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.
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 by-laws as provided in Approved Form 7 and lodged with the plan.
By-laws can provide guidelines regarding behaviour and should assist the smooth running of a scheme.
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 the relevant part should be clearly described within the by-law. If required a sketch plan may be included as part of the document.
It should be noted that it is not the responsibility of NSW LRS to determine whether by-laws are correctly drafted and enforceable. In some circumstances requisition may be raised if in the opinion of the office the by-laws require revision.
Change of by-laws
If any by-laws are to be repealed, replaced or added after the scheme has commenced this can be recorded in the register by lodgment of a Consolidation/Change of by-laws.
If a by-law relates to a lot which is the subject of a plan of subdivision or consolidation a change of by-laws should be prepared and lodged if it is intended that the by-law is to continue for the new lot description.