ORE Apartments Stage 2 Release

May 3rd, 2012 by Netstrata Updates  | No comments »

DON’T MISS THIS

Large Designer Apartments apartments in a boutique building tucked away in a
quiet street in Waterloo.

4km from the CBD and moments to transport and Danks Street Cafes.

Diverse range of oversized apartments.

Secure car parking and lush green communal spaces.

Exquisite finishes including timber floors.

Excellent Value for Money.

Brand New 1 Bedroom Apartments from $449,000 & 2 Bedrooms form $595,000

For more info visit the project website at http://oreapartments.com.au/#/home  or

contact Sam Elbanna at CPM Realty 9211 9993 or 0411 22 22 60

Work Health & Safety Act & Owner Corporations

May 1st, 2012 by Netstrata Updates  | No comments »

WHAT IS THE WORK HEALTH & SAFETY ACT?

In an effort to create consistency in the occupational health and safety laws around Australia, the Commonwealth and each State and Territory have worked together to create the Model Work Health & Safety Legislation which is (or will soon be) adopted by each State and Territory to replace the State based occupational health and safety laws.

On 1 January 2012, the Work Health & Safety Act 2001 (NSW) (“WHS Act”) came into effect and introduced:

  • new obligations for all persons involved in a workplace (not just employers and workers);
  • added obligations on persons already regulated by health and safety laws; and
  • personal penalties for non-compliance.

WHAT IS A “PERSON CONDUCTING A BUSINESS OR ENTERPRISE”?

The WHS Act focuses around the concept of a “Person Conducting a Business or Undertaking” (“PCBU”). What does this mean?

Section 5 of the WHS Act provides:

 

“(1) For the purposes of this Act, a person conducts a business or undertaking:

(a)  whether the person conducts the business or undertaking alone or with others, and

(b)  whether or not the business or undertaking is conducted for profit or gain.

(2)  A business or undertaking conducted by a person includes a business or undertaking conducted by a partnership or an unincorporated association.

(4)  A person does not conduct a business or undertaking to the extent that the person is engaged solely as a worker in, or as an officer of, that business or undertaking.

Practically,  PCBU  includes,  amongst  others,  owners’  corporations,  sole  traders,  unincorporated  associations, incorporated entities, partnerships and community associations.

WHO IN A PCBU IS RESPONSIBLE?

The WHS Act imposes obligations or “duties of care” on a number of different personnel at different levels of a PCBU.

OFFICERS (which takes on a formal meaning as per the Corporations Act 2001 – ie, a director or person who has involvement in the decision making of the business etc) have an active duty to ensure the PCBU is compliant with its various safety obligations.  They must proactively stay up to date on work, health and safety matters affecting the business and generate processes to be implemented for compliance with the obligations imposed.

WORKERS AND VISITORS of a PCBU each have positive obligations to take reasonable care for their health and safety whilst at the workplace and to ensure that their actions do not endanger others at the workplace. This is a shift from the old occupational health and safety laws which placed the obligations on the employer.

IS AN OWNERS CORPORATION REALLY A PBCU?

An owners corporation is exempt from the WHS Act to the extent that it is only responsible for common areas which are used for residential purposes only. This exemption however, may only apply to a very small number of owners corporations particularly where, for example:

  • it employs people and independent contractors to carry out work on the common property including repairs and maintenance works;
  • any of the lots or common property are used for non-residential purposes such as a commercial use (even home
  • offices or businesses), retail use (including shops and restaurants), exercise classes or gardening and other activities by owners; or
  • any easements are granted over the property for cable lines or drainage pipelines, etc.

As such, most owners corporations, the executive committee members, employees and consultants will be effected by the WHS Act.

 

IS AN EXECUTIVE COMMITTEE MEMBER AFFECTED BY THE WHS ACT?

One of the effects of the WHS Act is the broadening of the list of people who are responsible for work health and safety issues.  One  extension  of  this  list  is  to  executive  committee members  of  owners  corporations  and the imposition of an obligation on them to exercise “due diligence”.

 

This obligation of “due diligence” includes a requirement to proactively understand the requirements of the WHS Act and ensure that the owners corporation has appropriate measures, plans and policies to comply with those requirements. This means that the executive committee members are required to:

  •      keep relevant information on work health and safety issues on the common property and site;
  •     understand the nature of operations being conducted in the building;
  •     ensure that there are measures in place to eliminate (or at least minimise if elimination is not possible) any potential risks; and ensure  that  the  owners  corporation  has  systems  in  place  which  address  and  comply      with  the WHS Act requirements.

