Question: We provided all relevant documentation for approval to install hardwood flooring to our strata manager. If we aren’t given approval despite meeting all requirements, is this reasonable?
We are looking to remove existing carpets in our unit and replace them with hybrid flooring. This is currently determined to be a minor renovation according to our by-laws. We provided all of the relevant documentation to the strata manager, including acoustic reports, insurances and quotes for the chosen AAAC 6 Star rated floor finish over a month ago to put to the committee to vote.
We are not sure if the strata manager has even put forward the request to the committee at this point and avoids answering every time I have asked. If he has put forward the flooring for consideration and the committee has cast a no-vote regardless of the fact that we have met all requirements, would this be considered unreasonable? The strata manager keeps referring to a previous instance of a resident installing flooring that was not to standard as a reason as to why he doesn’t ‘think’ that the committee will approve.
Answer: If your application is unreasonably refused, you can seek orders from NCAT.
Approval of minor renovations by a strata committee
Section 110(6)(b) of the Strata Schemes Management Act (‘the Act’) allows an owners corporation to delegate the function of considering minor renovations (such as “installing or replacing wood or other hard floors”) to its strata committee. To do so, the owners corporation must have registered a by-law that expressly provides the delegation. In the absence of a by-law, minor renovations can only be approved by ordinary resolution at a general meeting of the owners corporation.
How long does the owners corporation or strata committee have to consider the application?
There is no law that specifies a time frame in which the owners corporation or its strata committee must consider an application.
Section 43(f) of the Act grants the Secretary the power to convene strata committee meetings, general meetings and annual general meetings.
Section 18 of the Act requires the annual general meeting to be held once each financial year. For strata committee meetings and general meetings, there is no requirement for the Secretary to convene them (unless they’ve been forced to do so, which is explained in the article linked further below in this article).
If an owner has submitted a motion under Schedule 1, clause 4 of the Act, it must be included in the agenda of the next general meeting (whenever that is convened).
How do I make it happen if the Secretary refuses to convene a meeting?
The Strata Managing Agent may have been delegated functions of the Secretary under section 51 of the Act, by way of their appointment and under the terms of their agreement. However, the Secretary’s powers supersede the delegation (in other words, if the Secretary invokes their rights, duties and obligations, the Strata Managing Agent cannot overrule them).
Otherwise, there are other mechanisms to force a meeting to be held – check out the response to the question “Question: At our AGM, a special levy was approved to replace aged windows. An owner has since challenged the decision and is seeking to have it overturned. What are the chances the decision will be overturned and if so, how do we fix the damaged windows?” on the “NSW Overruling Strata Committee Decisions” page of LookUpStrata.
What is the Strata Managing Agent’s role in all of this?
The Strata Managing Agent would assist in communicating between the Strata Committee and the applicant. It is not unusual for a Strata Committee to review an application for works simply to provide feedback on its prospects, but ultimately the decision to approve or deny the application must be made at a formal meeting. The Strata Managing Agent’s role is to give advice but not to make decisions or pass judgement on the application.
What if my application is taken to a meeting and is then unreasonably refused?
Section 126 of the Act allows an owner to seek orders from the NSW Civil & Administrative Tribunal, ordering an owners corporation to give consent to minor renovations or other alterations to common property directly affecting the owner’s lot. The Tribunal would need to be satisfied that the owners corporation has unreasonably withheld its approval.
How else can I move this forward?
Whilst the strata committee and owners corporation may not be obligated to hold a meeting (unless for the reasons mentioned in the linked article), it is not uncommon for an owner to want to renovate. It is most common for those leasing their property to want to renovate in-between leases. Here are a few tips:
- Allow plenty of time and apply early. The approval process can take weeks or months. Once you know you want to renovate, start the dialogue with the Strata Managing Agent or Strata Committee. It is always worthwhile getting approval well before wanting to carry out the works. Approvals don’t have a time limit on them either.
- Offer to cover the owners corporation’s costs. Meetings do cost money to run, and often applications will be left for a future meeting in order to minimise costs. Offering to cover those costs could remove any financial concerns by the owners or committee members.
- Communicate and understand any concerns. Sometimes the concerns may be legitimate. Other times, they could be misconceived or unreasonable. Speaking to experts will guide you on what is unreasonable. By-laws can be unreasonable, and just because one is registered, does not guarantee it is not unreasonable.
- Seek legal advice if you must. It is the last resort, but a lawyer specialising in strata law will be able to advise you and the owners corporation on the law and any cases relevant to the circumstances.
This post appears in Strata News #592.
Tim Sara Sara Strata E: tim@sarastrata.com.au P: 04 8500 7960