Blog

Oct
22

DROP DEAD DATES

DROP DEAD DATES

It is critical that you exercise any option in your Caretaking and Letting Agreements strictly in accordance with the terms of the Agreements.

In recent years I have seen a husband and wife, in the later stages of their working life, walk away from what was a good business with next to nothing as a consequence of missing the first option exercise date by 2 days. It was distressing!

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Sep
21

IS COMPANY TITLE MAKING A COMEBACK?

Strata laws were first introduced into New South Wales in 1961.

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Aug
21

Duties And Obligations Of Committee Members

Committee members are all volunteers and the vast majority are unpaid.

The strata legislation (and by laws) in each state provides the framework for governance of strata title buildings. Bodies Corporate (or, as they are called in New South Wales, “Owners Corporations”) delegate much of their day-to-day decision-making authority to committees.

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Jul
25

SOME INTERESTING STRATA STATISTICS!

We all are aware that Governments (both State and local) are pushing people into high-rise living. Population growth in the cities means that more and more high-rise developments are inevitable.

I recently came across interesting statistics relating to strata, which was prepared by the City Futures Research Centre at the University of New South Wales.  

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Jun
20

NEW SHORT-TERM HOLIDAY LETTING REGULATIONS FOR NSW

The NSW Government has announced a new regulatory framework to govern the short-term holiday letting industry. Short-term holiday letting has rapidly expanded in recent years due to the growth of online booking services such as Airbnb and Stayz. The new framework will include new planning laws, an industry Code of Conduct and new provisions for strata scheme by-laws.  

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May
22

Changes Are Fast Coming for NSW Real Estate Licensing

The Property, Stock and Business Agents Amendment (Property Industry Reform) Bill 2017 has now been passed by both Houses of the NSW Parliament. The accompanying Regulations are still being finalised and the new legislation is expected to come into effect in the latter part of this year (possibly October or November).

ARAMA is continuing to push for relief for its members in the Regulations, so that when drafted, they will exempt onsite managers from having to hold a full real estate licence and/or a “Licensee in Charge” licence where they only intend to carry out letting in the complex that they manage.

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Apr
24

THE DEEP END OF POOLED LETTING POOLS

We regularly review a variety of letting appointments (the agreement between the building manager acting as letting agent and the owners of the investment units used in a letting pool) and we often find that there is a noticeable gap between what the appointments state versus how they are interpreted.

For the most part the gap can be attributed to overly simplified clauses that do not adequately state the practices that the majority of the industry operates under. In general, these inadequacies are rarely the subject of a legal dispute (when business is good) and so fixing them is often left on the “do it tomorrow” pile.

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Mar
26

THE PROBLEM WITH DEEDS OF CONSENT IN NEW SOUTH WALES

Financiers of management rights purchases commonly require the owners corporation to enter into a deed of consent to security (“consent deeds”). The problem is that there is nothing in the NSW strata legislation that requires an owners corporation to agree to enter into such a deed – even on the most reasonable of terms.

Consent deeds, also commonly called “right of entry deeds”, act as security over the management rights in the event of a default by the caretaker.

The deed allows the financier to ensure its security is not jeopardised if the caretaker is in default of its loan agreement. 

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Feb
27

Will The Vacancy Fee For Foreign Owners Have An Impact On Short Term Management Rights?

Following a series of amendments in November 2017, foreign owners who have applied for FIRB approval after the 9th May 2017 may be liable for a “vacancy fee” where their residential properties are not occupied for at least half a year.

The vacancy fee was introduced by the Federal Government to address domestic housing affordability by encouraging foreign owners to put their properties on the rental market.

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Jan
26

The Old Chestnut – How To Deal With Illegal Parking On Common Property!

Illegal parking on common property has to be one of the biggest issues faced by Building Managers.

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Management Rights Articles

  • THE PROBLEM WITH DEEDS OF CONSENT IN NEW SOUTH WALES

    Financiers of management rights purchases commonly require the owners corporation to enter into a deed of consent to security (“consent deeds”). The problem is that there is nothing in the NSW strata legislation that requires an owners corporation to agree to enter into such a deed – even on the most reasonable of terms.

    Consent deeds, also commonly called “right of entry deeds”, act as security over the management rights in the event of a default by the caretaker.

    The deed allows the financier to ensure its security is not jeopardised if the caretaker is in default of its loan agreement. 

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