NSW: How is lot owner consent provided for a major renovation by-law?

Question: How is the lot owner’s consent to the major renovation bylaw usually presented to the OC? For this transfer of responsibility to be effective, should we receive the written consent of all the owners of that lot?

I understand that section 108 of the SSMA states that a registered major renovations bylaw makes a lot owner responsible for ongoing maintenance of common property affected by the major renovations. For this transfer of responsibility to be effective, should we receive the written consent of all the owners of that lot? Neither our strata manager nor the lot owner has mentioned this. Our strata manager is intending to use a ‘recycled’ bylaw that has been used for similar major renovations previously.

Is there some form of written consent that must be undertaken? Can we request a letter from the owners of the lot agreeing to pass the bylaw that is included with the General Meeting agenda at the same time the bylaw is put to the meeting for a vote? Are there examples of this type of acceptance?

How is the lot owner’s consent to the major renovation bylaw under section 108 of the SSMA usually presented to the OC?

Answer: Most lawyers who prepare such by-laws provide a generic form of consent which is attached to the by-law.

There is no prescribed form or specific format for the required consent.

As you correctly state, Section 108 (5) of the Strata Schemes Management Act, 2015 (NSW) requires the written consent to the making of the by-law from the owner benefited and their consent to fulfil the repair and maintenance responsibilities set out therein.

Most lawyers who prepare such by-laws provide a generic form of consent which is attached to the by-law. It usually takes the form of a letter setting out the terms of their consent with the names of the owner(s), the subject lot, the date, signature panel and agreement to pay all the Owners Corporation’s costs in the preparation and making of the by-law (ie drafting and registration/consolidation).

There is no requirement to register or lodge the consent though the strata manager or strata committee will normally file the consent for their records.

See below relevant extract of the Strata Schemes Management Act 2015, Section 108 (5).

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.

This post appears in Strata News #620.

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