This guide will explain how strata by-laws work in New South Wales, who they apply to, how they are enforced, and what you can do if a dispute arises. It also outlines the legal considerations for buyers and sellers, as well as the responsibilities of strata committees and strata managers. If you have questions about your rights, responsibilities, or how a specific strata by-law affects you, contact RS Law Group for clear, practical advice.
What are strata by-laws?
A strata scheme is a form of property ownership that divides a building or group of buildings into individual lots, such as apartments, townhouses, or villas, and shares common property, including gardens, driveways, and stairwells. Each strata scheme is governed by a set of rules known as by-laws.
Strata by-laws are designed to support day-to-day living within the strata scheme. The owners’ corporation, comprising all property owners, is responsible for administering the scheme and ensuring that by-laws are followed. While all strata schemes must have by-laws in place, the specific rules can vary from one building to another, depending on the needs and preferences of the community.
By-laws typically address practical matters that affect how people live in and use the property. These can include whether pets are allowed, what types of renovations require approval, where residents and visitors can park, how rubbish must be managed, and what level of noise is acceptable. In some schemes, by-laws also cover issues like smoking, short-term letting, and the use of balconies or courtyards.
Every strata scheme in New South Wales is required to register its by-laws with NSW Land Registry Services. This means the by-laws have legal standing, and residents and owners are required to comply with them. In many cases, a strata scheme may begin with a set of model by-laws, which can be amended or replaced by the owners’ corporation to suit the needs of the community.
Who do strata by-laws apply to?
Strata by-laws apply to everyone who lives in, owns, or is otherwise involved in a strata scheme. In addition to following the rules, owners often play an active role in shaping them. At general meetings, owners have the right to vote on new by-laws or propose changes to existing ones. This involvement enables them to influence how the building is managed, ensuring that it reflects the community’s needs and priorities.
Tenants must comply with all current by-laws, even though they do not participate in making or changing them. Under NSW law, they may attend certain meetings if the landlord has given written consent, but they do not have voting rights. The landlord or managing agent is responsible for ensuring tenants receive a copy of the current by-laws when the lease is signed. Making tenants aware of the by-laws at the start of the tenancy helps prevent accidental breaches and supports a more cooperative living environment.
Buyers and sellers also need to be aware of the by-laws. Sellers are required to disclose all current by-laws in the contract of sale. For buyers, it is essential to review the by-laws before signing a contract to understand what is permitted and if any restrictions apply.
The strata committee, elected by the owners’ corporation, plays a key role in managing the day-to-day operation of the scheme. While it cannot override by-laws, the committee helps oversee compliance, respond to breaches, and organise meetings or decisions related to the scheme’s rules.
Understanding your rights and responsibilities
In New South Wales, the rights and responsibilities of residents, owners, and committee members are set out in the Strata Schemes Management Act 2015 (NSW), which operates alongside the registered by-laws for each scheme. By understanding what the Act says and how it works alongside your scheme’s by-laws, you can take a more active role in maintaining a fair and functional environment.
For all residents, one of the most fundamental rights is the ability to use and enjoy their property and the common areas without unreasonable interference. At the same time, residents are responsible for using these spaces in a way that respects the comfort and safety of others. By-laws work in conjunction with the Act to define acceptable behaviour and provide a framework for addressing breaches if they occur.
Property owners have additional rights and responsibilities under the Act. Owners are entitled to attend and vote at general meetings, propose motions, and suggest changes to the by-laws that govern the scheme. They are also responsible for ensuring their property complies with all by-laws, and for managing any issues that arise from tenants they lease the property to.
How are strata by-laws enforced?
In many cases, enforcement begins with an informal approach. A conversation or reminder from a committee member or strata manager can often resolve minor issues, such as noise after hours or the improper use of shared areas. Open and respectful communication is usually the quickest and most effective way to prevent conflict.
If informal steps do not resolve the matter, the owners’ corporation can take formal action. This usually begins with a written notice of breach, advising the individual of the specific by-law that has been broken and requesting that the behaviour be corrected. If the breach continues, the owners’ corporation can issue a formal notice. This notice outlines the breach and provides the person with an opportunity to comply before further action is taken.
If the problem cannot be resolved informally, the matter can be escalated through a structured dispute resolution process. The first formal step is often mediation through NSW Fair Trading. Mediation provides both parties with the opportunity to reach a mutually agreed-upon resolution, facilitated by an impartial third party. Many disputes are settled at this stage, without the need for more formal proceedings.
However, if mediation fails or is not appropriate, the owners’ corporation or affected resident can apply to the NSW Civil and Administrative Tribunal (NCAT). NCAT has the power to make binding decisions, including orders to stop certain behaviour or to carry out specific actions.
Throughout this process, all enforcement steps must be taken fairly and in line with the law. The owners’ corporation, typically through the strata committee, must follow proper procedures and maintain clear records of all communications and actions taken.
How to check and review existing strata by-laws
Every strata scheme in New South Wales must have its by-laws formally registered on the common property title with NSW Land Registry Services. This registration gives the by-laws legal effect and ensures they are part of the official strata plan records.
You can obtain a copy of the registered by-laws by requesting the common property title through NSW Land Registry Services. A solicitor or conveyancer typically does this during the purchase of a strata property, but any member of the public can access it for a fee.
By-laws may also be available internally through the strata committee, the owners’ corporation, or the strata managing agent, if one has been appointed. In some cases, the by-laws are included in the strata roll, attached to meeting minutes, or made available through a secure online portal. These versions are helpful for everyday reference, but it is essential to check that they match the officially registered version.
Can by-laws be changed?
Strata by-laws can be changed, updated, or removed to reflect the evolving needs of the community. To make or amend a by-law, the owners’ corporation must pass a special resolution at a general meeting. A special resolution requires no more than 25% of votes cast against the change for it to pass. Before the vote, the proposed by-law must be set out in the meeting agenda, giving all owners a fair opportunity to consider and discuss it.
Once a new by-law is approved, it must be registered with NSW Land Registry Services within six months. The change does not take legal effect until registration is complete. This ensures that there is an official public record of the by-law and that it is legally enforceable moving forward.
Owners and strata committees should carefully consider whether a proposed change is necessary, reasonable, and enforceable. In some cases, a poorly worded or overly restrictive by-law can lead to confusion or even legal challenges.
Residents should also be kept informed about any changes that may occur. While tenants do not have voting rights, they are still required to comply with all current by-laws, so clear communication is essential. Providing updated copies of by-laws or posting them in common areas can help ensure everyone understands their responsibilities.
Updating by-laws enables the community to adapt to changing lifestyles, clarify expectations, and enhance shared living arrangements.
Legal considerations for buyers and sellers
For buyers, reviewing the registered by-laws before exchanging contracts can reveal restrictions that may affect plans for the property. Some of these limitations are not immediately obvious, and a thorough review of the contract documents is necessary to understand the full scope of rights and obligations.
As discussed previously, from a seller’s perspective, there is a legal obligation to ensure that the contract of sale includes all current by-laws that apply to the property. These must be accurately disclosed so that the buyer is fully informed before completing the purchase. If the by-laws are missing, out of date, or incorrect, this can lead to disputes or even claims of misrepresentation after settlement.
To minimise issues and avoid delays, both parties should take the time to understand the strata by-laws before completing the sale. Seeking legal advice during the process not only protects each party’s interests but also supports a smoother, more transparent transaction.
Who administers strata by-laws?
In most strata schemes, the responsibility for managing and administering by-laws falls to the owners’ corporation. The strata committee typically carries out day-to-day tasks. Some schemes choose to appoint a licensed strata manager to assist with administration. While strata managers do not have decision-making powers on their own or the authority to enforce by-laws directly, they can provide valuable support.
In schemes without a strata manager, all responsibilities remain with the strata committee. This arrangement is typical in smaller self-managed buildings. Whether managed with or without a strata manager, success depends on clear communication, cooperation, and a solid understanding of the legal responsibilities involved.
Work with a lawyer who understands strata by-laws
Understanding strata by-laws is not just about knowing what is allowed and what is not; it is about building a cooperative and informed community. Whether you live in a strata property, rent it out, serve on the committee, or are considering a purchase, taking the time to understand the by-laws that apply to your scheme is one of the most effective ways to avoid unnecessary conflict and protect your interests.
Strata schemes operate within a detailed legal framework, and misunderstandings about by-laws can lead to disputes or costly mistakes. At RS Law Group, we can provide advice to owners, tenants, body corporates and strata committees about their rights under strata schemes.
A well-managed strata scheme begins with knowledge and the confidence that comes from understanding your rights, responsibilities, and knowing when to seek expert help.
