There is a procedure in the Transfer of Land Act 1958 (Vic) for the conversion of stratum title lots to a subdivision of lots and common property with an owners corporation. The procedure is as follows:
- The service company unanimously resolves in general meeting to change the to a subdivision with an owners corporation.
- Surveyors prepare a plan of subdivision into lots and common property with an owners corporation. Changing boundaries may trigger other compliance issues, so usually the plan is drawn to reflect the same boundaries (interior face). Any leases for carpark need to be redrawn.
- Solicitors locate all the certificates of title and obtain the consents of the owners and all parties mainly mortgagees who have a registered interest endorsed on any title. This make take a while to contact everyone and get permission.
- The service company applies to the Registrar of Titles for registration of the plan of subdivision and all certificates of title and consents to the application are deposited with the Registrar. Rules may be considered and registered at this time as well.
- The Registrar of Titles registers the plan of subdivision and the owners corporation is created. Certificates of title issue for the new lots in the names of the owners.
- An application is made to the Australian Securities and Investments Commission for the deregistration of the service company and any funds need to be dealt with.
- The first annual general meeting of the new owners corporation is held within six months of registration of the plan and in accordance with the Owners Corporations Act 2006.
Depending on how many lots are involved it could take 12 to 18 months just to contact all the relevant parties. The main disputes as such will be around the allocation or transfer of car parking arrangements and the setting of lot liability and entitlement.
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