Section 10 Strata Schemes Development Act 2015 states that a plan intended to be registered as a strata plan must indicate the by-laws intended to be adopted.

By-laws are rules governing how the scheme operates, including use of common property, maintenance, renovations and the behaviour of owners, tenants and, in some cases, visitors.

When a strata scheme is registered, reference to the by-laws adopted for the scheme are recorded in the second schedule of the folio of the Register for the common property. The by-laws adopted will be either “Model by-laws for residential strata schemes” as described in Schedule 3 Strata Schemes Management Regulation 2016, or strata plan by-laws (developer by-laws) as provided on Approved Form 7 and lodged with the plan.

After the scheme has commenced, reference to any recorded changes (amendments, additions or repeals) to those by-laws will also be recorded in the second schedule of the folio of the Register for the common property. For further information and requirements for a change of by-law see Consolidation/Change of by-laws.

A copy of the folio of the Register for the common property and by-laws registered with NSW LRS can be obtained from NSW LRS information brokers.

NOTE: Care should be taken to ensure all by-laws are clearly worded, able to be enforced and can be legally created. See Divisions 2 and 3, Part 7 Strata Schemes Management Act 2015.

It is not the responsibility of NSW LRS to check the by-laws for accuracy and correctness. However, NSW LRS will often carry out a courtesy examination and may raise requisitions to ensure an accurate document is registered.

NSW LRS may refuse to register a document it believes is inaccurate.

NSW LRS cannot provide advice regarding the wording of by-laws. It is recommended that independent legal advice is sought for this purpose.

Model by-laws for residential schemes

Schedule 3 Strata Schemes Management Regulation 2016 sets out model by-laws for residential schemes.

If these model by-laws are to be adopted, a keeping of animals option and smoke penetration option must be selected and reference to ‘The strata by-laws lodged with the plan’ struck through in the by-laws panel on the Administration Sheet.

When adopted, the folio of the Register of the common property will refer to the nominated by-laws together with the selected option in relation to the keeping of animals and smoke penetration.

Strata Plan By-laws (developers by-laws)

When bespoke or tailored strata plan by-laws are required for the scheme, these will need to be prepared on Approved Form 7 and lodged with the strata plan for registration. All reference to model by-laws for residential schemes and the legislation must be struck through in the by-laws panel on the Administration Sheet.

If it is intended to adopt the model by-laws for residential strata schemes (either in whole or in part), as well as other by-laws, then the full text of the by-laws must be set out. Similarly, if the by-laws adopt the Common Property Memorandum that is prescribed by clause 27 Strata Schemes Management Regulation 2016 (either in whole or as modified in accordance with section 107(3) and (4) Strata Schemes Management Act 2015), the Memorandum must also be included. 

Approved Form 7 must be signed by the persons required to sign the plan under section 22(1) Strata Schemes Development Act 2015. To ensure consistency with recording on the Register, all the regular by-laws should be listed first followed by any common property rights by-laws.

When strata plan by-laws have been adopted, the folio of the Register for the common property will refer to the nominated by-laws.

NOTE: All sheets of the document including annexures or sketch plans must include the boxed header of Approved Form 7.

See Approved Form 7 Strata Plan by-laws page.

Common property rights by-laws

By-laws may also confer certain rights or privileges. These are known as “common property rights by-laws” (previously referred to as exclusive use by-laws). These may provide that part of the common property is for the exclusive use of a specified lot or lots. See Division 3 Part 7 Strata Schemes Management Act 2015.

If it is intended to provide a by-law granting exclusive use of part of the common property to a lot or lots, the relevant part should be clearly described within the wording of the by-law. The site must be clearly defined either as a sketch plan within the strata plan by-laws on Approved Form 7 or on the floor plan.
 
The site must be defined by structure and/or line boundaries with perpendicular offsets and connections from a structure in the same manner as with lot boundaries on a floor plan. A stratum statement will also be required for those parts which do not have a structural base or covering for their entire area.

Consolidating or changing by-laws

If any by-laws are to be repealed, replaced or added after the scheme has commenced, these changes must be lodged for recording in the Register by lodgment of a Consolidation/Change of by-laws dealing within 6 months of the passing of the special resolution to make the by-law.  

Any changes to a strata scheme’s by-laws by an owners corporation will not come into effect until they are recorded on the folio of the Register for the common property with NSW LRS. See section 141 Strata Schemes Development Act 2015.

If a by-law relates to a lot which is the subject of a plan of subdivision or consolidation, a change of by-laws dealing should be prepared and lodged if it is intended that the by-law is to continue for the new lot description.

If a strata plan of subdivision intends to subdivide common property to which a common property rights by-law relates, the by-law must be repealed or amended so it does not relate to the common property intended to be subdivided see section 13(5) Strata Schemes Development Act 2015.

For further information see How is a new by-law for a Strata Scheme created.

All NSW legislation can be accessed at www.legislation.nsw.gov.au/