If you are looking for an investment opportunity, then you don't have to look any further than strata titled real estate. Unfortunately, most real estate investors understand little about renovating strata titled property, which can open the investors up to a litany of fines by the strata corporation. If you invest in strata titled property and are thinking about renovating the units, then you should understand a few critical aspects about renovating the type of real estate. It will enable you to make an informed decision when hiring a renovation contractor.
Renovation Works Grouping -- Just like renovating a house, renovation works on strata titled real estate units are grouped as cosmetic, minor, and major. The difference is that you don't need to apply for approvals when conducting cosmetic renovations as opposed to the other two renovation groups. For example, if you are planning on repainting walls, filling in minor wall cracks, or replacing built-in cabinets, then these are described as remedial works and don't require approval by the owners' corporation. However, if the renovation mainly involves minor or major works, then you need support from the owners' corporation. Therefore, it is essential to first know the level of work before engaging a renovation contractor to work on strata titled units.
Approval by a Special Resolution -- As mentioned earlier, minor and major renovation work in strata titled property requires approval. Of importance, however, is that approval can only be granted if your application garners at least 75% majority. It is usually done at a general meeting by the owners' corporation and guided by strata by-laws. However, you must understand that the owners' corporation might not approve your application for major works renovation if you don't fulfil certain conditions. For instance, if the works will change the outlook of adjacent units that are owned by other persons, then you might not get the 75% majority threshold.
Appealing a Decision -- As mentioned above, approval of minor and major renovation works on strata titled property units lies with the owners' corporation. Such approval is based on fulfilling specific conditions concerning a renovation project. For instance, if you provide the owners' corporation with satisfactory work details from a potential contractor but fail to show how you will take care of debris removal, then that is a legitimate ground for your approval application to be rejected. However, if you believe that the corporation has denied your approval wrongly or based on unreasonable conditions, then you can appeal the decision at the New South Wales Civil and Administrative Tribunal (NCAT). The NCAT is mandated to listen to disputes regarding strata titled real estate under the strata and community schemes.
For more information, contact a local strata titling or construction company.Share