This article discusses special resolution common property signage and when owners corporation approval is required.
Question: What process should be followed to erect signage on common property? Should signage be decided on by the owners corporation or the committee?
Our committee has erected direction, delivery, and behaviour signs on common property without any reference to the owners corporation. Some owners object to the signs, stating they are unnecessary and/or inappropriate.
Should committees have a special resolution to erect signs on common property?
Answer: The key phrase to consider is whether the signage would be “improving or enhancing the common property”.
Section 108 of the Strata Schemes Management Act 2015 (NSW) stipulates that an owners corporation “may add to the common property, alter the common property or erect new structure on common property for the purpose of improving or enhancing the common property”.
The key phrase to consider is whether the signage would be “improving or enhancing the common property”.
If so, the legislation goes on to require such addition, alteration or erection of structure by way of a special resolution in a general meeting (which the strata committee cannot do).
One could consider that the signs are placed to improve or enhance common property as they are usually a reminder of rules (by-laws, etc.) that govern the property.
Generally, you are either improving/enhancing or repairing/maintaining. One would interpret new signage to be an improvement or enhancement to what is (or is not) there already.
This post appears in Strata News #664.
Tim Sara Sara Strata E: tim@sarastrata.com.au P: 04 8500 7960