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  • #8991
    Luke
    Flatchatter

      I own in a block with 21 lots. 20 lots are 10 year old units and there is a commercial property which is a heritage building (attached terrace). They have the largest unit entitlement.

      The owner of this lot has submitted a plan to the owners corporation to renovate the terrace. There is a by law to be voted on at our next AGM relating to this development.

      My biggest concern is the creation of a verandah on the first floor. There is currently 2 Juliet balconies (total 4m2) and the proposal is to create a balcony/ deck which is approx. 18m2. 12m2 of this structure will be built on top of the ground floor roof (which I still believe to be common property) and 6m2 will be built over the top of common property.

      There is nothing mentioned in the By-law information about developing common property and giving exclusive use.

      My questions are

      1) Can the owner legally develop on common property? Would this effect strata plans, unit entitlement etc.

      2) Would they have to pay compensation to the owners corporation and what is an appropriate amount?

      3) would it be best to give them approval and then pass an exclusive use by law?

      Thanks

       

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    • #19253
      Whale
      Flatchatter

        Luke – I must admit that I’m a little confused about the precise nature of the works you say is proposed by the Owner of the Heritage Listed Lot, like with part of that being on the first floor with 2/3 of its area being above the ground floor (?), but in the first instance (in NSW) all such works except those of a very minor nature require the prior consent of the Heritage Council, and following that the consent of the Local Council.

        As a general response to your three (3) questions, given you haven’t supplied the requested details of your State/Territory when you registered….

        1) In NSW an Owner can legally develop on Common Property provided they first obtain the written consent of the Owners Corporation (O/C) at a General Meeting. Depending upon the extent of the renovations, your O/C may have to commission a Strata Sub-Division (re-survey the property) and a Valuation to update the Strata Plan and to adjust the Unit Entitlement for the renovated Lot respectively.

        2) There are a few possibilities, but it’s common for such Owners to make a payment to the Owners Corporation, and again the amount of that payment and the frequency of it (i.e. once-off or periodic) is usually determined not on the basis of any compensation, but rather on the basis of the O/C’s costs (e.g. for the survey, the valuation, and to draft and register the special by-law), plus the amount of any increase in the market value of their Lot consequent to the consented works and which is not in the O/C’s opinion properly reflected in any valuation, and the “value” (e.g. in terms of attractiveness at sale) of any special privilege such as their exclusive use.

        3) As any Special By-Law (SBL) requiring the Lot Owner instead of the O/C to maintain the entirety of the consented works and granting special privileges (e.g. exclusive use) needs to be consented to in writing by that Lot Owner, then for that reason alone it’s essential in my opinion for the detail of that SBL to be agreed and the document Registered before any consented works commence.  

        If you post some further details including in which State/Territory your Plan is located, the wording of the proposed SBL, and some clarification concerning the nature/design of the proposed renovations then I’m sure you’ll receive some more targeted responses.  

        #19255
        Luke
        Flatchatter
        Chat-starter

          Thanks Whale.

          We are located in NSW. The complex is made up of 3 separate buildings. 2 of them are apartment blocks and the 3rd (the one in question) is a heritage listed terrace (c1850). The terrace is 2 stories high and has a small addition (probably 50 years old) out the back on the ground floor which houses the amenities. There is a carriageway which is common area and allows access to the common courtyard (this would originally have been the backyard of the terrace). The deck/verandah in question will be first floor, 2/3 will sit over the roof of the addition and 1/3 will sit over the carriageway.

          The proposed works are outlined in length with an architects package and there is a SBL resolution to be voted on. I think this is their first step before going to council. There is no mention of their attempt to develop on common property (i.e the deck/verandah). Your answers confirm what I was thinking anyway.

          Looks like it will be a lot of work for the EC and the strata manager.

          #19257
          Whale
          Flatchatter

            Thanks for that additional information Luke.

            You’re right in that the information I initially provided seems to be in general alignment with what I now understand about the terrace owner’s proposal.

            That owner will need to satisfy the requirements of the Owners Corporation (O/C) and be able to demonstrate that before the Heritage Council and your Local Council will consider their Development Application, so that’s why their proposal is now with your Executive Committee and Strata Manager.

            The issues are complex, and the O/C will need some competent and practical advice, particularly with the complexities of exclusive use (perhaps unnecessary if no one other than the proponents could use the new areas), with the SBL provisions about who it is will be responsible for the ongoing maintenance and repair of the new areas, and the assessment of any payments to be made to the O/C in addition to those involved in it and the Strata Manager collating everything and convening the General Meeting.

            The terrace owners will need to make you and the other owners fully aware of their proposal, because in order for a SBL to pass a minimum 75% of owners present at the Meeting both personally and by proxy need to vote in favour, with that percentage determined from the unit entitlement of those owners.

            Good luck with it all, and remember there’s a lot of competent and practical information collectively available on FlatChat.

             

            #19259
            scotlandx
            Strataguru

              Whale is right, just one thing to add re the process.  From what you have said it would require Council approval.  To put in a DA with the Council the owner has to seek approval from the OC with the Development Application, which would include all the specifications etc.  Where the OC approves that, the common seal is then affixed to the DA so the Council knows that it has been through that stage.

              So one suggestion is that the owner should be asked to submit their DA to the Owners Corporation for approval.  If I were an owner I wouldn’t approve it unless that was provided, not least of all because the plans could change.

              Luke – it isn’t a lot of work for the manager or the EC/OC, or it shouldn’t be.  The onus is on the owner, they are the ones who want it, they have to do the work.

              #19260

              Hi All, had a similar situation, a commercial development within a mixed development SP extending on a small parcel of heritage listed property attached to cp strata council approved ConfusedConfused. Council did not inform the residents, sm nor the heritage council, only the then surrounding commercial properties. Did  also not ask for the strata seal. So basically the OC were not aware to respond, one very active resident in our building found council notices for proof of who was notified, OR NOT IN THIS CASE, contacted heritage council and then after some cttt attendance and to cut a long story short, council declared an error and approval was retracted. 

              Cheers CBF Confused

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