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Special By-law Package

Special By-law Package
A Special By-law is a strata by-law which sets out the process for an individual lot owner seeking the approval from the owners corporation to carry out renovation works to their lot and common property.  This type of strata by-law is also known to exist under different names such as “Strata By-law, “Common Property Rights By-law”, Renovation By-law”, “Works By-law” and “Renovation Works By-law”.
Some common examples of renovations works that are approved under a Special By-law include:

Bathroom and laundry renovations including waterproofing;
Tiling works;
Works to balconies;
Works involving structural changes to common property e.g. the removal of an internal load bearing wall, removal and replacement of tiling, reallocation of plumbing, etc;
The installation of solar panels and skylights in a roof;
Works involving altering the external appearance of an owner’s lot e.g. the installation of awnings and pergolas;
Works which add to, alter or affect common property.

Typically, a Special By-law contains the following conditions a lot owner must comply with:
Before commencement of the Works 
Before commencement of the Major Works, the lot owner must:

provide a complete proposal concerning the Works including but not limited to plans, drawings and specifications of the proposed works, the manufacturer’s or supplier’s brochure regarding same, a diagram depicting the location of or proposed installation points of all parts of the works, approval from local council (if required), structural engineer’s report and certification concerning the impact of the works on the structural integrity of the building (e.g. for the removal of a load bearing wall);
obtain written consent to the date for the commencement of the Works from the owners corporation/strata committee; and
cause insurances to be effected and maintained for the duration of the Works e.g. contractors all risks insurance, insurance under the Home Building Act 1989 (NSW) and workers compensation, as required

Notice of the Works 

Normally the lot owner must give notice of the commencement of the works to the owners corporation and each owner in the building.

During Construction

An owners corporation would ordinarily expect a lot owner to use duly licensed employees, contractors or agents to conduct the works and ensure the works are conducted in a proper and workmanlike manner and comply with the current Building Code of Australia and the Australian Standards.  These are some of the many conditions that are required.

After Construction

After the works have been completed the lot owner is required to notify the owners corporation that the works have been completed and notify the owners corporation that all damage, if any, to lot and common property caused by the works and not permitted by the strata by-law has been rectified. There are many other conditions which must be included.

Ongoing obligations

The Special By-law normally passes on the maintenance and repair of the works to the lot owner and also contains conditions regarding exclusive use, indemnity and costs.

How Can We Help?
Unlike some other providers who may claim that their strata by-laws are not legal services, or are unable to provide legal advice on the drafting of a Special By-law, Pobi Lawyers has a proven track record of drafting and advising on Special By-laws for lot owners and owners corporations.  As part of our Special By-law Package, we provide you with the Motion, Special By-law, Explanatory Note to Motion, Consent to By-law form (for common property rights by-law) and short e-mail of advice on the next steps for a competitive fixed fee.
If you need a Special By-law quote or are after some preliminary legal advice on your drafting, we are here to help.

Major Works By-law

What is a Major Works By-law?
A Major Works By-law is a strata by-law which sets out the process for lot owners seeking the approval from the owners corporation to carry out Major Works to their lot and common property.  This type of strata by-law is also known to exist under different names such as “Building Works By-law”, “Works Approval By-law”, “Major Renovations By-law”, “Renovation Works By-law” and “Works Program By-law” just to name a few.
Some common examples of Major Works that are approved under a Major Works By-law include:

Bathroom renovations including waterproofing;
Works involving structural changes to common property e.g. the removal of an internal load bearing wall, removal and replacement of tiling, reallocation of plumbing, etc;
The installation of solar panels and skylights in a roof;
Attic space conversions; and
Works involving altering the external appearance of an owner’s lot e.g. the installation of awnings and pergolas.

