A Strata Management Statement (SMS) is a document that sets out the management and operations of a building where part of the building is subdivided by a strata scheme or schemes (a part strata development). See Part 6 and Schedule 4 Strata Schemes Development Act 2015.
A SMS regulates the members, owners and occupiers of the building in respect of the control, management and maintenance of the components of the building.
All part strata developments must have a SMS prepared in accordance with Approved Form 9. The SMS must be lodged with the part strata subdivision of one of the stratum lots unless the requirement is waived by the Registrar General.
If a SMS has been lodged with a strata plan that creates a part-strata parcel, the Administration Sheet SP Form 3.08 must contain the following notification “This strata plan contains a Strata Management Statement”.
The SMS must be executed in accordance with section 104 Strata Schemes Development Act 2015. This includes the registered proprietors of those parts of the building not comprised in the part strata parcel and each of their registered mortgagees, chargees or covenant chargees.
The Registrar General may waive the requirement for a SMS in the following circumstances:
when the building the subject of the subdivision is erected on a lot in a community scheme and the remainder of the building is within community property
when a SMS has previously been lodged and registered with another part strata plan within the same building and the SMS is still in force for the building and its site
when a Building Management Statement (BMS) has been registered on the folios of the Register and is still in force for the building and its site, provided the BMS meets the requirements for a SMS. In these circumstances, the BMS is taken to be the SMS for the building and its site (section 108 Strata Schemes Development Act 2015). The Register will be updated to this effect (see NOTE below), or
on the direction of the Minister on grounds that are considered sufficient.
See section 99(2) Strata Schemes Development Act 2015.
All requests for a waiver must be in writing lodged as a letter with the strata plan or prior to lodgment of the strata plan.
NOTE: If a registered BMS exists for the building, section 196J(1) of the Conveyancing Act 1919 provides that the BMS will cease to have effect on either:
ATTENTION IS DIRECTED TO THE STRATA MANAGEMENT STATEMENT FILED WITH [SP……]
THE BUILDING MANAGEMENT STATEMENT IS TAKEN TO BE THE STRATA MANAGEMENT STATEMENT – SECTION 108 STRATA SCHEMES DEVELOPMENT ACT 2015.
See also Stratum subdivision of a building or part of a building’.
On registration of a SMS, or the adoption of an existing BMS as the registered SMS, easement notifications under the relevant Acts are added to the folios of the Register for the common property and the stratum lots. See Easement.
All NSW legislation can be accessed at www.legislation.nsw.gov.au/