This article discusses strata façade colour change, explaining when changing a building’s exterior appearance may be considered a significant alteration requiring a special resolution.
Question: Without consultation or approval from owners, the owners corporation manager and committee are changing the colour of our building’s façade. Should this be a special resolution?
Our three-floor apartment building is neutral with brightly coloured decorative poles. Without consultation or documentation, the owners corporation manager and resident’s committee are changing the façade’s colour to black and white. Is it a ‘significant change’? Should this have been a special resolution? I purchased my apartment because of the colour of the building. I stopped the repainting from progressing, and the poles are currently undercoat white.
Answer: The Act does not explicitly define what constitutes a ‘significant alteration’, which usually means that each case will turn on its facts.
Section 52 of the Owners Corporations Act 2006 provides that an owners corporation must not make a significant alteration to the use or appearance of the common property unless:
- It is approved by a special resolution; or
- It is permitted under the maintenance plan; or
- It is agreed to under Section 53, which in turn provides for upgrading of the common property approved by special resolution; or
- It is required for safety or to prevent significant loss or damage.
We have assumed the façade is common property in answering this query.
The Act does not explicitly define what constitutes a ‘significant alteration’, which usually means that each case will turn on its own facts. However, changes that affect the appearance, use or functionality of common property, especially those that could impact property values or the enjoyment of the property by residents, are generally considered significant. Member Price analysed this term in Leonie Burke Pty Ltd v Owners Corporation 15762 (Owners Corporations) [2016] VCAT 2053 and said, ‘The word ‘significant’ is suggestive of an alteration which is important, noticeable or of consequence.’ In Leonie Burke, the construction of a new bin corral, which was much larger, more solid and more prominent than the previous structure, was considered to constitute a significant alteration.
Member Buchanan queried whether the removal and replacement of external cladding on a building constituted a significant alteration in Ubertas 505 St Kilda Road Apartments Pty Ltd v Owners Corporation PS544814U (Owners Corporations) [2020] VCAT 1416. Although the matter did not turn on this point, the Member seemed to accept the applicant’s argument that the owners corporation’s proposed replacement panels could significantly alter the appearance of the common property, thus necessitating approval by a special resolution as required by Section 52 of the Act.
The change from a neutral façade with coloured poles to a black and white façade could be viewed as significant because the façade is a prominent aspect of the building’s appearance, is highly visible and could potentially affect the aesthetic appeal and value of the property. Further, assuming the façade is part of common property, it is important that all owners have a say in significant changes. Requiring a special resolution ensures there is a collective agreement, maintaining harmony and preventing disputes among owners.
Having said this, sometimes changes in paint colour are part of necessary maintenance or modernisation efforts. If the change is minor or for the purpose of upkeep, it might be seen as an operational decision rather than a significant alteration, and requiring a special resolution could unnecessarily delay these essential works. It would be prudent to review the maintenance plan to see if it contemplated this change and the reasons behind it. We also recommend you access the meeting minutes to fully understand any documented discussions regarding this change, which in turn may inform your next steps.
This post appears in the September 2024 edition of The VIC Strata Magazine.
Fabienne Loncar
Chambers Russell Lawyers
E: floncar@chambersrussell.com.au
P: 03 8639 9804
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