of witnessing (either countersigned or counterpart) that was used and that it was witnessed in accordance with the Regulation.
      • For example: “I, attest that this document was signed in counterpart and witnessed by me by audio-visual link via Skype in accordance with clause 2 of Schedule 1 to the Electronic Transactions Regulation 2017”.

These temporary regulation changes will expire on 26 September 2020, unless changed by further regulation or resolution of Parliament.

Leasing Your Garage Space

Posted on by Lindsey

 

With car spaces at such a premium in the city and inner city, it’s no wonder growing numbers of owners with space to spare are leasing car spaces out to nearby workers or nearby residents short on space of their own.

Especially in commercial districts and properties near train stations where street parking is limited and parking stations are expensive, there is a demand for workers and commuters to have a secure and reliable place to leave their car.

There may also be other people in your complex that would appreciate a little extra storage space beyond their own garage.

What are the implications of leasing out your garage?

Unless your strata scheme has a specific by-law restricting the ability to rent a parking space or garage to a third-party then there’s nothing to prevent you from doing so.

This space is considered part of your lot allocation.

If you’re interested in purchasing a property in a strata scheme with the intention of renting out the garage, always check the by-laws prior to buying the apartment.

However, before embarking on a lease arrangement, it’s important to enlist the aid of a lawyer in drawing up a lease agreement that clarifies both parties’ expectations (in detail).

Houses for rent are governed by the Residential Tenancies Act, which lays down the law for landlords and tenants on everything from who is responsible for repairs and maintenance to grounds for ending a tenancy.

As non-residential spaces, car parks and garages are not covered by the RTA.

What’s the Arrangement?

Private parties effectively enter a commercial leasing arrangement and experts warn that contracts that are light on detail can lead to trouble! So be mindful in the agreement drafting stages.

A part of the process, we’d strongly recommend having the renter sign a detailed Parking Space Lease. This way you’ll have a legally binding document that outlines the terms of the agreement.

If you want to limit access, you could use the lease to specify that the space can only be used during certain times such as business hours or on the weekend. You can also set the time period so that in six months for example, depending on market conditions, you could increase the rent.

It’s important to be mindful that while the renter is on the scheme’s property, you are liable for any damage they may cause to your lot – in the same way that you’re liable for any guests that visits your apartment.

You may consider taking out landlord insurance for peace of mind. Insurance should be addressed up front.

Key issues to address in a lease include defining the exact space for rent, its current condition and the condition in which the property is to be left at the end of the agreement, the duration of the agreement, the mechanism for ending it, the process for resolving problems (such as rent arrears) and the nature of the possession.

Will the tenant have exclusive access, for example, or will the owner be walking through it regularly or using one corner for storage?

It’s also critical to clarify who is responsible for cleaning, maintaining and repairing the space. Unlike a residential tenancy agreement, unless the parties agree on a regime for responsibility, neither party actually has an obligation to do it.

Like the apartment itself, if you are using the garage for storage, you’re welcome to construct free-standing shelving without permission from the Strata Committee. But any structural changes would require prior approval.

Can I lease a Garage out as a Bedroom?

While using the garage for storage or a vehicle is legal, this space cannot be used as a bedroom because it is not deemed to be a “habitable” area. There are serious safety issues with living in a garage and there are Council regulations also.

Furthermore, standard insurance policies held by the Owners Corporation would not include human occupation of the garage.

If you believe that a garage in your scheme is being inhabited, call your Strata Manager who will then contact the owner for further investigation. If needed, the NSW Civil and Administrative Tribunal (NCAT) has the power to intervene and issue an order to the owner.

Winter’s Chill Creates Ideal Mould Environment

Posted on by Lindsey

 

The strata sector is at risk of increased mould growth as Winter continues to create an environment with heat, condensation (moisture), and reduced ventilation.

What is Mould?

Mould is part of a group of quite common organisms called fungi that also include mushrooms and yeast. It is present virtually everywhere, both indoors and outdoors.

Mould may grow indoors in wet or moist areas lacking adequate ventilation, including walls/ wallpaper, ceilings, bathroom tiles, carpets (especially those with jute backing), insulation material and wood.

If moisture accumulates in a building mould growth will often occur.

Many different types of mould exist and all have the potential to cause health problems.

Who is at Risk?

People with asthma, allergies, or other breathing conditions may be more sensitive to mould. People with weakened immune systems (such as people with HIV infection, cancer patients taking chemotherapy or people who have received an organ transplant) and with chronic lung diseases (such as Chronic Obstructive Pulmonary Disease (COPD) and emphysema) are more at risk of mould infection particularly in their lungs.

How can I prevent ​mould from growing in my home?

Although mould can be found almost anywhere, it needs moisture and nutrients to grow. The key to preventing mould growth is reducing dampness in the home.

This can be done by:

Maintaining proper ventilation

  • Turn on exhaust fans, particularly when bathing, showering, cooking, doing laundry and drying clothes.
  • Open windows when weather permits, to improve cross ventilation.

Reduce hu​midity

  • Limit the use of humidifiers.
  • Limit the number of fish tanks and indoor plants.
  • Limit use of unflued gas heaters

Controlling moisture/dampness

If water enters your home, completely clean and dry water-damaged carpets and building materials. Discard material that cannot be cleaned and dried completely.

