Forums Two-unit strata Current Page

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  • #7927 Reply | Quote

     the unit entitlement in a 2 unit strata is currently equal. One unit is far bigger and more valuable than the other. The owner of the other less valuable unit wants  to change the unit entitlement so that their proportion of the levies will be in line with with either the relative size or value. However this may lead to the  other owner effectively controlling the owners corporation by having a larger unit entitlement. Can a by law be passed giving an owner no right to call for a poll.

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    Jimmy-T
    Keymaster

      Given that you can’t pass a by-law that contradicts or supersedes state law, and state law says that a poll must be taken if called for, the answer would be no.
      If there is a fear that the superior owner might use their voting power to force decisions on the other owner, solution may be to create a by-law that says any decisions on expenditure over a certain limit, or significant changes to common property, have to have a unanimous vote (having first made sure one owner doesn’t have more than 75 percent of the UEs).
      The other owner needs both votes to get this through but you can assume their desire to make the UEs more fair may not be entirely philanthropic.

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    Reply To: Voting for a 2 unit strata
    PLEASE ... If your property is not in NSW, mention its location (state). Don't identify companies or individuals by name. Don't mention or promote your company or services. Keep acronyms and initials to a minimum. Please, don’t use “quote” unless there is a specific point to which you wish to refer, then highlight (define) that specific passage before you click on "quote". Otherwise just use reply. THANKS.

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    Forums Two-unit strata Current Page