Introduction

For any strata scheme in New South Wales, the by-laws serve as the fundamental rules governing community living. A common and costly misunderstanding is that a new by-law becomes legally binding once the owners corporation passes a special resolution. However, under the Strata Schemes Management Act 2015 (NSW), a by-law has no legal power or effect until it is formally registered with NSW Land Registry Services (LRS).

This guide provides essential clarity for any owners corporation, strata committee, or strata manager on this critical requirement. It outlines the legal risks of non-registration, explains the formal process for ensuring a by-law is enforceable, and details the best practices required to maintain compliance and effective governance for your strata plan.

Legal Requirements for Strata By-Law Registration

The Strata Schemes Management Act Mandate

For a strata by-law to be legally binding in New South Wales, it must be formally registered with the LRS. This requirement is not merely a procedural suggestion but a strict legal mandate outlined in state legislation.

The by-laws for a strata scheme only gain legal power once they are officially recorded on the folio of the Register for the common property. This legal foundation is established in the Strata Schemes Management Act 2015 (NSW), which explicitly states in Section 141(2) that any change to a scheme’s by-laws has no legal effect until registered adequately with the LRS.

This provision is further reinforced by the Strata Schemes Development Act 2015 (NSW), which establishes that by-laws have no power until the strata plan and the by-laws are registered together.

Additionally, the owners corporation must complete this registration process within a specific timeframe:

• Any new by-law must be registered within six months of passing the special resolution
• Missing this deadline causes the resolution to lapse
• The by-law becomes void and unenforceable if not registered in time

Passing a Resolution vs. Legal Enforceability

A common misunderstanding within strata schemes is confusing the act of passing a by-law with making it legally enforceable. These are two distinct and separate stages in the process; only completing both gives a by-law its legal authority.

The process involves two critical stages:

Stage	Description
1. Passing a Special Resolution	This is the democratic approval step, where owners vote on a proposed change at a general meeting. A special resolution is achieved when no more than 25% of the value of votes cast are against the motion.
2. Legal Validation	This is achieved through formal registration with NSW Land Registry Services (LRS). The by-law remains legally ineffective until this registration is complete and officially recorded.

The difference in status between registered and unregistered by-laws is significant:

By-Law Status	Legal Standing & Enforceability
Unregistered By-Law	Considered merely an internal agreement, even with a passed special resolution. It has no legal standing and cannot be enforced through a Notice to Comply or by application to the NSW Civil and Administrative Tribunal (NCAT).
Registered By-Law	Becomes a legally binding instrument once recorded by LRS. It is enforceable against all lot owners, tenants, and visitors, allowing the owners corporation to take formal action to address breaches.

Legal Risks & Consequences of Unregistered By-Laws

The Unenforceability of Unregistered Strata Rules

The most significant consequence of failing to register a by-law is that it remains completely unenforceable. Under Section 141(2) of the Strata Schemes Management Act 2015 (NSW), a change to a strata scheme’s by-laws has no legal effect until it is officially registered with LRS and recorded on the folio of the Register of the common property.

Even if a special resolution is passed unanimously at a general meeting, the new by-law has no legal power until registration is complete. Without this crucial step, the rule is often considered no more than a ‘house rule,’ which lacks the legal authority to compel compliance from owners or residents.

This means any attempt by the owners corporation to enforce rules regarding pets, parking, noise, or renovations, often the source of a strata dispute, will be invalid if the by-law is not on the strata plan’s title.

Failed Enforcement Attempts & NCAT Penalties

An owners corporation cannot rely on an unregistered by-law when seeking enforcement orders from the NCAT. The Tribunal will not enforce a rule with no legal standing, and any application based on an unregistered by-law will likely be dismissed.

This can result in the owners corporation wasting:

• Significant time pursuing unenforceable rules
• Money on legal fees for a case destined to fail

The formal enforcement pathway for a registered by-law, which includes issuing a “Notice to Comply” and applying for penalties in a strata dispute in NCAT, is unavailable for unregistered rules. The owners corporation loses its ability to seek orders or financial penalties for breaches, which can include:

• A fine of up to $1,100 for an initial breach
• A further fine of up to $2,200 if the same by-law is breached again within 12 months

Without a registered by-law, the strata scheme lacks these vital tools to ensure compliance and resolve disputes effectively.

