Strata plan converted to Torrens title where one owner does not agree

Discussion in 'Development' started by jacelise, 15th Mar, 2020.

Join Australia's most dynamic and respected property investment community
  1. jacelise

    jacelise New Member

    Joined:
    15th Mar, 2020
    Posts:
    4
    Location:
    Adelaide
    I am in a block of 2 units. both with separate driveways to street. Only common land is a strip of grass between footpath and front porches. The rest of the land is unit entitlement with clear boundaries. I have contacted a surveyor and these 2 units can be converted from 1 Strata Plan to 2 Torrens Titles with a subdivision process. Trouble is my neighbour will not agree. Do I have any power to force the change or do I just have to accept the neighbour's decision?
     
  2. jaydee

    jaydee Well-Known Member

    Joined:
    25th Mar, 2016
    Posts:
    921
    Location:
    Perth
    I went thru a similar change (in WA) for a duplex strata to separate survey titles. Both owners had to agree. You should try to convince your neighbour of the benefits of the change (increased title value, no common property insurance etc). There will be a cost associated with the change that the neighbour may not want to contribute to, however, if you meet the costs it should be an easy sell job to the neighbour. (nb: I was not in agreement until neighbouring owner agreed to pick up all costs.)

    On the downside, the neighbour may want to retain control as they will have some say over what can be built on your block whilst it not subdivided.
     
  3. jacelise

    jacelise New Member

    Joined:
    15th Mar, 2020
    Posts:
    4
    Location:
    Adelaide
    Thanks for your reply Jaydee from WA. Sounds like it can be difficult. The benefits seem huge to me, but I realise we all see things differently. Seems like it may be a dead duck - I just wondered if I could force the issue somehow.
     
  4. lixas4

    lixas4 Well-Known Member

    Joined:
    24th Jan, 2016
    Posts:
    789
    Location:
    Melbourne
    Hi, jaydee has some good advice, promote the cost benefits of no body corporate, and the increased value of a clear title.

    Its hard to tell from your post, but are you saying the front strip of land and the fence out front of your block is in common property? If so, start making noises about getting a new fence, and that as it is in common property all the members of the body corp are to contribute to the new fence. If there is no fence, start saying you want one and they have to pay. You might find your neighbour is happy to disolve the body corp when they realise staying in it will cost them money.

    When talking to your surveyor about this, confirm that there wont be any services upgrades required as part of the process.

    In vic, to do a section 32 subdivision to disolve a body corp, a unanimous resolution of all the members is required, or an application to vcat. The laws are state based, not sure of the laws in SA. Would be worth having a quick discussion with your surveyor as they would/should know.
     
    Scott No Mates likes this.
  5. jacelise

    jacelise New Member

    Joined:
    15th Mar, 2020
    Posts:
    4
    Location:
    Adelaide
    Thanks Lixas4, really appreciate any comments. Does seem funny that we have to resort to slightly dishonest arm bending to try and get some action from a reluctant adjoining owner. But I have to accept that is the law - and for SA same as Vic in that both parties have to agree. If I am lucky she will move on, if not I am stuck with it. The fence idea is sound, but there are already decent fences at front. And there is a service involved, the sewer pipe which is on my side is shared by both. I recently upgraded it and paid the whole cost - she seems to think her involvement with sewer ends when the effluent leaves her property and it is somehow my responsibility for the pipes on my side - someone suggested that she should be paying a usage fee, but I suspect that is unenforceable. The sewer is not registered on the Strata plan but that also seems to be a loose area. Seems there is nothing I can do to change things.
     
  6. bunkai

    bunkai Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    859
    Location:
    Sydney
    It doesn't have to be on the strata plan to be common property in most states.... If the underlying issue is that the strata is not being run properly, it should be fixed.
     
    lixas4 likes this.
  7. jacelise

    jacelise New Member

    Joined:
    15th Mar, 2020
    Posts:
    4
    Location:
    Adelaide
    Thanks Bunkai for your interest. So the whole strata plan is divided up into a small strip of common property which is across the front parallel with footpath/street frontage. The majority of the plot is divided into 2 unit entitlements. The sewer pipe comes out onto the common property for the final 2 meters. The remainder of the meterage of pipe is in within my unit entitlement. But I really do not understand what is meant by unit entitlement and what is meant by common property and what the rules are as to who can do what on the different land sections. It is not clear to me. If anyone has the answers I would be most grateful to have it explained.
     
  8. Archaon

    Archaon Well-Known Member

    Joined:
    20th Mar, 2017
    Posts:
    1,896
    Location:
    Newcastle
    Any advantage to buying the neighbouring property at strata value and subdivide to increase equity?
     
  9. lixas4

    lixas4 Well-Known Member

    Joined:
    24th Jan, 2016
    Posts:
    789
    Location:
    Melbourne
    Bunkai is saying in some situations shared services are viewed as common property, and therefore maintenace cost should be shared between all the members of the body corp.
     
  10. bunkai

    bunkai Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    859
    Location:
    Sydney
    In terms of a gross simplification - you own the paint, fixtures and fittings. The walls, ceiling etc are common property. Some electrical and plumbing that serves only your unit might be your responsibility.

    From lawhandbook.sa.gov.au:

    ---
    What is common property?

    I have paid for my blocked sewer pipe to be cleared, but the secretary refuses to reimburse me, claiming it was not common property. Who should pay?

    The issue of what is and what is not common property can cause many disputes. Generally speaking, the boundary of a unit is the internal surface of its walls, floors and ceilings, and a unit can also include an area known as a ‘unit subsidiary’ marked on the strata plan as being for the exclusive use of a particular unit, for example, a carport or garden area.

    Common property comprises any land or space that is not within a unit, and such things as pipes, drains or electrical wiring that are not for the exclusive use of a unit. The strata corporation has a responsibility to maintain the common property. However, if the corporation carries out work that wholly or substantially benefits a particular unit, or group of units, then responsibility for payment may be placed on those unit owners. In past court cases, ‘benefit’ has been interpreted as meaning something more than ongoing maintenance. If the pipe serves only your unit it could be argued that the clearing of the pipes should be at your expense. The cause of the blockage may also be relevant to who pays the bill. If it was clearly your fault, for example, your child’s toy blocked the pipe, then you may well have a responsibility to pay for clearing and possibly even repairs. On the other hand, if the blockage was caused by roots from a tree on common property then the corporation is liable.
    ---
     
    Perthguy likes this.