2.3 The powers of an owners corporation | Owners Corporation Network

2.3 The powers of an owners corporation

The powers are not mandatory, but most owners corporations, and hence executive committees will call on many of these powers over the course of a year, let alone a scheme’s life. The primary powers of an owners corporation in NSW come from three pieces of legislation:

  1. The Strata Schemes (Freehold Development) Act 1973 is the source of power for fundamental property rights for owners corporations.
  2. The Strata Scheme Management Act 1996 contains a broader range of powers both administrative and proprietorial in nature.
  3. Community and Land Management Act 1989 covers strata communities such as retirement villages and associations.

Powers of an owners corporation

Relevant NSW Legislation: The Strata Schemes (Freehold Development) Act (1973)

Sections18 and 20: hold common property

Section 19: acquire additional common property

Section 25: transfer or lease common property

Section 26: create or vary easements, restrictions and positive covenants

Section 27: consent to the dedication of common property for public purposes

Section 50: vary a strata plan

Section 51: apply for termination of a strata scheme


Relevant NSW Legislation: Strata Schemes Management Act (1996)

Section 13: employ persons to assist in exercising its functions

Section 16: appoint an executive committee

Section 25: pay the executive committee for their work

Section 26: appoint a strata managing agent

Section 28: delegate functions to a strata managing agent

Section 40B: appoint a caretaker

Section 43 and 47: make, revoke or amend by-laws

Section 45: issue notices for breach of by-laws

Section 52: grant exclusive use and special privileges of common property

Section 62(3): determine what it renews, replaces and repairs

Section 63: carry out work that is the duty of an owner or occupier

Section 64: carry out work necessary to remedy defects within a lot that affects another lot or common property

Section 65: enter property and carry out work

Section 65A: authorise or make changes to common property

Section 65B: grant a licence to use property

Section 68: pay money from its administrative fund

Section 71: pay money from its sinking fund

Section 72: distribute surplus funds to owners

Section 76: levy contributions

Section 79: waive interest and/or allow discounts for early payment contributions

Section 80: recover contributions as a debt with interest and expenses

Section 80C: pay for emergencies and repairs

Section 80B: seek legal advice and take proceedings

Section 83, 87 and 88: effect insurance

Section 86: apply for exemption from unnecessary or impractical insurance

Section 99: make or amend entries on the strata roll

Section 110: borrow money and secure interest

Section 110: dispose or deal with a lot or lease

Section 111: provide services and amenities to a lot owner by agreement

Section 112: transfer or lease common property

Section 227: represent owners in proceedings relating to common property