IMPROVEMENTS

The prescribed management rules categorise improvements in a complex to the common property into “luxurious” and “non-luxurious”. However the rules provide no guidance as to what would constitute a luxurious or non-luxurious improvement.

The nature of the improvement must be analysed to determine whether the improvement will be luxurious or non-luxurious.

An improvement that is necessary to ensure that the structural integrity of the complex is maintained would probably not be considered as a luxurious improvement. For example adding an apron (a layer of concrete around the building) to strengthen the foundations of a complex if the ground is shifting.

The erection of a carport to a complex where each complex has a double garage would probably be considered as a luxurious improvement, however this would be different if the sections did not include a double garage, and the complex is situated in a hail storm climate.

The addition of a swimming pool, squash courts etc to any complex except a complex situated in the most upper-class areas would be considered as a luxurious improvement.

The installation of a basic security system would probably be considered as a non-luxurious, but a more sophisticated, automated system may be considered as a luxurious improvement.

As is evident from the examples above, there are many factors which determine the nature of an improvement.

Procedures
Luxurious improvements

A unanimous resolution is required to affect an improvement of a luxurious nature to the common property.

It is possible to obtain this in two manners:

1. To convene a special general meeting (or use the Annual General Meeting). 30 days notice must be given for this meeting and the notice must include the details of the unanimous resolution to be passed. 80% of all the owners must be present or represented at the meeting. All the owners who are present or represented at the meeting must either vote in favour or abstain from voting at this meeting.

2. To obtain the written consent of all the owners of the complex to affect the improvements.

Non-luxurious improvements

The trustees must give written notice to all the owners in the complex of the intended improvements. This notice must also include the costs, the manner of financing and the need and desirability of the improvements.

The trustees must then wait for 30 days before commencing any of the intended improvements. If no owner objects in writing, to the trustees, then the trustees may commence with the improvements.

If an owner objects in writing to the intended improvements within the 30 days, then the trustees must call for a special general where a special resolution will be passed. Therefore the trustees must give 30 days notice of the meeting and include the details of the special resolution. The special resolution at the meeting will be to accept, amend or veto the intended improvements. As the prescribed rules specifically request a special general meeting, it is not possible to obtain this special resolution on paper without convening a special general meeting. i.e. a special general meeting must be held.