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Topic
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A while ago, our Executive Committee passed a resolution at one of its meetings that no Owner or Occupier was to erect any For Sale or For Lease signs without approval, at the front of the strata apartment complex.
There is no By-Law that specifically prohibits this – only a resolution passed by the EC.
This is currently being disputed by an Owner who refuses to take down a For Sale sign that’s been erected, following, as I understand, written requests from the EC and the Strata Manager.
Firstly – can the EC (as the Owners Corporation) pass such a resolution requiring this. And secondly – what can the EC do to resolve this issue and enforce the resolution?
(The offending Owner is disputing whether the resolution is legally enforceable.)
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Generally there is no by-law that would be needed to enforce this, and the EC is within their rights to stop for sale/for lease signs being erected.
There are two reasons that spring to mind even if you have only the model by-laws.
Firstly, the signs would be affixed to common property, either screwed to the wall or by posts into the ground. That is of course a no-no when dealing with common property as damage inevitably occurs.
Secondly, a for sale/for lease sign, even if it is entirely on the lot owners property (which I doubt) is highly visible from the street and is not in keeping with the strata scheme.
If all/majority of the owners in your scheme seriously want to add signs all over the building then you would want to pass a by-law and it should specify the location, suggested size, maximum size, method of fixing, who is responsible to make good damage to common property and length of time it could be placed before being removed.
Is the sign on common property? If it is, and it clearly doesn’t have permission, the EC have every right to demand its removal, with or without an EC ruling or specific by-law.
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.
jeff.f,
One further point if signs again appear anywhere on Common Property. Remember that whilst your O/C is fully empowered to remove them, the signs are the property of the RE Agency who had them placed there.
In those circumstances, as EC Secretary I always e-mail the RE Agency concerned to advise that their signage has been removed and why, and to advise that it will be held for seven (7) days for collection by them, after which time it will be disposed of.
Maybe ask your Sec. or Strata Manager to do that, just to cover your bases!
This was an issue for a while where I am. A particular owner got particularly upset about for sale signs at the entrance to the development. The EC at the time found that Real Estate Agents have a code of conduct about where they place them and how long they are left after a sale. Obviously they like to see ‘SOLD’ across their signs for as long as possible advertising how well they are doing at selling. It would be worth finding out the details of that code and insisting on compliance with that at the least.
I would not assume all owners are offended by the signs. Any owner who is selling will suddenly find themselves wanting the most prominent advertising possible and with a change of circumstances that could be any of us!
In reply to PeterC, If that is the case then perhaps signs could be looked at on application and a temporary approval given? Perhaps rent for use of CP? Might as well get some dollars in the coffers if the site is not too offensive to other owners?
Having said that we do not allow for sale signs on our property.
Cheers
CBF
In my experience, the agents do ask, and my position is that approval is conditional on the sign being removed and the site made good (if necessary) no later than 10 working days after exchange of contracts.
I suppose it depends on the agents and the EC involved. We all hate these signs – until it’s our turn to sell. But it’s important that the RE agents and, indeed, the owners have no right to do anything on common property without the Owners Corp’s permission.
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.
Hi All,
There is mostly a very fundamental by-law in most strata schemes that says an owner or occupier can not damage common property. This is basic stuff and an EC decision to require permission to be applied for first in most circumstances is supported by this by-law.
Let’s get real about Real Estate signs though. Most of these are just advertising for agents, more so than the owners property. Good agents will be respectful to the OC and seek permission prior to erecting the sign.
Mr S
We’ve had issues with signs over the years. Things became a lot better when we started implementing the following:
1) Passed a resolution to ban ‘for lease’ signs. Most people just go to an agency rather than scour the streets for available accommodation so that was a big scourge of visual clutter removed.
2) Specified a location where the signs may be placed. These are to the side of the building so residents are not faced with it every time walking down the front path (especially the huge picture ones so prevalent these days).
3) Emailed the estate agents (with photos) when they put signs in the wrong place or leave up ‘sold’ too long (pointing out that this building is a home for many people and not merely an advertising hoarding for them). I usually mention that it’s an EC rule of which the strata managers should have made therm aware. They are given 24 hours to move the sign.
Since doing this we have had far less trouble with signs going up and having them removed.
Hi Loose Pavings,
It may be interesting to note that the Strata Manager will be one of the last to know about the sale of a property. In many circumstance it’s not until the s109 request is made that there is any indication that anything is happening.