What can I to do​ if I have mould in my home?

It is good to remove mould as soon as it appears. This may take some effort. Remember that mould is likely to return unless you also take steps to treat the cause of the problem

How can I remo​ve mould from my home?

For routine cleanup of mouldy surfaces, Health NSW suggests the use of mild detergent or vinegar diluted in water solution (4 parts vinegar to 1 part water).

  • If the mould is not readily removed and the item cannot be discarded, use diluted bleach solution (250mls of bleach in 4 litres of water) to clean the surface. When using bleach, protective equipment is recommended: PVC or nitrate rubber gloves; safety glasses; and safety shoes. Make sure the area is well-ventilated while you are cleaning with bleach.
  • Ensure the surface is dried completely once cleaned.
  • Absorbent materials, such as carpet may need to be professionally cleaned or replaced if they are contaminated with mould.

Landlords and Tenants:

Mould can cause a state of disrepair at rented premises. This can be the result of a breach of the residential tenancy agreement by the landlord or the tenant (e.g. the landlord fails to attend to dampness or the tenant fails to ventilate the premises).

Tenants must:

  • keep the premises ‘reasonably’ clean
  • tell the landlord about any damage to the premises as soon as possible
  • take reasonable steps to mitigate (limit or avoid) loss

Landlords must:

  • provide the premises reasonably clean and comply with minimum standards to be “fit for habitation”, including having adequate ventilation, plumbing and drainage
  • ensure that the premises are structurally sound, such that floors, ceilings, walls and supporting structures are not subject to significant dampness; and that roof, ceilings and windows do not allow water penetration into the premises keep the premises in ‘reasonable’ repair (except where the disrepair is caused by the tenant breaching the tenancy agreement) mitigate loss.

 

Winter’s Chill Brings Increased Fire Risk

Posted on by Lindsey

 

Fire and Rescue NSW indicate that cooler months see a 10% increase in the number of home fires, with more fires in bedrooms and living rooms due to heaters and electric blankets.

We are urging all to remain vigilant as the allure of using internal heaters to warm up an apartment remains ever enticing across the state. Due to the colder Winter months and the increased need for internal heating; fires remain a very real threat.

Fire and Rescue NSW  provide a heater and winter months safety fact sheet:

  • Check your electric and gas heaters before you use them. If you suspect a fault have the item checked by a qualified repairer or replace it. Check all cords for fraying and damage. Plug heaters directly into wall sockets only.
  • Do not overload powerboards.
  • Ensure everything is kept a metre from the heater.
  • Install any new heaters and use as per manufacturer’s instructions.
  • Check your portable outdoor heaters before use and have them serviced or replaced if required. Ensure that the area where you plan to use them is level, well ventilated and away from awnings and other combustible materials.
  • Always supervise young children in rooms with open fires or working heaters.
  • Never use wheat bags in bed.

Further, never use any outdoor heating or cooking equipment inside your home including those that use ‘heat beads’ or LPG as a fuel source. This type of equipment is not suitable for indoor use and can lead to a build-up of lethal gases which could be deadly. Always check the manufacturer’s recommendations before use.

We are urging all members to heed these safety recommendations and to take utmost care when heating their apartments, units or townhouses. Particularly in buildings identified as ‘at risk’ of flammable cladding.

ACP cladding remains a real cause for concern with internal heater usage skyrocketing in the Winter months. This is a risk which has the potential to impact the lives of tens of thousands of people in NSW.

There are still hundreds of buildings in NSW that have been identified as being at risk because of flammable cladding. The last thing we want to see is an injury or death, or major damage to a building caused by a catastrophic fire.

Please practise vigilance while heating your homes!

DISPOSING OF GOODS ABANDONED ON COMMON PROPERTY – NEW LAWS

Posted on by Lindsey

INDUSTRY UPDATE

Disposing of Goods Abandoned on Common Property – New Laws

prepared by Bannermans Lawyers

As from 1 July 2020, new laws apply to disposal of goods abandoned on strata common property. New legislation came into force on that date, amending various acts and effectively transferring regulation of goods abandoned on strata common property from the Strata Schemes Management Act 2015 (“SSMA”) to the Uncollected Goods Act 1995 (“Act”).

Key points:

  • The procedures previously available under the SSMA are no longer available.
  • For the purposes of the Act, uncollected goods include goods which an owners corporation reasonably believes have been abandoned or left behind on common property of the strata scheme.
  • A person disposing of goods will have no liability if they have done so in accordance with the Act or an order of the Tribunal.
  • The Act divides goods into various categories and applies different rules for each:
    • Perishable goods and rubbish may be disposed of without restriction.
    • Low value uncollected goods are uncollected goods having a value of less than $1,000. The party in possession of such goods may dispose of them in “an appropriate manner” if they have given the owner written notice of their intention to do so and the owner has been given at least 14 days to collect the goods. They may move or store low value uncollected goods in an appropriate manner.
    • Medium value uncollected goods are uncollected goods having a value of at least $1,000 but less than $20,000. A party in possession of medium value uncollected goods may dispose of them by public auction or private sale for a fair value, if the party in possession of the goods has given the owner written notice of their intention to do so and the owner has been given at least 28 days to collect the goods. They may move or store uncollected goods in an appropriate manner.
    • High value uncollected goods are uncollected goods having a value of at least $20,000. A party in possession of high-value uncollected goods may only dispose of them in accordance with an order of the Tribunal, but may move or store high value uncollected goods in an appropriate manner.
    • Personal documents are defined in the Act and include identity documents, records, photos and memorabilia. A party in possession of personal documents may dispose of them after giving written notice to the owner of their intention to do so and giving the owner at least 28 days to collect them. The party in possession of personal documents must dispose of them by secure destruction or returning them to the owner.
    • Motor vehicles are subject to an additional requirement, being that the party disposing of them must obtain a personal property securities register certificate confirming that they are not encumbered and a police certificate confirming that they are not stolen.
  • A party disposing of uncollected goods must keep appropriate records for at least 12 months in the case of low value uncollected goods and otherwise for six
  • The Tribunal is given power to make an order for disposal of the goods and various ancillary orders.

