Step 1 Draft the By-Law
Using DIY By-Laws you can easily add your lot details, select what areas you are renovating and attach the relevant plans to create a by-law and motion instantly! Your by-law will describe any impact there may be to common property (for example, waterproofing in bathroom, moving plumbing or external walls).
Step 4 The General Meeting
Your motion will be discussed at the AGM and details will be reviewed. Then a vote will be taken by all owners attending (and via proxy) the AGM on your motion. This will be specially resolved and you will get approval or could be asked to provide changes or more detail. A majority vote will get this approved.
It is common to see tenants wanting to undertake various works on common property particularly in a commercial setting. However, the owners corporation may be reluctant to authorise a tenant to undertake works to the common property for reasons including the ongoing repair and maintenance obligations.
Yet, to get around this situation, a tenant may consider the following options:
Provided that the landlord agrees to obtain a by-law authorising the works under section 108 of the Strata Schemes Management Act 2015, the owners corporation will generally expect conditions, such as, the lot owner being responsible for the ongoing repair and maintenance of the works, be addressed in the by-law. These obligations would usually be passed over to the tenant as part of the tenancy agreement between the landlord and the tenant.
The by-law option is arguably the most straightforward approach to get approval from the owners corporation if a tenant wishes to undertake works on common property.
What if the landlord does not agree to a by-law?
In the event that the landlord does not agree to be held responsible for a tenant’s work for any reasons, the tenant may consider entering into a licence agreement with the owners corporation. This will ultimately allow the tenant to achieve the same outcome without involving the owner. Although, it remains a matter for the owners corporation to whether they are willing to enter into such agreement with the tenant.
Content of a licence agreement
The common provisions stipulated in these licence agreement include:
It is very important to carry out a thorough review of the licence agreement to ensure that the negotiation between the parties are mirrored in the contractual document. In particular, a tenant should carefully consider the scope set out in the indemnity clause to mitigate exposure of risks.
We have considerable experience in assisting tenants and landlords on these issues and are available to provide more specific and detailed advice to the circumstance.
Please reach out for any reason at all. Our friendly staff are ready to help.
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ABOUT US: DIY By-Laws is a division of leading strata law firm, Bannermans Lawyers. We are an innovative law firm, constantly striving to develop and create solutions for our clients and our industry and this platform is part of our vision to deliver digital legal services to the Australian property and strata industries.