Mr S
@considerate band fair said:
In reply to PeterC, If that is the case then perhaps signs could be looked at on application and a temporary approval given? Perhaps rent for use of CP? Might as well get some dollars in the coffers if the site is not too offensive to other owners?Having said that we do not allow for sale signs on our property.
Cheers
CBF
Our EC is considering banning or limiting For Sale signs on common property. Any opinions on the legality of setting a fee payable to the EC for such signs (in NSW) as well as restricting their location ?
@sbadert said:
@considerate band fair said:
In reply to PeterC, If that is the case then perhaps signs could be looked at on application and a temporary approval given? Perhaps rent for use of CP? Might as well get some dollars in the coffers if the site is not too offensive to other owners?Having said that we do not allow for sale signs on our property.
Cheers
CBF
Our EC is considering banning or limiting For Sale signs on common property. Any opinions on the legality of setting a fee payable to the EC for such signs (in NSW) as well as restricting their location ?
In the ACT (so perhaps similar elsewhere), the Act allows the EC to give permission for ‘minor’ uses of the common property where that would not ‘unreasonably interfere with the reasonable use and enjoyment of the common property’ by other owners. So, I would think the EC could grant permission for signs to be placed in a way that they judge to ‘not unreasonably interfere’ etc. I think the EC could specify where the sign goes and that it only be permitted to remain for a limited period and so on. I would argue that a sign that is up and looking ugly for only a few weeks and doesn’t get in anyone’s way is only a minor and not unreasonable interference with the enjoyment of the common property. On the other hand the EC would exceed its powers to give permission for a sign that gets in the way and is left up for an extended time.
I would not bother with fees. In the long term, every owner will benefit once from this particular use of common property at the time they sell.
The Common Property is owned by a Corporation and common law property rights apply irrespective of whether there’s a By-Law.
Neither the Owner who’s selling, nor their selling agent, nor the sign-erecting contractor have the right to erect a sign without the permission of the OC. That would be trespass.
Having said that, a By-Law would spell things out clearly to Owners.
I see nothing wrong with a By-Law covering:
1) Types of “opportunity” (Auction, Lease, Rent or Sale) which are permitted.
2) Where the sign may be erected.
3) How long the sign may remain, in total, but also after contracts signed.
4) Maximum size of sign.
5) Manner of attachment.
6) Prescribed fee (to be paid in advance) for use of Common Property.
With number (6), you’ll soon find out whether selling Owners think such signs are worthwhile, or whether they are just enriching themselves at OC’s expense.
PC, selling Owners will only benefit once each, absentee landlords will benefit many times.
sbadert – Peter is right, and the same basic premise applies in NSW to the extent that Real Estate Agents and others can’t alter, attach or place anything on the Common Property without the written consent of the Owners Corporation (O/C).
Our Plan had precisely the same problem, with For Sale and For Lease signs being placed and left post settlement / leasing (for free advertising) both on the grass and puncturing irrigation lines, in the landscaping, and on balcony railings; all are Common Property.
In an effort to balance the legitimate needs of our Proprietors to sell / lease their properties, the desire of the O/C to maintain the appearance of its Common Property, and to avoid Real Estate Agents seeking its consent for each and every sign, our Executive Committee devised a Signage Policy and put it before the AGM back in 2009.
That Policy incorporated designated positions where signage could be placed, imposed size limits on those, required signage to be removed withing 7 days of settlement and/or leasing, advised that those owning the signs would be held responsible for any damage their placement caused (like puncturing sub-surface irrigation lines), and as the signage is owned by persons other than the O/C, where non-compliant signage would be stored for collection and for how long.
That Signage Policy was distributed to all local Real Estate Agencies and was (and still is) among the downloads available to “Proprietors and their Agents” on our Plan’s website.
This may sound like a lot of effort, but it really wasn’t and it’s the correct approach from a legal perspective, balances all interests, and apart from a few teething problems particularly with contracted sign “putterer-upperers”, who like junk mail distributors seem to have problems with literacy and with breaking repetitive behaviours, it’s worked a treat!
PS – I just saw Roo’s contribution (below), and should observe that I don’t agree that a fee could be legally imposed or even that it’s necessary, and further that a Special By-Law would not only be unnecessary (in our Plan’s experience) but also unenforceable against RE Agents if they’re the intended target.
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