Flat Chat Strata Forum Common Property Current Page

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  • #9834

    Hi,

    I stumbled across the following two links. They are of particular interest to me as I am in this exact situation. (in NSW). Does anyone have any further cases or legal references to support this situation?

    http://www.flatchat.com.au/ignorance-not-bliss-in-unapproved-inprovements/

    http://www.flatchat.com.au/forum/common-property/when-does-unapproved-changes-become-strata-responsibility/

    A previous owner allegedly installed pavers in common property in front of my lot. Several years later the previous owner sold to me. Now 5 years on (circa 10 years since the pavers were installed) they need some maintenance.

    At the time of their installation, OC knew of the change and made no effort to approve or reject the change. According to the LPI there is no documentation on any changes made nor any documentation on what was allegedly there before or on the pavers there now.

    Now that maintenance is required OC suddenly claim they were unapproved.

    OC want to either:
    -force the new owner (me) to pay for repair, or
    -remove the pavers (to what they were allegedly before)

    My concern is that removal will significantly reduce the value of my lot only, not affecting value of other lots.

    Qu 1. Can Owners corp (without special resolution) force removal of the pavers (to what they were allegedly before) or do they need to maintain them like for like?

    Qu 2. Can Owners Corp (through special resolution) approve a change to effectively force the removal of the pavers, noting that is reduces the value of one lot only.

    Qu 3. Is there anything preventing the Executive committee from simply repairing the pavers?

    (of note is that cost of removal is about 3 times cost of repair in this case)

    Thanks in anticipation,
    Regards,
    Matthew.

Viewing 5 replies - 1 through 5 (of 5 total)
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  • #22823
    kiwipaul
    Flatchatter

      Q1 Yes they can remove them as they were unapproved, they don’t need your approval (common property) but they cannot bill you for the work.

      Q2 Just needs an ordinary motion to be approved to remove them.

      Q3 Yes the EC (or the OC) can approve the repair (so long as the cost is within their limits).

      IMHO the reason they don’t need a special resolution to make the changes is because the installation of the pavers is unapproved and they are just doing a repair to return the Common Property back to it’s original state.

      Common property belongs to everyone and if they have the votes they can do what they like UNLESS you have been given exclusive use of said common property and that fact is recorded in the bylaws.

      #22824
      Jimmy-T
      Keymaster

        There is an assumption under NSW strata law that if changes are made to common property associated with one lot, then the Owners Corp pays for maintenance. This can (and should) be changed when an owner seeks permission but under the law SOMEONE has to take responsibility and in the absence of anything else, that defaults to the Owners Corp (see extract below).

        Obviously, when the pavers went down, the previous owner should have accepted ongoing responsibility for their maintenance.  I would guess that your EC’s position is an ambit, basically giving you the opportunity to put things right.

        My suggestion would be a compromise: They repair the pavers to your satisfaction and you apply for a by-law in which you accept responsibility for their future maintenance.

        That’s a win all round.  However, if you are looking to use one of the odd quirks in strata law to get your neighbours to pay and continue paying for something that only benefits you, you may be out of luck.  If I were your chair, I’d accept the compromise as it minimises the cost and removes future responsibility from the Owners Corp.

        And don’t forget you can always take this to the other owners at a general meeting.

        54   By-law must provide for maintenance of property

        (1)  A by-law to which this Division applies must:

        (a)  provide that the owners corporation is to continue to be responsible for the proper maintenance of, and keeping in a state of good and serviceable repair, the common property or the relevant part of it, or

        (b)  impose on the owner or owners concerned the responsibility for that maintenance and upkeep.

        (2)  Any money payable under a by-law to which this Division applies by more than one owner to the owners corporation or to any person for or towards the maintenance or upkeep of any common property is payable by those owners proportionately according to the relative proportions of their respective unit entitlements unless the by-law otherwise provides.

        (3)  To the extent to which a by-law to which this Division applies makes a person directly responsible for the proper maintenance, and keeping in a state of good and serviceable repair, of any common property, it discharges the owners corporation from its obligations to maintain and repair property under Chapter 3.

        The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
        #22825

        Thanks guys for your prompt responses.

        I have a query against kiwipaul’s response.

        What is there to stop false claims of what was there before or what has/has not changed, if there is no evidence of anything other than the pavers ever existing. When purchasing the property I was under the (allegedly false) impression that the pavers were the baseline.

        I would have thought that when a new owner signs a contract, then the state of the lot and its title, bylaws and AGM minutes etc, form that contract. Thus if according to all the documentation there was never an unapproved change, then the pavers are the baseline. Ie returning to standard means repair pavers, not dig them up.

         

        I accept that JimmyT’s proposal forms a compromise noting that the area in question is common property that realistically only affects my lot. Unfortunately when presented with this option the EC wants his cake and eat it too – I pay now and also introduce the bylaw for future cost, and EC also wants to use this as precedence for other areas OC common property.

        Also, what if that common property area was a fence or a wall. Walls and fences often only service one or two lots, but it is still OC who pays for repair. What is different in this case?

         

        Thanks again.

        #22826
        Sir Humphrey
        Strataguru

          I would go with Jimmy T’s suggestion if you can. However, the bottom line is that this is a bit of common property that it sounds like you are getting an exclusive benefit from. It seems fair enough that you take responsibility for its maintenance and formalise the arrangement. Then it is unambiguous for all concerned. 

          I wonder if the EC is concerned that there are many analogous, non-formalised arrangements where unit owners have paved or otherwise made use of adjacent bits of common property that are really of little use to anyone else but a real benefit to the individual unit?

          We have such a situation in which every unit has their own style of path or driveway that connects to the shared paths and roadways. All were installed across short stretches of common property by unit owners in diverse styles. Long standing policy of almost 40 years has been that these are a unit owner’s responsibility but it has not been formalised. We are drafting a general meeting resolution to do that now. Our legal advice says we can make all of these exclusive use ‘special privileges’ (in the ACT) but that would then require an unopposed resolution to pass and someone is bound to get the wrong end of the stick and oppose. It would be a serious pain if had to install standardised paths to all units just to ensure some were up to scratch. 

          I would prefer to use an ACT provision of our Act that allows the EC to approve a ‘minor use’ of common property subject to conditions (e.g. maintenance in a safe and attractive condition by the unit owner) when it would not interfere with the reasonable use and enjoyment of the common property by other unit owners. The problem is uncertainty about how big a ‘minor’ use can get before it is no longer minor. I argue that it is dependent on context. If you have many hectares a few square meters can be minor. If you only have a few square meters of common property it would not be minor. Does NSW have a similar provision or do you need special by-laws for even the most trivial of incursions onto common property?

          #22827
          kiwipaul
          Flatchatter

            @matt73 said:

            What is there to stop false claims of what was there before or what has/has not changed, if there is no evidence of anything other than the pavers ever existing. When purchasing the property I was under the (allegedly false) impression that the pavers were the baseline.

            Even if the pavers were originally installed by the builder their is no requirement for the OC to maintain them a Special Resolution to remove them is perfectly legal if the pavers are on common property.

            Same rule applies to any other structure on common property, the exception being an original (or an approved) boundary fence (between lots or lots and common property) where the fencing Act comes into play.

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