1 April 2021
Strata Managers as Fiduciaries
A paper by Gary Bugden OAM. April 2021. Preliminaries 1. Coverage In this paper I will consider: what we mean by a “fiduciary”; how to determine if a fiduciary relationship…
A question from a NSW strata owner: The top floor owners wish to establish a garden on their balcony which is above the rooms of the apartment below. A new waterproof membrane would be installed. The concern from the owner below is the risk of damage from water penetration in the future. Should this be approved with liability clauses on the garden’s owners?
Ordinarily the waterproof membrane on a balcony is common property and the repair and maintenance of the waterproof membrane is the responsibility of the owners corporation.
If an owner proposes to install new waterproof membrane on their balcony for a new garden, this would be an alteration to common property governed by section 108 of the Strata Schemes Management Act 2015 (SSMA).
Pursuant to s108 of the SSMA, a special resolution of the owners corporation would be required to authorise the owner to alter common property by installing a new waterproof membrane. The owners corporation would also need to make a new by-law to ensure that the owner is responsible for the ongoing maintenance of the waterproof membrane (otherwise the owners corporation will remain responsible for the ongoing maintenance).
We would recommend that the new by-law contain comprehensive conditions regarding the carrying out the work, the future maintenance obligations and appropriate indemnities. These conditions would include:
May 2023.
Emma Smythies – Partner, Sydney – emma@bagl.com.au
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