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Topic
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On what date does a by-law become effective, is it the date that the AGM votes to accept the by law or is it the date on which the by-law is registered?
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To avoid disputes, it's advisable to only implement Special By-Laws after they've been properly Registered.
Very good question davidp, on a topic I checked into myself recently. In NSW, according to the Office of Fair Trading, the by-law becomes effective as soon as it is appropriately approved at a General Meeting. Ludicrously though, the Owners Corporation's Executive Committee and / or Strata Manager have two years (yep, two years!) to actually register it.
What you often find is by-laws get approved then forgotten about and never registered, in which case they 'expire' after two years. Everyone might think a by-law exists because it was made yonks ago, but in reality it doesn't because the slackos never registered it.
Or in a Joseph Heller-esque scenario, a new by-law gets voted in but nobody knows because the Executive Committee and / or the Strata Manager don't spread the word.
Hi Urban & davidp,
I've never found the Office of Fair Trading to be particularly helpful, as the advice received too often depend upon who is giving it; precisely the same question can elicit different responses.
It's always best to abide by the Legislation, and in that way you're less likely to get into trouble; particularly if Resident/s object to compliance.
In that regard S48 of the NSW Strata Schemes Management Act (1996) states:
(1) An amendment or repeal of a by-law or, a new by-law, has no force or effect until:
(a) the owners corporation has lodged a notification, in the form approved under the Real Property Act 1900 , in the Registrar-General’s office, and
(b) the Registrar-General has made an appropriate recording of the notification in the folio of the Register comprising the common property.
(2) A notification cannot be lodged in the Registrar-General’s office more than 2 years after the passing of the resolution for the amendment, repeal or new by-law.
I hope this helps.
Very helpful thanks Whale. To both davidp and I, I expect.
So if davidp likes the new by-law, he badgers the EC and / or Strata Manager into making sure it's registered in a timely fashion. If he doesn't like the new by-law, he can try 'letting sleeping dogs lie' which is what's going on where I live. The two years will be up in a couple of months and the by-law will never be registered.
I can't think of a reason why two years might be allowed to register a new by-law which has been approved at a General Meeting. Any suggestions?
The “oops, I didn't get round to it because my cat's been sick and my mother visited from Dubbo and I don't get paid for this you know” scenario seems most likely. Pity help the person who buys into a building thinking it's pet friendly, for instance, only to discover it's not according to a by-law passed 18 months ago but never registered. Maybe there should be a statutory form on which you have to write new by-laws, record the date of the meeting and the result of the vote which goes straight in the post for registration as soon as the meeting's over.
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Hey Jimmy – here's the Form that you wanted, all that needs to happen now is for Proprietors to insist that their EC Secretaries / Strata Managers complete and lodge it ASAP after General Meetings.
https://www.lpma.nsw.gov.au/__data/assets/pdf_file/0017/25550/15CB_v3-1.pdf
Thanks Whale – that's why you are a StrataGuru. Now all we need is for ECs to be compelled to register the by-laws withing 30 days or face penalties for not doing so.
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