What it does
The Strata Schemes Development Act 2015 (the Act) is the foundational statute governing the creation, subdivision, management, variation, and termination of strata schemes in New South Wales. At its core, it enables the subdivision of land — including buildings — into cubic spaces that become individual "lots" (s 9) while designating the remainder as "common property" (s 4(1)). This is achieved through the registration of a strata plan (s 10), which must include a location plan, floor plan, administration sheet, schedule of unit entitlement, and surveyor’s and valuer’s certificates (Sch 1 and Sch 2).
The Act distinguishes between freehold strata schemes (where lots are held in fee simple) and leasehold strata schemes (where all lots and common property are subject to registered leases expiring simultaneously — s 11). It prescribes precise boundary rules: vertical boundaries are generally the inner surface of walls, and horizontal boundaries the upper surface of floors or under surface of ceilings (s 6), subject to any regulatory description of common infrastructure (s 4(1)).
Key operational mechanisms include:
- Subdivision and consolidation: Lots or common property may be subdivided by strata plan of subdivision (s 13) or consolidated (s 15). Development lots within staged schemes are governed by a registered strata development contract (Part 5, ss 71–98).
- Notices of conversion: Lots may be converted to common property by special resolution and registration of a notice of conversion (s 17).
- Building alteration plans: Owners must register a building alteration plan within one month of alterations that affect lot boundaries (s 19), with a maximum penalty of 5 penalty units.