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Topic
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A Strata Plan in NSW in which an exclusive use by-law was recently passed at an AGM which gave exclusive use to storage spaces in designated storage rooms for all Owners except for 2 Owners who are in dispute over one storage space.
The by-law has not been registered with the Lands Dept.
The by-law also gives both parties 12 months to mediate and resolve the matter.
In the event that a resolution is not reached, the storage cages will remain common property and the two lots will not be provided with rights of exclusive use to occupy a storage space.
The EC has been asked by one of the Owners to assist them in resolving the dispute and notes that in the current situation neither lot has an approved storage space and therefor neither lot has any right to maintain or store their belongings in any of the storage areas.
They ask the EC to assist in having the other party remove their goods from the disputed space.
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And your question is?
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
If the bylaw has not been registered it’s not valid and so no one has exclusive use of any of the storage areas and so their is nothing for the EC to do.
Strongly advise you DO NOT register the bylaw as exclusive use is for every and if in a few years you decide to do something else with the area just 1 owner could stop you by refusing to give up his exclusive use right.
Much better IMHO to pass an ordinary motion granting owners the right to use each storage area, then if situation changes only a simple majority is required to overturn the right. Conditions can be included in the motion ensuring the area is kept tidy and what is kept their (no petrol storage for example).
I agree with KP on this, especially as it sounds as if one owner is going to be left out of the equation, leaving the EC wide open to a ‘fraud on the minority’ case.
A much, much better plan is to install lockable storage cages and rent them to owners on a first-come, first served basis. The money raised will pay for the caging and thereafter becomes a income for the strata plan.
The Owners Corp retains control over the area, just in case it is ever required for something else.
Right now, you can ask anyone to clear their personal goods out of common property. It’s not a matter of taking sides, just of establishing control over the commonly owned space (probably on the basis that there is no written permission to store goods there).
When it’s empty, lock it up and start again. But this whole exclusive use strategy is so fraught with potential problems I would delay registering the by-law until the two years are up, just so you can start again with something that is much fairer and more equitable.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
So is the problem that there are more owners than spaces? Or more owners who want spaces than are available? Or something else?
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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