Voting to repair major works | Common Property | Flat Chat Forum: Your Questions Answered




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Voting to repair major works
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Ziggy
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16/11/2017 - 10:22 am
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I’m very confused by how the voting system at an OC meeting operates to have major works, such as replacing balustrades, hot water systems, lifts etc in a building. Fair Trading says that to get approval, or not, for such works the vote needs to be 75% AGAINST doing the work. Others say you need 75% of owners to approve the work be done. Could one, or all, of the strata gurus please clarify.

If the OC, however, should be performing their duty of care under section 106 of the SSMA 2015, do the same rules apply. This is very important I would have thought.

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Stevecro
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17/11/2017 - 9:05 am
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Ziggy, I am not clear whether you are referring to an OC carrying out repairs to common property, or an individual owner carrying out alterations/renovations to their lot? 

If you are referring to the former, then a special resolution is not required. An OC only requires a majority vote (over 50%) to 'repair' common property, regardless of how 'major' the repairs may be. Refer to section 106 of the SSMA 2015. This section does not specify the type of resolution needed, which automatically defaults to a majority vote.

If a special resolution is required for a particular matter, the SSMA 2015 will specify it. If a resolution type is not specified, then a majority decision is the default and sufficient.

If an individual owner wishes to carry out alterations which are not deemed as 'cosmetic' or 'minor' under the Act, then using a process of elimination, the works may be deemed as 'major' alterations and fall under section 108 of the SSMA 2015 which requires a special resolution. 

The easiest way of deciding whether proposed alterations to common property are cosmetic, minor or major is to use a process of elimination starting at cosmetic. 

Section 5 of the Act defines what a special resolution is and how it is counted. Hope this helps you out.

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Ziggy
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17/11/2017 - 3:50 pm
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Wow, thanks. That’s definitely not what Fair Trading told me. And I was referring to repairs to common property by the OC.

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