Michael and Sarah, eager to upgrade their strata unit, decided to make some significant changes. They transformed their bedroom into a kitchen and their old kitchen into a bedroom, among other improvements. They knew they needed approval from the Owners’ Corporation and submitted the necessary by-law and plans. However, the Owners’ Corporation only approved some of the renovations, rejecting the new kitchen layout.
Going Rogue
Despite the partial approval, Michael and Sarah went ahead with their full renovation plans. As time passed, the Owners’ Corporation grew suspicious and obtained an order from NCAT to inspect the unit. To their surprise, Michael and Sarah had completed all the renovations, including the unapproved kitchen and bedroom swap. This involved new tiled floors, updated plumbing and electrical work. The owners were concerned about noise and potential water leaks affecting the units above and below.
The Legal Battle
The Owners’ Corporation held a meeting and decided to hire solicitors to prepare an NCAT application to revert the renovations at Michael and Sarah’s expense. In response, Michael and Sarah filed their own application, arguing that the Owners’ Corporation had unreasonably refused their by-law and that the changes increased the value of all units.
Both parties had to engage expert reports and attend multiple NCAT hearings. The Owners’ Corporation was able to claim a significant portion of its expenses under its Legal Defence insurance policy.
The Verdict
In the end, NCAT ordered Michael and Sarah to revert their unit to its original state. This meant removing the tiles, fixing the plumbing, and rewiring the electrical systems. The costs were substantial:
- $35,000 for the initial alterations
- $19,000 for legal and expert reports
- $48,750 to revert the rooms to their previous condition
The Solution
Had Michael and Sarah engaged Steadman Williamson Hart from the start, they could have navigated the approval process more effectively. Even if they didn’t get the desired outcome initially, they would have been aware of the risks and acted accordingly, potentially saving a significant amount of money and stress as well as tension with their neighbours.