Pleading ignorance is not a defence to non-compliance for executive committee members.

ARE THERE EXEMPTIONS FOR VOLUNTEERS?

The WHS Act does however draw a distinction between paid officers and volunteers.

For paid officers, obligations to exercise due diligence must be exercised and significant penalties apply for a failure to comply. On the other hand, while volunteers are also required to comply with due diligence obligations, they cannot be penalised for failing to do so. They can however, be penalised for failing to make sure that their actions or omissions do not adversely impact the health and safety of others.

 

WHAT ARE THE CONSULTATION DUTIES?

The importance of consultation has been recognised in the WHS Act and has been implemented as a specific obligation on duty holders, that is, any person that holds a specific duty under the WHS Act. Under the WHS Act duty holders (with similar or overlapping duties) must consult, coordinate and cooperate with each other and also with workers. The Act sets out flexible ways in which the consultation may occur. Significant penalties can be imposed for breaches of this requirement.

WHAT IS THE REGULATORY BODY AND WHAT INVESTIGATION RIGHTS EXIST?

Union members holding a WHS entry permit may enter a workplace (or in the case of an owners corporation, a building or common property), to advise and assist with WHS Act compliance and/or when a contravention of the WHS Act is suspected. While 24 hours’ notice is required to be provided in the former case, the permit holders can enter without notice when a contravention is suspected. The PCBU must not refuse, delay or hinder the union permit holder. Owners corporations should implement a process to deal with permit holder entries.

WHAT ARE THE OBLIGATIONS REGARDING NOTIFICATION OF INCIDENTS?

Where a serious or dangerous incident occurs, the PCBU must:

  •     notify the regulatory body; and
  •     preserve the incident scene until an inspector attends or the regulatory body directs otherwise. The WHS Act sets out details of what constitutes a notifiable incident.

WHAT KIND OF FINES CAN BE IMPOSED?

The penalties imposed under the WHS Act are applied in accordance with a sliding scale which generally is as follows:

 

Category of Penalty Owners Corporation Executive  Committee

Member

Worker or other
Recklessness/risk      of

death      or       serious injury/illness

$3 million $600,000 or 5 years jail

or both

$300,000 or 5 years jail

or both

Breach  of  Duty/risk  of

death      or       serious injury/illness

$1.5 million $300,000 $150,000
Breach of duty $500,000 $100,000 $50,000

 

The weight of the penalties reflects the significance of the obligations which are being enforced by the WHS Act.

WHAT CAN OWNERS CORPORATIONS DO TO ENSURE COMPLIANCE WITH OBLIGATIONS?

Some examples of measures that owners corporations may take to address the implementation of the new work health and safety laws include (but are not limited to):

  •  assume that the owners corporation is a PCBU and that the WHS Act applies to the owners corporation – most owners corporations engage workers either as employees or independent contractors to carry out maintenance and repair works and at some stage will therefore, be a PCBU;
  •  identify reasonably foreseeable hazards on the common property and site;
  •  eliminate any risks and hazards identified as far as reasonably practicable or minimise the risks and hazards where they cannot be eliminated;
  •  implement compliance WHS Act plans and procedures;
  •  review  and  amend  (if  necessary)  policies  for  new  and  existing  executive  committee  members  to  ensure compliance with WHS Act;
  •  educate the owners about the new WHS Act regulations and obligations;
  •  make sure the insurances cover any additional risks imposed by the WHS Act – usually, office bearer’s legal liability insurance does not cover fines, penalties, punitive, exemplary or aggravated damages (always remember that no insurance can cover jail sentences);
  •  re-visit by-laws to ensure that they adequately deal with WHS Act obligations including the implementation of incident reporting systems and obligations to immediately notify the executive committee members of potential risks and safety issues identified;
  • the holding of regular additional meetings of owners to discuss health and safety issues or concerns;
  • consider whether you should provide height limits for workers (both employees and independent contractors) to minimise the risk of falls; and
  • ensure that ongoing rules are implemented about vegetation management, storage of substances, maintenance of plant and equipment, induction of tradespeople, etc.

Thanks to Gavel and Page Lawyers for this article.

 

 

Park illegally – lose your home

April 12th, 2012 by Netstrata Updates  | No comments »

You would think, of all the  issues that plague strata dwellers,  parking would be the easiest to resolve.

After all, a spot is allocated to you (or not) and you are allowed to park in it (or not). If only …

“We have new tenants in our complex who have two or three cars parked in visitors parking and a fourth  outside their garage blocking another tenant from getting in and out of their parking area.

