What is defined as common property in a Sydney strata scheme?
Common property in a strata complex is basically everything outside of the lot boundaries, bearing in mind that lot owners essentially only own the airspace in their units.
According to NSW Fair Trading common property is, ‘…usually the four main walls, the ceiling, roof and the floor’ of a unit. They go onto expand that common property also includes items such as the, ‘…pipes in the common property or servicing more than one lot, electrical wiring in the common property or servicing more than one lot, originally installed parquet floors, ceramic tiles, floor boards, vermiculite ceilings, plaster ceilings and cornices’.
For our purposes the Strata Community Association (NSW) definition is more appropriate in that it describes common property as the, ‘Areas of a strata building or community which do not form part of a lot and that every occupier or owner shares. Common property may include gardens, fences, driveways and visitor parking’, as well as other areas like entrance foyers, stairways and lifts.
These areas need periodic maintenance, repairs and renovations to keep them functional and appealing for residents and owners.
Who is responsible for the maintenance and repair of common property in NSW?
The upkeep, maintenance and repair of common property is the responsibility of the owners corporation.
In fact, under the Strata Schemes Management Act, it is a legal obligation for the owners corporation to keep the building in a state of good and serviceable repair. The upkeep is funded from the levies each individual lot owner contributes.
According to NSW Fair Trading, ‘…all strata schemes must establish an administrative fund and a capital works fund to administer the finances of the strata scheme. The administrative fund is used to manage the day-to-day expenses of running the scheme’, while the ‘…capital works fund (previously called a ‘sinking fund’) is to ensure there is enough money to pay for capital expenses when the job needs doing’. This can include projects like ‘painting or repainting the common property, acquiring, renewing or replacing personal property for the scheme, renewing or replacing fixtures and fittings that are part of the common property, and to replace or repair the common property’.
Owners are also required to have a 10 year capital works fund plan to ensure they are able to fund repairs and the maintenance requirements of the property. If there are not enough funds for these projects then the strata plan would have to raise a special levy to pay for the works.
Renovating common property in a NSW strata scheme: understanding the rules and regulations
All upgrades or renovations to common property require the full consent of owners in the strata scheme.
Permission to carry out works is typically obtained in a general meeting by passing a special resolution. Strata laws require the owners’ consent for any additions, alterations, or new structures on the common property. Special resolutions are not typically required for repairs, replacements. emergency works to common areas.
If you want to learn more about the regulations governing strata schemes in NSW there are a number of resources you can make use of, including:
You should also be able to draw on the expertise of your strata manager for advice and guidance.