Loft-grab for air-con

Whichever way you cut it a ducted air conditioning system is a major installation in any building.  I suspect you would not get any change out of 20 grand.  A ducted system has environmental, health, fire safety, insurance and energy implications for the owners and in this case, because it is on common property without an appropriate by-law, the OC are the owners. 

As such, technically, the OC is responsible for maintenance, including replacement and the more the lot changes hands the less likely it will be that new owners will regard the installation as anything other than common property.

However irrespective of a by-law to protect the OC (and the Lot Owner by the way) the OC needs to know some basic questions before any ducted system is approved and installed:

1. Where is the compressor located.  Very important and hopefully it is not in the roof which I have seen done and this can have disastrous consequences. Are suitable design drawing available for the system.  Has the system interfered with or likely to interfere with any other installations that may be in the roof e.g. sprinklers, power, hydraulics, AV systems (Foxtel, Internet, DTV etc. etc.).

2. Ducted systems need regular maintenance to ensure there is no transmission of bacteria.  What is the program for maintenance of filters for example.

3.        Has the appropriate gas been used and does the system fit in with the OC’s environmental policies.

4. Noise

5. What is the power source and has it been appropriately installed

6. To where does the condensate run and are there drip trays in the ceiling cavity?

7.        Access for the OC?

8.        Fire implications

9.        Insurance – major installation such as this may have to be notified to your insurer due to the increased value of the building.

If any of the above questions cannot be answered correctly then it is not the owners who is in strife – it is the OC, that is until you have satisfied yourself with all of the above (and more probably) and drafted the appropriate by-law.

 There are several ways to bring the owner to account – two of the most effective, if negotiations fall down, is to minute the unapproved alteration which could impact on any future sale of the lot.  You might also advise the lot owner that when he goes to sell his lot a question the strata searcher often asks is if there are any unapproved alterations to the common property attached to the lot.  A yes answer would not be in his interests.

You might also tell the owner that without formal approval at any time in the future he could be ordered by the OC to remove the installation. 

Unapproved alteraions and additions to the CP – a common problem and should never be put in the too hard basket.  It is in everyone interests if the process is correctly carried out.

ElevenSeven
Unfortunately you are not able to simply raise matters at the AGM unless there is a motion included on the agenda to consider these matters.

You may wish to put to the EC/OC the matter of “what is the market value of the roof space” or what consideration has been offered by the top floor apartment owner to the OC in exchange for the right to occupy this part of common property??

It’s worth asking the question.

Believe it or not, you have the upper hand.  Get a couple of estate agents to estimate how much the loft-grab neighbour has improved the value of his home and then tell him you want:
a) that amount in payment for annexing common property;
b) agreement to a special resolution indemnifying the Owners Coproation against any future repairs or maintenance;
c) repayment of all costs involved in drawing up the agreements and holding the EGM required to pass them.

If he refuses any of the above get your Executive Committee to issue a Notice To Comply telling him he has 30 days to remove the ducting and return the common property loft to its original state.

Be prepared to negotiate on the price but not on the principle – people can’t just grab common property for their own use, even if it’s not being used for any other purpose.  Also CTTT adjudicators can order owners to agree to an Exclusive Use By-law covering this if they refuse to do so.

Also, the money goes to the Owners Corporation (not the owners). 

Under an exclusive use by-law,the air-con owner would be granted the exclusive use of that space for the purposes of the air-con installation provided they agreed to its maintenance and the the OC has access to the space and can use it for any other purposes they may require.

This would still be OC space and not necessarily added to his title.