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Forum: Is it easy to split our strata scheme?

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Back in the bad old days of strata, developers would stack unit entitlements on to average-sized apartments, and steer them away from commercial units, like shops, and penthouses.

Unit entitlements are the figures on which your levies are based, and by “redistributing” them, potential purchasers of larger units wouldn’t have been deterred by higher levies.

These days, the poor division of shared financial burdens for the upkeep of the block is more likely to be careless rather than cynical, or at least the result of cutting corners rather than cutting dodgy deals with mates.

But some you would have to wonder about.  One Flatchatter is annoyed that a combined complex of townhouses and apartments has led to clear inequities between the owners in the different blocks.

The most obvious example is that the townhouses have their own individual water meters so they pay for the water they use.

But the apartment block section has one meter for the whole block and the payment for water usage comes out of the levies – meaning the townhouse residents are paying twice. The savings the developer mad by not having different water meters for each unit are obvious.

Just as obvious is how unfair it is for people who don’t use the water to have to pay a share of its costs.

Any efforts to split the water costs have met with resistance from the unit owners who form the majority on the owners corporation; you can’t get turkeys to vote for Christmas.

Our Flatchatter wanted to know if it was possible to split the strata into two entities, specifically by passing a special resolution at a general meeting. 

Err, no, that ain’t going to fly. Dissolving a strata scheme and creating two new ones is a much more complicated, time-consuming and expensive proposition.

So what are their options that would mean the cost of fixing the problem wouldn’t be greater than the savings it might bring.  That’s HERE.

Elsewhere on the forum

  • What’s the best way to pay for new buildings in an old building when some are in worse condition than others?  That’s HERE.
  • Strata committee expected to vote on an issue but haven’t been told the details.  That’s HERE.  
  • Neighbours refuse permission for balcony – after one owner added one themselves and the others carved up common property.  That’s HERE
  • Can Airbnb guests be required to agree to have their illegally parked cars clamped as a condition of their tenancy?  That’s HERE.
  • Our AGM in July will be only eight months from the last one.  Is this even legal?  That’s HERE.

As ever, to ask questions, answer other peoples or keep up to speed with the latest discussions you should register, log in and subscribe to your favourite topics.  It’s all free and it can be a lot of fun.

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