If there’s another alternative, I’d really like to know what it is!
Maybe the chink is via insurance? The risk to OC’s and all owners is that building insurance is partly/completely negated by uses contrary to legal frameworks – town-planning/zoning/permissions, plus occupancy limits imposed in fire-regulations, etc.
Would/could an insurer or the insurance council pre-emptively provide guidance on this? Or do we need to wait until some future claim is refused for the message to get out and, finally, sink in?
Ultimately strata owners are on the hook for any and all costs that the OC sinking fund can’t cover. If rebuilding/repairs required andif insurance refused then all owners can be liable for $$$.
I can imagine then an affected OC will have to become very, very familiar with its’ debt collection options. This could be complicated if the building is unhabitable; an owner might choose to walk away from their lot and its’ debt obligations, leaving the OC with no recourse (ultimate/final) to sell the lot to recover the debt as the lot could be worthless. (other than the lot’s share of land value which would be near impossible to sell without a usable lot)