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Pre-planned retrospective approval
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Sea Bee
Sydney, NSW
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15/08/2012
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05/09/2018 - 5:13 pm
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Hi all,

My current experience is of a SM who (in response to criticism from a Unit owner for delays in gaining approval for renovations of kitchen and bathroom), supposedly gained Owners Corporation approval for the renovations by entering into a ‘Deed Of Agreement’ (between the Unit owner and the Owners Corporation) which included the undertaking that: The owners will vote in favour of a resolution to be put at a subsequent general meeting of the Owners Corporation to retrospectively approve the renovation request.‘  The ‘Deed’ has provision for a person to sign ‘…on behalf of the Owners Corporation.’   Copy sighted was not signed by either party . Signed original was requested from SM, but no response to date. Work commenced on the project 10 days before the EGM which was to provide ‘retrospective’ approval.

My concerns are:

– Can approval be given to commence a project based on a ‘Deed of Agreement’ supposedly entered into prior to the  pre planned meeting at which owners are expected to give retrospective approval for the renovations.   

– what happens if owners in fact reject the ‘retrospective’ renovation motion?   The simple agenda motion in fact makes no mention that a ‘retrospective approval’ is being sought.  No mention is also made of any by law requirements.

No response from SM to confirm validity of their (supposed) approval process.  Any advice would be appreciated.   

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Paul2000
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06/04/2012
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10/10/2018 - 11:01 am
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Hi Sea Bee, you may have resolved this issue as I note that it has been some time since you posted and no one has replied.

Briefly…

These people are acting like cowboys. I cannot see that this somewhat strange procedure in any way complies with the SSMA. Under Section 110 an ordinary resolution is required for Minor Renovations. Any work that involves the common property requires a Special Resolution or a special by-law. This must be done prior to the work commencing. You can always apply to NCAT for a stop work order. If the issues are serious and may compromise the common property you might want to talk to a Strata Lawyer. 

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