NSW Do you need an EGM/AGM for minor renovations?

Discussion in 'Property Management' started by Cbarchangela, 15th Jan, 2019.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Cbarchangela

    Cbarchangela Active Member

    Joined:
    19th Aug, 2018
    Posts:
    34
    Location:
    Sydney
    My strata insists that carpet/timber replacement and kitchen renovations are minor renovations that need to be approved within an EGM meeting and are charging me $300ish for the meeting costs.

    The owners committee have passed on their approval via email to Strata and said no EGM is required, but Strata wont listen to them and told me that they needed for the committee to hold the EGM otherwise no work approval can be issued. Is this correct?

    I've been waiting and left in limbo. i've heard from the owners committee that they have had issues with the current strata. Their contract is still going on for a few years with this building unfortunately.

    Whilst i know that it's better to clarify with them straight away (as they might know better), but they've been quite unhelpful.
     
  2. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    If its internal to your own unit, doesn't affect any services or drainage issues to units below you, then i don't see how strata has a say in it
     
    Tom Rivera and Michael Mitchell like this.
  3. Cbarchangela

    Cbarchangela Active Member

    Joined:
    19th Aug, 2018
    Posts:
    34
    Location:
    Sydney
    None of this. My request to them is very clear and concise: change from carpet to timber (we live on the ground floor) and renovate the entire kitchen (cabinets, sink and splashbacks).

    My situation goes like this: Strata wants EGM (more bucks for them) -> owners committee says no you're deceiving her (me) we know better this is internal work that doesn't affect structural building. Strata says ok no EGM = no approval.

    I am stuck in between their opinions?
     
  4. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    Probably more @Scott No Mates area of expertise than mine, but should need strata approval for that i dont think
     
  5. Cbarchangela

    Cbarchangela Active Member

    Joined:
    19th Aug, 2018
    Posts:
    34
    Location:
    Sydney
    Thanks!

    We've liaised with Strata since mid november. I sent them a few emails but just to get started on this took them almost four weeks or more. Last December somewhere around the 15th Dec, they phoned and told me that I should have provided clearer details on my renovation like what types of timber, what needs to be done around the kitchen (ok fine, i didnt know right), and because of this they had to redo their email etc and re-start. Took them bl*0dy four weeks just to get on top of my request? Were they just buying more time?

    Then came the Christmas break for two weeks. A couple of days ago i finally had a follow up from one of them saying they've passed on the request to the committee and are awaiting for a date to set up the EGM. Last night the committee told me (who's just an upstairs neighbour btw), that all of the committee have replied to this strata lady saying all approved for me and they said no EGM required. I emailed strata again today, her reply is just by law you must have an EGM approval.
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,229
    Location:
    Sydney or NSW or Australia
    Usually the executive committee can sign off for internal works.
     
  7. Cbarchangela

    Cbarchangela Active Member

    Joined:
    19th Aug, 2018
    Posts:
    34
    Location:
    Sydney
    what should i do in this instance then and how do i push strata? they are very tricky to deal with and always uses by-law excuses which i have to google up big time!!

    I feel like Strata is playing games with me because they think they have the control over owners.

    I also have heard various stories in regards to their service, contractors, etc.
     
    Tom Rivera likes this.
  8. Zepth

    Zepth Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    177
    Location:
    Aus
    Unless your strata has passed a by-law giving the executive committee authority to approve minor renovations then an EGM is required with only a standard resolution to pass

    Major renovations require a special resolution and cannot be passed on to the committee for approval even with a by-law

    Since you are changing kitchen and flooring this cannot be classified as cosmetic only.

    Renovations
     
    Ted Varrick likes this.
  9. Michael Mitchell

    Michael Mitchell Property Manager Business Member

    Joined:
    17th Sep, 2018
    Posts:
    1,386
    Location:
    Brisbane (Nundah)
    Just do it, what are they going to do about it? :)

    Non-structural, not affecting another lot/common property, no BA or DA required, what an absolute joke some of these strata companies are with their "advice"...

    Tell ya, if you want to make money there are 3 businesses:
    • day care centre
    • commercial car park
    • strata management business
     
  10. Zepth

    Zepth Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    177
    Location:
    Aus
    In this instance they are actually quoting the legislation. I would be more worried of a strata manager that told you NOT to follow the legislation.

    If you choose not to follow the legislation and do the renovations anyway, that's your choice, but in this case I wouldn't be bad mouthing the strata management that appear to be acting in the interests of the owner's corp.

    Just sayin...
     
  11. marmot

    marmot Well-Known Member

    Joined:
    23rd Jan, 2018
    Posts:
    1,215
    Location:
    N.S.W , W.A
    Flooring can be a issue for strata as it can impact on people living in the apartment below .
    Although in this case its a ground floor apartment.
     
    Michael Mitchell likes this.
  12. Ted Varrick

    Ted Varrick Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    1,941
    Location:
    No Mans Land
    As I understand it @Zepth is close to the money.

    In NSW, you can remove your carpet (funnily enough, as a cosmetic reno) but, the installation of hard surface flooring and kitchen are a minor renovation under the Act, and require OC approval.

    See, (which I assume you would have already looked at...) STRATA SCHEMES MANAGEMENT ACT 2015 - SECT 110 Minor renovations by owners

    Assuming you have a by-law in place the strata committee can approve the hard surface flooring (and kitchen reno in certain circumstances, but probably not if you are going to redo a bunch of plumbing and jackhammer a heap of tiles from a common property wall for your new la-di-dah splashbacks, you might need to indemnify the OC from damage and future upkeep of those walls), so an EGM might be required.

    Note that depending on the by-law you may or may not be responsible for before and after tapping tests with the directly adjacent units (above and below) to make sure that any noise transference is within acceptable limits, and if it's not you will be in a world of pain. The cost will be $1k-2k and should be performed by a member of the Association of Australian Acoustic Consultants or similar.

    Note that the role of your strata manager is to act on decisions of the Strata Committee and the Owner's Corp, so it's a good thing that they are proving you with some advice to assist you, as opposed to referring you back to the Secretary or a Committee member.
     
    Michael Mitchell likes this.

Buy Property Interstate WITHOUT Dropping $15k On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia