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  • #44435
    Avatarstratus
    Flatchatter

    I always thought a strata plan was owned by each lot owner through the owners corporation. However we have recently received a letter from a company announcing they are acting for the “lawful owner of Strata Plan XXXX” and names an insurance underwriting firm as being the owner of our strata plan!

    Is there some sort of separation of ownership between individual lots and the associated strata plan? Or does the owners corporation somehow temporarily cede ownership of the strata plan to an insurance company each time insurance is taken out?

     

    #44497
    Sir HumphreySir Humphrey
    Strataguru

    The ‘legal person’ who owns the strata plan is ‘The Owners Corporation’. That ‘person’ can take out an insurance policy, just like any other person. Ownership is not ceded by taking out an insurance policy.

    #44519
    Avatarstratus
    Flatchatter
    Chat-starter

    That certainly makes sense. The question now is why a company is claiming legal ownership of the strata plan. I know that ownership can be split between legal and beneficial but don’t know if this can be (or is allowed to be) extended to strata plans.

     

    #44531
    Jimmy-TJimmy-T
    Keymaster

    A quick phone call would be in order.  It could be a badly worded letter intended to refer to a lot within the strata plan, where the writer doesn’t know the difference.

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