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Strata Title Management

Strata living often brings people of diverse interests and backgrounds close together. Disagreements and disputes often arise, and in most cases, these disputes can be easily resolved if all parties have a clear understanding of their roles and responsibilities.

Some common examples of disputes that often arise are listed below:-

Renovations

With the number of ageing schemes throughout Sydney, combined with the frequent changes in unit ownership, it is only natural that owners want to renovate their apartments.

As it is each owners responsibility to repair and maintain their unit, it is also their right to decorate to their own design.

As there is often a grey line between what you can and can’t touch when renovating, the following information has been prepared, to assist owners when considering undertaking renovations to their unit.

The lot

Generally speaking, a lot owner owns the airspace inside the boundary walls, floor and ceiling of a unit. Lot airspace may also include balconies and courtyards. Everything within the confines of the lot must be maintained by the owner at their own expense.

Basically, each lot owner is responsible to maintain and repair the following:-

The internal walls within the lot (e.g. the wall between a bedroom and the lounge room);
Floor coverings such as carpet;
Fixtures such as baths, toilet bowls and bench tops.

Common property

The best place to determine what is, and what is not common property is the registered strata plan. The strata plan defines the boundaries between common property and the lot. A copy of the strata plan can be obtained from either The Strata Agency or the Department of Lands.

For a checklist of what is common property, please click here.

Renovations that affect common property

Any proposed renovations to a lot, which involves additions, modifications or damage to common property must be supported by an exclusive use by-law, which can only be passed by way of a special resolution at a general meeting of the Owners Corporation.

An exclusive use by-law is a special right granted to an owner to use part of the common property. A brief description of some of the terms and conditions of a typical exclusive use by-law are set out below:-

Before Construction

The owner must obtain all necessary consents/permits/approvals;
The owner must effect and maintain insurances;
The owner must, if applicable, pay compensation or a bond to the Owners Corporation.

During Construction

That the work is to be performed in a tradesman like manner, by licensed contractors;
The owner will use reasonable endeavours to cause as little disruption as possible;
The works will be completed during the permitted hours;
The transportation of all construction materials, equipment, debris and other material will be managed in a manner reasonably directed by the Owners Corporation;
All areas of the building outside of the Lot will be protected from damage by the works or by the transportation of construction materials, equipment and debris in a manner reasonably acceptable by the Owners Corporation;
All areas of the building outside of the Lot will be kept clean and tidy throughout the completion of the works;
Debris will be removed immediately from the building during the works.

After Construction

Notify the Owners Corporation that the works have been completed and any damage caused has been made good;
Provide the Owners Corporation’s authorised representative access to inspect the works;
Pay the Owners Corporation reasonable costs of implementing the by-law;

Enduring rights and obligations

Allow the Owners Corporation and its servants access for the purposes of carrying out repair and or maintenance;
Remain liable for any damage to any lot or common property arising out of the Works (including to the Lot);
Maintain, replace and keep in good and serviceable repair the Works installed or replaced to the lot;
Repair and/or reinstate the common property or personal property of the Owners Corporation to its original condition if the Works are removed or relocated;
At all times comply with all directions, orders and requirements of any Authority relating to the Works; and
Indemnify and keep indemnified the Owners Corporation against any costs or losses arising out of the installation, use, repair, removal or replacement of the Works including any liability in respect of the property of the Owner.

Default by Owner

If an Owner fails to comply with any obligation under this by-law the Owners Corporation may:

Carry out all work necessary to perform that obligation;
Recover the costs of such work from the Owner as a debt due;
Recover from the Owner the amount of any fine or fee which may be charged to the Owners Corporation for the cost of any inspection, certification or order.

Once the exclusive use by-law has been prepared, all plans, quotes, engineer reports, and all other supporting documentation must be presented to the Owners Corporation along with the Lot Owner\'s written consent to the making of the by-law.

The owner must then decide if he or she wishes to wait until the next general meeting of the Owners Corporation, in most cases this will be the Annual General Meeting, or if the owner wishes to expedite the process, they may, at their expense, request that an Extraordinary General Meeting be convened to consider the proposed By-Law.

Renovations that do not affect Common Property

If the proposed renovations do not impact Common Property, it is still a requirement that any alteration must be brought to the attention of the Owners Corporation, in accordance with Section 116 of the Strata Schemes Management Act 1996.

This provides the Owners Corporation with sufficient time to review the proposed alterations and to raise any concerns with the lot owner, or if necessary, make an application for an order or interim order.

The Owners Corporation may receive this notice, and if satisfied, advise the Lot Owner that they acknowledge receipt of the notice and raise no objections to the proposed alterations.

It is important to note that whilst non-load bearing internal walls are not defined as common property, a Council Development Application may still be required where you are proposing to change the dimensions of a room. The Council Development Application requires approval by the Owners Corporation and the affixation of the Common Seal to the application.

Reinstatement of common property

Any Lot Owner who fails to follow the correct procedures runs the risk of having orders made against them for the reinstatement of common property to its original form, at their expense.

Renovation Application Form and Checklist

To further assist clients of The Strata Agency, we have prepared a Renovation Application Form and Checklist to help save time, money and unnecessary disputes.

If you require a copy of our Renovation Application Form and Checklist, please contact us.