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How is a new by-law for a Strata Scheme created?

The Owners Corporation can change (amend, repeal or add) existing by-laws. Most by-laws can be changed or created by special resolution passed at a duly convened general meeting of the Owners Corporation.

Notification of any change of by-law must be lodged with the Registrar General not more than 6 months after the passing of the special resolution to make the by-law. This can be done by lodging a 'Consolidation/Change of By-Laws' dealing form for recording on the common property folio. The approved 'Consolidation/Change of By-Laws' dealing form (15CH) contains a certificate of the Owners Corporation which should be completed by inserting the Strata Plan number, the date on which the resolution was passed and the relevant section of the Strata Schemes Management Act 2015 under which the by-law was made.

All by-laws are given a number and any additional by-law should be numbered consecutively commencing with the number 'Special By-law '. The terms of the by-law should be clearly set out in the space provided on the form. Annexures can be added if required.

The seal of the Owners Corporation must be affixed pursuant to s273 Strata Schemes Management Act 2015.

The change of by-law must be incorporated in a consolidated version of the by-laws affecting the strata scheme which forms an annexure to the ‘Consolidation/Change of By-Laws’ dealing form. See clause 24 Strata Schemes Development Regulation 2015 and Consolidation of By-Laws.

The dealing should be lodged by hand at the NSW LRS located at Queens Square Sydney. A scheduled lodgment fee is payable and the Certificate of Title for the Common Property in the strata scheme should accompany the dealing at lodgment.
The Consolidation/Change of By-Laws dealing forms and instructions for completion are available online.

Note

  • A Consolidation/Change of By-Law cannot be lodged for registration more than 2 years after the passing of the resolution for the change (see section 140(1) Strata Schemes Management Act 2015).
  • To be effective the Change of By-Law must be recorded and a notification entered on the Certificate of Title for the Common Property.
  • Where a by-law confers exclusive use of common property or allows special privileges in respect of common property (a ‘common property rights by-law’), the written consent of the owners benefited must be obtained in addition to the special resolution of the Owners Corporation
  • An Owners Corporation cannot change or create a by-law, which confers a benefit or imposes obligations on some, but not all, of the owners during the initial period for the scheme (see section 140(1) Strata Schemes Management Act 2015).
  • There are restrictions on the matters on which by-laws can be made.  For example a by-law cannot prohibit the keeping of an assistance animal from a scheme nor can children be prevented from occupying a lot within the scheme (see section 139 Strata Schemes Management Act 2015).

For legislation regarding the changing of by-laws see Sections 133 to 145 inclusive Strata Schemes Management Act 2015.

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