Question
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23 June 2017

Purely cosmetic ...

Sale, Purchase, Mortgage, Lease
New South Wales

Asked

Under the 1996 Strata Schemes Management Act, the practice had always been to pass an additional by-law whenever a resident undertook a significant renovation of their apartment. This was invariably messy.

Is there any requirement that such a procedure continue to be followed under the new 2015 legislation? I can't see any reference to it in either the legislation or the regulations. It would appear to be more logical that a standard by-law covering significant renovations (bearing in mind the new provisions for minor renovations) be adopted, with the requirement for individual apartment renovations being annexed to the by-laws.

Please advise.

Many thanks.

Answered

Thanks for the question.

Renovations are divided into three categories: cosmetic, minor and major.

Cosmetic work is listed in s 109 of the Act and does not require approval of the owners corporation.

Additionally a by-law may be passed to specify other works which may be carried out for the purposes of this section as long as the work does not include something that belongs to another category such as structural changes or waterproofing. Items cannot be removed from the list in s 109.

Minor renovations are listed in s 110 of the Act and require approval of the owners corporation given by general resolution.

Additionally a by-law may be passed to specify other works which may be carried out for the purposes of this section, as long as the work does not include something that belongs to another category such as structural changes or waterproofing. Items cannot be removed from the list in s 110. A common blanket by-law may be passed to provide that all work not excluded under s 110(7) is deemed to be a minor renovations for the purposes of s 110 and specifically s 110(6)(a). This can include some renovations which change the common property so long as they are not excluded under s 110(7).

A by-law may also permit the owners corporation to delegate its function under this section to the strata committee, thereby removing the need for a general resolution for each requested minor renovation: s 110(6)(b).

Major renovations see ss 108 and 111 of the Act. All renovation work is major work unless it is on the list of cosmetic work or minor renovations as set out in s 110 or as varied by any by-law. They require approval of the owners corporation given by special resolution.

The owners corporation cannot delegate approval to the strata committee. A special resolution must be passed.

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.