Dear
Owners,
In our latest edition of the Strata North newsletter we are going to look at a
topic that has been subject to a lot of discussion in our recent AGM’s – what
approvals do owners need to carry out renovations to their lot?
As part of the revamp of the Strata
Schemes Management Act, the NSW Government sought to make the
planning and approval process easier for owners in Strata Schemes to
understand, whilst also ensuring that adequate protections are in place for
other owners in the Scheme.
Under the new Act, renovations are classified under 3 different categories –
cosmetic work, minor renovations and major renovations. Each of these has its
own type of approval process, so owners planning to renovate their lot need to
be aware of these before proceeding with any works:
Section
109 of the Strata
Schemes Management Act 2015 deals with cosmetic work.
Cosmetic work includes,
but is not limited to, work for the following purposes—
Any other
work to the interior of the unit which is superficial in nature would also be
classified as cosmetic work.
Approval
Required:
No approval is required for works of this nature.
Things to
remember with cosmetic works:
Section
110 of the Strata
Schemes Management Act 2015 deals with minor renovations.
Minor renovations include,
but are not limited to, work for the purposes of the following—
Note: The above items would not be considered a ‘minor renovation’ if
it involves structural changes, changes to the external appearance of a lot or
waterproofing.
Approval
Required:
Approval is required from the Owners Corporation for works of this nature. A
motion granting approval is typically passed at a General Meeting, however the
motion can be passed at a Strata Committee meeting if the Owners Corporation
have previously passed a by-law delegating authority to the Strata Committee to
approve ‘Minor Renovations’.
If the works are to be approved at an Owners Corporation meeting, you will need
to submit to your strata manager a suitably worded motion, together with any
relevant information including pictures, plans, start dates and details of
tradespeople undertaking the works.
The motion can then be added to the meeting agenda. If the motion is to go on
the agenda for an upcoming meeting then no additional fee will be
payable. However, if you require the motion to be approved before the
next scheduled meeting then an EGM can be convened – note a fee is payable for
additional meetings.
Things to
remember with minor renovations:
The Strata
Act does not specifically define ‘Major Renovations’ and therefore all works
which do not fall within the categories of minor renovations or cosmetic work
are deemed major renovations.
Some examples of works that would be deemed major renovations include:
Approval
Required:
Section 108 of the Strata
Schemes Management Act requires that a common property rights
by-law be registered before an owner can undertake major renovations. The
principal reason for this is to ensure that responsibility for the future
maintenance and repair of the works and the common property affected by the
works passes to the lot owner.
However, it also places conditions on the works being completed (such as
obtaining consent from local Council (where applicable), use of suitably
qualified tradespeople to undertake the work and to works to be completed in
accordance with the approved plans) and formalises the Owners Corporation’s
approval of the works.
A special resolution at a General Meeting is required for a by-law granting
approval for major renovations. This means that no more than 25% of the
lots entitled to vote, vote against the resolution.
If the motion is to go on the agenda for an upcoming meeting then no additional
fee will be payable. However, if you require the motion to be approved
before the next scheduled meeting then an EGM can be convened – note a fee is
payable for additional meetings.
The Owners Corporation has the right to request rectification if an owner
undertakes works without approval or not in accordance with the approved plans.
Things to
remember with major renovations:
Hopefully this article has helped to clear up some of your questions around renovations.
Regards,
Strata North