STP-11 Scheme By-laws

Version 1 – 03/01/2019

The information provided in this guide is not intended to amount to legal advice. Professional assistance may be required to determine the most appropriate action to protect your legal rights. Please read our Terms of Use on the Strata Titles Policy and Procedure Guides web page. Landgate accepts no responsibility where parties print this guide and seek to rely on information that is out of date.

1 Standard By-laws (formerly section 14.5 of the Practice Manual)

The STA contains a set of standard by-laws that are deemed to be applicable to every strata and survey-strata scheme. These are set out in and are known as Schedule 1 and 2 of the STA. These by-laws can be repealed, added to or varied to suit each individual scheme. These variations can be made at the time of registration of the plan by the original proprietor of the parcel using a management statement (section 5C). After the Strata/Survey-Strata Plan is registered, by-law changes need to be discussed and voted on at a General Meeting of the strata company. To be effective any changes must be registered on the plan within 3 months of the meeting at which those changes were agreed.

Changes to the by-laws are recorded on the encumbrance schedule of the Strata/Survey-Strata Plan. If a recent resolution has been passed, it must be recorded in the strata company minutes.

2 Management Statements (formerly section 7.1 of the Practice Manual)

Management statements can be used to put in place by-laws that may be required as a condition of approval by WAPC or local government or may be put in place by the developer of the project to put by-laws in place before registration of the Strata/Survey-Strata Plan. A management statement cannot be applied to a scheme after registration of the Strata/Survey-Strata Plan.

For example, architectural or theme by-laws can be included, as can by-laws, to ensure that open space, plot ratio or building height limitations can be imposed. These types of by-laws can also be used to allow a developer to maintain certain building standards and dwelling styles as the project progresses. In three (3) to five (5) lot schemes, exemptions from certain management requirements that are currently automatic for two lot schemes, can be put in place by the original proprietor using a management statement.

The management statement must be signed by the Original Proprietor and by each person who has a registered interest in or is a caveator in respect of the parcel. On registration of the Strata/Survey-Strata Plan, the by-laws contained in a management statement become effective without a meeting to adopt those special by-laws.

Management statements can be utilised in staged developments. By putting in place by-laws disclosing plans and specifications of the proposed completed development it is not necessary to convene general meetings or obtain mortgagees’ or proprietors’ consents to resolutions for each stage provided Developers comply with the requirements set out in Regulations 36 and 37 of the STGR.

The management statement sets out the by-laws of the strata company which are to have effect under sections 42, 42A and 42B together with amendments and repeals referred to in section 42(2) and may include by-laws in relation to the types of matters listed in schedule 2A. They are the:

  • amendment or repeal of schedule 1 by-laws and schedule 2 by-laws
  • additional by-laws to either Schedule 1 or Schedule 2
  • control or preservation of a “theme”
  • architectural & landscaping guidelines, and plot ratio & open space requirements
  • management and use of common property and special facilities
  • proposed re-subdivision of a scheme
  • fencing obligations
  • maintenance of services
  • insurance of common property
  • safety and security
  • carrying on of a business and trading activities by a strata company

and

  • resolution of disputes prior to applications being made to the Strata Titles Referee.

Generally, management statements provide for flexibility. Care should be taken when preparing by-laws not to confuse them with easements and restrictive use provisions and not to conflict with sections of the STA. It should also be noted that by-laws created in these documents cannot override the STA, planning laws, local government by-laws or other legal land use or building controls.

By-laws included in a Management Statement may be amended in accordance with section 42 or as otherwise provided in the Act. The strata company which is formed on registration of the Strata/Survey-Strata Plan, may amend, repeal or add those by-laws by appropriate meeting procedure.

3 Local Government and WAPC Involvement with Management Statements (formerly section 7.2 of the Practice Manual)

Government agencies may require specific by-laws to be included in a management statement as a condition of approval of a scheme. In these instances, the appropriate agency will require a copy of the management statement before confirming its approval to the scheme.

For Survey-Strata schemes, vacant Lot built strata schemes and built strata schemes requiring WAPC approval that have not been delegated to local government-

the WAPC will also need to ensure the by-laws are in place before endorsing approval of the plan by sighting a copy of the management statement.

For built strata schemes requiring WAPC approval that have been delegated to local government-

the local government will need to ensure the by-laws are in place before endorsing approval of the plan by sighting a copy of the management statement.

