Question: Our scheme made changes to the by-laws. No changes have been registered. A number of lots have been sold with incorrect by-laws attached. Who is responsible?
Our scheme approved two new by-laws, changed a by-law and deleted a by-law, but none of these changes have been registered.
Since the changes, five units have been sold, and at least three leases have been changed, all with the incorrect by-laws attached to the sale and lease contracts.
Who is responsible for registering the by-laws? Who is responsible for ensuring the correct by-laws are attached to legally binding contracts?
I have raised this problem with the strata manager and at the AGM, but no one is interested in fixing it.
Answer: An owners corporation has 6 months to register the by-aw from when the by-law is passed.
The by-laws for a strata scheme are basically a contract binding the owners corporation, owners, occupiers, mortgagees and covenant chargees. While the secretary of the owners corporation must keep a consolidated, up-to-date copy of the by-laws for the scheme, it may not be the appointed or delegated secretary’s fault that there are errors and omissions in the by-laws and other parties may have been involved.
Given the important legal significance of the by-laws, the strata committee, by itself or through its lawyers, should undertake an audit of the by-laws, determine which ones have been omitted and remain unregistered and take steps to regularise same. The owners corporation can then re-pass any lapsed or omitted by-laws at a general meeting and ensure all correct consolidated by-laws are registered with the Registrar-General. An owners corporation has 6 months to register the by-aw from when the by-law is passed.
The owners corporation should seek legal advice on the process because if any exclusive use/works by-laws were once registered but are now omitted and the affected lots have changed hands, the new owners will need to consent to the re-passing of the by-laws and such consent may not be forthcoming.
This post appears in the May 2025 edition of The NSW Strata Magazine.
Leanne Habib Premium Strata E: info@premiumstrata.com.au P: 02 9281 6440