Section 4 of the Strata Schemes Management Act 2015 provides the following definition:
“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.
Restrictions during the initial period
Section 26 of the Strata Schemes Management Act 2015 outlines various actions which are not permitted during the initial period. The actions relevant to NSW LRS include but may not be limited to the following:
- Strata plan of subdivision which includes common property or creates common property.
- Conversion of a lot to common property.
- Transfer or lease of part of the common property.
- Creation of an easement burdening common property.
- Release of an easement benefiting common property.
- Dedicating part of common property as a public road, public reserve or drainage reserve.
- Change of by-laws. Section 140 Strata Schemes Management Act 2015 places restrictions on the making, amendment or repeal of by-laws during the initial period.
If a document is lodged at NSW LRS which intends to perform one of the above actions it must be accompanied by a certificate from the owners corporation in Approved Form 10 (PDF 7.9 KB) unless the common property title contains a note in the second schedule that a certificate has been lodged previously.