By-laws

By-laws play a vital role in enhancing community living. Every strata and community living property both in NSW and across Australia must have their own set of by-laws.

Critical to the success of community living, by-laws are a set of rules that govern how owners, tenants, and visitors must behave and use common property. By-laws cover a wide range of actions, such as whether pets are allowed, smoking, parking, and noise levels.

While owners can create or determine by-laws for their property (such as matching by-laws to suit a certain lifestyle), by-laws can’t be harsh, unconscionable or oppressive. No by-law is capable of restricting what takes place within a private a lot, except, when it comes to short-term letting where it is not the host’s principal place of residence.

As of 10 April 2020, by-laws will be able to stop short-term letting from taking place where the lot is not the host’s principal place of residence.

Changing, repealing, or adopting new by-laws

When it comes to changing, repealing, or adopting new by-laws, your property must follow a process. By-law changes must be put to a special resolution vote at an owners corporation meeting. Then, the new by-laws or by-law changes will need to be registered with NSW Land Registry Services within six months of the special resolution being passed. All owners and tenants must also be notified of any changes in by-laws.

When you register your by-laws, your property will also need to make sure your by-laws are ‘consolidated’. This includes making sure the submitted by-laws are in appropriate formatting, numbering, vetted or repealed by-laws are included, previously amended by-laws are included, and that they are in a logical sequence.

Making sure your by-laws are written, registered and consolidated properly, can be done through PICA Group’s Kemps Petersons Legal.  Offering a comprehensive and affordable by-laws service, Kemps Petersons Legal can make sure your by-laws are legislatively accurate and that timeframes have been met.

If your by-laws have been made over time and created under different sets of legislation, your property will need to confirm your by-laws meet the current legislative requirements as set out by the Strata Schemes Management Act 2015. Your strata manager will be able to advise you on the appropriate steps to take, or you can contact Kemps Petersons Legal.

Key things to note

• By-laws can’t be harsh, unconscionable or oppressive.
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• By-laws must be voted upon by special resolution at an owners corporation meeting.
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• By-laws must be accurately and appropriately drafted or written.
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• By-law must be lodged with NSW Land Registry Services within six months of the resolution passing the by-law.
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• By-laws must be consolidated before registering, including appropriate formatting, numbering, vetted and repealed by-laws included, previously amended by-laws included, and that they are in a logical sequence.
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• By-laws cannot restrict children or assistance animals.
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• By-laws may require owners of an assistance animal to produce evidence as per the Disability Discrimination Act.
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• By-laws can limit the number of occupants per bedroom.
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• By-laws restrict what takes place within a private a lot, except, when it comes to short-term letting where the property is not the host’s principal place of residence.
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• As of 10 April 2020, by-laws can be made to stop short-term letting from taking place where the lot is not the host’s principal place of residence.
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• Penalties for breaches of by-laws are payable to the owners corporation, not the NSW government.
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• Penalties can reach a maximum of $1,100 for each offence at first instance, and $5,500 for breaches of an occupancy by-law.
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• The Tribunal has the power to issue a fine for a repeat offence of a by-law occurring within 12 months up to a maximum of $2,200 for each offence ($11,000 for breaches of an occupancy by-law).
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• By-laws should be accessible by keeping a copy with the strata roll, keeping a copy with your committee’s secretary, or by keeping a copy with your strata manager.
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• Although it doesn’t require a by-law, an owners corporation can enter into an agreement with the local council to manage common property parking, such as placing of signs and issuing fines.
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• There are provisions for the owners corporation to arrange the removal or towing of motor vehicles parked in the wrong place on common property.