What is consolidation?
Consolidation is the process of collating all of the by-laws into one document, and deleting all of the by-laws that don’t apply because of the strata reforms.
Generally, there are three steps involved in the consolidation process, as follows:
- Step One: Categorising the old by-laws under the new classification of either ‘governance’ or ‘conduct’ by-laws.
- Step Two: Removing any by-laws that are invalid.
- Step Three: Changing the default by-laws because of the strata reforms, and updating cross-references to by-laws and sections of the legislation.
Once these steps have been undertaken, the consolidated by-laws must be inserted into the Landgate approved form and lodged at Landgate.
When is consolidation necessary?
A strata company is required to consolidate the by-laws if the strata company:
- already has its own, unique by-laws registered at Landgate; and
- is seeking to make new by-laws, or amend or repeal existing by-laws.
A strata company is not required to consolidate if:
- the strata company only uses the default by-laws, and never makes any changes to its by-laws; or
- the strata company is not seeking to make, amend or repeal any by-laws.
The strata company may consolidate its by-laws at any time, for any reason, if it wants to.
Are the owners required to vote?
Generally, no vote is required to give effect to the above three steps, provided that the strata company existed before 1 May 2020. However, a vote may be required if the existing by-laws are being amended, or new by-laws are made.
How much will it cost to consolidate?
The legal costs to consolidate will depend on whether the strata company is happy with the existing by-laws, or would like a complete overhaul of the by-laws, and also the volume of existing by-laws already in place.
As a general guide, the legal costs of consolidating, by going through the three steps above, will be around $2,500 to $3,500 (including GST and disbursements), depending on the complexity. If you would like an estimate that is specific to your circumstances, please contact us and we may provide you an estimate of the costs.
For more general information about consolidation, Landgate has issued a consolidation guide, which can be found here.