Strata titled developments are not all the created the same. Some have only six lots spread over two levels with a single Owners Corporation and substantial garden area whilst others are fifty-two levels of residential apartments and three levels retail spaces. Some developments have elevators and others have a stairwell in lieu. The result of no building being the exact same as its neighbour is that there is no fixed rule for how an Owners Corporation should be set up. Further how a building should be maintained and its operational expenses should be apportioned often comes down to the end use of the building as opposed to what the Developer of the originally intended (which can be same and often is).

The affairs of an Owners Corporation may be restructured in a number of ways, including without limitation:

1. Re-allocating costs / services received in one Owners Corporation to another Owners Corporation with the agreement of both Owners Corporations.

2. Altering the boundaries of the common property or potentially even selling part of the common property to an existing Owner.

3. Creating additional limited Owners Corporations with membership being limited to those Owners having an interest or exclusive benefit from a particular area or service of the building.

4. Altering the registered Schedule of Lot Entitlements and Liabilities so that the schedule is fair, just and equitable. The Schedule of Lot Entitlements dictates the value apportioned to each Owner when voting on matters affecting the Owners Corporation whilst the Schedule of Lot Liabilities sets each Owner’s proportional liability for the expenses / fees struck of the Owners Corporation.

At Pelham Strata Lawyers you will be advised whether a restructure is required, whether it is feasible and the steps to take to achieve a successful restructure.