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  • #8676

    We are a unit holder in a small strata plan of 4 lots. Our unit is on the ground floor and the Owners Corp put through a by-law granting the two ground floor units exclusive use of the space below the unit.  Both ground floor owners have made improvements within that space.  We find the space most useful and would like to add it to our title. 

     

    Our questions are – 

    • is it possible,
    • is it worth doing seeing we have exclusive use (our concern being how will a prospective future buyer “value” this space if it is not on title),
    • what is the process,
    • how does it affect unit entitlements,
    • does such a change need agreement by other owners and if so does it need unanimous support, a simple majority or 75% majority (we ask this as we have recently come up against the 75% of unit entitlement rule where we have one owner with 27% who continually vetoes proposals even though three out of four support it) 

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  • #17756
    scotlandx
    Strataguru

      1. Yes it is possible.

      2. If you have perpetual exclusive use, I am not sure why you would do it, the process is expensive and complicated.  I don’t think it affects value greatly, taking into account this is an area under your lot.

      You don’t say what you are using the lower space for, but I presume you are using it within the terms of Council approval?  That can affect the value, if someone is using a space in a way that has not been approved, and then tries to sell it and someone checks.

      3. The process involves you purchasing the freehold to that part of the common property, which entails preparation of a plan of subdivision and reallocation of common property.  This is expensive and you would bear those costs.

      4. Yes it does affect unit entitlements, you would expect there to be a reallocation of unit entitlements, as you would have entitlement to a greater area.  You would also have to bear the costs of that.

      5. You would require the approval of the other owners by special resolution, i.e. 75%.

      #17769
      kiwipaul
      Flatchatter

        The area you have been given exclusive use of is YOUR now, I cannot see any advantage in adding it to the title. It cannot be transferred back to the common area unless you agree. When you sell the property the exclusive area remains with the lot and the new owners inherit this area.

        Transferring it onto your title is all bad news especially from a cost perspective and would not increase the value of your lot 1 iota. Your lot might be asked to pay more into the sinking and admin funds as well as pay an increased insurance premium (this could have been a condition of being given exclusive use of the area and if it wasn’t you should quit while you are ahead).

        Anything you construct in this area needs Strata approval whether it’s exclusive use or lot property if visible from outside the lot.

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