Stronger controls over strata repairs and maintenance have taken effect in NSW as part of a third tranche of reforms aimed at increasing confidence in the sector.

The laws allow NSW Fair Trading to issue compliance notices and enter enforceable undertakings with owners’ corporations if they do not maintain and repair common property as required.

The government says the changes will ensure serious maintenance issues and defects can be fixed without expensive and time-consuming litigation.  

Changes also help owners in financial stress and ensure building managers are held to the same accountability and transparency standards as strata managers.

Other reforms introduced since last November included increased penalties for strata agents who do not disclose conflicts of interest or kickbacks, and a ban on unfair contract terms.

Better Regulation and Fair Trading Minister Anoulack Chanthivong says strengthening the repair and maintenance obligation will increase the focus on building upkeep and safety.  

“When schemes don’t meet their repair and maintenance obligations under strata laws, they risk their building falling into disrepair, leading to cost blowouts to fix damage, safety issues, legal disputes, and limiting the insurability of the strata complex,” he said. 

Compliance will be led by the Strata and Property Services Taskforce within NSW Fair Trading. 

More than 1.2 million NSW residents live in strata and the government says the number will rise under strategic planning reforms.