NSW: Bathroom renovations in strata: Why a by-law is required

Question: What would the consequences be if we approved a lot owner’s request for a bathroom renovation (including the waterproofing) by Special Resolution rather than a By-Law?

Answer: This may result in the Owners Corporation being responsible.

Because the works involve waterproofing and other changes to the common property, Section 108 (5) of the Strata Schemes Management Act, 2015 (NSW) applies. That section specifically states that:

Changes to common property

5. A special resolution under this section that allows an owner of a lot to take action in relation to certain common property and provides that the ongoing maintenance of that common property after the action is taken is the responsibility of the owner has no effect unless–

   1. the owners corporation obtains the written consent of the owner to the making of a by-law to provide for the maintenance of the common property by the owner, and
   2. the owners corporation makes the by-law.

If the proper process as per the above is not adhered to, the Owners Corporation may encounter difficulties in imposing on the owner the responsibility to repair and maintain the works carried out and may result in the Owners Corporation being responsible.

This post appears in the March 2022 edition of The NSW Strata Magazine.

Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440