ACT: Q&A Fence replacement costs in a townhouse complex

This article is about fence replacement and cost sharing between townhouse owners in the ACT.

Question: How can we ensure uniformity and equitably share fence replacement costs in our large Class B townhouse complex?

We live in a large Class B townhouse complex in the ACT with 185 lots.

After 20 years, the picket-type fences separating the townhouses from the common property need replacing. The total length will be about 1.5 kilometres and no small cost. The cost of replacing the fences will be shared between lot owners and the owners corporation. Further, not all owners are affected equally, as some fences are longer than others.

The ACT regulations give a great deal of leeway for decisions about the fence replacement and cost sharing between townhouse owners. As those with long fence sections will want the cheapest, this may result in a mixture of styles affecting the overall appearance of the complex.

How do we ensure uniformity without huge arguments? Can the costs be equitably shared? Can the owners corporation specify the type of fencing and bear all the costs as a shared responsibility?

Answer: The simplest way to ensure uniformity is to pass a special resolution of the owners corporation.

It is likely going to be extremely difficult to get uniformity from every unit that will be affected by this issue.

Without knowing the rules and regulations of your complex, you are correct. The cost for the replacement of the fence would be a shared cost between the ACT unit owners and the owners corporation.

Many owners want to replace their fencing with Colorbond, as the life span of Colorbond compared to a wooden fence is often a lot longer. However, Colorbond can be more prone to damage from balls and the like.

As it stands, there will likely be instances where an owner does not want to replace the fence, as they may not be able to afford this. Further, there will be a sustainable amount of time when new fences will be next to old fences.

The simplest way to ensure uniformity is to pass a special resolution of the owners corporation for the owners corporation to take on the responsibility for the replacement of the fencing that adjoins common property. This way, the owners corporation, as a whole, can decide on the type and style of fencing that the current fencing would be replaced with. This would mean the process would be substantially quicker than relying on individual owners to arrange for replacing the fences.

Below is the usual approach, depending on the plan’s registered rules. The information below indicates that the owners of large fence lines would contribute more to the cost.

Fences are taken to be built on the boundary.

Fence replacement cost sharing between townhouse owners in ACT

B class

• Divides two units – 50/50 between each owner
• Divides a unit and common property – 50/50 unit owner and owners corporation, unless owners corporation resolves otherwise
• Divides a unit and Territory land – unit owner’s responsibility
• Divides a unit and another property – 50/50 unit owner and adjoining property owner
• Divides common property and another property – 50/50 owners corporation and adjoining property owner

Generally, owners corporations agree unit owners will be responsible for fencing.

A class

• Divides two units (i.e. courtyard wall/fence) – 50/50 between each owner
• Divides a unit and common property (i.e. courtyard wall/fence) – 50/50 unit owner and owners corporation (boundary midway through the wall)
• Divides a unit and Territory land – 50/50 unit owner and owners corporation (boundary midway through the wall)
• Divides a unit and another property – 50/50 unit owner and adjoining property owner
• Divides common property and another property – 50/50 owners corporation and adjoining property owner.

In an A class, all of the above apply, unless the owners corporation has resolved otherwise.

If the unit’s plan has identified the walls/fences as purely common property, the owners corporation is responsible.

Jan Browne and Steve Wiebe
Bridge Strata
E: [email protected]
P: 02 6109 7700

This post appears in Strata News #737.

Have a question or something to add to the article? Leave a comment below.

This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.

Read next:

• ACT: Common Property Boundary Lines – Class A and Class B
• ACT: Q&A Can We Stop Short Term Letting / Airbnb?
• ACT: Q&A Sinking Fund and Admin Fund

Visit Maintenance and Common Property OR Australian Capital Territory Strata Legislation pages.

Looking for strata information concerning your state? For state-specific strata information, try here.

After a free PDF of this article? Log into your existing LookUpStrata Account to download the printable file. Not a member? Simple – join for free on our Registration page.