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Curlicue – there’s no hard and fast rule. A strata contents policy may have clauses that are specific to renovating, or it may not provide cover at all during renovation works. Some policies may continue to provide cover provided you live in the property throughout the duration of the works, but if you vacate, the policy may cease to cover you. So first-up contact your preferred insurer and find out precisely what their policies cover, and in the context of the next para. if you need anything additional.
Then you need to make absolutely sure that your prime contractor is properly licensed, that they hold the public liability and workers compensation insurance policies that you’ve mentioned, and assuming that they (and not you) are engaging subbies such as plumbers and electricians that those too are covered under those policies; if not then make sure that they have their own cover.
Then if you’re in NSW, you’ll need to provide all those details, together with a plan of your renovations and a work program to your Owners Corporation (or Strata Manager) and seek its consent in advance of any works commencing.
That’s particularly important if your renovations will involve common property areas such as the kitchen floor (e.g. new tiles?), any walls that are common with other units or external walls, and/or if any new plumbing or electrical works are within those walls.
Even if none of the above applies, your Owners Corporation will still need to have the details that I’ve mentioned so that issues including the storage and disposal of building materials, access to and the movement of people and materials around the Common Property, parking, and times of work (noise) may be addressed.
Wolf – OK… so the By-Law that the O/C and/or its Strata Manager provided to the person who conducted your Strata Inspection / Report and upon which your Solicitor, the Fair Trading Adjudicator, and the NCAT Member relied is not Registered, and is therefore of no legal standing.
Therefore it’s Model By-Law 16 of the NSW Strata Schemes Management Act (SCMA) that applies, and I would have thought that, together with the incorrect information/wording provided by the Owners Corporation, would be grounds for the whole procedure of you seeking consent to be again commenced.
As you’ve already received support from all the other Owners concerning the Committee’s attempts to invoke a no pets option, how do you think you’d go convincing enough of them to join you in requisitioning the Secretary to convene an Extraordinary General Meeting to consider a new Motion to grant consent to your pet, that of course you’d have to prepare and support with evidence in the context of the Member’s comments (as illogical as they were); even conditionally while it proves itself suitable?
Under Cl. 31(3) of the SCMA you’d need a total 25% in support by unit entitlement; including you.
I don’t know what Jimmy’s working on, but as I’m all optioned-out and this post is becoming epic, this will be all from me; good luck.
Wolf – it seems odd that the wording of your Plan’s Pet By-Law is merely an adaptation of the Model By-Law 17 (A) contained in the Strata Schemes Management Regulation (2010) which states:
(1) Subject to section 49 (4) of the Act, an owner or occupier of a lot must not, without the prior written approval of the owners corporation, keep any animal (except fish kept in a secure aquarium on the lot) on the lot or the common property.
(2) The owners corporation must not unreasonably withhold its approval of the keeping of an animal on a lot or the common property.
The wording of your Plan’s By-Law adds no value to the above so I’m wondering if, despite your Solicitor’s reviewing the Strata Report, your Plan’s Pet By-Law is properly Registered and therefore shown as a “dealing” on the Plan’s Strata Title Document?
If it’s not Registered, then despite the fact that the Model By-Law may then be assumed to apply, confusion together with the fact that your application was decided by the Executive Committee and not by the Owners Corporation at a General Meeting where the outcome may have been different, may be the “wedges” that we’re looking for.
Wolf – even though Flat Chat is on the case, I’m a little confused by your optimistic reference to “Option A” of the Model By-Laws.
I assume you’re referring to Item 17 in Schedule 2 of the NSW Strata Schemes Regulation (2010), and if that’s so, how the Owners Corporation’s presumed adoption of the (default) “Option A” together with the fact that there was no record of it ever granting its consent to the keeping of an animal, would have given you any comfort or any expectation that an application by you would be well received (?).
“Option B” would have given you some hope as your dog may have been accepted under its subjective definition of “small”, but when you’re relying purely upon an unquantifiable assessment of “unreasonably” in the context of the Owners’ Corporations decision making, then as you’ve found out you’re pushing the proverbial up hill.
I too am looking for a wedge, so as a matter of interest, how did you check on the Plan’s adopted By-Laws, and was anything provided in writing?
I think that probably due to excited commentary by media types (excluding our esteemed administrator) who just listen to or read the headline of a media release, this whole debate is being very much hyped-up!
