After the recent annoucement by the minister for Fair Trading that the NSW government would review strata laws, we’ve been doing some thinking… here’s a post we first put up on the open forum website established to kick off the review:

Successful strata living is created through the successful creation of a community which in turn is fostered through communication. And yet only those buildings defined to be a ‘large scheme’ – meaning they number more than 100 lots are obligated to provide minutes and agendas to all owners. With large schemes making up only approximately 0.08% of all strata schemes in NSW – that’s a lot of owner’s left potentially in the dark. Given that all major decisions that are within the power of the Executive Committee to decide are made at Executive Committee meetings, surely all owners, no matter the size of the building should be given not only the opportunity to attend those meetings, but are entitled to receive the minutes that detail decisions that are going to impact directly on them – without needing to ask.

It is unrealistic and even unfair to expect that placing agendas and minutes on a noticeboard constitutes proper notice to owners in relation to minutes. Without even debating the somewhat possible dubious placement of noticeboard – what of the many investor owners, who in some schemes often out-number the owner-occupiers? Large expenses impact not only large buildings but all buildings and the obligation to send out minutes – thereby communicating with owners should be one placed on all Owners Corporations.

Not only would owners in general be more informed in relation to the operation of the building but they would become enlightened as to the work and effort contributed by the Executive which in turn becomes clearer and more transparent. In the age of digital communication the distribution of information is simple and cost effective. There seems to be no reason not to keep all owners informed all of the time.

The personality of a building, its livability – is formed undoubtly through the strength and sense of community. It is an often discussed opinion that apathetic owners through their disinterest impact negativity on the sense of shared ownership and responsibility in relation to a building. However – it’s very possible that what is often seen as disinterest is simply a case of not knowing. By obligating through law that all owners are sent the minutes – that all owners are informed and given a genuine opportunity to be involved we may well experienced a shift in the positive towards more harmonious strata living.

The NSW Government is undertaking a review of Strata Legislation and is seeking input from the broader community. Stake holders can have their say by logging onto www.openforum.com.au and answering the following questions:

Q1. What are the main areas of the existing strata and community scheme laws you would like to see changed?
Q2. Can you see any future issues that need to be addressed in the legislation?
Q3. How could the management of strata and community schemes be improved?
Q4. Are there any changes needed to the way disputes in strata and community schemes are resolved?

This process of public consultation will hopefully result in positive, consumer driven amendments to the Strata Schemes Management Act 1996 that will support owners not only in the immediate future but in the years ahead.

As we know strata is the fastest growing sector in the housing market – and you have a chance to help contribute to the laws that will govern how each building is managed. But hurry – consultation finishes on 29 Feb 2011.

The team at McCormacks wishes all our clients a very safe and happy festive season and best wishes for the New Year.

We thank our Executive Committee’s for their continued commitment to the buildings, often a thankless task carried out as a volunteer. We know how much work you put into your buildings and appreciate the effort and time involved.

We also thank the building managers for their ongoing role as a pivotal member of the management team.

Finally we thank each owner for their contribution over the year. We look forward to working with you again in 2012.

With warm wishes

Michael, Hugh and all the team at McCormacks.

McCormacks will be closed from midday 22 December 2011 to January 3 2012. During this time the best way to contact us is by , twitter or facebook.

Successful strata living is all about community and never is this so apparent than during the festive season. This year, more than ever, we have been pleased to see the number of our buildings that have embraced the spirit of shared ownership and interest by hosting end-of-year celebrations.

Owners who feel a sense of pride in their building, who embrace an understanding of working towards the betterment for all and who treat the building as an extension to their own home are the greatest asset any building can have. Ownership in a strata scheme is a form of co-ownership. Sometimes that means putting aside your own vision and accepting that of the majority. In this regard community exists within a strata scheme on two levels – the physical building and the day to day living environment created by the residents. Both are linked and dependent on one another and extends to owners and tenants.

The more appealing a building – the physical ambiance of the common areas, the more likely residents are to take care of and take pride in the common areas – therefore creating a sense of community and shared purpose among those who co-exist within the space. The strata circle of harmony. There are steps committee’s can take to grow the natural sense of community such as regular communications, a communal library or building events.

The staff here at McCormacks often speak of the unique personality each building has. The bricks and mortar physical structure of a building is transformed into a community, complete with its own personality by those who live and work within it.

As unit living continues to grow the support services and consumer driven initiatives are expanding as well. There are a number of easy-to-access information hubs and services available for owners to source information on matters from illegal parking on common property through to the latest green strategies being implemented in apartment buildings.

We are often asked about where to find information and to connect with owners which are going through some common issues. Unit living is all about community creation and growth and this swells beyond the community of individual buildings and into the larger community of strata dwellers throughout the state.

Below are a few useful online resources which are independent of any interest groups and focused on strata occupiers:

Office of Fair Trading strata scheme division

Here you will find general information in relation to strata living and related consumer rights and responsibilities. Presented in plain English the office of fair trading have a number of publications on the site including the “Strata Living” booklet and information sheet “Whose Responsible” detailing what repairs are usually considered to be part of the common property.

Strata Live

This popular and consumer driven resource Strata Live offers both resources and information in relation strata living and a forum where owners are free to discuss and ask questions. The site is dedicated to lot owners and you will see there are

Strata Community Australia (NSW)

The peak strata industry body SCA website can link you to strata professionals; provide information on legislation changes and proposed changes and even features an Executive Committee training video.

Owners Corporation Network (OCN)

Another consumer driven organisation the OCN was founded by lot owners who realised that problems being experienced in one scheme are often being experienced in another. The OCN has grown to become the largest group of lot owners, working together to address issues faced by unit owners.

Of course – we are also always available to answer your questions and connect you to the right people.

A number of our client owners contacted us recently following this article printed in the Sydney Morning Herald property section, Domain. The article written by Jimmy ‘flat chat’ Thompson highlighted a concern in the Office of Fair Trading publication “Who’s Responsible” whereby recessed lighting within a lot was deemed to be common property.

The team at MSM discussed this article at length and quickly concluded that:

1. It is impossible to brush all strata schemes with the same stroke, and the answer as to whether or not recessed lights are common property needs to be considered along with by-laws, date of construction and information like whether or not the lights are original.

2. For the most part recessed lighting will have a component that is not totally recessed and will sit within the air-space of the lot, effectively deeming the light to be lot property

3. Whilst the Department of Fair Trading seem to be of the view that recessed lights are common property this is not the view of all on this issue. In Ilkin “Strata Schemes and Community Schemes Management and the Law”, Ilkin comments that the view of the former Strata Titles Commissioner was that lights are the responsibility of the lot owner. To the best of our knowledge there is no decision which supports the view of the Office of Fair Trading.

4. If the Owners Corporation wish to take the view that recessed lighting is common property, the matter of who is responsible to maintain can be resolved through the passing of a special resolution pursuant to S.62(3) of the Strata Schemes Management Act 1996 which provides an owners corporation an opportunity to resolve:
a. It is inappropriate to maintain, renew, replace or repair the (common) property, and
b. Its decision will not affect the safety of any building structure or common property in the strata scheme or detract from the appearance of any property in the strata scheme.

5. A by-law would require the written consent of each owner and is therefore not a practical solution. A by-law is tantamount to acknowledging the lights are common property.

So the short answer – we do not consider that internal lights are common property and would generally think that no action is required in response to the article. However, if the Owners Corporation want certainty a special resolution can be passed as detailed in S.62(3) of the Strata Schemes Management Act 1996.

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