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Andrew – I’m not a Strata Lawyer, but can offer some advice.
Firstly, a strict application of the NSW Strata Schemes Management Act (SCMA) would be that residents cannot use a visitors’ car parking space at any time; they’re strictly for use by visitors, and the Executive Committee Member’s advice was therefore was legally correct (albeit poorly expressed).
That said, even a “black-and-white” person like me wouldn’t be concerned about the use of one visitors’ carspace in the manner that you and your fellow owners have informally arranged.
Clearly though, your Executive Committee takes a different view, so perhaps attempt to legitimise the use of that area by you and the other owners placing a Motion on the Agenda for the next General Meeting requesting the Owners Corporation to grant a “licence to use common property” under the provisions of Cl 65B of the SCMA.
That said (and before someone else does) there are other impediments to the use of designated visitors’ carspaces for other purposes (including those related to the terms of the original Development Consent for your Plan), but in my opinion all those could be overcome by way of the terms and conditions that may be imposed under Cl 65B.