New Rules for Common Property

This article is about the 2025 NSW strata law reforms affecting common property and compliance.

The strata landscape in New South Wales has undergone a significant transformation. With the July 1, 2025, deadline now behind us, all strata schemes must have complied with the new legislative framework.

For strata managers and Owners Corporations, the focus is on proactive governance and ensuring that your scheme’s by-laws are not just compliant, but also effective in preventing future disputes, especially concerning common property.

Here are the most significant changes to laws effecting common property:

1. Mandatory Maintenance Responsibility in By-laws

This is one of the most important changes. When a special resolution is passed to authorise a change or alteration to common property (e.g., an owner installing an air conditioning unit or a balcony enclosure), the resolution must now explicitly state who is responsible for the ongoing maintenance, repair, and replacement of that altered property. Previously, this was optional, but it is now a mandatory requirement to provide clarity and prevent future disputes.

2. Uncollected Goods Act Extension

The new laws provide a clearer legal framework for managing abandoned or uncollected goods. Previously, an owners corporation’s powers were often limited to common property. The new framework now empowers the owners corporation to act more decisively to remove goods left on a lot, not just on common property, under specific conditions. This helps address issues of hygiene, safety, and clutter throughout the building.

3. Lowered Voting Threshold for Accessibility Upgrades

Changes to common property that are necessary to provide access for a person with a disability no longer require a special resolution. This means that they can be approved with a simple majority vote at a general meeting, making it easier and faster to install essential accessibility infrastructure like ramps or handrails.

4. Sustainability Infrastructure

By-laws that prohibit the installation of sustainability infrastructure on common property (like solar panels or EV chargers) solely based on appearance are now banned, except for heritage-listed properties. Additionally, owners corporations are now required to consider sustainability upgrades at every Annual General Meeting.

5. Extended Time to Claim for Damages

The period for an owner to bring a claim for damages against an owners corporation for its failure to maintain and repair common property has been extended from two years to six years. This gives owners more time to seek redress for losses they have incurred due due to a lack of maintenance.

Protect Your Scheme from Being Non-compliant

As a strata professional, it is essential to ensure that your by-laws reflect these new requirements. We recommend taking the following steps:

• Conduct a By-Law Audit: Review your existing by-laws to identify areas that need updating to align with the 2025 reforms.
• Update Resolution Templates: Ensure that all future special resolutions for laws concerning common property alterations include the new mandatory clause on maintenance responsibility.
• Educate Your Committee: Inform your Owners Corporation committees about these changes so they are aware of their new obligations and powers.

1 July 2025: The deadline has passed. If your scheme’s by-laws haven’t been reviewed, they’re most likely non-compliant with the new legislation. This puts your Owners Corporation at risk.

By proactively addressing these reforms, you can protect your strata scheme from non-compliance and potential legal challenges, fostering a more harmonious community.

This article has been republished with permission from the author and first appeared on the JS Mueller & Co Lawyers website.

Are you not sure about some of the strata terms used in this article? Take a look at our NSW Strata Glossary to help with your understanding.