How is the cost of body corporate divided?

[simonksl26]

I am thinking of purchasing a property that was sub-divided into 2 units townhouses. The total land size is 800m2 - sub-divided in 450m2 on the first unit and 250m2 on the second. The common area (100m2)is the driveway which both units will use to enter into their car parking. According to the owners corporation schedule,the liability is 50%-50%. I am wondering if this is fair, considering that unit 1 has the major share in term of the land size. Also is it possible to negotiate for a smaller liability for I am purchasing unit 2?

 

[Aaron_C]

No that's how it is. It will take too much time and effort to change it.

 

[Rolf Latham]

I am thinking of purchasing a property that was sub-divided into 2 units townhouses. The total land size is 800m2 - sub-divided in 450m2 on the first unit and 250m2 on the second. The common area (100m2)is the driveway which both units will use to enter into their car parking. According to the owners corporation schedule,the liability is 50%-50%. I am wondering if this is fair, considering that unit 1 has the major share in term of the land size. Also is it possible to negotiate for a smaller liability for I am purchasing unit 2?

In strata, the entitlement and liabillity is set by the strata plan,

Its not negotiable per se, no more than your land rates are.


ta

rolf

 

[simonksl26]

It seems like the plan of subdivision and owners corporation schedule is not submitted yet. In the document, there is no signature on it. Note that this is a off-the-plan.

I am also wondering why I am given only the section 32. Shouldn't I receive the contract of sales as well?

Pardon me for being ignorant. I am the first time buyer.

 

[Aaron_C]

For most intents and purposes, section 32 = contract of sale.

The proposed plan of subdivision is something prepared by the developer and his land surveyor. You don't get a say in it.

 

[DaveM]

To reduce your liability you would need to reduce your unit entitlements, which would mean giving the other townhouse a majority. They could then approve or deny whatever they like.

Why would you want to do this to save $100 a year in insurance pro-rate?

 

[simonksl26]

Hey Aaron, I guess I am being cautious. I don't like the idea of signing a contract without knowing for sure what I am getting into.

Dave, I think it's not just the insurance but also the payment of the maintenance of the common area, isn't it? Yeah, it may seems like a small savings for a big effort.. just I said I am being cautious. The general feeling I get when the body corporate schedule as 50%-50% is unfair as I am taking the smaller lot. That's why I am asking whether this is the norm that people just suck it up and take it in.

 

[vaughan]

The general feeling I get when the body corporate schedule as 50%-50% is unfair as I am taking the smaller lot.

Look at it this way: you have 50% of the common property. Different thing.

As DaveMSydney suggested, having less entitlements means less say. Since there are only 2, you'll have NO say.

 

[lizzie]

As Dave said - I'd want a full 50% of my voting rights.

Also, you said both properties use the driveway - but is smaller property further back and hence uses more driveway than the other? I only ask because I know that in older units the upstairs unit owners pay slightly more in body corporate fees to pay for maintaining the stairwells.

 

[simonksl26]

Hmm.. this is getting interesting. If it's 50%-50%, then if one say Yes, and the other say No, wouldn't that be a deadlock? How to resolve this deadlock?

While it's true that I would have 50% say in the matter, I would also pay 50% of the expenses (whatever that is), isn't it?

Lizzie, the property is one of those heritage house. The main house is being renovated with it's front retained. It only has a single level. The land is sub-divided and the backyard would have a 2 storey townhouse with it's own parking at the side. A double car parking is also constructed which sits between the main house and the 2nd townhouse (joined). So basically in order for both units to get to the car parking, they would have use the same driveway. Do I make sense here?

 

[Aaron_C]

There are provisions in the Owners Corporation Act to deal with such deadlocks. Basically the Owners Corp has to act in good faith regardless of the % ownership involved.