Home
>
Articles
>
Maintenance of and Upgrade of Residential Strata Building
Maintenance of and Upgrade of Residential Strata Building
18/03/2020
Watson & Watson were approached by the Owners of an apartment in a Harbour front Strata Apartment Complex consisting of six units. There is one unit on each floor and each unit faces the Harbour.
The Building had concrete cancer and there was a requirement for some maintenance work on the facade.
All of the Owners agreed to the need to maintain the building by repairing the concrete cancer.
However the Owners could not agree as to the actual works to be undertaken. The Owners of four of the six units wanted to significantly upgrade the Harbour front façade of their units including changes to structural elements which would enable a greater vista to the Harbour. The proposed works by the Owners of the upper four units while limiting some existing views from existing rooms, opened up vistas from other areas of some of those upper units. These works as proposed by the Owners of the four upper units were not necessary as part of the Owners Corporation’s obligation to maintain the façade.
The works proposed by the Owners of the four upper units were at a considerable cost, significantly higher than the cost of the necessary works to be undertaken to rectify the maintenance issues.
Our clients who owned one of the lower units had sourced appropriate windows which would upgrade the facade at a significantly less cost than those works proposed by the Owners of the four upper units. These proposed windows would not adversely affect the view available from the existing configuration of the six units.
However our clients did not agree to the very significant upgrade of the window facades as sought by the Owners of the upper level units. The proposed upgrade works required a Special Resolution and an appropriate By-Law. Having regarding to the unit entitlement, the Owners of the four upper units had sufficient unit entitlement to pass a Special Resolution for their preferred solution.
To enable a Special Resolution to be passed one also needs the Consent of each of the Owners who were to benefit from the Special By-Law. Only the Owners of the four upper units who sought the unit works and upgrade consented to the Special By-Law.
Our clients engaged an Architect and appropriate Consultants and came up with a solution which would replace the front facade windows without reducing the vista from the existing building. These were at a considerably lower cost than the proposal by the Owners of the upper four units.
Our clients’ Consultants were able to incorporate the changes sought by the Owners of the four upper units to have the façade replaced (without impeding the existing view); and also allowing the Owners of the upper four units to achieve their preferred outcome.
As expected at the General Meeting, the Special By-Law proposed by the Owners of the upper four units was passed by way of Special Resolution.
In the original discussions before the General Meeting referred to above, the Owners of the four upper units had not initially offered to indemnify the Owners Corporation from damages caused by the proposed renovations. We discussed this with our clients and they discussed the matters with the representatives of the Owners of the four upper units.
Thereafter in the version of the proposed By-Law put to the General Meeting an indemnity was offered. Each of the Lot Owners of the four upper units offered a joint and several Indemnity to cover losses of the Owners Corporation if the works were approved.
However there was no compensation offered by the Owners of the four upper units.
The New South Wales Civil and Administrative Tribunal (“NCAT”) on application by a Lot Owner would review a Special Resolution which was passed by an Owners Corporation and revoke the resolution if it was found that the Owners Corporation had acted unreasonably.
The failure to offer appropriate compensation would be a matter for consideration by NCAT if our clients chose to challenge the passing of the Special Resolution.
As an alternative to expensive litigation, which one could anticipate to proceed through NCAT, and possibly an Appeal Panel at NCAT and possibly by way of further appeal, we recommended that attempts be made to resolve the matter on the basis of incorporating the window design as sourced by our clients and allowing the other upgrades as sought by the Owners of the four upper units with appropriate costs adjustments and indemnity being provided by the Owners of the other four Units
We seek to resolve issues and find an acceptable resolution where possible, so that each party can achieve some benefit.
In each case there are many issues and depending upon the circumstances, some are more important than others. If you have issues in relation to renovating or upgrading a Strata Building or some part of a lot within a Strata Building, please contact Richard Watson, Senior Strata Solicitor or Shereen Da Gloria, his Personal Assistant of Watson & Watson experienced Building and Construction and Strata Lawyers to discuss your matter and obtain appropriate timely advice.
This is only a preliminary view and is not to be taken as legal advice without first contacting Watson & Watson Solicitors on 9221 6011.
