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The OC should be seeking legal advice about this issue. This issue becomes even more complicated if the previous owner misrepresented information about the addition prior to the completion of the sale etc. Was the new cellar created out of common property? This is not clear. Was the common property slab interfered with?
In my opinion an OC should not be ultimately responsible for an illegal addition. The OC may initially be made responsible by the Council but then the OC can shift the responsibility onto the current owner who has inherited the defects and mistakes of the previous owner.
If the OC was to be made responsible for every illegal addition then there would be many more owners doing it.