#77526
Sir Humphrey
Strataguru

    I have seen an example where a few owners in a class B ACT development were pushing for a reallocation of unit entitlements due the inequity they perceived as resulting from some unit having been extended (within their unit area) while others had not been extended. Several ECs looked into it diligently at various times and always concluded that even a very substantial alteration was unlikely to make such a difference to the allocation of unit entitlements as to make it worth the expense and bother.

    The bother involved was substantial. Not only did it require a special resolution, but also various steps had to be performed within tight time frames. Eg. One would have to have the OC agree to pay for a comprehensive valuation, which would be needed before the special resolution to reallocate in line with that valuation, without any guarantee of benefit or success, and then the valuation could not be more that some number of months old and still be used for the reallocation. If it took longer, the multi-step process would have to start again.

    Note that the valuation for this purpose is not the same as the usual valuation for insurance purposes.

    There was more to it, but that is the gist – very complicated, multi-step, expensive and potentially divisive without a guarantee of success for an only marginal potential improvement in fairness and equity.