For more information on the rules to move and dispose of uncollected goods, see the NSW Fair Trading Website

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Design and Building Practitioners Act 2020

Posted on by Lindsey

INDUSTRY UPDATE

Construction Defects – new rights for Owners

written by Colin Grace –  Grace Lawyers

Whilst the world has been concentrating on social distancing, working from home, getting the washing done and the kids back to school Parliament has been busy.

On 11 June 2020 the Design and Building Practitioners Act 2020 (DBPAct) came into force.  Big deal you may think….  Well yes, it is a big deal, a really big deal!!

This new legislation will change the landscape of construction and is a great step forward in consumer protection.  In 2014 we acted for an owners corporation in Chatswood who lodged a claim against the builder.  The case ran all the way to the High Court which found that the builder didn’t owe a duty of care to the Owners Corporation (Brookfield Multiplex Ltd v SP61288 [2014] HCA 36). 

Since that time, we have advocated (with SCA NSW) that there must be some form of statutory duty of care against people involved in building construction and not just across residential buildings but the consumer market as a whole. 

The legislation is being implemented in 2 stages.  The first is the commencement of the duty of care for buildings.  The second (starting next year) will concentrate on the construction element and those involved in the construction (we will comment on this in the future).

There are 3 major changes as a result of this new legislation:

  1. Builders, designers, product manufacturers and suppliers, and supervisors now owe a duty of care to the building owners, which cannot be delegated or contracted out of;
  2. There is increased scope of powers given to the Secretary of the Department of Customer Service (also under the Residential Apartment, Building (Compliance and Enforcement Powers) Act 2020;
  3. A registration and certification process for design practitioners, professional engineers, specialist and building practitioners.

Naturally, there are no cases on the interpretation of the new provisions and there has already been many comments made on the new provisions.  From a basic review of the duty of care obligations they extend to any building that is approved (and built) under the Environmental Planning and Assessment Act, so in short almost every building! 

The legislation goes on to include any strata scheme registered under the Strata Schemes Management Act 2015.  It is here that it all gets interesting!

If read broadly (and we think correctly) the new legislation does what we have all been waiting for – to give owners of ALL strata schemes rights under a duty of care in the construction of their building including commercial, retail, industrial and of course residential.

This new duty of care is retrospective (for a period of 10 years from the date of its commencement).  Naturally there will be some conditions surrounding how this will work but the basics are that if you become aware of defects within the last 10 years you need to seek advice on whether you now have a claim under the DBPAct.

The DBPAct allows actions against basically those involved in the construction of your strata scheme (including builders, developers, designers, certifiers, suppliers, installers, sub-contractors etc).

The catch is that because you can now blame/claim against a number of people, they can in turn can claim/blame against each other for what is called “proportionate liability”.  This is where the Court/Tribunal apportions blame (and therefore compensation) for the defects and may divide up who pays what amount of any successful claim.

There will be a range of impacts on your strata scheme:

  • As a commercial, industrial, retail strata previously you couldn’t use the Home Building Act 1989 (HBA) but had to rely on other civil remedies to seek restitution (misleading certification, misleading statements etc), now at first blush, the DBPAct allows a direct right to take action against those involved in the design and construction(and effectively overturning the Brookfield decision);
  • You may have new rights to action against those involved in your development. This will be a major increase in liability for those involved in the construction of a strata scheme;
  • If you are out of time under the Home Building Act 1989 (HBA) then you may be able to take action now for those defects;
  • If more defects have manifested after the statutory warranty periods in the HBA have expired then you may be able to take action;
  • If there are defects that were not part of the original claims then you may have rights;
  • If the builder went into liquidation before or during your HBA claim then your rights against others involved in the development may now be covered;
  • If there were design defects in your building which were difficult to pursue then this new legislation allows a claim against those involved in the design;

It appears, that these new rights extend well beyond those rights under the Home Building Act 1989 and will create rights over defective building work that wasn’t previously covered.  It also covers the situation where some or all defects were outside of the statutory warranty periods under the HBA or other restrictions.  These claims may now be valid claims.

This is a major benefit to Owners Corporation’s and something that the Owners Corporation should seriously consider obtaining advice on.

