Recent Changes to NSW Property Law: What You Need to Know

Recent Changes to NSW Property Law: What You Need to Know

New South Wales (NSW) has recently implemented significant reforms in property law, impacting both renters and property professionals. Here's a straightforward overview of these changes:

1. Rental Reforms: Enhancing Tenant Protections

In October 2024, the NSW Parliament passed the Residential Tenancies Amendment Bill 2024, introducing several key changes:

• Ban on 'No Grounds' Evictions: Landlords are now required to provide a valid reason when ending a tenancy, enhancing security for the state's 2.2 million renters. 

• Rent Increase Cap: Rent increases are limited to once every 12 months, providing tenants with greater predictability in their housing costs.

• Pet Ownership: Tenants can now request to keep pets, with landlords needing to provide a valid reason for refusal. If no response is given within 21 days, consent is automatically granted. 

• Background Check Fees: Landlords and agents are prohibited from charging tenants for background checks during the application process. 

2. Strata Management Reforms: Improving Transparency and Accountability

The Strata Schemes Legislation Amendment Bill 2024 introduced in November 2024 aims to enhance the management of strata properties:

• Expanded Reporting Requirements: Strata managing agents must provide more comprehensive reports to owners' corporations, ensuring greater transparency.

• Stricter Disclosure Obligations: Agents are now required to disclose any conflicts of interest, promoting accountability in strata management.

• Increased Penalties: Penalties for non-compliance with strata management regulations have been raised, encouraging adherence to best practices. 

3. Property and Stock Agents Regulation 2022: Updating Professional Standards

Effective from 1 September 2022, the Property and Stock Agents Regulation 2022 includes:

• Updated Definition of Buyer’s Agent: Aligns with the Property and Stock Agents Act 2002, clarifying the role and responsibilities of buyer’s agents.

• Enhanced Disclosure Requirements: Agents must now provide clearer information when accepting expressions of interest deposits, ensuring consumers are well-informed.

• Material Facts Disclosure: Agents are required to disclose specific material facts to prospective tenants, ensuring transparency in rental agreements. 

4. Property and Development NSW Act 2006: Streamlining Property Management

In May 2024, amendments to the Property NSW Act 2006 were enacted to:

• Clarify Functions of Property and Development NSW (PDNSW): The Act now explicitly outlines PDNSW's capabilities, reducing bureaucratic hurdles in property transactions.

• Enable Compulsory Land Acquisition: PDNSW can now directly acquire land, streamlining processes for public projects. 

• Reduce Administrative Burdens: The requirement for dual land valuations has been eliminated, simplifying financial reporting for property transactions. 
  

These legislative changes reflect NSW's commitment to enhancing tenant protections, improving strata management, updating professional standards, and streamlining property management processes. Staying informed about these developments is crucial for renters, property owners, and professionals navigating the NSW property market.