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

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:

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

2 Responses

  1. Many thanks for the answers to the questions Amanda – very helpful. Yes the scenario was (is) a true one . The extension involved was probably around 15 m2. Listening to your information, I’m amazed that the strata agent handled it with a simple letter to other owners, seeking any objections. Thanks again!

  2. No worries Margaret, and thanks for the question. I’m sure many other listeners benefited too.

Leave a Reply

Your email address will not be published. Required fields are marked *