New Entry Powers Proposed
for Strata Properties

Common property repair & maintenance

NSW Fair Trading is seeking new powers to enter apartment buildings without a warrant when there’s reasonable grounds of inadequate common property maintenance.

The proposed legislation, introduced to parliament by Fair Trading Minister Anoulack Chanthivong, would grant regulators broad authority to investigate and enforce maintenance obligations in strata properties.

The proposed legislation would allow NSW Fair Trading to enter common property areas at reasonable daytime hours without a warrant, for areas defined as “not being used only for residential purposes.”

For private apartments, however, inspectors would need either owner consent or a search warrant.

The legislation outlines specific investigative powers, including:

• Recording interviews with residents
• Examining and copying records
• Taking samples and conducting tests
• Using “reasonable force” to access areas including floors and walls
• Seizing items connected to maintenance violations
• Issuing compliance notices to owners corporations

The legislation introduces several safeguards:

• Common property entry must be at “reasonable” daytime hours
• Private residential areas require either consent or a warrant
• Residents must be informed before interviews are recorded
• Owners corporations can appeal compliance notices to NCAT within 28 days
• Seized items must have written receipts provided
• Seven days’ notice required before destroying seized items

For serious breaches, owners corporations face penalties up to $22,000 with additional daily penalties of $2,000 for continuing violations. However, they can enter into undertakings with Fair Trading to address issues, subject to special resolution approval.

The legislation allows owners corporations to challenge compliance notices through the NSW Civil and Administrative Tribunal within 28 days of receipt.

Enforcement of Common Property Repair

The proposed legislation would also empower inspectors to “open up, cut open or demolish building work” and use “reasonable force to break open… a floor or wall” during inspections when necessary.

The regulator would also have the power to issue compliance notices, apply to the NSW Civil and Administrative Tribunal for an order, or strike an enforceable undertaking to compel action.

If the owners corporation still refused to repair common property it would become an offence, with a maximum penalty $22,000, and further penalties accruing each day.

Previously, such entry powers were limited to new developments to address building defects. This expansion to all existing strata properties represents a significant shift in the regulatory oversight of strata communities in NSW.

The changes form part of broader strata reforms implementing recommendations from the 2021 statutory review of strata legislation.

Read more on the ABC news

Read the Strata Schemes Legislation Amendment Bill 2024 and the explanatory notes.

Read more about the proposed changes  introduced to NSW Parliament on 20 November 2024.