The management statement is a key part of the plan for a community, precinct or neighbourhood scheme. This page provides an outline of what management statements cover and gives guidance on what associations may like to include.
On this page:
What is a management statement?
A management statement is a document that includes information concerning all aspects of the scheme, including property diagrams, by-laws, waste services and insurance.
The management statement is binding on:
- the association for the scheme
- each subsidiary of the scheme, and
- each person who is an owner, lessee or occupier, or the mortgagee or covenant charge in possession, of a development lot, neighbourhood lot or strata lot within the scheme or a subsidiary scheme.
This means if a strata scheme is located within a community or precinct scheme, the management statement will override the strata scheme’s by-laws if there are inconsistencies between the two.
The management statement for each scheme must be registered with NSW Land Registry Services.
What does the management statement need to include?
The management statement must include by-laws, plans and other particulars regarding:
- the location, control, management, use and maintenance of association property that is an open access way or private access way
- the control, management, use and maintenance of association property, including any special facilities provided on that property
- matters affecting, providing and paying for internal fencing
- the storage and collection of garbage
- the maintenance of water, sewerage, drainage, gas, electricity, telephone and other services
- insurance of the association property.
Optional matters may also be included in the management statement. For example, some schemes may wish to include by-laws governing the hanging of washing, keeping pets, or noise level controls.
Association by-laws
What are by-laws?
Each association has its own by-laws that are a set of rules that owners, tenants and, in some cases, visitors must follow. By-laws cover the behaviour of residents and the use of association property.
By-laws identified as controls and preservations of the essence or theme of the scheme may impose restrictions and can only be changed by a special resolution.
Changing by-laws relating to sustainability infrastructure is an exception to this. These by-laws are easier to pass.
Learn more on the sustainability infrastructure page.
What can by-laws cover?
Associations can determine the by-laws that suit the preferred lifestyle of the scheme. By-laws may:
- fix architectural, building or landscaping styles, for example, federation style houses
- limit materials to be used in buildings, for example, all dwellings to be brick
- restrict the use of some association property, for example, only horses and not motor cars can use the trotting track.
- ask for the following evidence to establish an assistance animal's status:
- evidence the animal holds an accreditation under a State or Territory law, or
- a statutory declaration verifying the animal has received been trained to assist a person with disability and has standards of hygiene and behaviour appropriate for an animal in a public place.
However, by-laws cannot:
- be harsh, unconscionable, or oppressive
- restrict dealing in a lot, except in relation to using a lot for short-term rental accommodation where the lot is not the host’s principal place of residence
- restrict children occupying a lot
- prohibit or restrict the keeping of an assistance animal on a lot or restrict the animal’s ability to perform its duty
- charge a resident a fee or bond or to require insurance for a pet kept on a lot
Can by-laws limit the number of people living in a property?
Yes, a by-law for an association scheme may limit the number of adults who may reside in a lot. However, the limit may not be fewer than 2 adults per bedroom and has no effect if the adults residing in the lot are related to each other.
Enforcing by-laws
Who is responsible for enforcing by-laws?
The association is responsible for enforcing the scheme’s by-laws.
An association can enter into an agreement with the local council to enforce the scheme’s parking restrictions, including the installation of signs and notices. The association must pass a resolution agreeing to contract the local council to do this work.
The NSW Office of Local Government has published guidelines for councils on strata and community parking arrangements.
Breaches of by-laws
What happens if members breach the by-laws?
An association may pass a resolution to issue a notice to a person requiring them to comply with a specified by-law if a breach occurs. Notice must be given in the form approved by Fair Trading.
If the person continues to contravene the by-law, the association may apply to the NSW Civil and Administrative Tribunal.
For more information, visit the association dispute resolution page.
By-law information to tenants
A landlord or their real estate agent must:
- give a copy of by-laws and any management statement to a tenant with the lease agreement for signing, and
- give a copy of any changes to the by-laws and management statement to the tenant within 14 days of the change starting.