NSW. With the the new laws, came the three tiered types of renovations: Cosmetic, Minor and Major. Our building decided to pass their own versions of the new renovations bylaws. With the Major renovations the OC have included a $10,000 bond. This seemed steep to me. What regulations protect the owner and their bond? If any? When we did our last renovation it was a $2,000.00 bond. Does any one know about bonds? Should they be minuted?
This topic was modified 2 weeks, 3 days ago by Jimmy-T.
Section 139 (1) says this: A by-law must not be harsh, unconscionable or oppressive.
Given that all strata schemes must have insurance, isn’t expecting anyone hoping to undertake renovations to have that sort of money lying around (as well as for the costs of the renovations) all of those things above.
A $2000 bond is arguably reasonable because it would cover the initial costs of making a claim for damages. But $10,000? I would be knocking on NCAT’s door to get this overturned.
This reply was modified 2 weeks, 3 days ago by Jimmy-T.
The bond should be passed as a by-law. A by-law requires a Special Resolution at a General Meeting, and also requires Registration BEFORE it can be enforceable.
If the OC has not yet voted to amend the by-law regarding the Bond then I would encourage you to try and dissuade as many people as possible from signing it.
An upfront fee of $10K sounds very excessive to me.
I agree with JT, if a by-law regarding the bond has already been correctly Passed and has been correctly Registered and you believe that it is excessive then you have the option to take this matter to NCAT based on “reasonableness”.
Incidentally, I live in Qld where monetary liabilities e.g. bonds are unlawful. The signing of a Letter of Indemnity to cover damage to common property suffices in Qld. If anything goes ‘pear shaped’ regarding damage to the common property or mess during a renovation then the body corp can pursue this through the Tribunal, or can undertake the work itself and then recover the cost from the relevant person.
Thank you for your input, I thought as much. It really shouldn’t be that hard or expensive to live in Strata. Qld seems to be ahead of NSW with a better code of conduct and no bonds . I may have to move !