018. How Unit Entitlements Are Dealt Within Subdivisions, And How To Deal With Illegal Encroachments

Podcast: Play in new window | Download

Subscribe: RSS

In this 15 minute episode, I answer a listener question about how unit entitlements are dealt with when common property is subdivided. I also explain how to cure an illegal encroachment onto common property.

Link Mentioned:

• Get the transcript here!

Key Points/Timestamps

• • 00:24 – Introduction and Overview

• • 01:13 – How does subdivision affect the lot owner’s unit entitlement and Strata levies

• • 02:09 – Preparation of a new schedule of unit entitlement is a key step in preparing the Strata subdivision plan

• • 03:43 – Increased unit entitlement results in higher proportionate share of building responsibilities and voting entitlements

• • 05:06 – Special resolution to approve the subdivision and the transfer of the common property must also approve the new schedule of unit entitlement

• • 05:59 – Amanda Farmer discusses Margaret’s scenario around challenges a new owner faced around an extension into common property

• • 07:16 – The significance of the extension into the common property and the size are the key factors to consider

• • 08:35 – Two scenarios around extensions into common property 
    • • When a potential purchaser has a clever lawyer/conveyancer that checks the plan before the purchase
    • When the owner’s corporation wants to take the common property back

• • 09:37 –  Before settlement, potential purchaser can request a by-law which will grant retrospective approval to use the part of the common property acquired

• • 10:47 – A by-law that asks the lot owner to pay a license fee to use the part of the common property acquired 

• • 12:21 – Putting forward a proposal that a subdivision and a sale be agreed can also resolve the issue

• • 13:35 – Owner’s Corporation could seek an order requesting that the common property be reinstated from the adjudicator

• 15:00 – Wrap up and Thank you