As I read the proposed Act, where the provisions involving the sale of an entire building comprises a significant proportion, the process of booting-out Aunty Mabel (apologies Jimmy) is hardly straight forward or can in any way be rushed.
What with the need for an Owners Corporation (O/C) to resolve at a General Meeting to even explore the possibilities of selling their entire building to assist themselves and the State Government’s process of “urban renewal”, followed by the election of a Committee to examine possible scenarios, reports back to the O/C at every stage of that examination over a timeframe of up to 2 years, followed by yet another General Meeting to resolve IF the O/C still wants to proceed…. bla bla bla.
Then…. IF the O/C agrees and the original Committee hasn’t been reformed due to Owners’ challenges about self-interest and other matters of dissent, it has to obtain properly executed documents of support from 75% of Owners (which seems to be the only component of this convoluted process that is reported upon in the media), and if there’s insufficient support at the end of 12 months, then the whole process comes to an abrupt end.
On the other hand, if Owners aren’t totally put-off within that 12 month period, and at least 75% do offer support, then there’s yet another General Meeting, where a special resolution (≥75% in favour by unit entitlement) needs to be passed in order for the agreement to be this time taken to the NSW Land & Environment Court, where any dissenters can again put their case before a final decision is made that could still, even at this late stage, go either way!
So frankly, even though it’s early days and as I haven’t read every word of the proposed Act/s, right now I can’t conceive of any situation where Aunty Mabel could be forced out of her Unit if she genuinely objects. I must say though, that in addition to the unit entitlement “bias” that is incorporated, I think that one favouring votes by Resident Owners over Absentee/Investor Owners would have been worthwhile.
sb – in response to your questions:
1. Considering I hold more than 25% of unit entitlements, I can call an EGM myself.
With 25% of the unit entitlements you can certainly “requisition” a Member of the Executive Committee (usually the Secretary) to convene an Extraordinary General Meeting (EGM), but unless you’re a Member of the Executive Committee you can’t convene that Meeting yourself, although the Secretary or a Member is required to do so “as soon as practicable” after receiving a written “requisition” to do so.
2. I only need to send a Notice of an EGM to the owners 7 days in advance.
Strictly speaking it’s the Secretary’s role to provide the Notice but there’s nothing that I’m aware of that would prevent you from doing it.
3. I don’t need to notify the Strata Manager.
Other than for reasons of courtesy, and particularly if the role of Secretary has been delegated to the Strata Manager.
4. Anyone in attendance can chair an EGM.
Provided the Chairperson is not in attendance, Correct
5. To pass a motion, I need more than 50% of votes in attendance or via proxy.
For simple resolutions such as one to terminate the Agency Agreement with the Strata Manager, Correct.
6. If no one except me attends or sends in a proxy, I can pass a motion on my own, considering I have more than 25% of the units entitlements.
At the time that the EGM is convened NO, because if the application of the 25% rule results in a quorum requirement of less than two persons, then the quorum requirement prescribed in the Act is two persons who are entitled to vote.
So if you’re the only person in attendance (incl. by proxy) then you’d have resolve to adjourn the EGM, to minute that, and to then re-convene the Meeting a minimum 7 days later after providing all Owners with at least 1 days notice.
A few words of caution though – make sure you’re aware of and follow all the termination provisions of the Agency Agreement with the current Strata Manager that, among other things, typically requires the Owners Corporation to provide 3 months written notice of termination, and that you have another Strata Manager who’s ready and able to take over the management of your Plan.
JC – the NSW Department of Fair Trading’s website states that “at this stage it is anticipated that the new laws will commence on 1 July 2016”, and if common sense prevails then your current Secretary won’t again accept a nomination at the May 2016 Annual General Meeting (AGM).
As I alluded to in my other post, your Owners Corporation gets what its members vote for! So if you think that common sense may be uncommon at the next AGM, then start lobbying other Owners on the additional basis that as the current Secretary is not an Owner he has to be nominated by one, he then needs to accept that nomination, have it seconded by another Owner, and be then (re) elected by a majority vote of those present at the Meeting; so there’s three (3) prescribed “hoops” that he’d need to negotiate if he refuses to see that the writing’s on the wall (must be my day for idioms).
tiny – I don’t entirely agree, primarily because you are the fourth owner whose Lot has the possibly incorrect units of entitlement, and so any resolution such as one for the Owners Corporation not to maintain / replace items of its common property such as the garage doors would fail so long as the other three owners vote as a block.
