Company title - incorporating stair well into units

[see_change]

We have a unit in a company title block . I'm a director of the company along with three other owners .

On each side of the block ( three floors ) there is a secondary stairwell with a floor plan of around 3 * 2 m2 . To the best of my knowledge these are not needed for fire regulation compliance . On each floor only one unit has access to the staircase.

Physical the space could be incorporated into the unit on the relevant floor without too much problem .

The only units that loose the utility of the access to the stairwell are the ones that would gain an extra room.

From a legal view point ( I will be getting legal advise over this , but would value the opinion of forum members ) if the the stairwell is incorporated into the separate units , would there be a requirement to provide compensation to other unit holders for the loss of common space , given that on a practical basis no one else uses the space .

Cliff

 

[Scott No Mates]

It may be simpler (& cheaper) to consider getting an exclusive use by-law in place (and cheaper), leaves the door open to retract the by-law (but very unlikely).

 

[marg4000]

From a legal view point ( I will be getting legal advise over this , but would value the opinion of forum members ) if the the stairwell is incorporated into the separate units , would there be a requirement to provide compensation to other unit holders for the loss of common space , given that on a practical basis no one else uses the space .

Cliff

To make a change to the common property (owned by all the units) you will need the consent of ALL unit owners. As only 3 owners will benefit from the change, the other unit owners will probably require some sort of compensation to get their consent.
Marg

 

[see_change]

This is a company title , not a strata so the rules are different .

Having read the company papers , the only thing that needs universal approval of all the shareholders is if we decide to sell the block.

From what I could see the directors have a lot of leeway to make decisions , but obviously if they do something that is incorrect then other share holders have the right for legal recourse and that's the last thing I want to get involved in.

There is a stair way on the other side of the block where the same thing can be done and of the four units that don't benifit , two are owned by people who own one of the outside units which would benifit .

While technically other units do loose access to " Common property " the only people who use the stairways are the ones who gain the extra space.

Cliff

 

[Macca]

As an offset, if the stairways become part of the units they would then be responsible for maintaining them.

Those who lose space would be saving money by not having to paint and maintain the stairs that they can't use.

my 2c

 

[handyandy]

Hi Seech

Are these internal to the structure or external?

If internal then I would think the conversion could be achieved. If external then they are cantilevered and would be very expensive to convert for the space it would provide.

Assuming they are internal what are you intending to do with the actual stairs, demolish?

Would like to see some pics as sounds like an interesting project.

Cheers

 

[Terry_w]

A company title is basically a situation where the company owns the whole building and unit holders get an entitlement to occupy a portion of the prpoperty. I have only ever seen one company title property which a client was going to purchase - but didn't.

I would think there is no need to compensate unless other shareholder entitlements are being watered down. If everyone is getting the same benefit then it would be fair. You should read the company constitution first up.

 

[see_change]

Hi Seech

Are these internal to the structure or external?


Cheers

Internal , outside edge is level with outside wall of building . Would be a matter of demolishing stairs putting in a floor and then external wall . The building has areas of sheeting on external walls , so cheapest and best looking would be a combination of sheeting and windows.

Could either use as a small bedroom study , or a second bathroom. .

Cliff

 

[see_change]

A company title is basically a situation where the company owns the whole building and unit holders get an entitlement to occupy a portion of the prpoperty. I have only ever seen one company title property which a client was going to purchase - but didn't.

I would think there is no need to compensate unless other shareholder entitlements are being watered down. If everyone is getting the same benefit then it would be fair. You should read the company constitution first up.

There's quite a few in central areas of sydney . There are some advantage and disadvantages .typically banks lend less , but as we bought using our LOC that wasn't an issue .

I've read the constitution ( only director to do so ) and it does give the directors quite wide powers , but the specific senario isn't covered .

We will need to take to a lawyer before we go ahead .

There's only two units where the owne will get no benifit . One won't be an issue , but the other one has only just bought in , so don't know them .

Cliff

 

[jrc]

Normally with company title each shareholder owns a different class o shares and ownership of that class gives the shareholder the entitlement to occupy a specific area. Closing the stairwell is going to impede the rights of other shareholders.

The broad powers of the directors are in relation to operational matters and not to affecting the rights of the shareholders.

You need good advice from an experienced lawyer in dealing with changes of rights of shareholders.