 “I placed  the following notice on two cars parked illegally for over a week: This Car is Parked in a VISITORS PARKING SPACE. Visitor Parking spaces are for the use of VISITORS of all residents We understand that on occasion, residents use these spaces for short periods of time. Please be respectful to all units by abiding by this. Please note – Parking cars on the grass is Not Permitted.

“The notice was removed from one of the cars, which driven out and returned to the same spot an hour later.” – Sarah C, via Flat Chat Forum.

Oh dear, Sarah. I think you blew it when you said it was OK to park in visitors parking ‘on occasion’ and Forum StrataGuru Struggler  agrees.

“The problem here is that the note you left actually gives them and anyone else permission to park there – at least in their eyes,” he writes.  “‘On occasion’ and ‘short periods of time’ are all tolerated in [my] complex but just not in writing.”

Struggler is right.  You need to let them know that by parking in visitors parking or on grass verges they are:

a) in breach of by-laws and that could lead to fines of up to $550 and

b) by breaching by-laws they have also broken their lease which could lead to eviction.

Yes, they may think they are above the law but they could lose their home.

A copy of the same notice from your EC secretary should be delivered to the rental agent  or owner of the property. And let’s hope your original note is already in the trash.

Read more at http://www.facebook.com/l.php?u=http%3A%2F%2Fsmh.domain.com.au%2Freal-estate-news%2Fpark-illegally–lose-your-home-20120405-1wdql.html&h=FAQFfkE5f

Thanks to SMH for the article

 

Individual Water Metering for plans approved after 30th June 2012

March 26th, 2012 by Netstrata Updates  | No comments »

Sydney Water will make individual water metering for multiple dwelling buildings a requirement for the issue of a compliance certificate under s73 of the Sydney Water Act for all applications received after 30 June 2012.

Metering specifications will require:

• Individual supply point to each unit.
• Provision of a space for the meter installation.
• Installation of the meter in a cupboard in a common area with a drain.
• Provision of space for a data logger/transmitter and 240V power.

Sydney Water intends to nominate at least two accredited suppliers for the new metering.

Sydney Water may take a flexible approach to plans which have been lodged with council prior to 1 July 2012 but which do not come before it prior to that date.

Thank you J.S Mueller & Co Lawyer for this article

Sydney’s strata surprises

March 22nd, 2012 by Netstrata Updates  | No comments »

THERE was a gaggle of geese living in an apartment. A vindictive owner who regularly ran all the taps in his unit to deliberately push up the water bill for the rest of the block. And a horse that was kept in a Glebe townhouse.

The number of complaints about strata schemes has been steadily increasing over the past decade, rising from 945 requests for strata mediation lodged with NSW Fair Trading in 2003 to 1405 in 2009 and 1474 last year.

The top three complaints – which include problems with the management of the owners’ corporation, bylaw breaches and repairs to common property – make up 80 per cent of all strata complaints. Fair Trading and the Consumer, Trader and Tenancy Tribunal have been called in to mediate on a range of sensitive issues which have caused headaches for some of the 2 million people in NSW in strata schemes.

There was a family who were using an above-ground pool in their apartment to fatten trout for their restaurant, as well as a horse trainer who kept his trotter in the courtyard of a Glebe townhouse before it raced at Harold Park. It is understood the landlord turned a blind eye to the horse because the trainer was giving him racing tips.

There have been complaints about inappropriate sounds at all hours as well as a man who was ordered by the tribunal to urinate on the side of his toilet bowl rather than directly into the water.

A woman living in an apartment under the man’s unit complained she felt like she was ”living under Niagara Falls” every time her neighbour used the bathroom. She said she had been living with the noise for 13 years.

There have also been complaints of theft, including one multi-storey residential block that had all its copper gutters and downpipes stolen. Residents mistakenly thought that the “workmen” who turned up in overalls and spent the day removing the plumbing were part of the scheme’s ongoing maintenance work.

The state government has launched a major review of strata laws in NSW, which were a world first when they were introduced in 1961, with the first scheme in Enfield still in existence. There are now more than 70,000 schemes.

Online submissions closed at the end of last month and the government received 1200 responses.

The Fair Trading Minister, Anthony Roberts, said the majority of matters requiring intervention were mainstream disputes, but the complexity of community living resulted in increasingly difficult mediations.

He said he would release a discussion paper this year and invite further input from the community.

“NSW residents deserve to have the best strata and community scheme laws … that can effectively deal with schemes with multimillion-dollar budgets as well as buildings coming to the end of their usable lifespan,” Mr Roberts said.