At first, the Owners Corporation need to determine whether there are any defects that fall within these new provisions.  In order to assess this, the Owners Corporation should do the following:

  1. Review all previous reports concerning defect construction work and previous claims (and any settlements);
  2. Determine whether there are any defects that apply to the new legislative provisions. Some of these defects would include design defects that were not part of any HBA claim;
  3. Determine whether the Owners Corporation has undertaken any rectification works to defects that have occurred previously (and not part of any previous claim that was resolved). There may be avenues for Owners Corporation’s to recover these costs;
  4. Have your previous claims or any new claims reviewed by your legal team to determine the applicability of these new provisions.
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2019/2020 EOFY in Review

Posted on by Lindsey

We would like to summarise our last financial year as we enter a new financial period.  

With a semblance of familiarity creeping back into our lives as Public Health Orders have continued to ease restrictions imposed due to COVID-19; we’re proud of the hurdles SCA (NSW), and its members have overcome as a community, and the continued work that allows us to deliver expert services and support and advocate for the Strata industry as a whole. However, with cases of COVID-19 in Victoria spiking and the borders closing to mitigate the spread, we need to remain vigilant as a community and ensure we do not become complacent.

We will continue to uphold strict hygiene measures in our ongoing fight against COVID-19, despite lockdown measure in NSW easing.

Many of us are back working in the office, our kids back at school and our family and friends able to socialise at an increased level.

Strata Community Association (NSW) has had an eventful financial year!

We’ve taken great strides in projects that we launched earlier this year, specifically working towards a Professional Standards Scheme, funding research into the impacts of defects across the state and advocating for amendments to Strata regulation to help our members deal with the impact of coronavirus.

The last 12 months have presented enormous challenges to the strata industry, and there will be many new challenges ahead.

We’re ready to tackle them together.  

The 2019 Coronavirus (COVID-19) pandemic is a global crisis, affecting the lives of many.

We’ve developed a fluid and central guide to help keep you and your family informed during this time of crisis, especially within a strata community. We’re continually updating information as it becomes available to us, so stay tuned and stay safe.

Our guideline was developed to assist building managers, committees and residents by delivering pertinent information in a centralised source document”.

We wanted information about as many relevant facets of strata living to be included to help keep our strata communities updated on policies and procedures during this trying time.

We have organised our education delivery service to be moved entirely online, including the establishment of our dedicated COVID-19 portal on the website to deliver the most up to date information in a timely manner.  

We have also scheduled and run up to three webinars weekly for members and the community during the height of COVID-19 lockdowns – inviting key members of the community, expert stakeholders and guests to share their knowledge and expertise with our members. The webinar recordings can be accessed via our dedicated OVID-19 page.

Our goal was to be agile when lockdowns were enforced, and our business continuity plan ensures that we’re able to continue our service delivery in the best way able for our members.

We continue to collaborate with State and Federal Government and local authorities to implement innovative industry relevant strategies, we have advocated changes in regulation, presented plans, launched research initiatives, and weathered the COVID-19 pandemic.  

We are committed to working with the NSW Government and Building Commissioner to ensure that strata remains a key policy priority for the increasingly significant proportion of the State’s residents who reside and work in strata.

Monumental strides were made in this space over the last 12 months!

SCA (NSW), were very vocal in recommending legislative amendments which not only supported the industry but streamlined administrative functions for many strata residents and corporations to ensure that legislation was met, and health and safety continued to be paramount throughout lockdown restrictions!

New South Wales (in particular), is transitioning towards a brighter future and SCA (NSW), and our industry is at the forefront of restoring consumer confidence. Our rapport with the Building Commissioner and State Government continues to strengthen.

Throughout 2019/2020 Strata Community Association (NSW) has maintained an active advocacy program and profile in national and state media, representing the interests of our members and the millions of people who live in and own a Strata titled property.

We’ve made several important submissions to relevant authorities vocalising several issues and recommending changes to better suit the industry, including:

  • Submission to the Short-Term Rental Accommodation Regulatory Framework
  • Submission to the proposed Amendments to the Property, Stock and Business Agents Regulation
  • Submission to the proposed Design and Building Practitioners Bill 2019
  • Submission to the Building and Development Certifiers Regulation 2019
  • Submission to the Community Schemes Law Reform
  • Submission to the Miscellaneous Amendments Explanation for COVID-19
  • Submission to the Certification of Annual Fire Safety Statements
  • Submission to the Emergency COVID-19 Measures in Strata and Community Laws

Our professionalism, expertise, advocacy, and recommendations will continue to serve our members into the future.

We believe our persistence has paid off and that millions of strata dwellers are set to benefit.

It’s been a particularly difficult start to 2020 with the COVID-19 pandemic and subsequent lockdown restrictions changing the way we operate and throwing our members, the community and the nation into economic unrest.

Nonetheless, SCA (NSW) worked tirelessly to deliver support to the industry, and ensure legislation was updated to benefit those who live in, own, or work in Strata titled property.

