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I am a Lot Owner in a unit block of 28 lots in NSW. At the AGM 2017, a new By -law was  proposed by the Executive Committee with no written explanation. The By-law was subsequently resolved by special resolution of OC AGM 2017 and registered 2017. I have discovered that the by-law was written and proposed by an EC member who holds several roles and is also the owner lot AA. The Lump sum credit payments of approx.$5000 per year commenced to lot AA immediately following the registration of by-law, these payments are equivalent to the levies that the OC should have been collecting.  (I have removed Strata and lot numbers to ensure Privacy in following By-law )

The By-law is worded:

“That the Owners Corporation of Strata Plan xxxx reimburse and give the owner/s of Lot AA compensation credit each year, an amount equal to the amount of levies raised each year, due to the owner/s being unable to use part of their registered lot, due to the pump room and all its inclusions and part of corridor common use by Owners Corporation of Strata Plan xxxx

I intend to take to NCAT and request that the by -law be invalidated and the OC be ordered to recover the compensation (non-contributed levies) funds ie : $$ paid to lot AA.

I would be interested if anyone has ever encountered such a by-law enforcing the OC to pay compensation funds ( using ADMIN and CAPITAL WORKS FUNDS ) to pay an individual lot owner?

P.S Additional information : A review of strata plan has raised reasonable doubt that the pump room is situated on lot AA but it is actually located on common property, pump room size 2x2Metres squared and the pump room been in place since the building was built 50 yrs ago.

Any advice much appreciated.

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