Financial & Insurance Repercussions

Failing to register a by-law can lead to significant financial and legal repercussions beyond simple unenforceability. If the strict six-month registration deadline is missed, the special resolution lapses, and the owners corporation must bear the cost of convening another general meeting to re-pass the by-law.

All initial costs associated with drafting and passing the rule are effectively wasted.

Furthermore, there are considerable insurance risks. Most strata insurance policies exclude coverage for unauthorised building works. If a by-law approving renovations is not registered, the works may be deemed unauthorised, potentially leading an insurer to deny a claim for any related damage.

This leaves the owners corporation or the individual lot owner financially exposed to cover all repair costs. This is especially critical for retrospective approvals, where a failure to register the authorising by-law renders the approval void and leaves the works “unauthorised.”

The Strata By-Law Registration Process

Passing a Special Resolution to Change By-Laws

The first step to add, amend, or repeal a by-law in a strata scheme is to have it formally approved by the owners corporation. This is achieved by passing a special resolution at a properly convened general meeting. A special resolution requires that no more than 25% of the value of votes cast are against the motion.

Any owner within the strata scheme can propose a new by-law. The process typically involves these steps:

Step	Action Required
Develop the Proposal	Draft the proposed by-law and an explanatory note of up to 300 words explaining its purpose and effect.
Submit a Motion	Submit the proposal as a motion to the secretary of the owners corporation to be included on the agenda for the following general meeting.
Vote at the Meeting	Discuss and vote on the motion. The special resolution is passed if the 75% approval threshold is met.

An additional requirement exists for by-laws that confer exclusive use or special privileges over common property. The written consent of each owner who gains a right or special privilege under the new by-law must be obtained before it can be registered.

Preparing the Consolidation & By-Law Change Form

Once a special resolution is passed, the next stage involves preparing the official documentation for lodgement. The central document is the “Consolidation/Change of By-laws” form, Form 15CH. This form must be accurately completed with details such as the strata plan number and the date the special resolution was passed.

A critical legal requirement under the Strata Schemes Development Regulation 2016 (NSW) is that any change must be lodged as a consolidated version of the scheme’s by-laws. This means you cannot simply lodge the new rule; you must submit a complete document incorporating the change alongside all existing by-laws for the strata scheme.

This comprehensive approach ensures the public register remains a single, up-to-date record. While a strata manager can assist in preparing this document, it is highly recommended to engage a lawyer who can:

• Ensure the wording is clear and legally sound
• Verify the consolidation is prepared correctly
• Minimise the risk of rejection by LRS
• Reduce the possibility of future legal challenges

Electronic Lodgement Through a Solicitor & Conveyancer

In NSW, all by-law registrations must be lodged electronically with LRS. Paper lodgements are no longer accepted. This process is conducted through an Electronic Lodgement Network Operator (ELNO), such as PEXA.

Crucially, only subscribers to an ELNO can perform these lodgements. This means an owners corporation cannot lodge the documents directly and must engage a professional, such as:

• A solicitor
• A licensed conveyancer

These professionals submit the by-law change on behalf of the owners corporation, which remains responsible for ensuring this lodgement occurs within the six-month deadline from the date the special resolution was passed.

It’s important to note that a by-law only becomes legally valid and enforceable once it has been successfully lodged and the Registrar-General records the change on the folio of the Register of the common property. Until this confirmation is received from LRS, the new by-law has no legal effect.

Understanding Key Registration Timeframes & Costs

The Critical Six-Month Registration Deadline

Under the Strata Schemes Management Act 2015 (NSW), an owners corporation has a strict and non-negotiable deadline to register any change to its by-laws. The new by-law must be lodged with LRS within six months of the special resolution being passed at a general meeting.

Failure to meet this critical timeframe has significant consequences:

• The special resolution becomes void
• The by-law is rendered invalid and unenforceable

To proceed after missing the deadline, the owners corporation must start the process again by convening another general meeting to re-pass the by-law before it can be lodged for registration.

