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I’m not as nice (or reasonable) as Whale. Having just come out of a three year long legal dispute with an owner re illegal works (which we won), I don’t have any patience left.
No it’s not fair. The OC should not have to bear the responsibility for non-compliant work undertaken without its approval. If approval had been sought, it would only have been granted on the condition that the owners agreed to exclusive use by-laws making them responsible for the works, and that the works were compliant with regulations.
Assuming some or all of the current owners are those who undertook the illegal works, and you have enough owners whom you can persuade to do something about it, you could advise the relevant owners that you will have to consider lodging an application with the Tribunal to reinstate the common property to its original form. In any application you could also seek an alternative order that the relevant owners agree to exclusive use by-laws making them responsible for the illegal works, and that the lot entitlements be adjusted to take account of any change of use/value.
If there are any lots that are not owned by the persons who undertook the works, then one option would be for the OC to reinstate the properties to their original form.
If it were me, I would be tempted to make an application in my own right, if I couldn’t get enough owners to agree. But that’s just me. Whatever you do, I would recommend you seek legal advice.