Secondly, I don’t agree that you shouldn’t be required to contribute (via your levies) to replace an item of the common property just because you don’t personally benefit from that activity, as in addition to the proposed garage door replacement, there would be many other scenarios where you may benefit by such activities and the other owners may not to the same extent if at all.
The replacement of the roof guttering or of a faulty window above/in your Lot are but two examples that come to mind, so in this and that broader context I don’t agree that you can or should be exempted from contributing to the replacement of the garage doors just because your Lot doesn’t have one.
That’s not to say that you shouldn’t adopt Jimmy’s suggestion to seek Orders to have the units of entitlement of your Plan reallocated under Sect 183(2), as it does seem on the basis of the information provided that the original (equal) allocation was in error.
I think that the matter raised in your other post goes more to the core issue here, where the Owners Corporation refuses to set owners’ levy contributions in accordance with the Strata Schemes Management Act so that those are properly reflective of actual and expected expenditures for in the case of the Administrative Fund property insurance and recurrent expenses, and in the case of the Sinking Fund for capital expenses such as renewing / replacing common property items such as those garage doors.
The Special Levy that you mention here has been proposed for the garage doors has to be agreed to by a majority vote at a General Meeting of the Owners Corporation (e.g. and AGM), so that’s really putting the proverbial cart before the horse as that same Meeting MUST include a Motion to set realistic levies for the Administrative and Sinking Funds that must “…. take into account, a statement of the existing financial situation of the strata scheme and an estimate of receipts and payments” (ref: Sect 75) and in the case of the latter, as Jimmy mentioned a 10 year (forward estimates) Plan.
I’m assuming that whilst the replacement of the garage doors may be somebody’s good idea, it’s likely not critical, and so I’d be advising the other owners and your Strata Manager (if you have one) in writing, that the proposed Special Levy won’t be necessary as the proposed expense has, at the next AGM, to be incorporated into the next budget estimate for the Sinking Fund as a planned renewal/replacement of an item of common property, and that whilst they’re at it, that Meeting needs to also prepare a proper budget estimate for the Administrative Fund and that 10 year Sinking Fund Plan so as to ensure that your Plan’s overall deficit of funds can be addressed.
If the other Owners have other ideas, then please come back for more (and possibly heavier) options to address the issues.
JC – you’ll probably be happy with these provisions of the NSW Strata Schemes Management Bill (2015) concerning the composition of Strata Committees (the new name for Executive Committees); the Bill was passed yesterday with a proposed commencement date of mid 2016.
32 Persons who are not eligible to be appointed or elected to strata committee(1) The following persons are not eligible for appointment or election to a strata committee or to act as members of a strata committee unless they are also the owners of lots in the strata scheme:(a) the building manager for the strata scheme,(b) a person who acts as an agent for the leasing of a lot or lots in the strata scheme to tenants,Dudley – as usual I’m picking up on unanswered posts before they drop off the list of “recents”.
It’s interesting that your Strata Manager hasn’t as yet responded to your correspondence. Perhaps that’s because there’s so much new strata development going on (or up actually) that some are of the opinion that they can afford to be non-responsive, even if that results in them loosing a client here and there.
If that’s your Strata Manager’s attitude, real or implied, then maybe you should assist them to loose your Plan’s business by placing a Motion in those terms on the Agenda for your next General Meeting.
You only need a simple majority in favour to achieve that end, so with one no-show, one against, and two in favour, your Motion would pass. As as safety net, check the units of entitlement (UOE) for each of the 4 lots, as if they’re unequal and that apportionment favours your lot and/or that of your like-minded neighbour, then a poll-vote (calculated on UOE instead of a show of hands) may work in your favour.
You need to do some homework in advance though, and as I mentioned before that involves obtaining a copy of your Owners Corporation’s Agency Agreement with the current Strata Manager and (at least) checking its termination provisions and whether or not the Strata Manager has breached any term/s; have you done that yet?
You also need to find a possible replacement Strata Manager; have you done any work on that, and about one who offers your preferred Record-Keeping Agreement and who may be prepared to assist you with the process of removing the incumbent?
I know that all this involves more work for you, but that’s one of the things that less than efficient Strata Manager’s rely upon, that being that nobody will be bothered to put in the effort!
