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mypersonalpa
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05/07/2018 - 2:03 pm
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Hello,

Our two lot Strata plan Title is a bit of a dog’s breakfast!

we are an old federation house, we look like a single home from the street, but are divided into two Strata lots, and we self manage.

The front garden is common property, exclusive use to Lot 1. 

A small garden outside lot 2’s front door, plus the rear courtyard of Lot 2 are common property with exclusive use of Lot 2.

Both the above are covered by a by law created many years ago.

the rear garden adjoins Lot 2’s courtyard, and  is common property. Approximately 10years ago the two lot owners agreed to lot 2installing a fence on this common property rear garden so that Lot 2 could keep a dog secure.

So, Two Questions:

– in the interests of both Lot owners, would it be beneficial – to both – to have each of their “exclusive use” areas incorporated into each Lot? (A real estate agent commented the exclusive use areas could deter otherwise enthusiastic purchasers… not that either Lot is on the market currently.

– Secondly, can the owner of Lot 2 ask that “exclusive use” of the rear garden to be formalised? It is enjoyed, but not covered under existing exclusive use by laws, as the fencing occurred after the bylaws regarding other areas were created.

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JimmyT
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06/07/2018 - 9:35 am
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mypersonalpa said
Two Questions:

– in the interests of both Lot owners, would it be beneficial – to both – to have each of their “exclusive use” areas incorporated into each Lot? (A real estate agent commented the exclusive use areas could deter otherwise enthusiastic purchasers… not that either Lot is on the market currently.

Most real estate agents know as much about strata law as I know about making jam. If the exclusive use by-law has been properly formulated – meaning it can only be rescinded with the written permission of that lot owner (present and future) –  then there should be absolutely no impediment to the property’s sale.  However, if you absorb it into your lot, then you could have all sorts of issues from land tax, to stamp duty to council planning permission to deal with.  In other words, not worth the trouble for something that could be easily explained by a competent professional.  But check the by-law to make sure, just in case.  

– Secondly, can the owner of Lot 2 ask that “exclusive use” of the rear garden to be formalised? It is enjoyed, but not covered under existing exclusive use by laws, as the fencing occurred after the bylaws regarding other areas were created.  

If both owners want this, there is no reason not to pass a similar by-law to those currently in place (provided they are up to scratch).

This may be a good time to revise your special resolution by-laws – and that means rescinding the old ones and writing new ones – to make sure they are compliant with the new Act.  You’d certainly want to make sure that lot owners present and future were legally obliged to maintain the property to an acceptable standard.

A chat with a strata lawyer might be worth the cost of a call.

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