Typically, a Major Works By-law contains the following conditions a lot owner must comply with:
Before commencement of the Major Works 
Before commencement of the Major Works, the lot owner must:

provide a complete proposal concerning the Major Works including but not limited to plans, drawings and specifications of the proposed works, the manufacturer’s or supplier’s brochure regarding same, a diagram depicting the location of or proposed installation points of all parts of the works, engineering plans and certifications, approval from local council (if required), structural engineer’s report and certification concerning the impact of the major works on the structural integrity of the building (e.g. for the removal of a load bearing wall);
if requested, provide to the owners corporation a dilapidation report prepared by a structural engineer having reviewed the Major Works;
obtain written consent to the date for the commencement of the Major Works from the owners corporation/strata committee;
cause insurances to be effected and maintained for the duration of the Major Works e.g. contractors all risks insurance, insurance under the Home Building Act 1989 (NSW) and workers compensation, as required; and
if considered necessary by the owners corporation/strata committee, pay a bond to the owners corporation in an amount approved by the owners corporation or the strata committee.

Notice of Major Works 

Normally the lot owner must give notice of the commencement of the Major Works to the owners corporation and each owner in the building.

During Construction

Given the nature of Major Works, an owners corporation would ordinarily expect a lot owner to use duly licensed employees, contractors or agents to conduct the Major Works and ensure the Major Works are conducted in a proper and workmanlike manner and comply with the current Building Code of Australia and the Australian Standards.  These are some of the many conditions that are required.

After Construction

After the Major Works have been completed the lot owner is required to notify the owners corporation that the Major Works have been completed and notify the owners corporation that all damage, if any, to lot and common property caused by the Major Works and not permitted by the strata by-law has been rectified. There are many other conditions which must be included.

Ongoing obligations

The Major Works By-law normally passes on the maintenance and repair of the Major Works to the lot owner and also contains conditions regarding indemnity and costs.

How Can We Help?
Unlike some other providers who may claim that their strata by-laws are not legal services, or are unable to provide legal advice on the drafting of a Major Works By-law, Pobi Lawyers has a proven track record of drafting and advising on Major Works By-laws for owners corporations. If you need a Major Works By-law quote or are after some preliminary legal advice on your drafting, we are here to help.

Is Now A Good Time to Renovate? Do I need a Special By-law?

Is Now A Good Time to Renovate? Do I Need a Special By-law?
With recent media reports that the east coast housing market downturn is showing signs of recovery (at least for now) and the RBA noted at its July 2019 meeting that conditions in the established housing markets of Sydney and Melbourne had improved a little, many owners are wondering if now is a good time to renovate their home, apartment or investment property.
While some owners may now be in a position to raise sufficient funds to purchase a new property or purchase an investment property, owners may be able to use their existing funds or raise funds to renovate their current property. The benefit of renovating is that even some minor improvements or alterations could improve a property’s value and can even reduce future maintenance and repair.
In this article, I will be addressing the legal process an owner of an apartment, villa or townhouse must follow to carry out renovations to their lot and common property.
Generally speaking, whenever a lot owner’s proposed works involve major works which add to, alter or erect new structures on common property, a special resolution and a special by-law is required to be passed at a general meeting of the owners corporation to approve such works.  At the outset, I will mention that a special by-law may go by other names such as strata by-law, renovations by-law, generic by-law, works by-law, common property rights by-law, building works by-law, DIY by-law and major works by-law.  For the sake of convenience, I will stick to the term  “special by-law”.  After the special by-law is passed, it must be registered at NSW Land Registry Services within 6 months of the date it is passed.
Some examples of major works include the removal of a structural load bearing wall inside an apartment, the waterproofing of a bathroom, bathroom renovations, the creation of new external balconies, etc. However, since the Strata Schemes Management Act 2015 took effect on 30 November 2016, some owners corporations have made their own minor works and major works by-laws which set out their own process for approval of such renovations.
Sometimes an owner may wish to carry out small alterations such as the installation of timber floors.  While this may be considered to be a minor renovation, it is not uncommon for some strata scheme’s to have their own custom special by-law governing the process to be followed before such works may be approved.  It is always wise to first check your strata scheme’s registered by-laws to see if there are any by-laws addressing renovations/building works.
Another type of renovation commonly carried out by owners is the laying of carpet and internal painting. These works are considered to be cosmetic works under the  Strata Schemes Management Act 2015 and do not require the owners corporation’s approval.
If you are considering undertaking major works to your apartment and need a special by-law or simply have some questions, feel free to get in contact with us at [email protected] or (02) 8324 7565. We are here to help.
Please note that the information contained in this article is for information purposes only. It is not legal advice and should not be relied upon. You should obtain legal advice before you take any action or otherwise rely upon the contents of this article.
 