Thanks to the Sydney Morning Herald for this article.

 

Rents rise by 13% in sought-after suburbs

February 23rd, 2012 by Netstrata Updates  | No comments »

Rents in Australia’s most sought-after suburbs have increased by up to 13 per cent in the last year.

Tenants are paying up to $60 a week more for accommodation than they were 12 months ago, according to figures released by RUN Property on Saturday.

Fairfield in Melbourne had the highest leap in rental prices (13.4 per cent), followed by Edgecliff in Sydney’s eastern suburbs (12.6 per cent).

These were closely followed by hikes of 11.7 per cent in the Sydney north shore suburb of Cremorne and 11.5 per cent in Surry Hills in inner Sydney.

RUN Property CEO Rob Farmer said 24 suburbs in Sydney and 18 in Melbourne saw rent increases of more than six per cent for new tenants in January, compared with the same time last year.

“The popular suburbs close to beaches, major shopping centres or train stations continue to go from strength to strength for investment property,” Mr Farmer said in a statement.

The average rent rise across Melbourne when new tenants moved in was 5.4 per cent, bring the average rent up to $383 a week.

In Sydney, the average rent increase was 7.4 per cent, up to $545 a week, while in Brisbane, rents rose by 3.3 per cent bringing the average rent to $346 a week.

 

Thank you Sydney Morning Herald for this article

New rules to protect kids in high-rises

February 7th, 2012 by Netstrata Updates  | No comments »

Apartments and multi-storey homes are about to get a little safer for children thanks to a rule change around windows in new buildings.

The Australian Building Codes Board has ruled that all windows in new homes and apartments that are more than two metres off the ground must be either fitted with window locks that stop the window being opened more than 125mm (12.5 cm), or must have reinforced screens to prevent children from falling from a height.

The changes will be included in the National Construction Code from May 2013.

The Australian Building Codes Board estimates that owners and builders will choose to fit 80 per cent of windows with locks, and the remaining 20 with reinforced screens. Its research priced window locks from $20 – $70 each, and strong screens from $130 a square metre, putting the average cost of a suitable screen at $130.

Ron De Vere, a project manager with the Australian Building Codes Board, says the decision was made after wide consultation with industry, and with fire authorities across the nation.

De Vere said an economic analysis that took into account the cost of installing locks and screens versus society’s cost of treating children who had fallen from windows showed that the broader cost-benefit of the changes was around zero.

However, “the board was swayed by the risk to children and the danger of children falling out of buildings”, he says. “It’s a bit like the pool safety issue, the child drowning … the value of a child’s life is so crucial.”

Danny Cass, a professor of paediatric surgery at the Children’s Hospital Westmead, has welcomed the changes saying the recognition that children could access windows and easily climb or fall out of them was a win for commonsense.

“Before, they thought a kid couldn’t climb that high but … they often pull things up to it, or beds are placed next to it,” Cass says.

Just a like a pool safety fence though, children will only be protected when adults remember to lock the windows and check that the reinforced screens are in good order.

The board backed away from an initial proposal to mandate window guards for windows two stories or above in all domestic dwellings.

It also a decided against that a proposal to increase to one metre the minimum floor-to-sill height of openable windows in rooms that are four metres from the ground outside.

The minimum floor-to-sill height will effectively remain at 865mm as the current provisions require a barrier of 865mm be in place to any openable window that is more than four metres from the ground, and it is common practice to place the bottom of the window at that height, using the wall itself to create the barrier.

The floor-to-sill height requirement will remain even where a lockable or removable device or screen is in use – in case the device or screen is inadvertently unlocked or removed. However, the minimum height from ground level at which the window-to-sill or barrier rule comes into play will drop from four metres to two metres after evidence showed serious injury can happen when a child falls from just two metres.

The changes will come into effect from May 2013, a timeframe the board says will allow industry to prepare for the changes.

An average of one child a week is taken to hospital in Australia after falling from a window. According to figures from the Children’s Hospital Westmead, 80 per cent of children who have fallen from a window have significant injuries, and four out of five children who fall from windows are aged under five. For information on keeping your kids safe near windows. Cass says the next challenge is making windows in existing housing and apartment stock safer for children. Cass is part of a working party on child falls at the Children’s Hospital Westmead. The group will meet again this month to explore further recommendations for existing properties.

Thank you Sydney Morning Herald for this article

The Finances of Litigation

January 31st, 2012 by Netstrata Updates  | No comments »

Financing any form of litigation is extremely expensive and building defect litigation is no exception. In fact, because construction defect cases often involve multiple rounds of testing and investigation, additional expert fees can make this one of the most expensive forms of litigation.

Using Reserves

By their nature, building defect cases tend to arise early in the life of a scheme when capital reserves will be low or non-existent. However, if there is money in the sinking fund, this can be used to finance litigation to the extent that the claim relates to repair, replacement, restoration or maintenance of major components for which the sinking fund was established.

Bank Loans

Some banks will lend money to strata schemes to maintain and repair common property but so far this has not extended to financing defect investigations and litigation. Owners corporations and community associations are not permitted to give security for such loans and this makes financing litigation difficult.

Solicitor’s Finance

Unlike the current trend in America, construction defect lawyers in Australia are unlikely to finance testing and repairs or other outlays like barristers fees because of the constraints in Australia on contingency or success fees. The practice of advancing money for outlays or extending credit for work in progress is fraught with conflicts of interest on the part of the lawyer in terms of being objective about the advice to the client when the lawyer has a financial interest in the outcome. 

Thanks to Teys Lawyers

Housing Review a major step forward

January 30th, 2012 by Netstrata Updates  | No comments »

The NSW Government’s review of potential housing opportunities reported in the media today shows the government’s commitment to boosting housing supply and increasing affordability in a common-sense and transparent way, UDIA NSW believes. In what is one of the biggest steps forward for NSW housing supply for years, the Government has given a commitment to pursuing housing opportunities where the landholdings are, rather than designated growth areas that suffer major land fragmentation issues. Late last year Planning and Infrastructure Minister Brad Hazzard made a public call to developers with large landholdings, close to infrastructure, to approach the State Government with their projects, in recognition that residential development in NSW had stagnated for many years. This month, the Government published online the results of that process: a list of 43 sites which are potential candidates for rezoning for urban development under the Review of Potential Housing Opportunities on Landowner Nominated Sites. In the Sydney region, the sites are in the local government areas of Auburn, Blacktown, Camden, Campbelltown, City of Sydney, Hornsby, Liverpool, Penrith, Pittwater, Sutherland, The Hills, and Wollondilly. Regionally, the sites are in the local government areas of Cessnock, Clarence Valley, Hawkesbury, Port Stephens, Wingecarribee, and Wyong. Submissions closed on November 29 and the review process is predicted to be finalised in the first quarter of this year. The projects are being assessed on three criteria, according to the Department of Planning and Infrastructure’s website: 1. Housing delivery: The site is suitable for urban development and has viable prospects to produce houses in the short term. 2. Infrastructure: Infrastructure and services for new communities will be delivered in a timely and efficient manner and at no additional cost to Government. 3. Strategic setting: The proposal supports the broadly planned pattern of growth and urban policies. The process is governed by a Chief Executives’ Review Committee, which is chaired by the Director-General of the Department of Premier & Cabinet. Recommendations will then be made to State Government. Consultation will take place with the relevant Councils to seek their feedback on the proposals. Today, in the Sydney Morning Herald, Minister for Planning and Infrastructure Brad Hazzard said many of the nominated sites were outside the growth centres and that the growth centres strategy had failed. “The lines on the maps for the growth centres are supposed to encourage development in those areas, but it has not worked and the corollary has been it deterred development outside these lines,’’ Mr Hazzard told the newspaper. UDIA NSW believes this process shows the government is deeply committed to fostering housing growth and that it is also being transparent about the process and consultative with councils, which is essential. UDIA NSW Chief Executive Stephen Albin said says he believes the process is a realistic approach to fostering development where the landholdings are, rather than simply rezoning land in areas of fragmented ownership. “Our own research, which we have put to Government, clearly shows that the large sites where the landowners have been ready, willing but not yet able to develop are largely outside the growth centres,’’ he said. “It is clear, for the state to meet its future population and economic growth targets, that the process needs to take into account achievable development rather than operating off a wish-list that may not be viable or achievable.’’ “We support development that is led by the realities of the industry, whether it is inside or outside a growth centre – so long as it is commercially viable, sustainable, and supported by the appropriate infrastructure.’’ “As an industry group, we feel it is important to stress that this process is one that will benefit the state as a whole, in terms of housing affordability and economic growth.’’

Thank you to UDIA NSW for this Article

Happy New Year! from Netstrata

January 24th, 2012 by Netstrata Updates  | No comments »

Happy New Year, to all our Owners and Clients wishing you a healthy and successful 2012.