The removal of a management statement from a plan placed “in Order For Dealings” requires the written consent of the endorsing authority (local government or the WAPC).

4 Staged Schemes (formerly section 7.3 of the Practice Manual)

A staged strata scheme is one which is implemented as an initial subdivision followed by re-subdivisions. The final intention and detail are set out in a management statement before the Strata Plan is registered – so as not to mislead initial purchasers. Either a vacant lot Strata Plan or a Survey-Strata Plan may be used for a staged scheme.

5 Accompanying Information for a Staged Strata Plan (formerly section 7.5 of the Practice Manual)

Management statements lodged for registration of a staged Strata/Survey-Strata Plan must include additional information. STGR regulation 37 specifies the requirements for plans and specification information accompanying management statements for staged developments. This information must be submitted in A4 or A3 size paper and if possible printed on the front and back of each page. Every page or annexure (front and back) must be clearly numbered.

Large architectural plans can be broken down to A3 size with clearly marked joining points so they could be fitted together to form a composite plan, if needed.

The following information must be lodged as part of the management statement. It is to be clear and legible and at a scale acceptable to the Registrar of Titles (see STP-09 Scheme Plans section 1.4):

  • Proposed location plan of the completed development.
  • Proposed floor plan of the completed development.
  • Licensed valuer’s certificate STGR Form 27.
  • Architectural plans of the buildings including every storey (or, if every storey is the same, a plan of one storey with a note that every storey is the same).
  • At least two elevations of external fronts.
  • One or more transverse or longitudinal sections.
  • The heights of each storey.
  • Levels of ground.
  • Approximate relative levels of the lot on which the building or other improvements are to be constructed with respect to any adjoining street, way or lot.
  • A description of materials to be used in the construction of the walls floors and roof.
  • Any by-law created under clause 8(a) of Schedule 2A needs to have a warning stating that any proposed re-subdivision is not binding on the WAPC, local government or any other government agency.

The proposed location and floor plans should indicate clearly the dimensions of each stage. The proposed unit entitlement of each stage should indicate the proposed unit entitlement of the whole scheme at the end of each stage. Specifications and plan details of the interior are not required. Large cumbersome architectural plans and excessive specifications will not be accepted.

6 Re-Subdivision of a Staged Scheme (formerly section 7.6 of the Practice Manual)

On completion of each stage, a Strata/Survey-Strata Plan must conform to what was specified in the management statement.

Therefore, the Strata/Survey-Strata Plan must have:

  • the same number of lots as shown on the management statement
  • a variation of no more than 10% in the area of each lot for that stage
  • the same configuration of the lots and common property
  • the same unit entitlement of the lots after each stage

and

  • the same easements or other encumbrances or restrictions.

7 Accompanying Information for a Staged Survey-Strata Plan (formerly section 7.7 of the Practice Manual)

Management statements for staged survey-strata schemes should contain the following information:

  • A valuer’s certificate and schedule of unit entitlement for each stage.
  • Proposed Survey-Strata Plans of various stages of the development.
  • Any proposed additional or varied by-laws.
  • Additional by-laws may also contain architectural plans and specifications of proposed buildings, to be constructed on the lots.
  • Any by-law created under clause 8(a) of Schedule 2A needs to have a warning stating that any proposed re-subdivision is not binding on the WAPC, local government or any other government agency.

8 Exclusive Use (formerly section 6.14 of the Practice Manual)

Section 42(8) of the STA allows a strata company by a resolution without dissent (or unanimous resolution in the case of a two-lot scheme) to create a by-law to grant exclusive use and enjoyment of, or special privileges to, a lot proprietor of all or part of the common property. These rights are not the same as ownership. The lot proprietor must consent in writing to the terms of the by-law and this consent should be retained with the strata company records.

By-laws for exclusive use or special privilege may contain conditions such

as requirements for maintenance and repair or the payment of money to the strata company.

The portion of the common property that is subject to exclusive use or special privilege must be clearly defined by a sketch that contains sufficient information to accurately define the affected area.

The areas of exclusive use or special privilege may be described in a narrative form provided they can be plotted in reference to the lot boundaries. In this circumstance a sketch is not required.

A by-law granting exclusive use or special privileges is not effective until it is recorded on the Strata/Survey-Strata Plan at Landgate. This is effected in the same manner as for a notification of change of by-laws, and must be effected within three (3) months from the date of the relevant meeting.

