To pass a 'nice to have' improvement requires a unanimous resolution of the members to approve. However, the rules do NOT define what reasonable is as this will differ from one scheme to the next. Every case must be considered individually and on its own merits.
Some unique factors that influence the merits of a case include:
Lets look at some examples:
- Where the scheme is located?
- The financial status of the body corporate
- The reasonable expectations of the majority who live in the scheme and so on...
If a scheme is in an extremely wealthy and upmarket area where most of the owners have paid upwards of R8m for their two bedrom units, installing a heating system in the communal swimming pool may be considered to be 'reasonably necessary'.
Similarly, in a scheme where units attain a much lower purchase price, the vast majority of owners do not expect to pay for a heated swimming pool. Voting for the installation of a heating system would be by unanimous resolution because the improvement is deemed to be not reasonably necessary but rather a 'nice to have'.Article courtesy of Marina Constas and Karen Bleijs Demystifying Sectional Title
In Part 5 of this newsletter we will expand on the idea of improvements which are reasonable necessary.