#58080
Jord@n
Flatchatter
Chat-starter

    Hopefully, further clarification.
    Development consisted of two adjoining buildings, with adjoining underground carparks and shared garbage and fire alarm systems.  Our building initially sold off the plan (not very successfully).

    Our building, strata, 48 lots, 43 residential, 5 carparks;  the other building, deposited plan, 30 something residences, built to rent for profit.   This division of DP v SP did not become apparent until months after settlement.

    During sales process, in early days of construction, the question was asked “can we buy in the 1st block?”   It was 2 months ahead in the construction schedule.   Answer, “there are none left, they’re all sold.”   Inference, better get in quick.   No mention of single owner DP.

    A hypothetical: developer funds 1st building with committed single sale.   That equity is used to obtain funding for 2nd building (us).   Developer has declared intentions to further develop adjoining property.   Sell our building’s lots to raise equity for next phase!   Woops, these are not hotcakes.   Seven months after registration, only 12 of 43 residences sold.   Financing becomes challenging.   Maybe even extremely challenging.
    Let’s protect personal investment.   Developer, one company = 3 shareholders.   Three companies, each with a single shareholder, also the same three joint shareholders of the developer, buy six of the, as yet, unsold residential lots.   Legally untouchable by any action against the developer !   End of hypothetical.
    Actions and decisions by the imposed Owners Corporation/Committee have resulted in shifting of debt from developer to owner occupiers, including raising a loan to pay for mandatory insurances (Sect 26 (1) (b)&(d)).
    Submission for mediation is imminent.   Legal advice is pending.   Owner occupiers are finally becoming gradually more actively involved.
    What a wonderful world.