This article is about the new NSW strata laws commencing in 2025.
On February 3, 2025, significant changes to strata laws will come into effect in New South Wales.
These reforms are designed to enhance transparency and accountability within the strata management sector. Whether you’re a strata property owner, a member of an owners corporation, or a strata manager, it’s crucial to understand these new regulations and how they will impact you.
Key Changes to Strata Laws
1. Increased Disclosure Requirements: Strata managers will now be required to provide more detailed and frequent disclosures to strata property owners. This includes:
- Connections with suppliers and developers
- Any commissions or training services received
- Detailed financial statements and reports
2. Enhanced Transparency: The new laws aim to ensure that strata managers act in the best interests of the owners corporations. By mandating comprehensive disclosures, the reforms seek to eliminate conflicts of interest and promote fairer management practices.
3. Penalties for Non-Compliance: Strata managers who fail to comply with the new disclosure requirements could face significant penalties. This underscores the importance of adhering to the new regulations and maintaining transparent operations.
Impact on Strata Property Owners
For strata property owners, these changes mean greater insight into the management of their properties. Owners will have access to more information, enabling them to make informed decisions and hold strata managers accountable.
What Strata Managers Need to Do
Strata managers should start preparing for these changes now. This includes:
- Reviewing and updating disclosure practices.
- Ensuring all financial and operational records are accurate and up-to-date.
- Communicating with owners corporations about the upcoming changes and how they will be implemented.
Conclusion
The new strata laws in NSW represent a significant step towards more transparent and accountable strata management. By understanding and complying with these changes, both strata managers and property owners can contribute to a fairer and more efficient strata system.
Adrian Mueller JS Mueller & Co Lawyers E: adrianmueller@muellers.com.au P: 02 9562 1266
This post appears in Strata News #727.
If you have a question or something to add to the article, please leave a comment below.
Disclaimer: The information contained in this article is provided for your personal information only. It is not meant to be legal or professional advice nor should it be used as a substitute for such advice. You should seek legal advice for your specific circumstances before relying on any information herein. Contact JS Mueller & Co for any required legal assistance.
JS Mueller & Co Lawyers has been servicing the strata industry across metropolitan and regional NSW for over 40 years. We are a specialist firm of strata lawyers with in depth and unmatched experience in, and comprehensive knowledge of strata law and levy collection.
Read next:
- NSW: Tough new strata laws pass Parliament
- NSW: Strata Managing Agents Legislation Amendment Act 2024
- NAT: Many strata managers who handle apartments are conflicted: here’s how
This article has been republished with permission from the author and first appeared on the JS Mueller & Co Lawyers website.
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