Contact Strata Community Australia – they’re the peak industry body for Strata Managers and yours is likely to be a member, but in any case they can provide some advice about how best to proceed whilst you wait for a response from the Department of Fair Trading.
Joey – before your post drops off the bottom of the list, I’ll offer this response.
Depending upon any By-Laws of your Plan to the contrary, the maintenance, repair, and replacement of exhaust fans that are connected to a common ducting system is the responsibility of the Owners Corporation (O/C), and any that are “stand alone” such as yours is the responsibility of the individual Lot Owners concerned.
Although the Owners’ Manual of your Plan doesn’t state who’s responsible, that is why it differentiates between the two (2) types of installations; the exhaust fan in your Lot is your responsibility.
As a side note, it’s likely that your O/C was prepared to obtain a quotation for and to oversee the replacement of your Lot’s exhaust fan because there’s almost certainly a duct between the fan and the outlet grille that’s fitted to the face of the external wall, and if that’s not properly connected with the new fan unit then the moisture-laden air from your bathroom will rise up the wall cavity, and very likely cause damage to the Common Property for which the O/C would be responsible.
Thom – whilst I can see where you’re coming from, Rebekah’s reference to a soap opera and your Judge Judy analogy may both be good descriptors of what will likely be the consequence of her pursuing your suggested evidence gathering approach (my interpretation) with her Strata Manager.
Rebekah is an Owner, and we still don’t know if she received a warning letter or a Notice to Comply or if in the latter case the correct procedures for issuing that were followed, but subject to any further information that she may yet provide, I do agree with your suggestion that “it might be more productive to simply apologise (or at least be apologetic) for kids being kids” and to move on.
The Agenda for Meetings of the Executive Committee has to be prepared by the Elected Secretary, unless as is typically the case that role has been delegated by the Owners Corporation under the terms of a Strata Management Agency Agreement where the Strata Manager has that responsibility, and where in both instances the Agenda has to be distributed to all Owners at least 72 hours in advance of the Meeting’s planned commencement, and the Minutes similarly distributed within 7 days of its conclusion.
If you did not received the Minutes and/or presumably the Minutes then you’ve missed out on two counts, both as an Owner and as an E/C Member, but as I note from your other post you’ve already applied to the NSW Civil & Administrative Tribunal (NCAT) for the compulsory appointment of a Strata Manager, perhaps add this to your justifications.
Tread carefully though, as a NCAT appointed Strata Manager will act strictly in the terms of their appointment, that will be by-the-book and not necessarily in the present best interests of the Owners Corporation.
kitkatz – it really depends upon how the Owners Corporation (O/C) resolved not to maintain its existing air-conditioning system, and how the decision to raise the necessary funds for the replacement units was taken.
If you’re in NSW, then Sect 61(3) of the Strata Schemes Management Act (the Act) gives your Owners Corporation (of which you’re a member) the ability to not maintain its communal air-conditioning system, but only by the Secretary or Strata Manager placing an Item on the Agenda of a General Meeting (e.g. the AGM), and by a minimum 75% of Owners present at that Meeting (including by proxy) voting in favour of that action in accordance with their Lots’ “strata proportion” (actually their Lot’s units of entitlement).
If that Item was properly passed, then there should have been a vote taken on how the funds for the replacement air-conditioning systems will be raised, where the only options are for the O/C to either meet the total expense from the Sinking Fund, or if insufficient funds exist there and in the Administrative Fund, for the raising of a Special Levy in accordance with each UOE or by the O/C borrowing the necessary funds and individual Owners contributing to the repayments in accordance with their UOE under the provisions of Sect 76(4).
An O/C can only raise funds by way of levy Contributions from all Owners in accordance with the UOE of their Lots, and whilst a Special By-Law such as the one that you believe is proposed would be necessary if only to clarify who will “own” and will therefore be responsible for the ongoing maintenance, repair, and replacement of the individual air-conditioning systems (i.e. the O/C or the Lot Owners?), it would be of no effect unless the correct procedures as required under the Act have been followed.
If as I think you are claiming the correct procedures as required under the Act have been not been followed, then you need to immediately make your Secretary and Strata Manager aware in writing of the fact that the O/C’s proposals are not in accordance with the relevant Sections of the Act, and of your intention to seek Mediation of the matter by the Department of Fair Trading if they continue with implementation.