Strata Lawyer Business Hours Extended

We are pleased to announce that we have extended our business hours to accommodate our clients needs. We are now available from 8:00am to 7:00pm, Monday to Friday.  We trust that you will take advantage of our longer hours.  We look forward to serving you.  
Kind regards, Michael Pobi, Principal
 
 

News: Pobi Lawyers continues to grow with new Special Counsel appointment

Pobi Lawyers is continuing to grow with the appointment of Special Counsel Iain Fairholm.
Iain joined Pobi Lawyers in 2016 and brings with him significant experience in commercial litigation and dispute resolution, building and construction law, building defects claims, banking and finance, strata law and insolvency law. 
Iain is highly regarded for his technical skills and commercial judgment. […]

Wrigley v Owners Corporation SP53413 [2017] NSWCATAP 100

Wrigley, is the owner of a lot in Strata Plan 53413. The Respondent is the Owners Corporation. The Owners Corporation made an application for an order from a Strata Adjudicator, under section 150 of the Strata Schemes Management Act 1996 (“SSMA1996”) that Mr Wrigley’s dog, Lola, be removed, and kept away, from the strata scheme.
On 24 November […]

Rosenthal v The Owners – SP 20211 [2017] NSWCATCD 80 (29 August 2017)

Tribunal Awards Lot Owner Damages for Breach of Owners Corporation’s Duty to Maintain and Repair Common Property under Section 106 of the Strata Schemes Management Act 2015
In this case the NSW Civil and Administrative Tribunal held that it had jurisdiction to award damages for breach of statutory duty under section 106 of the Strata […]

Shum v Owners Corporation SP30621 [2017] NSWCATCD 68 (30 August 2017)

Tribunal Awards Lot Owner Damages for Breach of Owners Corporation’s Duty to Maintain and Repair Common Property under Section 106 of the Strata Schemes Management Act 2015.
The Applicant, the owner of a lot in a strata scheme, sought substantive orders pursuant to sections 106, 126 and 232 of the Strata Schemes Management Act 2015 […]

What are Common Property Rights By-laws?

What are Common Property Rights By-laws?
A Common Property Rights By-law is one which confers on the owner or owners of a specified lot or lots in the strata scheme:

a right of exclusive use and enjoyment of the whole or any specified part of the common property; or
special privileges in respect of the whole or any […]

The Owners Strata Plan No 30521 v Shum [2018] NSWCATAP 15: NCAT Appeal Panel Reduces Damages Claim for Breach of Section 106 of the Strata Schemes Management Act 2015

On 8 January 2018, the NSW Civil and Administrative Tribunal’s Appeal Panel handed down the long awaited decision in The Owners Strata Plan No 30521 v Shum [2018] NSWCATAP 15. 
The Tribunal Proceedings before the Appeal 
By way of background, in the original Tribunal proceedings against the Owners Corporation, the Applicant, an owner of a lot in a […]

Restraining Strata Lawyers from Representing Clients in NCAT Proceedings

Introduction
In this article I propose to address the not uncommon situation of where a party to legal proceedings in the NSW Civil and Administrative Tribunal objects to another party being legally represented by a particular lawyer or a particular law firm on the grounds of a conflict of interest or the possession of confidential […]

Unreasonable Refusal to Make a By-Law – What Can a Lot Owner Do?

Introduction
With the increasing number of people living in strata schemes, many owners are trying to find ways to add more value to their unit, townhouse or villa by way of renovations and/or obtaining exclusive use rights over valuable areas of common property located within their building. As part of this process, the majority of […]