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Property Law – CBD Changes

Property Law – Background

The Commercial Building Disclosure (CBD) Program is a regulatory program that requires the mandatory disclosure of a building’s energy efficiency information to the market when commercial office space above a certain size is offered for sale or lease.

The CBD Program is an initiative of the Council of Australian Governments (COAG). It was established by the Building Energy Efficiency Disclosure Act 2010 and is managed by the Australian Government Department of the Environment and Energy. [...]  READ MORE →

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Property Law tested by Developer

Jobema Developments Pty Limited is the first developer to test the new property law introduced by the Conveyancing Amendment (Sunset Clauses) Act 2015, which requires vendors to either obtain the consent of purchasers before they can rescind an off-the-plan contract in reliance on a sunset clause in the contract, or to obtain the permission of the Supreme Court to do so.

Facts:

In this case, Jobema, the defendant, purchased a development site from Xycom, who had exchanged a number of off-the-plan contracts with a sunset date for the registration of the strata plan of 31 December 2015. As part of the purchase, Jobema would assume Xycom’s obligations under the exchanged off-the-plan contracts, one of which was with Mr Wu. [...]  READ MORE →

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Property Law changes to Off-the-Plan Contract

As of 2 November 2015, property law in New South Wales has changed in relation to off-the-plan contracts, giving purchasers increased protection which make it harder for developers to enact sunset clauses to cancel contracts. This applies to all contracts for sale, even those already entered into.

A sunset clause is traditionally included in an off-the-plan contract in order to allow a buyer or developer to rescind if completion has been delayed. However, some developers have been using abusing these clauses, intentionally delaying a project in order to cancel existing contracts and then resell to new buyers at a higher price to reflect the current market. [...]  READ MORE →

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New South Wales moving towards a paperless conveyancing future

The introduction of Version 2 of the Conveyancing Rules means that any discharge of mortgage signed on or after 1 March 2017 must be lodged by the discharging mortgagee or its representative, except where the discharge is to be lodged with any other dealing affecting the same folio(s) of the Register (e.g. a transfer of land and/or a mortgage).

Providing a stand-alone discharge to the registered proprietor to lodge at the Land and Property Information shall no longer be allowed

In addition to the above, if the mortgagee is an ADI (authorised deposit-taking institution under the Banking Act 1959 [Cth]): [...]  READ MORE →

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Immediate review of discretionary trust deeds required in light of NSW duty and land tax changes

Article by Mimi Su, Senior Associate

Introduction
As a result of the 2016 NSW State Budget the NSW Government has introduced two measures aimed at foreign investors purchasing or holding NSW residential land.

Firstly, a surcharge duty of 4% has been effective from 21 June 2016 and will apply to acquisitions of NSW residential land by foreign persons.  This surcharge is payable in additional to any other stamp duty payable on the transaction.

Additionally there is a 0.75% surcharge land tax that applies to foreign persons who are owners of NSW residential land as at 31 December in each calendar year and to commence from the 2017 land tax year. [...]  READ MORE →

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Strata committee powers and obligations

The new strata legislation imposes a high standard of care and diligence on the strata committee when it carries out its functions, such that individual strata committee members can be personally liable for their actions. However there are powers which are afforded to the strata committee, which include orders to dispose of abandoned goods left on common property, the power to make orders for payment of contributions (which operates as an enforceable judgment), and the power to dismiss applications for mediation if frivolous or lacking substance. To learn more about your rights as members of a strata committee please do not hesitate to contact one of our qualified strata lawyers in Sydney. Accessing executive committee legal advice from an experienced Owners Corporation Solicitor will ensure that every executive committee member is aware of their obligations and responsibilities. [...]  READ MORE →

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Repair and Maintenance

There was a statutory duty on the Owners Corporation to repair common property (section 62(1) of the Strata Schemes Management Act 1996 (NSW)) but no automatic right to damages. Damages for breach of this statutory duty under the new legislation are now automatic. The Owners Corporation will not be under an obligation to repair if it has commenced proceedings against the owner for damage to the common property. For further Owners Corporation Legal Advice please contact a specialist strata lawyer at Matthews Folbigg. [...]  READ MORE →

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Owners Corporation and Financial Management

An Owners Corporation can enter into a payment plan for the recovery of unpaid levies (which are non-binding) and can also, within 3 years, make an application to recover the difference from the original owner. If you are unsure about your rights and obligations as part of an Owners Corporation please contact us to speak with one of our professional strata lawyers who can advise you on various strata schemes issues.

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Financial Management

Money from the Owners Corporation enforcing penalties will be paid into the strata scheme administrative fund, while amounts paid from the building bond are to be paid to the capital works fund. The 10 year capital works plan (sinking fund) is to be reviewed every 5 years. Owners Corporation legal advice can be obtained from one of our experienced Owners Corporation solicitor Sydney.

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Strata Management

Transitional existing agency agreements will terminate on the later of 3 years after appointment or 6 months now that the new legislation has commenced. Existing agency agreements will be assigned or transferred. To understand more about agency agreements in respect of strata schemes please speak with a strata lawyer today.

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Process of strata renewal plans

The process of renewing a strata plan involves the committee considering a proposal within 30 days of a request and a general meeting convened in order to consider the plan (and either reject or approve such plan). A special resolution is then made, which is non-binding. A strata renewal committee is appointed by the Owners Corporation (a maximum of 8) and notice is provided to all owners.  For executive committee issues throughout this process and for other executive committee legal advice please contact us to speak with a strata lawyer today. [...]  READ MORE →

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Collective sale or redevelopment

Strata renewal plans can include either collective sales based on the value of unit entitlements, or redevelopment which cannot be less than the compensation value determined by the Land Acquisition (Just Terms Compensation) Act 1987 (section 55). For more information about collective sale or renewal of strata schemes please contact our experienced strata lawyer. Matthews Folbigg has specialist strata lawyers that are able to provide owners corporation legal advice.