Strata By-Laws & Renovation Rules in NSW: What the By-Law Actually Does

Most strata guides walk you through the whole approval process. This one goes narrow on the part owners misunderstand most: the renovation by-law itself. What it actually says, why it quietly transfers waterproofing liability to you, and how to get it right before you lift a tile. For the full cosmetic, minor and major approval walk-through, see our complete NSW strata approval guide.

What is a strata renovation by-law?

By-laws are the rulebook of your strata scheme. They cover everything from pets and parking to renovations. A renovation by-law is a specific rule, registered against the scheme, that gives one lot owner permission to carry out work affecting common property, sets the conditions for how it is done, and records who looks after the result. Where the work alters or relies on common property, that rule takes the form of a common property rights by-law.

The NSW Strata Schemes Management Act 2015 sorts renovations into three tiers: cosmetic work (section 109), minor renovations (section 110), and changes to common property (section 108). The by-law is what sits on top of that last tier. It is not a council permit and it is not your builder's sign-off. It is a permanent change to the rules of your building, and it has your apartment's name on it.

Which renovations actually need a by-law?

Cosmetic work needs no approval and no by-law. Minor renovations need permission but usually no by-law. Major renovations, which include anything that touches waterproofing, structure, or common property, need a special resolution, and where they alter or rely on common property you register a by-law. Most bathroom renovations land in this last group.

Source: NSW Government, Strata renovation rules. A bathroom is treated as major work specifically because it requires waterproofing, and the waterproofing membrane is common property.

What a renovation by-law actually says

A well-drafted renovation by-law is short, but every clause does a job. Read past the legal wording and it covers four things:

• 1. The scope of the work and which part of the common property it affects, usually the floor, the walls, and the waterproofing of a wet area.
• 2. The standard the work must meet, including waterproofing to AS 3740 by a licensed waterproofer and an acoustic rating for any new flooring.
• 3. An indemnity that protects the owners corporation and the other owners if your work later causes damage.
• 4. The maintenance clause, which records who is responsible for the work from now on. This is the clause that matters most, and the one owners skim over.

Under the Strata Schemes Management Act, the special resolution that approves major work has to state who carries the ongoing maintenance of the affected common property, the owners corporation or the lot owner. For a renovated bathroom, the answer is almost always you.

Why the by-law transfers waterproofing liability to you, forever

Here is the part that surprises owners. In an original bathroom, the waterproofing membrane is common property, so a failure is the owners corporation's problem to fix. The moment you renovate and replace that membrane, the by-law records that the new work, and its upkeep, sits with you. The liability does not end when the job finishes. It runs with the lot.

What a renovation by-law costs

The by-law itself is a small line in a renovation budget, but it catches owners off guard because it is separate from the build. There are two costs: drafting and registration.

Registration fee confirmed against the NSW Land Registry Services fee schedule (2025 to 2026). LRS fees are reviewed at the start of each financial year. Some schemes also pass on the strata manager's admin and meeting costs.

How to get the by-law right before you start

The owners who run into trouble are the ones who start the build, then try to sort the by-law later. The order matters. Here is the sequence that keeps you protected.

• 1. Read your scheme's existing by-laws first. Some buildings already have a standard renovation by-law you can adopt, which saves the drafting cost.
• 2. Scope the work properly, so the by-law describes the real job. A vague by-law is a problem at resale.
• 3. Have the by-law drafted early and put it to a general meeting for a special resolution, where no more than 25 percent of votes cast can be against it.
• 4. Register the change with NSW Land Registry Services within six months of the meeting. If it is not registered in time, it has no effect.
• 5. Keep your waterproofing and acoustic certificates with the by-law. They prove the work met the conditions if a question ever comes up.

The full timeline, the works application, and the costs for each approval tier are covered in the sibling guide below. The takeaway here is simpler: the by-law is permission and protection, and it only does its job if it is registered before the work, not bolted on after.

Frequently asked questions