Two Unit Horror Story

This is a cautionary tale for anyone considering buying into a two unit scheme.

Some years ago I inherited a neglected and run-down unit from a relative in a two unit strata scheme. I decided to live permanently in the unit. The owners of the other lot were investors. They had plans to redevelop the strata scheme and needed ownership of both units.  They offered to buy my unit.  I refused. They had also offered to buy the unit from my relative. They opposed all my attempts to have long overdue repairs attended to. I was forced to take out four applications with the CTTT. I was successful in each one.

However it took six years and two s.162 compulsory managers to have the repairs completed. In the process the owners corporation was exposed to possible negligence claims caused by broken pathways throughout the common property. 

This was a horror story of the investors from hell. After they had lost their appeal they immediately lodged an action against me and the OC in the Supreme Court.  This effectively put a stop to the CTTT repair orders. 

Their action was pursuant to s.52 of the Strata Schemes Freehold Development Act to terminate the strata scheme.

The Nature of the Case was described to the court as “whether the Supreme Court should terminate the strata scheme pursuant to the Strata Schemes Freehold Development Act on the basis of a dispute between the two unit holders regarding repair and maintenance to the common property.”

Strata lawyers reading this will find it interesting that their legal advice was that two unit schemes are “joint ownership” and as such the Supreme Court could order a forced sale pursuant to section 66G of the Conveyancing Act. It goes without saying that the plaintiff’s lawyer was not a strata specialist. It was simply legal bullying, designed to break me financially and force me to sell my unit to them.

In their Summons and Statement of Claim they asked that the land on which the strata scheme stands be “awarded to them in estate fee simple”.

I bore the whole cost of my defence as well as the defence of the OC who were not represented. This is because it was a two unit scheme and the other EC member and lot owner was the plaintiff.

It took another 12 months before the action reached the pre-trial hearing. They withdrew when the judge made it abundantly clear he was not happy with the action.  He asked the plaintiffs; “what in effect is the cause of action?” He ordered an immediate mediated settlement. I got everything I wanted. They then sold out.

However I was left traumatised by the whole process and it affected my health.

I consider the CTTT takes too long to resolve issues and allows frivolous appeals. This was an unambiguous S62 SSMA matter.

No-one should have to go through that in their own home