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NSW Fair Trading Proposes New Powers to Ensure Strata Property Maintenance

NSW Fair Trading Proposes New Powers to Ensure Strata Property Maintenance

The New South Wales (NSW) government has introduced a new tranche of strata reforms to parliament, aiming to enhance the maintenance and safety of apartment buildings across the state.
A key component of these reforms is the proposal to grant NSW Fair Trading the authority to enter any apartment building without a warrant if there are reasonable grounds to believe that the owners corporation is failing to maintain common property adequately.

Under the proposed changes, NSW Fair Trading inspectors would have the power to enter private apartments with a warrant or the owner's consent to inspect for defects. Unit owners could be compelled to provide documents, consent to interviews, and allow items to be seized from their homes, with non-compliance potentially resulting in fines up to $2,200.

These measures are intended to address ongoing issues where owners corporations neglect their legal obligations to repair and maintain common property, leading to deteriorating living conditions for residents. Strata lawyer Amanda Farmer highlighted that many residents live in substandard conditions due to such neglect, and the proposed powers would enable the government to intervene more effectively without the need for lengthy court proceedings.

However, consumer advocacy groups have raised concerns about potential privacy implications and the extent of the powers being granted. They emphasize the need for a balanced approach that ensures property maintenance while respecting individual rights.

For strata property owners and residents, these proposed reforms underscore the importance of proactive property management and compliance with maintenance obligations to avoid regulatory intervention and potential penalties.

Published:Saturday, 13th Dec 2025
Source: Paige Estritori

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Moral Hazard:
The concept that individuals may take on more risk when they do not bear the full consequences of that risk, often relevant in insurance scenarios.