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  • #73786

      I hope you can clarify the  following 2 questions, in relation to an 8 unit property in Victoria
      (1) Under stratum title rules if common land is to be converted to parking bays & leases issued, is it necessary for all owners to agree to the conversion of the common area prior to conversion?
      (2). If converting from stratum to strata title is it a requirement that each owner have an off street parking spot or can a conversion be undertaken without on site parking

      Your comment regarding the above 2 points would be appreciated

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    • #73806

        I assume you mean you a stratum with a service company or a company title.

        Both are formed under the old Companies Act Cth (now Corporations Act Cth). When formed they have what is called Articles of Association or Memorandum, which sets out how decisions are made and who can make them.  So, you would need to check your specific deed to see how many directors are required to make a decision. It’s often just a few directors required to make decisions on behalf of the company for certain activities. If there is a carpark & lease to all units, not as much as a problem if someone will miss out. Their activities are regulated like any other company.

        If not all benefit from a carpark a company may need to consider that those who do benefit pay for the privilege. If the leases are created before conversion, then the lease needs to deal with the assignment/transfer of the parties, to allow for the change in entity. When converting from Stratum to Strata, the existing leases may just transfer (if worded properly).

        You will need to obtain legal advice to draw up the leases, but make sure the lawyer is properly briefed with the intention to convert to strata in the future. You will definitely need legal advice for the conversion from stratum to strata.

        This is a great resource for Stratum & Company Title Understanding Company Title Requirements – JFM Andreyev (jfmlaw.com.au) The legal company is based in NSW, but as Companies fall under Commonwealth legislation, it doesn’t matter where you are based, except perhaps for the neighbourhood disputes chapter, some states (like Vic) have implemented local solutions.

        Hope that helps.


          We have never converted from Company title, I am also in Victoria.  8 out of 24 Lots do not have carparks on title.  However i think the service agreement says something to the effect of – You cannot park on common property except with the permission of the Service Company.  We have enough common area that it has never been an issue before but at the last AGM, under General Business the Chairperson commented that there should not be the right to park unless it was on title.  How does converting to Strata Title help?

          Conversion to strata title had been considered but it didn’t gain much traction.


            You might find that the local council requires off-street parking for everyone before they will allow conversion to strata title. Ask them.

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