The STA section 19(12) specifies that by-laws granting exclusive use or special privileges do not require the consent of the WAPC or the local government.

The relevant by-law can be amended or repealed by a resolution without dissent )or unanimous resolution in the case of a two lot scheme).

9 Exclusive Use By-laws Sketches (formerly section 6.15 of the Practice Manual)

Boundary definitions of exclusive use or special privilege areas can be defined by a combination of brick walls or other permanent monuments and dimensions. There must be sufficient information on the sketch to identify the relevant areas. In cases where the relevant areas are car-bays or similar areas independent of a building, dimensions tying these areas to a building or the parcel boundary must be shown.

Although there is no requirement for a surveyor to prepare these types of sketches, it may be in the best interests of all concerned to use professionals for sketch preparation and measuring to avoid disputation at a later date.

Surveyors preparing exclusive use sketches should treat them in much the same manner as preparing a floor plan sheet. The paper size should be A4 as it is part of the Form 21, which will become a registered document. There must be sufficient dimensioning or notation to clearly identify the exclusive use areas. A north point, scale, scale bar and heading containing strata scheme details are to be shown. The sketch should also tie in by dimension or notation the exclusive use portions to a building or the parcel boundary. Stippling, hachuring or identification by notation may be used. Colours must not be used.

When sketches are prepared by someone other than a surveyor, the above criteria applies and must be adhered to.

The annexure containing the sketch must state clearly in bold lettering the lots obtaining the rights and the portions of common property over which those rights apply.

10 Registration of Amendments to By-laws (formerly section 6.12 of the Practice Manual)

A strata company may pass by-laws that control various aspects of strata living and the scheme. These by-laws can be for:

  • the company’s corporate affairs
  • any of the matters specified in schedule 2A of the STA
  • any of the matters set out in sections 42A and 42B of the STA
  • the establishment of a fund for administrative purposes in the case of a two-lot scheme (section 36A (3) of the STA)
  • the inclusion of obligations of the kind referred to in section 36A(i) of the STA
  • the exclusion of obligations contained in sections 35, 35A and 36 of the STA in the case of 3, 4 or 5 lot schemes (section 36B (1) of the STA)

and

  • other matters relating to the management, control, use and enjoyment of the lots and any common property.

The by-laws set out in Schedules 1 and 2 to the STA are deemed to be by-laws of all strata companies, unless there are variations registered on the Strata/Survey-Strata Plan, either in the form of a management statement (see section 5C of the STA) or subsequently recorded after being adopted by the strata company. Whenever an additional by-law is adopted it must be specified as either an addition to the strata companies schedule 1 or schedule 2 by-laws (section 42(2a) of the STA). The difference is important because different voting provisions apply for making changes to Schedule 1 and Schedule 2 by-laws.

By-laws may be amended, repealed or added to:

  • by a resolution without dissent (or unanimous resolution in the case of a two-lot scheme) for Schedule 1 by-laws
  • by a special resolution, for Schedule 2 by-laws

or

  • in accordance with any order of a court, tribunal or any written law.

Registration of by-laws or changes to by-laws is achieved by lodging a “Notification of Change of By-laws” at Landgate. The notification of change of by-laws must be set out substantially in the manner of Form 21 of the STGR, which may be formatted on ordinary sheets of white A4 size paper attached to a TLA Form B4 or typed on a blank instrument form B4 with additional form B1 pages if required.

A strata company can only pass such a resolution and any resolution necessary to authorise execution of the documents and execute such documents, at the earliest, on the 16th day after registration of the Strata Plan (registration date is counted as day one).

Amendments to by-laws must be registered and recorded on the Strata/Survey-Strata Plan within three (3) months of the passing of the resolution adopting those amendments. The three (3) months commences from the date the meeting was held. Certain by-laws can be made by a strata company at the request of a local government or a government agency and may be expressed to require that agency’s consent to an amendment or repeal of the by-law [section 42(2d)].

No by-law, amendment or repeal of a by-law may operate so as to restrict any transfer, lease, mortgage or other dealing with any lot or modify or destroy any easement implied or created under the STA. Definitions of a “resolution without dissent”, “special resolution” and “unanimous resolution” are outlined in sections 3(1), 3AC, 3B, 3B and 3CA of the STA.

This page was last updated on: 28 Jun 2019