SCA (NSW) has had a highly active 2019/2020:

  • New South Wales Building Commissioner being appointed in August 2019
  • Participating in the Community schemes law reform in December 2019
  • Changes to NSW fire safety statements forms in January 2020
  • Lockdown Restrictions and developing innovative service solutions in Feb 2020
  • NSW Residential Tenancies Regulation 2019 coming into effect March 2020
  • Real Estate and Property Industry Reforms being announced in March 2020
  • Changes to Short Term Rental Accommodation in NSW April 2020
  • Amendments to Witnessing Legal Documents regulation in April 2020
  • NSW releasing final report on the cladding and building crisis in April 2020
  • Fire Safety Reforms coming into effect April 2020
  • COVID-19 Tenancy Changes May 2020
  • NSW passing Community Land Management Amendment (COVID-19) Regulation 2020 and Strata Schemes Management Amendment (COVID-19) Regulation 2020 to provide relief to strata owners and committees in June 2020
  • New regulations to prevent building defects and boost confidence in NSW June 2020

SCA (NSW), plays a huge role in advocating for consumers and ensuring the Government is addressing the issues our industry is facing.

We’re happy to report our advocacy over the last financial year has had a direct impact on the safety, wellbeing and overall benefit to our members and the industry.

We have been very active in the media.

 

Publishing a media release on average once per week over the last financial year, and our stories being picked up and published at least once a week for the same period.

 

This is a positive result; an initiative we are proud to continue as part of our wider government relations strategy.

Professional Standards Scheme:

Earlier this year SCA (NSW), initiated the process of forming our own Professional Standards Scheme regulated by the Professional Standards Australia; a lengthy, beneficial, and most importantly, revolutionary step forward for our industry. A decision which synergises with Government expectations and innovation necessary within our sector.

Their plans for industry-wide reform will not be driven by government alone. Associations (like us), are working towards lifting professional standards to aide in the Government’s efforts to resort sector confidence and we are embracing their expectations in uplifting regulations across the sector.

Our hope is that by attaining a Professional Standards Scheme, we professionalise the Strata Management industry to the highest level. This is in line with the New South Wale’s Government plan to rebuild the construction sector, restore confidence and enshrine competence, professionalism, and a form of self-regulation within the industry.

Strata Portal:

The building defects crisis has spotlighted the potential vulnerability of consumers buying off the plan.

New buyers have limited information about potential risks associated with owning the strata property or how construction and the strata sector operates.

Following the high-profile failures of the Opal and Mascot towers there has been substantial loss of confidence in new apartments. While the strata communities have grown, there has been no equal investments to support these strata communities.

As part of identifying high level requirements, SCA (NSW), has been part of the roundtable discussions for the Minimum viable product that can assist to improve the transparency, accountability, and quality of work within the building sector.

The objective of the wider program, the NSW Strata Portal, is to enable end to end oversight into the quality and safety of individual buildings from planning and construction to ownership.

SCA (NSW), recognises that without this central digital workflow and repository, the government’s ability to implement and enforce the new building reforms would be severely restricted.

Construction NSW:

The NSW building regulator will have sweeping new powers to withhold occupation certificates for apartment and other buildings that are not up to standard, denying developers the ability to settle their projects, under new laws passing Parliament.

The ability of the regulator to prevent settlement (the point of profit for developers), is unprecedented and beckons a major change in Australia’s commercial development industry.

These reforms push NSW ahead of other states in the race to beef up regulation of an industry notorious for poor oversight and past systemic failings.

SCA (NSW) are pleased that these Bills have been collaboratively developed through extensive consultation with industry stakeholders such as us, and the public to ensure that the reforms were comprehensive and addressed core issues.

We now have a leading system of design and building regulation that will deliver well-constructed buildings into the future.

Research Project:

SCA (NSW) have helped to fund critical research investigating and addressing the prevalence and occurrence of defects which is an issue affecting many schemes across New South Wales.

Despite these problems, there is no comprehensive data available on defective apartment buildings in NSW: we don’t know how many buildings are affected, what kinds of defects exist, or why they’ve occurred.

As such, SCA (NSW), has assisted in funding and donated staff resources towards a comprehensive research investigation to understand the extent of defects across the state.

Driving the research is the City Futures Research Centre (through UNSW); to identify and quantify defects in strata across NSW, examine causation of quality issues and propose innovative solutions.

Along with SCA (NSW), the City Futures Research Centre have a team of industry partners supporting this new research project to address the defect problem.

Our support and participation have directly led to progressive and unprecedented guides which are now available for all those who live in strata titled property.

The research has progressed to guides being developed for residents and owners delivering a step by step portal to identifying, documenting, reporting and rectifying defects in strata schemes.

The ‘Defects Rectification Guide’ is developed as a first point of call if owners are worried about defects in apartment buildings.

We are pleased to be associated with this research, as the findings will have important implications for the future of the strata industry.

RERG:

SCA (NSW), continues to work closely with our regulator NSW Fair Trading.

As one of the industry associations involved in the RERG (The Real Estate Reference Group), our purpose is the consultation on the reforms and other issues affecting the property Industry.

The SCA (NSW) Board has worked closely to ensure the changes, including pathway and wording, under the reforms were in line with the duties carried out by our strata managers and LIC’s alike.

In addition, SCA (NSW), made up the key representatives for the CPD subcommittee to ensure guidelines for Continuing Professional Development were in line with the Qualifications needed.

The goal to raise standards of education and conduct in the Industry, provide consumers with sufficient protection, and encourage ethical, competent, and professional conduct.

ICIRT:

SCA (NSW), is pleased to be part of a collaboration of nationally focused Industry stakeholders to assist the building commissioner David Chandler. Our work is to consult on the establishment of a ratings tool (ICIRT), to restore public trust and consumer confidence in construction.

