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How do we “dissolve” a strata title. We live in a three unit strata complex – the result of a very large block subdivision. A “free standing” old home at the front and a duplex at the rear. The home has a large garden and street access at the front and the duplex has individual garden courtyards and direct individual access to a public lane at the rear. Home and duplex are separated by a lap and cap fence. Garbage is only collected from the street side so the duplex accesses garbage services via a 1m walkway across the back of their properties and up the side of the house to the street. There are no “common areas” apart from this garbage access walkway and the duplex common wall. Bylaws have carved out the house so that its owners are responsible for all its property maintenance and gardening. And the duplex owners individually responsible for theirs. It seems the only practical call on strata is insurance. Can this strata be dissolved and title made into something more “fit for purpose”? What would be the steps taken, and who do we approach?
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The set-up you have described is almost begging to be strata-fied so unpicking the knitting on this may not be the best way to go. However, for what it’s worth, here’s a rough outline of the process.
Right, so it’s three lots, not two — and a mix of a freestanding house and a duplex, which adds some wrinkles. and please bear in mind, this isn’t legal advice — just a broad overview of how the process typically works. You’d want a strata-savvy solicitor guiding you through it.
What you’re describing is termination of the strata scheme under the Strata Schemes Development Act 2015, converting three strata lots back into separate Torrens title properties.
The first hurdle is getting all three lot owners to agree. For a scheme this size you effectively need unanimity – it would be impossible to get a 75 percent majority unless one of the lots had less than 25 per cent of the vote. Any mortgagees or other registered interest holders would also need to agree.
A registered surveyor would then prepare a new plan of subdivision showing three separate freehold lots. This goes to council for approval. Even though nothing physical is changing, they need to be satisfied the resulting lots comply with current planning controls (minimum lot sizes, setbacks, access, services, etc). The duplex pair might be better off as a two-lot subdivision of their own, depending on how it’s structured.
Once council issues a subdivision certificate, the new plan is lodged with NSW Land Registry Services, the strata plan is cancelled, and separate titles are issued.
Now, the practical complications in your situation:
The garbage access walkway is the obvious one. Once the strata is dissolved there’s no owners corporation to manage it, so you’d need a formal right of way – an easement registered on the house’s title – giving the duplex owners access to the street for bins. Getting that right is important because it runs with the land, not the current owners.
The duplex common wall will need a party wall easement or covenant so both sides know who’s responsible for what.
You mention bylaws already carve out maintenance responsibilities, which is good, but bylaws disappear with the strata scheme. Anything you want to survive (like maintenance obligations) needs to be captured in easements, covenants, or restrictions on the new titles.
Insurance is worth thinking about too. Right now you presumably have one building insurance policy through the owners corporation. After dissolution, each owner arranges their own – which for the house is simple, but the duplex owners will need to coordinate a shared building policy or arrange a party wall agreement that covers insurance obligations.
Who to approach: start with a solicitor experienced in strata termination, and a registered surveyor. They’ll tell you fairly quickly whether the lots are likely to meet council’s planning requirements, which is usually the make-or-break question.
Costs for a three-lot dissolution, including surveyor, solicitor, council and lodgement fees, could run $20,000 to $40,000 or more, shared between the three owners.
All in all, if there is a problem that’s making you want a divorce from your neighbours, maybe there’s a less expensive and stressful way to approach it.
Has anyone on the forum gone through this process? Please let us know.
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