-
13/01/2021
Many people live in buildings which are subject to Strata Schemes. Those buildings consist of varying sizes from a two Lot strata scheme to townhouses in a Strata Scheme and small and large apartment complexes. Various Owners own a Lot within the Strata Scheme. The Lot is defined by reference to the Strata Plan and the laws applying to Strata Schemes. All parts which are not part of the Lot are common property owned by the Owners Corporation. The Owners Corporation consist of all the Lot owners.
Read more...
-
06/01/2021
For many years there have been strata laws which will allow buildings to be subdivided so that within the same building separate lots can be separately owned. A strata complex consists of various lots which are specified on a Strata Plan. There is also common property which is property which does not form part of any particular lot. There are many disputes in relation to what is common property and what other rights and obligations of each lot owner and also the Owners Corporation.
Read more...
-
05/03/2020
Often we receive enquiries from Lot Owners where it appears that the Owners Corporation are taking a very hard line against a particular Lot Owner which is inconsistent with the approach adopted by the Owners Corporation generally throughout the strata building.
Read more...
-
10/02/2020
Our advice to clients last year to avoid commencing damages claims in the Tribunal for breach of duty by Owners Corporations has been shown to be wise, with a further Decision of the Appeal Panel on 15 January 2020, following on from the Decision in October 2019 that we reported in our article published earlier this month.
Read more...
-
04/02/2020
In a decision late last year, a Senior Member of the Tribunal made orders declaring a by-law harsh, unconscionable and oppressive, and ordering the Owners Corporation to remove it from the date of registration.
The by-law excluded pets, and had its application to “Angus”, a 13-year-old miniature schnauzer that the Owners of a Lot had acquired as a pet nine years before they bought into the scheme.
Read more...
-
15/01/2020
Strata buildings are subject to the Strata Schemes Management Act 2015 (“SSM Act 2015”) and the Strata Schemes Development Act (“Development Act”).
Read more...
-
17/12/2019
The Civil and Administrative Tribunal (NCAT) is a Tribunal which deals with different types of applications, referred to it by various legislation. Cases which are brought before the Tribunal are subject to the provisions of the Civil and Administrative Tribunal Act 2013 (NCAT Act) and the Civil and Administrative Tribunal Rules 2014 (NCAT Rules). As with most claims that are heard, there are time limits in which you can bring a claim. There are many statutes which specify limitation periods.
Read more...
-
18/11/2019
The general rule relating to disputes is that each party should be heard in relation to a dispute before any Orders are made. However where there is an urgent need for an Order against a person or entity in the absence of that person, a Court or Tribunal may have power to make such order.
Read more...
-
04/09/2019
The NSW Civil and Administrative Tribunal (“NCAT”) has jurisdiction and functions as may be confirmed by the NSW Civil and Administrative Tribunal Act (the NCAT Act). The jurisdiction of NCAT is wide and varied. However one needs to find the authority for NCAT to deal with the matter in a particular Act.
Read more...
-
09/04/2019
In 2016 the legislation in relation to Strata Schemes changed. At that time the new strata statute in NSW came into force, which was the Strata Schemes Management Act, 2016.
Read more...
-
14/11/2018
In New South Wales the Strata Schemes Management Act 2015 (SSMA 2015) sets out the framework for resolving strata disputes. It provides that parties to disputes can lodge applications to the NSW Civil and Administrative Tribunal (NCAT) to resolve those disputes.
Read more...
-
07/11/2018
On 30 November 2016 the new strata schemes regime came into operation in New South Wales. This was set out in the Strata Schemes Management Act, 2015.
Read more...
-
16/10/2018
Under the strata schemes legislation in New South Wales, the Owners Corporation can apply to the New South Wales Civil and Administrative Tribunal for Orders that a lot owner provides access so the Owners Corporation can carry out work.
Read more...
-
07/09/2018
It is often the case that developers build multi unit apartment blocks and then the purchasers discover that the building work is defective. The usual remedy that purchasers have to recover the cost of rectification of the defects is to sue the builder who carried out defective work.
Read more...
-
30/08/2018
The Strata Schemes Management Act 1996 was the NSW legislation which applied to Strata Schemes up until November 2015. That legislation under section 65A provided that if a lot owner wanted to add to or alter the common property, the lot owner could only do so if a Special Resolution had first been passed at a General Meeting of the Owners Corporation that authorised that work.
Read more...