Our role in the built environment industry is representing our strata managers, lot owners and stakeholders living in, residing, or working in strata titled property. We are part of the iCIRT Industry Group as part of ongoing advocacy work in the property sector.  

SCA (NSW) has and continues to share insights into the performance of builders and developers, sharing experiences of our membership on quality of work or issues around defects, remedial works, or new developments.

We see value in an improved operating environment with more independent verification and rating.

The tool will be launched in Mid-2021.

 

Moving forward in 2020:

We want to assist you in bringing about the next chapter in Strata and will ensure our industry is more convenient for all involved. We believe communication and collaboration is more important than ever, and we gladly nominate ourselves to act as the centralised voice and peak authority for any and all strata related matters. 

Keep your eyes peeled… Over the next few months, we have some new initiatives and exciting announcements to share, kicking off what we believe to be an eventful 20/21 financial year.

Stay healthy, stay connected and stay safe.

New HomeBuilder Scheme

Posted on by Lindsey

The new HomeBuilder Scheme will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home where the contract is signed between 4 June 2020 and 31 December 2020.

What is the HomeBuilder scheme?

The $688-million HomeBuilder package was launched to drive economic activity across the residential construction sector.

The HomeBuilder package will offer $25,000 grants to Australians who wish to build a new house up to $750,000 or undertake a major renovation that costs a minimum of $150,000.

The renovations need to be valued between $150,000 and $750,000, and the dwelling value cannot exceed $1.5 million before the new work commences.

Who Is Eligible?

To be eligible for the scheme, you need to be an owner-occupier, building or renovating a home and meet the following criteria:

  • You are an Australian citizen aged 18 or over, you can’t access it through a company or trust
  • Your annual income needs to be less than $125,000 for individual applicants, or less than $200,000 for a couple based on your 2018-19 tax returns or later.

What can be done? Does my project qualify?

For renovations:

  • If you are renovating, you need to be spending more than $150,000.
  • If you are renovating an existing property it needs to be valued at less than the national price cap of $1.5 million.

The works must be completed by a currently registered or licensed builder – so you will not be able to get a friend or individually employ tradespeople to complete the renovations

The building works must improve the liveability, accessibility or safety of your home. Things such as pools, outdoor spas and saunas, tennis courts, sheds or garages are not eligible for the grant.

There are three types of categorised renovations for strata homes:

  • Cosmetic work
  • Minor renovations, or
  • Major renovations.

Cosmetic work:

Owners can do cosmetic work without approval. This includes day-to-day work such as:

  • Installing or replacing hooks, nails or screws for hanging paintings or other things on walls
  • Installing or replacing handrails within your lot
  • Interior painting
  • Filling minor holes and cracks in internal walls.

The owners corporation can declare other types of work as ‘cosmetic’ if they pass a by-law.

Minor renovations:

Owners need approval, over 50 percent of the votes in favour, before doing any minor renovations.

Minor renovations include:

  • Renovating a kitchen
  • Changing recessed light fittings
  • Installing or replacing wood or other hard floors
  • Changing internal walls
  • Sustainability measures (such as a clothesline or reverse cycle air conditioner). However, these cannot involve changing the outside appearance of a lot or structural changes.

The approval process may need the owner to give details of the work. This may include:

  • Any plans of the work
  • When the work will be carried out (times and dates)
  • Qualifications and details of the tradespeople who will do the work.

Speeding up the approval process:

The owners corporation can pass a by-law which allows the strata committee to approve minor renovations.

The owners corporation can also pass a by-law to define other kinds of work as minor renovations.

Major renovations:

Major renovations include:

  • Structural changes
  • Waterproofing
  • Changes affecting the outside appearance of the property, such as an access ramp
  • Work that needs approval under other laws (for example, council approval).

Approval for major renovations:

The work needs a special resolution vote. Then the owner must give the owners corporation at least 14 days written notice before the work starts. This should describe the proposed alteration.

The owners corporation cannot delegate approval for major renovations to the strata committee.

If you’re wondering whether you can take advantage of the government’s HomeBuilder renovation grant to improve your property, you will need to be contracting work costing between $150,000 and $750,000 – so only ‘major’ renovations will seem to count in this instance.

How can I access HomeBuilder?

To be eligible for the $25,000 grant you must enter into a building contract between June 4, 2020 and December 31, 2020.

The acceptance date of applications will be backdated to June 4.

What documents will I need?

To apply you will need the following:

  • Proof of identity.
  • A copy of the contract dated and signed by the applicant and the nominated registered or licensed builder.
  • A copy of your builder’s registration or license, depending on state or territory requirements.
  • A copy of your 2018-19 tax return or later to illustrate your eligibility under the income cap.
  • Documents such as council development approvals, building contracts, occupation certificates and evidence of land value.

Can I combine HomeBuilder with other Government grants?

Yes, you can.

Revenue NSW is working to open the HomeBuilder grant for eligible NSW owner-occupiers as soon as possible.

Strata Property Issues

Renovating in a strata scheme:

The HomeBuilder grant is available to strata property owners wishing to undertake renovations that cost a minimum of $150,000.

However, before you start work on that new bathroom or kitchen, strata property owners need to understand their rights and responsibilities regarding renovating their lot.

