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How the new Strata Laws
make renovating easier for strata owners
When renovating a strata property, a strata
owner needs to ask the owners corporation for permission
because it owns the building. It is different when
renovating a house because the home owner is renovating
their own building.
Up until now, almost all strata renovations have required
approval by the owners corporation by way of a special
resolution (a 75% majority) at a general meeting.
This requirement for approval by the owners corporation /
body corporate arises because the external walls, the floor
and the ceiling of each lot are common property, which is
owned by the owners corporation. As a general rule, the
strata owner owns only the skin of paint on the external
walls and ceilings, the floor coverings, and of course the
airspace and fittings in between.
The new Strata Schemes Management Act 2015 (NSW) (the
“Strata Management Act”) recognises three kinds of
renovations – cosmetic, minor and major. It has made
it easier for strata owners to carry out cosmetic work
because no approval is required; and because only a simple
majority resolution is required to approve minor
renovations. A special resolution is required to approve
major work.
This article explains the new rules for renovations – which
apply to all strata property - strata units, strata
townhouses and commercial strata properties.
The
new rules for renovations to a strata property #1 – Cosmetic
work
The new Strata Laws allow a strata owner to carry out
cosmetic work, without asking for the approval of the owners
corporation.
In this respect, the new Strata Laws simply confirm what
owners have always assumed to be the case – hanging
pictures, patching and painting, installing a security
device, do not require approval.
The list of cosmetic work, and the rules that apply are
found in Section 109 of the Strata Management Act, which is
as follows:
- The owner of a lot in a strata scheme may carry out
cosmetic work to common property in connection with the
owner’s lot without the approval of the owners
corporation.
- Cosmetic work" includes but is not limited to … :
- installing or replacing hooks, nails or screws
for hanging paintings and other things on walls,
- installing or replacing handrails,
- painting,
- filling minor holes and cracks in internal
walls,
- aying carpet,
- installing or replacing built-in wardrobes,
- installing or replacing internal blinds and
curtains,
- any other work prescribed by the regulations for
the purposes of this subsection.
- An owner of a lot must ensure that:
- any damage caused to any part of the common
property by the carrying out of cosmetic work by or
on behalf of the owner is repaired, and
- the cosmetic work and any repairs are carried
out in a competent and proper manner.
Notes:
- This law applies only to owners. It does not apply
to tenants. Tenants must still request the landlord’s
permission to carry out cosmetic work.
- Only internal blinds and curtains, not external
blinds and curtains, are on this list. The reason is
that it is a breach of model by-law 12 for an owner or
occupier to “maintain within the lot anything visible
from outside the lot that, viewed from outside the lot,
is not in keeping with the rest of the building.”
Therefore, external blinds and curtains need approval if
there is a ‘building appearance’ by-law such as model
by-law 12.
- Security locks, window safety devices, insect and
animal screens and child barriers have been added to the
list of cosmetic work in model by-law 2.
- he owners corporation can add cosmetic work to this
list by adopting a new by-law, as long as the work does
not involve structural changes, waterproofing or
altering fire safety fittings. It cannot add work which
is listed as minor renovations. It cannot remove items
from this list.
- The owners corporation cannot override the new
Strata Laws by requiring approval for cosmetic work.
Existing by-laws which conflict are invalidated by the
new Strata Laws.
The new rules for renovations
to a strata property #2 – Minor renovations
The new Strata Laws allow a strata owner to carry out
minor renovations, if they obtain approval from the owners
corporation by way of a general resolution (a 50%
majority) at a general meeting of the owners corporation.
The fact that a general resolution is sufficient, instead of
a special resolution, represents the major change in the new
Strata Laws for renovation approvals.
The list of minor renovations, and the rules that apply, are
found in Section 110 of the Strata Management Act, which is
as follows:
- The owner of a lot in a strata scheme may carry out
work for the purposes of minor renovations to common
property in connection with the owner’s lot with the
approval of the owners corporation given by resolution
at a general meeting. A special resolution authorising
the work is not required.
- The approval may be subject to reasonable conditions
imposed by the owners corporation and cannot be
unreasonably withheld by the owners corporation.
- "Minor renovations" include but are not limited to …
:
- renovating a kitchen,
- changing recessed light fittings,
- installing or replacing wood or other hard
floors,
- installing or replacing wiring or cabling or
power or access points,
- work involving reconfiguring walls,
- removing carpet or other soft floor coverings to
expose underlying wooden or other hard floors,
- installing a rainwater tank,
- installing a clothesline,
- installing a reverse cycle split system air
conditioner,
- installing a solar photovoltaic system or solar
hot water,
- installing a heat pump,
- installing ceiling insulation.
- Before obtaining the approval of the owners
corporation, an owner of a lot must give written notice
of proposed minor renovations to the owners corporation,
including the following:
- details of the work, including copies of any
plans,
- duration and times of the work,
- details of the persons carrying out the work,
including qualifications to carry out the work,
- arrangements to manage any resulting rubbish or
debris.
- An owner of a lot must ensure that:
- any damage caused to any part of the common
property by the carrying out of minor renovations by
or on behalf of the owner is repaired, and
- the minor renovations and any repairs are
carried out in a competent and proper manner.
