Can another owner stop me separating a shared laundry

NSW
Maintenance & Common Property
Rules & Bylaws
question
Lookupstrata community member

Other units in our building divided their shared common property laundries without strata approval. Can I be refused approval to divide mine?

Our three-storey strata has two units on each floor. The strata plan shows that each pair of units shares a communal common property laundry.

Many years ago, the first- and second-floor units divided their communal laundry with a brick wall. They did this to both laundries without strata approval. Apparently, the ground-floor laundry was not separated at the time, as family members owned both units.

I own one unit on the ground-floor and the other is rented. I have asked the other owner if I could pay all costs to divide the laundry, the same as the other two floors.

The other owner has given me no reason, but will not approve the change.

As a single woman, I feel it is a safety issue for me to share a laundry. There are internal hollow doors from the laundry to each unit.

Currently, the communal facility greatly impacts my property's value, as some people will not buy an apartment with a shared laundry.

Should the other units financially compensate the ground-floor units because they have divided laundries and apartments that are worth much more and are more saleable? I believe these divided laundries are illegal.

Or can I use the upstairs as precedent to push through and divide?

answer
Matthew Lo
Matthew Lo Kerin Strata Lawyers

An owners corporation cannot unreasonably refuse to make a common property rights by-law. Common property changes made before 2004 are not automatically unapproved.

I am unable to advise on this matter without a review of the evidence and information. As such, I would suggest you seek legal advice.

Generally, you appear to be in respect of two primary issues:

  1. Common property changes which are unapproved; and
  2. Common property decisions which disadvantage a particular lot.

Common property changes which are unapproved

Where there are unapproved common property changes, the owners corporation should take action to rectify those issues. This falls broadly within their powers to maintain the common property pursuant to section 106 of the Strata Schemes Management Act 2015 (NSW) (the Act). However, depending on when the changes were made, they may not have been unapproved at the time solely because no by-law was created.

Currently, section 108 of the Act requires a special resolution and a by-law to change common property (unless it is a minor or a cosmetic change; for those, see sections 110 and 109 respectively). Section 108 is a carryover from the previous Act: Strata Schemes Management Act 1996 (NSW) (the 1996 Act), pursuant to section 65A. But section 65A was not introduced to the 1996 Act until 2004 by the Strata Schemes Management Amendment Act 2004 (NSW). The reason for this amendment was that, before section 65A, there was no clear rule on how to amend common property, which led to confusion over time.

Thus, a common property change prior to 2004 where there is no evidence of its approval does not mean it is automatically unapproved. The party which challenges the validity bears the burden of proof. This is the general law principle known as "presumption of regularity", which has been applied to strata title, e.g. Davenport v The Owners – Strata Plan 536; The Owners – Strata Plan 536 v Davenport [2018] NSWCATAP 301.

Common property decisions which disadvantage a particular lot

In respect of disadvantage, an owners corporation is not allowed to make by-laws which are harsh, unconscionable, or oppressive: section 139 of the Act, nor can it unreasonably refuse to make a common property rights by-law: cf. section 149 of the Act.

However, whether the current circumstances meet those high standards cannot be determined only on the information given in the inquiry. The information and evidence would need to be reviewed.

I encourage you to seek legal advice regarding this inquiry.

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