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I am the Secretary of a large residential strata in Sydney, An owner has submitted a request to renovate her bathroom. It is a major reno as it involves waterproofing. There is some confusion as to whether this can be approved by a simple ‘ Special Resolution’ at a GM or whether we need an actual By-Law. The situation is compounded by the fact that a previous major reno request was approved by a Special Resolution without the need for a By Law (rightly or wrongly). Is there anything that would preclude the use of a Special Resolution (without a By Law), and would be the potential consequences?.
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There is some confusion as to whether this can be approved by a simple ‘ Special Resolution’ at a GM or whether we need an actual By-Law.
I think what you are looking for is a common property by-law which allows common property (the tiles and waterproofing under them) to be changed and transfers responsibility for the new flooring to the renovator. This common property by-law requires approval by special resolution.
NB: Many schemes give approval for straight-forward renovations subject to the passage of a common property by-law and stack them all up for approval at the next AGM or extraordinary general meeting.
This is done at the renovator’s risk – in case the approval isn’t forthcoming – but there’s little chance of that in most cases.
The worst case scenario for approval without a by-law would be if the renovator sold the property and floor subsequently started leaking. In that case, responsibility for repairing the tiles and waterproof membrane would default to the owners corp, not the new owner.
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.
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