The new Strata Schemes Management Act 2015 breaks maintenance and repairs into three categories:The new Strata Schemes Management Act 2015 breaks maintenance and repairs into three categories:

• Cosmetic;
• Minor; and
• Major.

Cosmetic repairs can be undertaken without any approval at all, whilst major repairs must be approved by an extraordinary general meeting passing a special resolution. It is the minor repairs, which are causing some difficulty.

Section 110 states that minor repairs can only be carried out by a resolution of the owner’s corporation in a general meeting. It appears, on the surface that, even if you wish to undertake minor repairs, you will need to call a general meeting.

The act however provides a way around this. At an annual general meeting, an owner’s corporation can determine what minor repairs they wish the strata committee to take charge of. The owner’s corporation can, by special resolution, pass a by-law setting out what minor repairs the owner’s corporation wants the strata committee to approve.

This is a major time saver. The minor repairs include, things people would like to do within their apartment, in particular, the renovations, which a person would normally undertake in their apartment. It is both good for the lot owner and the owner’s corporation to determine the minor repairs they want to keep minor and have handled in an efficient manner.

It is a good clause which gives rise to sensible outcomes if it is handled well.

 

This article was written by Bailey Compton, Principal Solicitor & Director at Leverage Group.

To get in touch with Bailey, please email info@leveragegroup.com.au or call 1300 438 538