Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

This Bill is cognate with the Environmental Planning and Assessment Amendment
Bill 2008.

Overview of Bill

The object of this Bill is to amend the Strata Schemes Management Act 1996 (the
Principal Act):

(a) to make it clear that the provisions in that Act relating to the appointment of
caretakers extend to persons who fall within the description of caretaker in that
Act regardless of what they are called, and

(b) to remove the ability of an owners corporation to make by-laws during the
initial period authorising parking on common property, and

(c) to place certain restrictions on the casting of votes by original owners and
certain persons connected with them by using proxies and powers of attorney,
and

(d) to require members of executive committees of strata schemes and candidates
for membership of such committees to disclose connections with original
owners and caretakers of those schemes.

The Bill also amends the Home Building Act 1989 to enable owners of lots in strata
schemes and schemes under the Community Land Management Act 1989 to request
the investigation of building disputes and allow access to common property for the
purposes of such an investigation.

Outline of provisions

Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on a day or days to be
appointed by proclamation.

Clause 3 is a formal provision that gives effect to the amendments to the Strata
Schemes Management Act 1996 set out in Schedule 1.

Clause 4 is a formal provision that gives effect to the amendments to the Home
Building Act 1989 set out in Schedule 2.

Clause 5 provides for the repeal of the proposed Act after all the amendments made
by the proposed Act have commenced. Once the amendments have commenced the
proposed Act will be spent and section 30 of the Interpretation Act 1987 provides
that the repeal of an amending Act does not affect the amendments made by that Act.

Schedule 1 Amendment of Strata Schemes
Management Act 1996
Schedule 1 [1] amends section 40A of the Principal Act to make it clear that the
caretaker provisions of the Principal Act extend to a person who meets the
description of caretaker contained in that section regardless of whether the position
to which the person was appointed is called something else, for example, building
manager. Schedule 1 [8] amends the Dictionary to the Principal Act to make a
consequential amendment.

Schedule 1 [2] repeals section 56 of the Principal Act which enables the owners
corporation, with the approval of the local council, to make a by-law during the initial
period authorising an owner to park a vehicle on the common property of the strata
scheme concerned.

Schedule 1 [3] amends clause 11 of Schedule 2 to the Principal Act to prevent an
original owner or a person connected with an original owner from casting a vote by
means of a proxy or power of attorney given by another owner of a lot in the strata
scheme concerned if the proxy or power of attorney was given pursuant to a term of
the sale contract for the lot or an ancillary contract or arrangement. The amendment
does not prevent a proxy or power of attorney being given by a person to another
person connected with him or her. Schedule 1 [9] amends the Dictionary to the
Principal Act to define when a person is to be taken to be connected with another
person.

Schedule 1 [4] inserts clause 3A into Schedule 3 to the Principal Act to require a
person to disclose that he or she is connected with the original owner or caretaker of
a strata scheme before standing for election as a member of the executive committee
for the strata scheme or being appointed to act as such a member. The proposed
clause also requires a person who is a member of an executive committee or is acting
as such a member to disclose if he or she becomes connected with the original owner
or caretaker.

Schedule 1 [5] amends clause 4 of Schedule 3 to the Principal Act to place certain
limitations on the voting by an original owner on a motion that a member of the
executive committee should vacate office.

Schedule 1 [6] and [7] amend Schedule 4 to the Principal Act to include provisions
of a savings and transitional nature consequent on the enactment of the proposed Act.

Schedule 2 Amendment of Home Building Act 1989
Schedule 2 [1] amends section 48C of the Home Building Act 1989 to make it clear
that an owner of a lot in a strata scheme or scheme under the Community Land
Management Act 1989 may notify the Commissioner for Fair Trading about a
building dispute relating to common property or association property in the relevant
scheme.

Schedule 2 [2] amends section 48D of the Home Building Act 1989 to enable an
inspector to enter common property in a strata scheme or association property in a
scheme under the Community Land Management Act 1989 at the request of an owner
of a lot in the scheme concerned for the purpose of investigating a building dispute.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

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