#48152
Jimmy-T
Keymaster

    It feels like a sledgehammer to crack a walnut and any benefits that anyone might accrue in the fairer sharing of unit entitlements would be massively outweighed by the legal costs in the plan that you propose.

    I believe there are enough provisions in the Act for the transfer of common and lot property to and from the owners corp, plus the reallocation of unit entitlements, that this could be done quickly and inexpensively without having to redraw the strata plan.

    For instance, the owners corp could take ownership of the storage rooms and offer them to rent back to the lot owners under binding exclusive use by-laws, at rents based on the size of the rooms, tied to annual CPI increases.

    Or you could just agree on a reallocation of the Unit Entitlements of the current storage rooms (to be rubber-stamped at NCAT) then find a way of bringing the undocumented storage room into the system by transferring ownership to the lot owner then adjusting their UEs accordingly.

    Either way, there must be a more elegant, simpler and much less expensive solution available than re-registering the entire strata plan.

    And even if you don’t have unanimity (because someone will lose), the prospect of paying extravagant amounts to fix a relatively minor problem – after which they will still lose out – should get the recalcitrants on board.

    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.