Renovating a strata property in New South Wales (NSW) can be an exciting way to personalise your living space, but it comes with its own set of challenges and pitfalls.
Understanding the different types of renovations and the approval processes involved is crucial to avoid costly mistakes and ensure compliance with Strata laws.
The three main categories of renovations are:
- cosmetic renovations
- minor renovations
- major renovations
Cosmetic Renovations
Cosmetic renovations are superficial changes that do not affect the structure or external appearance of your property. Examples include painting interior walls, installing new blinds or curtains and replacing handrails. The good news is that cosmetic renovations do not require approval from the Owners’ Corporation or strata committee. However, it’s important to be mindful of potential damage to common property and ensure that your renovations comply with any specific by-laws your strata scheme may have.
Minor Renovations
Minor renovations involve more substantial changes that still do not alter the structure of the property. Examples include kitchen renovations, installing hardwood floors and changing recessed light fittings. These renovations require approval from the Owners’ Corporation or Strata Committee. You’ll need to submit plans, including dates and times of the work, and other information required by the Owners’ Corporation. Approval is typically granted by a simple majority vote at a strata meeting. Keep in mind that works classified as minor renovations cannot involve structural changes (such as amendments to a wall), waterproofing, changes to plumbing, or changes to the external appearance of the property.
Major Renovations
Major renovations are the most extensive type of work and involve changes to the structure or framework of the property. Examples include structural changes, waterproofing, changes to electrical circuits or plumbing, and installing fire-safety systems. These renovations require a Special Resolution vote from the Owners’ Corporation and written notice to the Strata Committee at least 14 days in advance. The approval process for major renovations is more stringent to ensure that the work is safe and meets building standards.
Importantly, even if only one element of a project falls within the Major Renovations classification of works, all project works are mandated to be Major Renovations.
Pitfalls to Avoid
Lack of Approval: Proceeding with renovations without the necessary approvals can lead to significant, expensive and time consuming legal issues and likely the requirement to revert the property to its original state.
Damage to Common Property: Be cautious when undertaking renovations to avoid causing damage to common property, as you may be held financially responsible for any cost in repairing the damage caused.
Non-Compliance with By-Laws: Ensure that your renovation plans comply with the specific by-laws of your strata scheme to avoid disputes and additional costs. In many instances, a special by-law will be required to be proposed and passed at a General Meeting before works can commence.
Inadequate Planning: Poor planning can lead to delays, increased costs, and potential conflicts with neighbours and the Strata Committee.
Consequences of Not Getting Approval
Gaining relevant approval prior to renovating is very important. Failure to do so can cause a major impact to owners.
Legal Penalties: Undertaking renovations without the necessary approvals can result in legal action. The owners corporation can apply to the NSW Civil and Administrative Tribunal (NCAT) for orders to stop the work or revert the property to its original condition.
Financial Loss: Non-compliance with approval requirements can lead to costly fines and the potential need to undo the renovations. This can result in significant financial loss and added stress.
Insurance Issues: Unapproved renovations can invalidate your home insurance policy, leaving you unprotected in the event of damage or loss. Insurance companies may refuse to pay claims if the work was done without proper approval.
Impact on Property Value: Unauthorized renovations can negatively impact the value of your property. Prospective buyers may be deterred by non-compliant renovations, and it can significantly complicate the sale process.
Strata Committee Disputes: Undertaking unauthorised renovations can lead to disputes with the strata committee, other residents and the owners corporation. This can create a hostile living environment and affect community harmony.
Conclusion
Renovating a strata property in NSW can be a rewarding experience, but it requires careful planning and adherence to the relevant approval processes. By understanding the different types of renovations and the associated requirements, you can avoid common pitfalls and ensure a smooth renovation process.
Steadman Williamson Hart can help you check your strata scheme’s by-laws and seek the necessary approvals before starting any work. We are expert at deciphering strata plans, understanding strata legislation and preparing the necessary paperwork for mitigating the risk of renovating. Contact us by email so that we can help you get the most out of your property.