Authorising Luxurious and Non-Luxurious Improvements to Common Property
By Jennifer Paddock
Prescribed Management Rule 33 provides different procedures and consent levels for authorizing luxurious and non-luxurious improvements to the common property in a sectional title scheme.
May only be effected or removed by the trustees if they are authorized by unanimous resolution of the body corporate. (If you’d like to know how to properly pass a unanimous resolution, I’ve written about it here)
An intended non-luxurious improvement to the common property may only be effected or removed by the trustees if they follow the procedure below:
1. They must give written notice to all owners indicating their intention to proceed with or remove the intended improvement after 30 days (from the date of posting). This notice must also set out:
- Costs of effecting or removing the improvement
- How it will be financed and the effect on levies paid by owners
- The need, desirability and effect of the improvement or removal thereof
2. If, within the 30 day period, any owner requests a special general meeting in order to discuss the proposal the trustees must call a SGM.
- If a SGM is requested and called the trustees may not proceed with the improvement or removal thereof unless at the SGM it is authorized by a special resolution. (If you’d like to know how to properly pass a special resolution, I’ve written about that here)
3. If no meeting is requested within the 30 day period the trustees are then free to proceed with the improvement or removal thereof as detailed in their previous notice sent out to all owners.
You might be wondering what types of improvements are considered luxurious and what types are considered non-luxurious in nature.
Stay tuned as I will be dealing with that in my Next Blog Post…
If you have the normal steel balustrade and this needs to be replaced. The trustees want to replace this with more expensive stainless steel and glass.
Is this a luxurious improvement?
What percentage of owners need to vote to accept this?
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