Thanks Whale for the response. I have sought an opinion from L&PMA and it’s much as you say. Seems to me it’s essentially a stupid scheme that should not be allowed to be registered – it throws out all the well defined, well understood issues with a strata scheme and replaces them with an ill-defined unclear arrangement.
Seems to me you will need bylaws to spell out and clarify many things eg what color to paint the perimeter walls as these are not common property and so on.
Interesting the strata act says the owners corporation have to insure the whole builing and a letter from the insurer say they will treat it as a “normal” arrangement. Normally the walls, roof etc would be common property, but not under this arrangement. In short it’s a mess!