An owners corporation in a strata scheme wants to make a significant change to common property. What is typically required under strata legislation?
Correct Answer
C) A special resolution, following the procedures that the strata legislation requires.
Significant changes to common property usually need a special resolution, with the notice and procedures the state's strata legislation requires. The threshold is set by each state: in NSW, for example, a special resolution is one where no more than 25% of the votes cast are against it, and Victoria requires 75% of the total votes. Council or building approval may also be needed for the works themselves.
Why This Is the Correct Answer
A significant change to common property affects every owner, so strata legislation requires a special resolution rather than a simple majority, passed at a properly called meeting with the required notice and information.
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In a complex strata scheme dispute in NSW where a lot owner claims the owners corporation has incorrectly allocated special levy costs, and the owners corporation argues the allocation follows a validly passed special resolution, what is the most likely jurisdiction for resolving this matter?