© Copyright 2011 Teys Lawyerswww.teyslawyers.com.au

Altering Lot EntitlementsNSW, Victoria and Queensland - all you need to know

25 August 2011

© Copyright 2011 Teys Lawyerswww.teyslawyers.com.au

NSW- Altering Unit Entitlements

Unit entitlement will only be altered in exceptional circumstances and all the required elements must be satisfied before an application to change the unit entitlements among lots will succeed.

Applications for the alteration of units of entitlement can be made either to the Supreme Court of New South Wales or under s183 of the Strata Schemes Management Act 1996 (SSMA) by order of the Consumer, Trader and Tenancy Tribunal (CTTT).

Court can order that the developer must pay the applicant’s costs for proceedings to alter unit entitlements, as well as the owners corporation for overpayments made over the period.

© Copyright 2011 Teys Lawyerswww.teyslawyers.com.au

Victoria-Altering Lot Entitlements and Lot Liability

Lot entitlements and lot liabilities can be changed by unanimous resolution under section 33 of the Subdivisions Act 1988.

All owners must agree to the change in lot entitlements and/or liabilities. If a single owner does not agree, the applicant will have to seek orders from the Victorian Civil and Administrative Tribunal (VCAT).

VCAT may make an order in respect of altering lot entitlements even though there is no unanimous resolution of the owners corporation authorising the action.

Action may be taken against the original surveyor on the basis that the surveyor failed to apply the relevant provisions in good faith to ensure that the lot allocation was “just and equitable” for all lot owners.

© Copyright 2011 Teys Lawyerswww.teyslawyers.com.au

Queensland- Altering Lot Entitlements

Following the implementation of amendments to the Body Corporate and Community Management Act 1997, a new framework has been implemented to provide for the setting and alteration of lot entitlements.

Three possible ways to alter Lot Entitlements: • By way of a general meeting• By agreement of two or more owners• An order from a special adjudicator or QCAT.

Any lot owner that was subject to a contribution schedule lot entitlement adjustment order that occurred before the enactment of the amendments may seek to revert their contribution schedule lot entitlements to the prior position.