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[crispy]

The developer of our building (NSW) included bylaws granting rights over some common property to a single lot, these bylaws were included in the bylaws included when the strata was registered. The rules of the Initial Period do not apply in this case since this is not during the initial period.  I can’t find anything in the SSDA that refers to any limitations on developer bylaws other than Sec 40 which states: ” registration does not give effect to by-laws that have not been lawfully made. “

Have I missed anything?

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[Jimmy-T]

@crispy said:
… these bylaws were included in the bylaws included when the strata was registered. The rules of the Initial Period do not apply in this case since this is not during the initial period. Have I missed anything?  

You say it was not the initial period.  Does that mean you had held your first AGM at which the by-laws were approved?  As far as I know, the initial period ends at the first AGM.

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[crispy]

@JimmyT said:

You say it was not the initial period.  Does that mean you had held your first AGM at which the by-laws were approved?  As far as I know, the initial period ends at the first AGM.  

SSMA 2015:

initial period of an owners corporation of a strata scheme means the period:
(a) commencing on the day the owners corporation is constituted, and
(b) ending on the day there are owners of lots in the strata scheme (other than the
original owner) the sum of whose unit entitlements is at least one-third of the
aggregate unit entitlement.

The CP bylaws I refer to were included in the set of bylaws included in the documents submitted in formation of the strata (an enhanced version of the model bylaws), therefore from my reading this would not be during the Initial Period. These are “Developer Bylaws”. So my question is whether a developer can grant exclusive use of areas of common property in these developer bylaws. 

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[Jimmy-T]

If these by-laws were submitted before they were approved at your first AGM then they are invalid and would only have become valid if and when the owners approved them.

Apart from anything else, you have a strong case to take to NCAT to have them struck off.

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[crispy]

But that is inconsistent with with my reading of Strata Schemes Development Act (SSDA). You can’t hold an AGM for a strata that does not exist and a strata does not exist until it has been constituted. In order for a strata to constituted it needs to be registered. As part of the registration process the developer may either rely upon the model bylaws, or submit bylaws in addition to the model bylaws, or submit a complete set of bylaws (probably largely based upon the model bylaws.).

The core question is whether those bylaws included when the strata was registered under the SSDA at the LPI can include Exclusive Use/Special Privilege bylaws.

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