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  • #8358
    Paul2000
    Flatchatter

      We have a small block and some 20 years ago one owner undertook a major renovation which increased the total building area of his lot by around 20% The renovation extended into the existing courtyard and did not affect any common property except the area inside the new walls. The owners corporation at the time approved the renovation and it was also approved by the local Council.

      However, we have now discovered that the additions were never noted on a new strata plan and the same owner has been paying levies based on the original unit entitlement even though the actual building footprint is now much greater. I realise that changing unit entitlement is somewhat difficult but the EC are wondering where we stand in relation to insurance and particularly the legal obligation to actually carry out repairs to the additions. We have suggested to the owner that he engage a surveyor to present an amended strata plan to the EC for approval. 

      Any suggestions would be greatly appreciated.

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    • #16387
      Whale
      Flatchatter

        It’s quite possible that the “new walls” you refer to would be Common Property IF they form the boundary of your Owner’s renovation to his Lot, thus making the Owners Corporation (O/C) responsible for all maintenance and repairs. Similarly, your O/C’s Insurance may not provide cover for any parts of the Building that are not shown on the Strata Plan.

        You’re on the right track by suggesting that the Lot Owner engages and pays for the services of a Surveyor to re-draw the Strata Plan, but that should be followed by the Owner engaging a Valuer to determine the current value of the original Lot, and the value of the extended Lot.

        Information from the Surveyor and the Valuer can be used by your O/C to undertake a Strata Sub-Division, the Form for which can be lodged together with a revised Schedule of Unit Entitlements, where only the renovated Lot is revised.

        This is a much simpler and significantly cheaper version of the process that a Developer might undertake to strata a new building, and it’s all possible in NSW under the Provisions of the Strata Schemes (Freehold Development) Act 1973, which is administered by the NSW Land & Property Information (LPI) – the old Lands Dept.

        Have a browse on http://www.lpi.nsw.gov.au and then contact them by phone. They’re very helpful, and may suggest an even easier way to achieve what I’m recommending; your O/C must do it though!

        #16392
        Paul2000
        Flatchatter
        Chat-starter

          Thank you for your reply. It seems therefore from what you are saying that at present if say a tree fell onto the “additions” that the insurer might not cover the loss but the Owners Corporation could be liable. In turn therr then might be a right of action by the OC against the owner.  Messy messy!

          #16405
          Whale
          Flatchatter

            Yes Paul, that’s exactly what I’m saying, but please don’t be deterred from getting the record straight, as the process with L&PI is not as difficult or expensive as your O/C might think.  

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