-
15/08/2018
Often lot owners wish to change or renovate their units which generally involves some connection and changes to the common property.
Read more...
-
10/08/2018
The Strata Schemes Management Act 2015 (SSM Act 2015) has come into force which includes Part 7 which relates to by-laws. In essence the by-laws set out the rules applicable to the owners of various lots and the Owners Corporation and others in a Strata Scheme.
Read more...
-
09/08/2018
By-laws are fundamental to the operation, the rights and obligations of the Owners Corporation, lot owners, occupiers and others for the good management of the Strata building.
Read more...
-
06/08/2018
Sometimes by-laws are proposed and/or passed due to a difficult situation that arises. They can sometimes be proposed and/or passed without careful consideration of the overall and collateral effect.
Read more...
-
01/08/2018
The Strata Schemes Management Act 2015 (SSM Act 2015) has introduced a requirement that the Owners Corporation prepare and implement a plan of anticipated major expenses to be met from the Capital Works Fund for a period of 10 years.
Read more...
-
06/04/2018
We refer to our article 1 December 2015 relating to the appointment of a Compulsory Strata Manager to exercise the functions of the Owners Corporation such as when an Application is made to the New South Wales Civil and Administrative Tribunal (NCAT) by a lot owner(s) when the lot owner(s) is of the view that the Owners Corporation is not functioning properly.
Read more...
-
03/04/2018
Unfortunately there are thousands of cases involving Lot Owners in disputes with the Owners Corporation as to the obligations of the Owners Corporation. One of the areas of great dispute is the loss to Lot Owners due to the Owners Corporation’s failure to properly maintain the property.
Read more...
-
27/03/2018
The Owners Corporation raises money to undertaken their obligations which include for example, the maintenance of the common property (namely all property other than the individual Lots).
Read more...
-
23/02/2018
The Strata Schemes Management Act 2015 (SSM Act 2015) has now come into effect and there are various cases dealing with the operation of that Act.
Read more...
-
09/02/2018
One would have thought that the rules relating to costs would be simple. Unfortunately they are not. Each commentary that we have reviewed has dealt with costs without consideration of the whole of the provisions relating to costs. Assumptions have been made which do not always apply.
Read more...
-
20/01/2018
When one buys a unit, townhouse or villa in New South Wales, one usually acquires an interest in a Strata Scheme. Strata Scheme lots are covered by Strata Scheme Management legislation such as the Strata Schemes Management Act, 2015 (SSM Act 2015) in New South Wales.
Read more...
-
08/01/2018
From December 2016 there has been a change to the strata laws since the introduction of the Strata Schemes Development Act 2015 (SSD Act). This Act refers to the obligations and processes that apply in relation to strata renewal process, by way of collective sale or redevelopment of the strata.
Read more...
-
19/12/2017
From 30 November 2016 there has been a change in the strata law with the introduction of the Strata Schemes Development Act 2015. This act refers to the obligations and processes that apply in relation to strata renewal process, by way of collective sale or redevelopment of the strata.
Read more...
-
19/09/2017
In a recent case decide by the NSW Civil and Administrative Tribunal (NCAT) in August 2017 NCAT ordered that the Owners Corporation pay the Lot Owner $55,943.24 due to the failure of the Owners Corporation to properly maintain the common property. This was essentially to cover loss of rent suffered by the Lot Owner.
Read more...
-
07/09/2017
Watson & Watson commercial litigation Solicitors, in particular in relation to building defects, building disputes and building issues are experienced and can provide you with cost efficient advice.
Read more...
-
17/08/2017
Every person who has purchased a unit which has been renovated will have an issue as to who is responsible for any losses, damages etc if something goes wrong with the building works.
Read more...
-
15/08/2017
There are many thousands of home units in Sydney which are within the Strata Scheme. Many of the units are relatively new and there are many older style blocks of units. Strata title units have been in existence for more than 50 years.
Read more...
-
12/07/2017
A recent Supreme Court case highlighted a difficulty for Owners Corporations which bring cases against Builders or other parties. The recent case of the Owners Corporation – Strata Plan 64415 v Serman decided that it was possible that a Defendant to a claim bought by an Owners Corporation may obtain in the appropriate circumstances, an order that the Owners Corporation provide security for costs as a precondition of the Owners Corporation proceeding with its case.
