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What is the benefit of converting to an Owners Corporation to an individual owner? We voted against a proposal to change from Company Title (many years ago), but there did not seem to be a good reason to do so at the time.
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A good side of strata title is that prospective purchasers should be more likely to obtain finance than they would if you stayed company title. That could put your value up.
A bad side of strata title is that if your building’s “many years ago” mean that it’s ancient, selling it to a developer could be easier to get through a company meeting than with strata.
There are other issues, such as noise control and having pets, that vary between states.
Apart from finance, as cited above, the biggest difference is that your building would be covered by strata law, with all its flaws and inconsistencies but a regulated set of by-laws, rather than company law and the decisions of your board. With that in mind, intractable disputes in strata can be resolved at little cost through mediation and the state tribunal while in company title, it’s off to the Supreme Court (if Vic is the same as NSW in this regard).
Yes, I know tribunal disputes can get very expensive if both sides resort to lawyers, but they don’t have to.
Company title articles may offer your owners the option to ban pets, airbnb, control rentals and even (unless the laws have changed) ban children. But those “freedoms” may actually be the reason you want to move to strata.
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Here’s a horror story about what happens when Company Title boards aren’t governed by strata law and a retiree is forced out of her home by chronic damp.
If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.