Approval of Renovations
Owners of lots in strata title schemes often wish to undertake renovations and the approvals required to carry out and use those works varies from scheme to scheme. Fortunately, this approvals process has been simplified for some works by the Strata Schemes Management Act 2015 (“SSMA 2015”) and Regulations under that SSMA 2015. However:
Issues concerning installation and maintenance of air conditioning systems are a common source of disputes in strata schemes. There are a number of reasons for this, but the major problem is the answer to questions like “what approvals do I need to install equipment” and “who is responsible for maintenance of the equipment” depend on circumstance, preventing schemes from adopting a “one size fits all” solution.
A sample survey carried out by the Law Department of Melbourne University in 2014 found that the only sector of the construction industry where there was virtually no substantive incidence of amendments to the standard form of contract was residential building where a private individual was the owner.
For owners corporations with a strata plan registered prior to 1 July 1974, things work a bit differently than for other schemes. There are important differences regarding what is common property and what owners corporations and lot owners are responsible for.
Did you know that lot owners may be permitted to install floating timber floors in their lot without any approval from the owners corporation?
The case of Owners Strata Plan No. 50411 & Ors v Cameron North Sydney Investments Pty Ltd [2003] NSWCA 5 (Cameron’s case) considered not only the question of when an owners corporation’s consent is required for a development application lodged by a lot owner but also the question of when an owners corporation has an ‘obligation’ to provide such consent.
When can an owner corporation refuse requests by owners wanting to perform works or have exclusive use of common property?
As strata schemes age, it is a common occurrence for lot owners to wish to renovate their units. However, it is often a source of conflict between the owner and the owners corporation over what require approval and what areas of common property are able to be affected by the works or granted rights over.
Owners of apartments within strata schemes often want to add to or alter their lot property. This invariably involves entering into construction contracts with builders, architects, other contractors and consultants, as well dealing with the owners corporation. It is important that network of relationships is managed carefully and consistently. A key factor in this is a proper understanding of how contracts should be set up in each case.
Owners of apartments within strata schemes often want to add to or alter their lot property. This invariably involves entering into construction contracts with builders, architects, other contractors and consultants, as well dealing with the owners corporation. It is important that network of relationships is managed carefully and consistently. A key factor in this is a proper understanding of how contracts should be set up in each case.
Anecdotally, we understand that SiCorp trading as the Home Building Compensation Fund (HBCF), the insurer who administers and underwrites insurance under the HBCF (formerly known as Home Owners Warranty Insurance) has tightened controls on the issuing of that insurance.
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