Read more...
-
05/07/2017
Generally, the Owner’s Corporation enforces breaches of the by-laws by an individual lot owner in the strata scheme.
Read more...
-
09/06/2017
The model rules on keeping of pets provide as a first option that it is possible for owners or occupiers of lots to keep animals so long as those owners or occupiers give written notice of their intention and they make sure the animal stays within the lot, is supervised on common property and the owner cleans up common property areas if required.
Read more...
-
06/06/2017
In late 2016, the NSW government introduced new laws regarding smoking. The laws allow a strata scheme to adopt new “model rules” covering these topics.
Read more...
-
17/03/2017
Recent Amendments from December 2016 makes it easier for Lot Owners to recover losses due to failure by Owners Corporation.
Read more...
-
21/02/2017
There have been very extensive changes to the Strata Laws as from 30 November 2016.
Read more...
-
28/07/2016
In the decision of Thadani the Owners Corporation Strata Plan 46619 [2015] NSW CATCD 153 Senior Member Meadows ordered that the Respondent the Strata Owners Corporation pay a pecuniary penalty in the amount $5,000. The Owners Corporation had failed to comply with an Order made against it to correct a Building Defect to the common property causing damage to an individual lot.
Read more...
-
21/07/2016
The rules and legislation governing strata law provide that in some cases, a Lot Owner can request that a Compulsory Strata Manager be appointed to a Strata Scheme. In order to have such a manager appointed, one must make an application to the New South Wales Civil and Administrative Tribunal (“NCAT”).
Read more...
-
14/07/2016
Often we at Watson & Watson experienced Strata Lawyers receive enquiries from Owners within a Strata Plan, the Owners Corporation or Strata Managers as to what can be done when the Owners Corporation is not functioning properly.
Read more...
-
07/07/2016
Owners of Lots in Strata Schemes often want to carry out work on their unit or townhouse. This article concerns the approvals required to carry out the work.
Read more...
-
21/12/2015
Strata laws were first introduced in New South Wales in the 1960s and now most units and townhouses or other community accommodation are Strata and are subject to the Strata Schemes Management Act 1996 as is amended from time to time.
Read more...
-
14/12/2015
Liability not limited to cost of repair Lot Owner may have claim for losses.
Read more...
-
01/12/2015
Right to appoint Strata Manager in place of the Executive Committee and Owners Corporation - Section 162 Strata Schemes Management Act 1996.
Read more...
-
10/08/2015
Attached is a letter from the Department of Fair Trading to the Principal, Richard Watson seeking his views on the drafting of the Strata Schemes Development Bill 2015 and Strata Schemes Management Bill 2015 before they are introduced into the NSW Parliament. If you wish to make any Submissions in respect of these Bills, you should send your Submissons to policy@finance.nsw.gov.au by 12 August 2015.”
Read more...
-
01/11/2010
Watson & Watson strata lawyers can help the owners of strata lots and Owners Corporations and executive committees resolve disputes involving defective building works by the original developer or other building contractors including disputes with builders, subcontractors, consultants, architects and engineers where the building work is faulty either by way of faulty work or faulty material or inappropriate design and other related issues.
Read more...
-
03/10/2010
Watson & Watson’s building and construction lawyers have many years of experience resolving building disputes, including those relating to work undertaken within a Strata Scheme.
Read more...
-
01/10/2010
When you buy strata title property you automatically become a member of the Owners Corporation (or the Body Corporate).
Read more...
-
30/09/2010
“Some small light has been shed on the whether legal costs can be included in a suit by an owners corporation for strata dues.” “An owners corporation should include in any action for contributions an amount for costs…and should be ready ay any contested hearing to provide an estimate of its costs…”
Read more...
-
20/09/2010
A Section 109 Certificate is a certificate issued by the Owners Corporation of a Strata Scheme, containing detailed financial information about a specific ‘lot’, and information about the management of the scheme.
Read more...
-
01/09/2010
Watson & Watson have lawyers experienced with strata titles and other multi ownership of property such as company titles with over 20 years experience handling strata matters, ranging from those that arise within residential strata schemes, commercial strata schemes and industrial strata schemes and company title ownership. Watson & Watson act for Owners Corporations, Strata Managers, strata title property owners, and developers of strata properties.
Read more...