Flat Chat Strata Forum Two-unit strata Current Page

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  • #7927

     the unit entitlement in a 2 unit strata is currently equal. One unit is far bigger and more valuable than the other. The owner of the other less valuable unit wants  to change the unit entitlement so that their proportion of the levies will be in line with with either the relative size or value. However this may lead to the  other owner effectively controlling the owners corporation by having a larger unit entitlement. Can a by law be passed giving an owner no right to call for a poll.

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  • #14798
    Jimmy-T
    Keymaster

      Given that you can’t pass a by-law that contradicts or supersedes state law, and state law says that a poll must be taken if called for, the answer would be no.
      If there is a fear that the superior owner might use their voting power to force decisions on the other owner, solution may be to create a by-law that says any decisions on expenditure over a certain limit, or significant changes to common property, have to have a unanimous vote (having first made sure one owner doesn’t have more than 75 percent of the UEs).
      The other owner needs both votes to get this through but you can assume their desire to make the UEs more fair may not be entirely philanthropic.

      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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    Flat Chat Strata Forum Two-unit strata Current Page