What if you are ready to sell your apartment but find out you have unapproved renovations and have to put the sale on hold?

Take this recent example. A great looking apartment was recently advertised in Sydney. It’s modern and stylish with feature polished floorboards. But there is a problem – wooden floorboards are not permitted in the building.

It turns out one of the members of the Strata Committee spotted this property online. The Committee ended up sending notice to the owner advising them the floorboards would have to be removed before the property can be sold. All of a sudden the plans to sell have been torpedoed!

Renovating an apartment.

A popular strategy for property investors is to purchase a property, turn it into a gem by doing some renovations, and then sell it at a profit. Another reason to renovate is obviously to make the newly acquired property feel a bit more like home.

But while renovating an apartment is common, many owners forget that they are also buying into an Owners Corporation (OC) and have to play by its rules.

You have to follow the By-Laws.

Every OC has a set of rules (By-Laws) designed to ensure a peaceful and enjoyable environment for everyone. Some buildings have just some general rules to follow while others have a more complex system with a number of special By-Laws in place. You can find out more information about the by-laws and even see model ones here.

Renovations are often noisy and can cause some damage to the common areas. They can also affect the look of the building if owners try to close in balconies, for example. This is why they are closely monitored by the OC, with most renovations needing an approval before they can take place.

If you go ahead and renovate without getting a formal approval from the OC, chances are you are breaching the building’s by-laws. This means that the OC may take action against you to have the property restored back to its original state at your own expense.

How to do it right?

Check the By-Laws

Getting a copy of the current by-laws isn’t hard. If you have recently purchased a property, you should be able to find it in the contract of sale. Alternatively, you can approach your strata manager (their details are located on your levy notice) and request for a copy of the by-laws to be emailed to you.

Submit your Request

If by-laws confirm that you have to get an approval before you can renovate, contact your strata manager and ask them to send you relevant information. This could include an application form, list of required supporting documents, etc.

In some cases, a special by-law may need to be created at your cost and often a bond need to be paid. So be prepared for some additional expenses.

Get an Approval

It is important that you get your approval in writing (email or physical) and keep it in a safe place. If a by-law is being written, it is essential for it to be properly registered. You can find further information about this process here.

Once you have your approval, it’s finally time to renovate!

Renovating without an approval?

Of course, not all unapproved renovations are noticed/reported at the time they are being carried out. But this doesn’t mean that they will never be discovered:

  • Unapproved renovations can be spotted online during the marketing of your property.
  • They can also be spotted during routine building inspections, such as fire safety inspection.
  • Unapproved renovations can also become evident from a strata report prepared for your unit. Minutes to meetings often refer to special renovation by-laws and items that are not permitted (e.g. air-conditioning or hardwood flooring).

We don’t know if the owner in our example had installed the floor boards or bought the unit with them already installed. Either way, they have a big problem now. So keep this in mind.

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Best Regards,
The EYEON Property Inspections Team

At EYEON Property Inspections, we help you buy and sell with more confidence.