NSW strata schemes with by-laws that impose bonds or fees could be in for a rude shock – the very provisions they rely on to protect common property may turn out to be unenforceable.

According to Flat Chat sponsors Bannermans Lawyers, strata and community title management legislation already limits what owners corporations can charge in bonds or fees related to keeping animals.

But reforms expected later this year in the Strata Schemes Legislation Amendment (Miscellaneous) Bill 2025, will cast a much wider net.

Under the new rules, any by-law that requires a bond or fee inconsistent with the legislation will be rendered ineffective.

Bonds will have to be reasonable relative to the actual risk of damage to common property, and owners corporations will need to provide written terms spelling out when a bond can be claimed or must be released – including automatic release if no claim is made within a set timeframe.

Fees for goods or services will be capped at the reasonable costs actually incurred by the owners corporation, and regulations may specify situations where bonds or fees can’t be charged at all.

Where an owner believes a bond or fee is unreasonable, or hasn’t been released according to its terms, the Tribunal will have the power to order a full or partial repayment.

The by-laws most likely to come under scrutiny are those covering lot owner renovations (where bonds are held against potential damage to common property), exclusive use of common property or access arrangements like delivery zones, and owners corporation services such as utilities supplied through embedded networks.

Schemes that haven’t reviewed these provisions ahead of the reforms risk finding their protections aren’t worth the paper they’re written on. You can read more from the Bannermans here.