This article is about considering changing from Strata Title to another Title, whether this is viable and the challenges this may create.
Table of Contents:
- QUESTION: How does the new WA Community Title Legislation impact existing strata schemes? Most of the information coming out seems to be aimed at land developers.
- QUESTION: I live in a complex of six units with the only common area is the driveway. Why can’t we become a Green Title? If we can, how do we go about doing this?
Question: How does the new WA Community Title Legislation impact existing strata schemes? Most of the information coming out seems to be aimed at land developers.
Is the new WA Community Title Legislation applicable to existing strata schemes? Most of the information coming out seems to be aimed at land developers
Will existing multi use strata scheme buildings, with constant in-fighting over management/common areas/cost allocations, etc. be able to adopt the community title format to try and offset some tension?
If so, what consequences might be anticipated in doing so, and would this entail the winding up of the strata scheme to facilitate a community title scheme?
Otherwise is there a better way, under the existing strata legislation, to tackle these issues?
Answer: The Community Title Legislation will have no impact on any existing strata scheme as it is for new developments.
The Community Title Legislation will have no impact on any existing strata scheme as it is for new developments.
Old strata schemes wanting to “swap over” to CTS would first need to Terminate their existing strata scheme.
This poses a whole raft of unique problems as far as the existing encumbrances on each Title in the scheme.
I would imagine that dealing with everyone’s Mortgagee or any Caveats or Leases that may have been registered will increase the degree of difficulty immensely.
Unfortunately, while the new CTS may offer what appears to be a greener pasture, there will always remain the problem of different opinions and egos, no matter which Act you are governed under.
Shane White Strata Title Consult E: shane.white@stratatitleconsult.com.au
This post appears in the August 2022 edition of The WA Strata Magazine.
Question: I live in a complex of six units with the only common area is the driveway. Why can’t we become a Green Title? If we can, how do we go about doing this?
I live in a complex of six units with the only common area is the driveway. Why can’t we become a Green Title? If we can, how do we go about doing this?
I live in the front unit and have to pay for the cost of the water and electricity used for the reticulation and it’s classed as strata and council property.
Answer: It is not possible for one lot proprietor within a strata scheme to change their lot to Green Title.
Please note: this response was provided prior to the proclamation of the new strata title amendments.
For information on land titling options, we would recommend that you contact the customer service team at Landgate.
However, it is not possible for one lot proprietor within a strata scheme to change their lot to Green Title.
When you purchase a lot in a strata scheme, you are also purchasing an undivided share of the common property within that strata scheme in accordance with your unit entitlement. Therefore, you have an interest in the common property as well as the lot that you have purchased, and you also have a range of obligations as a member of the strata company particularly in relation to the management and maintenance of the common property.
If there is an area of common property that you don’t have access to and you, therefore, believe that you should not be required to contribute towards the maintenance of it, you can propose that the strata company (of which you and the other owners within the scheme are members of) adopts a by-law under Section 42B of the Strata Titles Act 1985 (WA) (the Act):
42B. By‑laws may provide for different basis for levying contributions
- By‑laws made by a strata company under section 42 may provide for a method of assessing contributions to be levied on proprietors under section 36 otherwise than in proportion to the unit entitlement of their respective lots.
- Such a by‑law may relate to contributions to all of the expenses of the strata company or to one or more particular kinds of expenses.
This section of the Act allows for the strata company to create a by-law that alters the method of assessing contributions, which is otherwise done in accordance with the unit entitlements. For example, this could allow for you to be excluded from contributing to the water and electricity expenses involved with maintaining an area of common area lawn and/ or garden that you don’t have access to and/ or are not benefitting from.
It is, however, important to remember that you do own an undivided share of the common property and you will be required to contribute to its maintenance if the strata company does not agree to a by-law that excludes you from such contributions. We would, therefore, suggest that you start by discussing this with the other owners in the scheme to see if you would have their support in proposing a by-law of this nature.
Strata-titled property is very different to Green Title and as an owner in a strata scheme, it is imperative that you understand what you have purchased, how strata schemes operate and what your obligations are. SCA WA runs education courses for strata lot owners and also offers an advice line to members, which you can join as from only $66 per annum.
Strata Community Association WA P: 08 9381 7084 E: admin.wa@stratacommunity.org.au
This post appears in Strata News #214.
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Disclaimer: The above information is provided solely for general information purposes and should not be taken as constituting legal advice or advice that is specific to your particular circumstances. You may consider seeking independent legal advice to see if the information provided relates to your circumstances.
Strata Community Association WA (SCA WA) is the peak industry body representing people who own and work with strata property in Western Australia by providing education and advocacy. Our members consist of strata lot owners, council of owners’ members, professional Strata Managers and associated service providers. Strata is a complex area of the property industry and it can be difficult to navigate without having access to professional assistance. To support our members, we offer a member-only Advice Line that provides general advice, information and guidance. Join SCA WA today from only $60* per annum to gain access to the Advice Line and other member benefits. Contact us to find out more!
Please note this advice was provided prior to the proclamation of the new strata title amendments and will be updated in due course.
Read next:- WA: Q&A Changing from Strata Title to Green Title – Is this possible?
- WA: Q&A Common Property Maintenance – Who is responsible for the damage?
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