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Hi All..
I have an interesting query. About 12 months ago I bought a unit on the ground floor of a 3 level block. We have a small courtyard and one balcony above. The top floor units each had a very small balcony that was positioned about 5 or 6 meters back behind a ledge. From these small balconies it was impossible to look down into our courtyard. The ledge is clearly marked “Common Property” on the plans we were issued with our sales contract. We liked the fact we only had one unit able to look down into our courtyard.Towards the end of last year, there were some building rectification works completed. These works were funded via a special levy that was raised prior to us purchasing our unit. A result of these building rectification works are that the ledge that I mentioned above now appears to have been converted into a larger balcony for the exclusive use of the units on the top floor. The area has been sectioned off so each unit now has access to an individual private rooftop terrace. The railings for these areas now go right up to the ledge so we now have two of the 3 top floor units able to look into our courtyard. We have lost some privacy whilst no doubt the values of the top floor units have increased significantly.
I have browsed through all available copies of previous committee meeting minutes and there has been no mention of these balconies being altered in any way. I suspect it was completed on the sly.
What is worse is that of the three units to have had these Balconies added, all three are committee members. (one was not on the committee last year though when this work was apparently approved)
I am currently waiting a response from our executive committee on how and when these works were approved, and also confirmation on how it was funded. I have been told that the addition of these terraces is unlikely to affect the value of the units due to the fact that the new balconies are not on title. I’m not entirely convinced of this.
I would be interested to know if there is anything that can be done by these unit owners to convert the Common property area to their own property? Given that they are all members of the EC… is there any chance they may be able to do this without anyone being able to stop them?
Ideally, we would like the new balconies removed but its starting to look like that this will happen. Should we fight for some form of compensation?
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Johnno – you’ve hit the proverbial nail on the head, in that what’s been done consequent to rectification works is an alteration or addition to the Common Property, that in NSW should have been pre-approved by a minimum 75% majority vote as determined from the unit entitlements of those present at a General Meeting of the Owners Corporation; so that’s what you’re looking for.
The Owners of the three (3) top-floor Lots now have exclusive use of part of the Common Property, and contrary to the advice that you’ve received, that has likely added to the value of those Lots and may have diminished the value of yours due to the privacy issue that you mention.
Again, the exclusive use matter should have been incorporated with the Motion to consider the alteration / addition to the Common Property, together with an enabling Special By-Law to amongst other things require the three (3) benefiting Owners to make regular payments to the Owners Corporation that reflect the “value” of that use, which would in normal circumstances be reflected by their Levy Contributions.
Before discussing what can or should be done about all this, may I suggest that you come back after you’ve found out how it is that the works were approved and funded, because advice in that regard will depend upon how that process was handled.
I assume that you’ve asked for information about how the works were approved and funded, and that’s the reply that you’re waiting on.
In the absence of that reply, you have two (2) choices which I suggest you address in order, and in accordance with the provisions of the Strata Schemes Management Act (1996):
- If your current request wasn’t formally made under Sect 108, then you need to do that by stating precisely what records you wish to inspect, and by including the prescribed fee of $31 in favour of your Owners Corporation. As you’ll see from that Sect, depending upon the circumstances the O/C then has between 3 and 10 days to permit you to make your inspection.
- If the above has been done or is now done, and the 10 day deadline has passed, then you need to formally advise the Secretary of your Executive Committee (cc Strata Manager) that unless the information that you’ve requested is supplied within say 48 hours, then you’ll be seeking Orders under Sect 156.
The process for seeking Orders is shown HERE.
You mentioned in an earlier post the “we” would like the balconies removed, and if that collective reference was about you and some other Owners, then start getting as many of those as you can on-side to join you in the inspection and in an Application under Sect 156 if that becomes necessary.
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