NSW: In a three lot strata with no sinking fund, can lot owners personally pay for repairs to their own townhouse?

Question: Our three lot strata scheme requires repairs. There is no money in the sinking fund and other owners do not want to pay. Is there any law preventing us as lot owners from personally paying for the repairs/maintenance to our own townhouse?

We own a townhouse in a 3 lot strata plan. There are a number of maintenance/repairs required to fix rotting timber in balconies/door frames on all three lots. The sinking fund does not currently have enough funds to cover the quoted costs, and two of the three lot owners do not have enough personal funds to contribute special levies and are therefore likely to block the vote for these.

Is there any law preventing us as lot owners from personally paying for the repairs/maintenance to our own townhouse to ensure this is fixed promptly? Could a by-law or similar signed agreement be established to allow us to cover repair costs to our house personally? Alternatively, could a by-law be introduced to require lot owners to maintain their own house (excluding common access/property areas)?

Answer: Ask the Owners Corporation for consent to carry out the repairs & maintenance at your own cost by way of a by-law.

You could first ask the Owners Corporation for consent to carry out the repairs & maintenance at your own cost by way of a by-law.

Alternatively, a by-law could be created that the rotting timber frames be the responsibility of the individual owners (but you will need the written consent of the affected owners before transferring such responsibility).

Double check the by-laws applicable to the scheme and the date of registration of your strata plan because depending on the content and date, the dividing wall/window between the internal area and balcony, might be the responsibility of the individual owners already. In case the timber frames are in fact common property, the Owners Corporation is under a strict duty to repair & maintain them and the Tribunal can order the Owners Corporation to effect such repairs and maintenance (on application/attempted mediation).

Finally, Section 126 of the Strata Schemes Management Act 2015 (NSW) gives power to the Tribunal to Order an Owners Corporation to carry out or to approve certain works carried out to the common property:

126 Orders relating to alterations and repairs to common property and other property

1. 1. Order requiring owners corporation to carry out work on common property The Tribunal may, on application by a lessor of a leasehold strata scheme or an owner of a lot in a strata scheme, order the owners corporation to consent to work proposed to be carried out by an owner of a lot if the Tribunal considers that the owners corporation has unreasonably refused its consent and the work relates to any of the following–
      1. 1. minor renovations or other alterations to common property directly affecting the owner’s lot,
       
      1. carrying out repairs to common property or any other property of the owners corporation directly affecting the owner’s lot.

 

1. Order consenting to owner’s work on owners corporation property The Tribunal may, on application by a lessor of a leasehold strata scheme or an owner of a lot in a strata scheme, make an order (a”work approval order” ) approving of minor renovations or alterations or repairs already made by an owner to common property or any other property of the owners corporation directly affecting the owner’s lot if the Tribunal considers that the owners corporation unreasonably refused its consent to the minor renovations or alterations or repairs.

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