This question is best answered using a practical example
- All of the lots in a strata scheme have a separate car space in the basement which is identified on the strata plan as being part of their respective lot.
- The strata scheme has 4 lots and each lot has a separate car space which is shown on the strata plan as forming part of each lot.
- The owners of lots 1 and 2 wish to swap ownership of their car spaces.
What you need to do:
1. A registered surveyor should prepare a strata plan of subdivision to create 2 new lots (ie lots 5 and 6)
- Lot 5 being the whole of the former lot 1 excluding its car space and including the car space of the former lot 2
- Lot 6 being the whole of the former lot 2 excluding its car space and including the car space of the former lot 1
2. The strata plan of subdivision requires the approval of the following parties:
- The Council or an Accredited Certifier.
- The registered proprietors of lots 1 and 2
- Any party with a registered interest in lots 1 and 2 eg. a mortgagor (your financing bank), lessor or caveator
3. The consent of the Owners’ Corporation is not required. However the Certificate of Title for the common property should be produced at Land and Property Information NSW (LPI) to permit registration of the plan.
4. If either of the lots concerned is owned by the original developer, then a certificate from the Owners Corporation should be furnished with the plan, certifying that either:
- The initial period has expired or
- That the original developer still owns all lots in the scheme.
Note: If the initial period has not expired and at least one lot has been sold then a certified or office copy of an order made under section 182 of the Strata Schemes Management Act, 1996 authorising the registration of the plan should be lodged with the plan.
5. Lodge plan for registration at LPI (applicable lodgement fees will apply).The Certificates of Title for lots 1 and 2 and the Common Property should be produced in LPI to permit registration of the plan
6. Registration of the plan results in the desired car spaces forming part of the relevant lot. However as the plan does not resolve the ownership of the car spaces, reciprocal transfers from each of the lot owners of their former car spaces should be lodged with the plan.
Note: Transfers will require marking by the Office of State Revenue prior to lodgement in LPI
7. Any existing mortgage on the title of the two lots would also need to be addressed.
Less desirable alternatives to this would be for the lot owners to lease their car spaces to each other or to create reciprocal easements over each other’s car space. Neither of these actions would result in a change of ownership of the car spaces.
A resolution of the Owners Corporation is not sufficient to swap the car spaces and the Owners Corporation cannot create a By Law to swap car spaces that are parts of lots.
Our Property and Commercial team here at Attwood Marshall can answer your queries and assist you with this or any other issue you have with regard to your Strata Title Ownership. Contact an Attwood Marshall Lawyer today on 1800 621 071 or email firstname.lastname@example.org.[AM_MOREINFO]