Many owners corporations will have similar by-laws in relation to “alterations to a lot”. The by-laws generally require an owner to submit a written request to the owners corporation for approval.

Always check the by-laws in your strata scheme for any mention of needing to seek permission for improvements or renovations and consider whether your changes are structural or could affect common property.

Improvements such as putting in a hard floor (timber or tiling) is often subject to by-laws, and realistically any renovations exceeding costs of $150,000 will most likely need approval.

If you are unsure about the need to apply for approval you should contact your building manager.

In any case you should also notify the committee and other residents to notify them of potential noise issues during renovations and the ongoing presence (including parking or access required) of tradespeople on the property.

All substantial changes or upgrades to a lot or to the common property should be recorded for insurance purposes.

Proper communication that keeps everyone up-to-date and informed will promote greater cooperation between resident and ultimately a stronger and happier strata community

 

Covid-19 coming out of isolation

Posted on by Lindsey

As our communities become more active and we continue getting back to business, we wanted to emphasise the importance of following Public Health Orders as we phase back into normality.

We’d like to reiterate government advice and procedures for what you can and can’t do under the current rules for our members, as restrictions start to lift.

As restrictions lift, it’s important that we:

  • follow the rules about gatherings, self-isolation and quarantine
  • maintain a physical distance of at least 1.5 metres from others
  • practice good hand hygiene
  • stay active and healthy
  • take extra care if you’re around vulnerable people
  • get tested if you have any symptoms, even if they are only mild
  • follow NSW Health advice about staying home while you are waiting for test results.

What has changed:

  • On compassionate grounds, restrictions on funerals have eased to allow more than 50 mourners to attend a service subject to the four square metre rule.
  • Up to 20 visitors will be allowed to visit another household at any one time.
  • Up to 20 people will be allowed to gather in a public place.
  • Food and drink premises such as pubs, bars, cafes and restaurants – Capacity must not exceed 50 customers or one customer per 4 square metres (excluding staff) per existing separate seated food or drink area, whichever is the lesser. Venues may have multiple existing seated areas.
  • Any class or organised event at community centres, places of worship or indoor recreation facilities (excluding indoor pools) can have 20 or less participants, excluding any person conducting the classes or events and parents, guardians or carers of participants.
  • Betting agencies will be allowed to have the lesser of 20 customers (up from 10) or the total number allowed as calculated by the 4 square metre rule.
  • Community centres will be able to be opened generally, subject to restrictions.
  • Food courts can open with a maximum of 50 customers per existing separate seated food or drink area, or the total permitted under the 4 square metre rule.
  • Holiday homes and holiday rentals – the current limit of 10 will increase to 20 persons.
  • Markets such as artisan, clothing and craft markets can reopen with restrictions.
  • Tattoo and massage parlours can reopen with restrictions and have up to 20 customers.
  • Nail, beauty, waxing and tanning salons will now be allowed the lesser of 20 customers (up from 10) or the total number allowed as calculated by the 4 square metre rule.
  • Indoor and outdoor swimming pools can open and must follow the 4 square metre rule.
  • Gyms and other recreation facilities can open with class sizes limited to 20 participants. Operators must follow the 4 square metre rule and have a COVID-19 Safety Plan.
  • Major recreation facilities can have the lesser of 20 people or the number of people allowed applying the 4 square metre rule. Operators must have a COVID-19 Safety Plan.
  • Vessels used for scuba diving and snorkelling tours or for commercial whale, dolphin or marine animal watching tours must have no more than 50 customers and a COVID-19 Safety Plan.
  • Vessels used for hosting functions or for commercial tours (excluding those above) must have no more than the lesser of 50 customers, or the total number of people allowed under the 4 square metre rule (including crew members).

Upcoming changes:

  • Community sport will be allowed from Wednesday 1 July.
  • The number of people allowed inside indoor venues that can open will be determined by the one person per 4 square metre rule, with no upper limit. This includes function centres. All activity must be seated only.
  • Cultural and sporting events at outdoor venues with a maximum capacity of 40,000 will be allowed up to 25% of their normal capacity. Events must be ticketed and seated and follow strict guidelines.

The SCA (NSW), Board is urging members to heed government advice and to be patient with the increased easing of restrictions to help protect members and consumers in strata titled complexes during these times.

If you haven’t seen them, we recommend you read the full list of COVID-19 restrictions, and what you can and can’t do currently. Please also visit our dedicated COVID-19 page which we are updating on a regular basis.

By Laws – Pets

Posted on by Lindsey

Despite the much anticipated “pet-friendly” amendments to the new strata legislation, animals are still not automatically permitted in strata schemes even if they are kept wholly within the boundaries of an individual’s apartment.

Last month, two of Sydney’s biggest apartment towers won their battle to ban owners’ pets from their buildings in a verdict that will have far-reaching repercussions for NSW strata residents.

The 260-apartment Horizon in Darlinghurst and the 280-unit Elan in Kings Cross had lost the right in previous cases before the NSW Civil and Administrative Tribunal (NCAT), to enforce their bylaws to keep their premises animal free. However, now both buildings have won on appeal to NCAT in a decision announced on Wednesday.

So, can you keep pets in your apartment or not?

To determine what the keeping of animals position and pet rules for strata is in relation to any particular scheme you must refer to all the by-laws registered on the certificate of title for the common property.

