NSW strata bill gives buyers more defect visibility and owners new EV rights

NSW apartment buyers could gain another way to identify buildings with unresolved maintenance problems after Parliament passed legislation allowing Fair Trading to publish compliance action taken against owners corporations.

The Strata Schemes Legislation Amendment (Miscellaneous) Bill passed the Legislative Council on Thursday night without further amendment, according to the NSW Parliament’s bill record. The NSW Government announced the result on Friday, describing it as the fourth tranche of its strata law overhaul.

The bill also changes rules affecting electric vehicle charging, building managers, resident bonds and two-lot strata schemes such as duplexes.

Parliament’s record listed the bill as awaiting assent after passing both houses. Passage therefore should not be confused with every provision already applying: owners, buyers and committees will need to check the final commencement dates and guidance once these are published.

Compliance action could become visible to buyers

NSW Fair Trading will gain power to proactively publish compliance action taken against an owners corporation. The government said this would allow prospective buyers to see whether a building has repair and maintenance issues that have attracted regulatory intervention.

This could become a useful addition to strata due diligence. Buyers currently depend heavily on the contract, strata records, meeting minutes, financial statements, capital works plans, building reports and searches undertaken by their solicitor or conveyancer.

Published enforcement information would not replace those checks. A building may have significant defects or a looming special levy without being subject to published action, while an older compliance matter may have been resolved. Buyers will still need to establish what occurred, what work remains and who is expected to pay.

The practical value will also depend on how searchable the information is and how clearly it identifies the relevant scheme, action and outcome.

Limits on bonds and access fees

The reforms introduce limits on when an owners corporation can charge a resident a bond or fee. The government gave the example of access-key or swipe-card bonds set excessively above the cost of replacement.

That change is directed at charges that can be difficult for residents to avoid because they need building access, parking access or additional keys for household members. Detailed regulations and commencement guidance will determine how the limits operate in practice.

Owners and tenants should continue asking for charges to be itemised and obtaining receipts. Tenants should also distinguish between a fee imposed by the owners corporation and an amount requested by a property manager or rental provider.

A right to seek EV charging approval

Owners will have a right to install electric vehicle charging equipment on their own lot without facing an unreasonable objection from the strata committee.

The measure should help owners in buildings where parking spaces form part of individual lots, but it is not a blanket right to bypass safety, electrical capacity, metering, insurance or building requirements. Apartment charging can affect shared switchboards and energy infrastructure even when the charger is physically located within a private parking space.

Before buying an apartment with plans to charge an EV, purchasers should establish how the car space is titled, whether power is available, who pays for electricity and whether the building has assessed its electrical capacity.

Building managers face stronger consequences

The legislation allows the NSW Civil and Administrative Tribunal to terminate a building management agreement where the manager breaches relevant duties. The government identified a failure to disclose commissions as one example.

Long building-management contracts can be a major ongoing expense for apartment owners and can influence maintenance, contractor selection and the handling of defects. Tribunal termination powers give owners corporations a potential remedy, although schemes will still need evidence and must follow the required process.

The bill also removes several formal requirements for two-lot schemes, which the government says account for more than 30 per cent of NSW strata schemes. These schemes will no longer need to form committees, hold general meetings or submit annual reports to NSW Fair Trading under the new package.

Simplification may suit many duplex owners, but it does not remove the need to agree on insurance, common-property repairs, contributions and shared decisions. Clear written records remain valuable when ownership changes or a dispute develops.

What it means for you

• Apartment buyers should use any published Fair Trading action as one part of a full strata-record review.
• EV owners should check parking title, electrical capacity and approval requirements before purchasing.
• Duplex owners may face less administration, but should continue documenting shared expenses and decisions.
• The bill has passed Parliament, but commencement details should be checked before relying on a new right or exemption.