NSW Land Registry Services Processing Time & Confirmation

Once a change of by-law is lodged electronically by a solicitor or conveyancer, LRS begins its examination and registration process. Typically, the registration is finalised within one to three weeks. However, this timeframe is an estimate which can be extended if LRS raises a “requisition,” a request for corrections or additional information.

A by-law only becomes legally binding and enforceable once LRS completes its process and officially records the change on the Register of the common property folio. Following this, the owners corporation or its legal representative will receive a confirmation notice once the registration is complete, signifying that the new rule is in effect.

A Breakdown of LRS Fees & Professional Costs

Registering a by-law involves both government fees and professional service costs. An owners corporation needs to budget for both components to complete the process smoothly.

The costs include:

Cost Component	Description
NSW Land Registry Services Lodgement Fee	For the 2025/2026 financial year, the official fee for lodging a “Consolidation/Change of By-laws” dealing is $175.70 (including GST). This fee is subject to annual review.
Professional Fees	Fees for a solicitor or licensed conveyancer to prepare the consolidated document and lodge it electronically via an ELNO. Depending on complexity, costs can range from a few hundred to several thousand dollars.

Best Practices for Your Owners Corporation & Strata Committee

The Importance of Engaging Legal Professionals

Engaging legal professionals is a critical best practice for any owners corporation when changing a by-law. A qualified strata lawyer can ensure the wording of a new by-law is clear, legally sound, and compliant with the Strata Schemes Management Act 2015 (NSW). This minimises the risk of it being challenged at the NCAT as harsh, unconscionable, or oppressive.

The actual registration process with LRS requires professional involvement for several reasons:

Requirement	Explanation
Electronic Lodgement	All by-law lodgements with LRS must be performed electronically; paper lodgements are not accepted.
ELNO Subscriber Access	The owners corporation must use a subscriber to an Electronic Lodgement Network Operator (ELNO), such as PEXA.
Professional Expertise	This role is almost always filled by a solicitor or licensed conveyancer who has the necessary access, expertise, and identity verification capabilities.

Establishing Internal Processes for Managing By-Laws

To avoid the significant risks of non-registration, the strata committee should establish robust internal processes for managing every by-law change. This begins with creating a system to track the critical six-month registration deadline from the date a special resolution is passed. A simple register or calendar reminder can prevent a resolution from lapsing, which would force the owners corporation to restart the entire approval process.

Best practices for internal management include:

Practice	Description
Assigning Responsibility	Designate a specific committee member or the strata manager to oversee the registration process from start to finish.
Using Checklists	Implement a procedural checklist with internal timelines to ensure each step is completed well before the six-month deadline.
Maintaining Records	The secretary must keep a consolidated, up-to-date copy of the by-laws and file the LRS confirmation notice as proof of registration.

Conducting Regular Reviews & Consolidating By-Laws

By-laws are not static documents and should be reviewed periodically to ensure they remain relevant and compliant with any changes to strata laws. An owners corporation should conduct regular audits to identify any unregistered, outdated, or omitted by-laws to prevent future disputes and ensure all rules are enforceable.

A crucial aspect of managing by-law changes is the legal requirement for consolidation. Under the Strata Schemes Development Regulation 2016 (NSW), any change to a scheme’s by-laws must be lodged as a single, consolidated version that incorporates the new rule alongside all existing by-laws. This ensures the public register remains a clear, single source of truth, preventing the confusion that can arise from multiple, separate amendment documents.

Conclusion

For a strata by-law in New South Wales to be legally enforceable, it must be registered with LRS within six months of the special resolution, a requirement mandated by the Strata Schemes Management Act 2015 (NSW). Failing to meet this deadline renders the by-law void, exposing the owners corporation to significant legal risks, including unenforceability of the NCAT, wasted costs, and potential liability.

To navigate these complexities and ensure your strata scheme’s by-laws are valid and enforceable, contact the expert strata by-law lawyers at PBL Law Group today. Our specialists in strata law provide trusted legal advice and professionally guide you through the by-laws registration process and secure your scheme’s governance.

Frequently Asked Questions (FAQ)