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Topic
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We supply and install secondary windows for houses and units. On occasion when we provide a quote to clients in Strata, the strata requests that a bylaw be made in order to have our windows systems installed.
In one complex the client was asked to pay $2600 to create a bylaw. He proceeded and we did the job. We had two other owners waiting on the outcome and when they subsequently applied to do the works they were told they would each have to pay $2600 for a bylaw.
My questions are as follows.
- Once a bylaw is created can everyone in the complex rely on this bylaw?
- Can we draw up a bylaw and offer it to clients to submit to their strata. Therefore we absorb the cost of the bylaw drafting and make it easy for strata to approve. I spoke to the dept of fair trade who said that anyone can prepare a bylaw and it only costs about $100 to submit to the dept.
- Do you know someone who could help us prepare the bylaw so it is worded adequately to satisfy strata but broadly enough to suit any complex / owner
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@Adrian said:
In one complex the client was asked to pay $2600 to create a bylaw. He proceeded and we did the job.
This is a total rip off by whoever charged it, a bylaw should cost a max of $1,000 so long as it’s straight forward.
You cannot use a bylaw that specifies one unit to apply to another unit / units but you can change the bylaw by a SR and turn it into a generic bylaw.
The simple way would be to go through the current bylaw and change any ref to lot x to refer to all lots.
eg lot x accepts responsibility for the ongoing maintenance of fitted windows
To
Individual lot accepts responsibility for the ongoing maintenance of fitted windows
Or get a different Sol to rewrite the bylaw making sure he doesn’t charge more than $500 for such a simple job and the Strata should pay for this because it covers all lots.
Adrian – everything that KWP’s said is generally factual although I doubt that Owners Corporations as your business’ stakeholders would be too impressed with that straight forward approach.
I often say that nothing in Strata is as straight forward as it seems, and as much as I admire your initiative albeit it coming from business-interest, I’m afraid that it’s one of those.
Briefly, the installation of the windows that you provide constitutes an alteration /addition to the common property of the Owners Corporation (O/C), and so requires the prior consent of the O/C via a Motion put to all Owners at a General Meeting, where >75% of those in attendance need to vote in favour in order for the Motion to pass.
If the installation is consented by that means, then the works can proceed subject to any conditions included in the terms of the O/C’s consent, but it’s applicable only to that one project / owner / unit.
The Special By-Law that you refer to only becomes necessary if the O/C, after consenting to the installation, wishes to transfer the responsibility for the on-going maintenance, repair, and replacement of the secondary windows form itself to the current and future Owner/s of the unit concerned.
Special By-Laws of this type need to be agreed to in writing by the Owner who’s to be bound by it, but that’s the only hurdle that I can think of to the O/C voting to create and register a generic Special By-Law permitting the installation of secondary windows (or anything else for that matter), and the O/C could overcome that hurdle by requiring each Unit Owner to so agree at the time that they advise it of a proposed window installation.
So in summary, an O/C may by the process outlined vote to create and register a Special By-Law to permit the installation of your secondary windows, that would apply to all Units in the Plan, and with each Owner then needing (only) to advise the Executive Committee in writing of precisely what is proposed and include a written statement accepting the conditions of that Special By-Law (SBL) and in particular an acceptance of the on-going maintenance responsibilities.
The Office of Fair Trading is right in their advice that “anyone can prepare a by-law” and that it costs “about $100 to submit” ($104.50 actually) to NSW Land Property Information for attachment to the Strata Title of the Plan, but I’d strongly support your desire to consult with an experienced Strata Lawyer such as THIS one who sponsors this forum about possibly preparing “shell” documents (i.e. a SBL and Owner acceptance) that would permit a perhaps parochial O/C to write-in its own conditions (if any) before taking a vote, and if passed to execute and submit it for subsequent registration.
@kiwipaul said:
Or get a different Sol to rewrite the bylaw making sure he doesn’t charge more than $500 for such a simple job and the Strata should pay for this because it covers all lots.Why would the Owners Corp pay for a by-law that only benefits a few owners? The trade-off here would be to get one by-law paid for by a group of owners. Agreeing to a catch-all by-law is the only contribution the majority of owners need to make. Expecting the OC to pay for a by-law that only benefits a minority is just putting another obstacle in the way of it being approved.
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@JimmyT said:
Why would the Owners Corp pay for a by-law that only benefits a few owners?
Maybe the bylaw should be generic to cover ALL alterations to common property such that any alterations done by an owner benefiting only that owner remains the responsibility of that owner to maintain the improvement for ever. This would apply whether the alteration was approved or not.
With what I know about common property in NSW I think this ought to be mandatory for EVERY strata in NSW to ensure the strata doesn’t become responsible for approved or unapproved alterations done by lot owners but not registering a SBL.
I just wonder how many ordinary motions are passed in NSW granting permission for changes by a OC (without a SBL) not realizing they are committing the strata to maintain said alteration for the indefinite future.