Question: If there is an existing renovations bylaw in place, does the lot owner need to get a new bylaw if additional renovations fit the original scope of works.
What is the ongoing benefit of a renovation by-law that has been registered against a lot? I have a building I manage where a lot owner obtained a by-law to do renovations in the lot, most specifically to the bathroom and waterproofing membrane. After the renovations, the lot owner sold the unit.
A new owner buys the unit and does not like the renovations and wants to renovate to their taste. Their renovation plans fall completely within the vague scope of works of the renovation by-law (eg “remove existing floor and install new flooring”). If you buy into the history of a unit, its by-laws, and the obligations and responsibilities of the by-law(s), then surely you can buy into the benefits as well. If the scope of works does not change, does the new owner need to get a new by-law for their renovations?
The obligations and responsibilities were already transferred to the new owner when they purchased the unit. They would need to get a renovation application approved by the Owners Corporation, but do they need a new by-law?
Answer: The motion and by-law should be very specific in terms of what works are being undertaken and who is responsible thereafter.
The owners corporation must still approve the renovation works in accordance with section 108 of the Strata Schemes Management Act, regardless of whether or not there is an existing by-law in place.
This is owing to subsection (2), which allows the work to proceed only if the owners corporation has passed a special resolution “that specifically authorises the taking of the particular action proposed.
In the article NSW: Renovation By-Laws – How Much Detail Do I Need To Include published by David Bannerman, Bannermans Lawyers, clarification is given to the need to:
- adequately describe the works and the common property area; and
- clearly identify who will be responsible for property maintenance of, and keeping in a state of good and serviceable repair, the specified common property are.
In summary, the motion and by-law should be very specific in terms of what works are being undertaken and who is responsible thereafter.
The vague description of the works in this particular by-law may serve to benefit the lot owner by avoiding the need for a new by-law, however it may also place the owners corporation (or the owner) at risk for the reasons mentioned in the article.
This post appears in the August 2021 edition of The NSW Strata Magazine.
Tim Sara Sara Strata E: tim@sarastrata.com.au P: 04 8500 7960