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They WOULD need the by-law if you told them to either agree to a reasonable by-law covering repairs, maintenance and liability or be ordered to get their water tank off your (common) property. You don't have to play hard ball but they should realise that you can do so if they don't come to the party. And never mind the CTTT – a plumber with a pipe wrench would get a more immediate and reliable response. They are in the wrong – let them take you to the CTTT when you remove their hot water tank.
There's a difference between shared property and common property and they have no right to put anything in a common property space without permission.
If you allow them to leave the tank there without the requisite special resolutions, when they sell, the water tank's maintenance, repairs and other liabilities will become the Owner's Corporation's responsibility, not the new owners'. For that reason alone, you have a very good chance of success at the CTTT.