Notes:
- Satisfactory details of the work, the contractor /
builder, removal of debris and proposed dates are
required before the approval is given. The approval can
be given subject to reasonable conditions.
- Reasonable conditions could include that a licensed
tradesperson be engaged, with appropriate insurance, and
an engineer’s certificate be obtained for structural
work (all at the owner’s cost).
- For example, the approval for installation of new or
replacement timber or other hard floors such as tiles
should be given conditionally upon compliance with the
AAAC Guideline for Apartment and Townhouse Acoustic
Rating. The conditions would normally include a
condition that the strata owner maintains any items
installed in good repair, at the owner’s cost.
- An appeal lies to the Tribunal (NCAT) if the owners
corporation unreasonably refuses to approve the work or
imposes unreasonable conditions.
- Neither installing nor replacing a gas or electric
hot water heater appear in this list – so their status
in terms of approval required is unknown.
- Renovations which include waterproofing are not
minor renovations. Changes to the external appearance of
the building are not minor renovations. And if
‘reconfiguring a wall’ involves structural work it is
not a minor renovation.
- The list found in section 110 of the Strata
Management Act has been supplemented by a list in
section 28 of the Strata Schemes Management Regulation
2016 (paragraphs (f) to (l) were added).
- The owners corporation can add minor renovations to
this list by adopting a new by-law, as long as the work
does not involve structural changes, waterproofing or
altering fire safety fittings. It cannot remove items
from this list.
- The owners corporation cannot override the new
Strata Laws by requiring a special resolution instead of
a general resolution for approval for minor renovations.
Existing by-laws which conflict are invalidated by the
new Strata Laws.
The new rules for renovations
to a strata property #3 – Major work
For major work, a strata owner must obtain approval by a
special resolution (a 75% majority) at a general meeting
of the owners corporation, if there is no strata by-law in
place authorising the work. The approval for major work is
usually registered as a Special By-Law because it is easier
to enforce the obligation for maintenance imposed on the
owner. In this respect, the new Strata Laws are the same as
the former Strata Laws.
All renovation work is major work unless it is on the list
of cosmetic work or minor renovations.
The requirement for approval is set out in Section 111 of
the Strata Management Act, which is as follows:
An owner of a lot in a strata scheme must not carry
out work on the common property unless the owner is
authorised to do so:
- under this Part, or
- under a by-law made under this Part or a common
property rights by-law, or
- by an approval of the owners corporation given
by special resolution or in any other manner
authorised by the by-laws.
The approval process is set out in Section 108 of the Strata
Management Act, which is as follows:
- … an owner of a lot in a strata scheme may add to
the common property, alter the common property or erect
a new structure on common property for the purpose of
improving or enhancing the common property.
- Any such action may be taken by the ... owner only
if a special resolution has first been passed by the
owners corporation that specifically authorises the
taking of the particular action proposed.
- A special resolution under this section that
authorises action to be taken in relation to the common
property by an owner of a lot may specify whether the
ongoing maintenance of the common property once the
action has been taken is the responsibility of the
owners corporation or the owner.
Notes:
- The Strata Management Act does not provide a list of
major work, because it covers all work which does not
appear on the lists of cosmetic work and minor
renovations. Work which is major work involves
waterproofing, structural change or changing the
appearance of the building.
- This is a list of major work we have drawn up from a
variety of sources:
- Bathroom renovations which involve removal and
replacement of tiles, baths, showers, basins and
toilets,
- Laundry renovations which involve removal and
replacement of tiles and tubs,
- Repositioning kitchens, bathrooms and laundries,
- New plumbing work – for water, drainage or gas
lines,
- Replacement of external windows or doors,
- Extending into the roof space,
- Installing a false ceiling, replacing a ceiling,
- Installing awnings or pergolas,
- Enclosing balconies or car spaces,
- Demolishing walls to create an open plan or to
join two adjacent units together,
- Installing a satellite dish or antenna.
- The owners corporation is entitled to require
satisfactory details of the work, the contractor /
builder, removal of debris and proposed dates before
giving approval – and the approval can be given subject
to reasonable conditions (the same as for minor
renovations).
- Reasonable conditions would include that a licensed
tradesperson be engaged, with appropriate insurance, a
structural engineer’s certificate, and a waterproofer’s
certificate, and that a by-law be registered (all at the
owner’s cost). The conditions would normally include an
obligation that the strata owner maintains any items
installed in good repair, at the owner’s cost.
- An appeal lies to the Tribunal (NCAT) if the owners
corporation unreasonably refuses to approve the work or
imposes unreasonable conditions
- The new Strata Laws do not invalidate current
by-laws in place which deal with major works.
Essentially, the new Strata Laws remain the same as the
former Strata Laws.
Conclusion
The new Strata Laws provide considerably clarity in terms of
when the approval of the owners corporation is required for
renovations, and how that approval is to be obtained.
The lists of cosmetic works and minor renovations which are
contained in the new Strata Laws are especially useful, when
dealing with requests for approval and complaints about
unauthorised work.
The new Strata Laws provide the owners corporation with a
degree of flexibility to mould its by-laws to supplement the
lists and to impose conditions for approval.
At Cordato Partners Lawyers, we advise strata owners and
owners corporations upon the Strata Laws and strata by-laws,
including drafting by-laws and disputes which might end up
before the Tribunal.
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