By-Laws:

Owners corporations can choose to adopt the sample model by-laws or make changes to them to manage issues in strata like overcrowding, pets, parking, and smoke drift. Schemes are not required to adopt or adapt any of the model by-laws, they are available to assist schemes in reviewing and making by-laws to suit their scheme.

Model by-laws need to be approved by the owners corporation and registered with NSW Land Registry Services.

The model by-laws include options for:

  • permitting pets
  • dealing with nuisance or hazardous smoking
  • helping owners corporations address noise and short-term letting
  • measures to prevent overcrowding

 

Pets:

The model by-laws provide owners corporations with options to control whether pets are allowed, and on what terms. For example, the owners corporation may choose to have a by-law which:

  • bans pets on the property altogether (other than assistance animals)
  • allows owners to keep a pet and simply provide 14 days’ notice from when the pet has started living on the lot owner’s property, or
  • allows a pet with the written permission of the owners corporation. This particular model by-law states that the owners corporation cannot unreasonably refuse the request. If they do refuse, they must give the owner written reasons outlining why the pet is not being permitted.

In all cases if pets are allowed, the lot owner must still supervise their pet, clean any common property that is soiled, and ensure their pet is not noisy or negatively impacting on other residents.

Even if a strata scheme allows pets, a tenant always needs their landlord’s permission first.

If your scheme proposes changes to the by-laws, these must be put to a special resolution vote at a owners corporation meeting.

The new by-laws also need to be registered with NSW Land Registry Services within six months after the special resolution has been passed. This can be done by lodging a Consolidation/Change of By-Laws form. Tenants must also be notified of any change in by-laws.

We recommend doing your research before deciding to move into a strata scheme with any animal.

If you’d like to review more information, Fair Trading outlines By-laws in strata schemes.

 

 

Wipes and Drains Do Not Mix

Posted on by Lindsey


 

The strata sector is supporting Sydney Water’s warning not to flush disposable wipes down drains or other forms of plumbing over concerns of the wipes being linked to fatbergs; despite a high profile court case deeming certain wipes ‘can’ be sold as flushable.

Sydney Water and consumer advocates have warned against flushing wet wipes down the toilet, after an appeal court ruled the consumer watchdog had not proven it was misleading for Kleenex products to be marketed as “flushable”.

Even though wet wipes might state that they are flushable on their packaging, the reality is that they don’t break down and cause blockages in Sydney Water’s wastewater pipes and plumbing as a result.

Over the last three months, there has been a major spike in blocked drains in apartment buildings in NSW as people turn to toilet paper alternatives, like wipes, which are causing drains to clog.

Blocked drains lead to raw sewage overflows which pose a public health problem and which in apartments and units are costly to fix because of access issues.

We support the warning from Sydney Water that the continued use of disposable wipes could turn into a major public health issue, very quickly.

Apartment buildings are designed differently to residential standalone homes and getting access to drains and sewerage lines is problematic in many apartments. If toilet plumbing lines get clogged with newspapers, disposable wipes, and nappies, it is a difficult and expensive issue to fix.

If more and more people are confined to self-isolation, the prospect of clogged plumbing increases and the problem of raw sewage spills also increases. And because it is hard to find those responsible, the costs typically have to be shared by all owners.

We support the warnings from Sydney Water that strata residents should refrain from flushing disposable wipes; they should be binned instead.

The next frontier of construction confidence

Posted on by Lindsey

With the NSW parliament passing building reforms introduced in the wake of high-profile Sydney apartment defects, the State Government is declaring a new era for building design and construction; with David Chandler OAM committed to manning his post.

Building Commissioner, David Chandler OAM, published an article outlining several key messages and reiterating the importance of proper education, construction and building practices.

There are fewer than 60 working days until the Residential Apartment Buildings (Compliance and Enforcement Powers) Bill 2020 comes into effect on the 1st September 2020.

There are 270 working days until the Design and Building Practitioners Bill 2019 should come into effect on the 1st July 2021.

Combined, these two Bills put the interests of consumers first and show that the Government is serious about lifting the standard of work across the building and construction sector.

We believe these reforms push NSW ahead of other states in the race to beef up regulation of an industry notorious for poor oversight and past systemic failings.

David Chandler OAM has been vocal in his commitment and insight on lifting the standards, covering of on several key messages in his recent article.

The Office of Building Commissioner (OBC) has listed the several important messages referenced in the article:

  1. Universities should make it clear to all future construction sector related graduates that the game has changed in NSW and taking care of their professional records and integrity is paramount to successful careers,
  1. Developers should be taking note of the new RAB Bill now and how they manage their contractors and certifiers,
  1. The OBC’s new ‘Boots on the Ground’ will be looking at product compliance and installation as part of their Occupancy Certificate Audits
  1. The OBC will be publishing case studies from September to call out risky players and instances where professional associations need to raise the bar of ethical performance of their members
  1. It may be time for industry associations to review the standing of their members to avoid potential brand damage – the OBC is keen to start calling out the quality players to help build consumer confidence.

As a peak body and industry association, we’re pleased that these Bills have been collaboratively developed through extensive consultation with industry stakeholders such as us, and SCA (NSW) stand behind, and are ready to assist the Building Commissioner in re-building consumer confidence.