These ACT lot owners have questions about strata plans.
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Question: The commercial lots in our mixed use building are struggling to trade. Can these spaces be converted into residential lots?
I represent a Owners Corp Committee in Canberra for a medium sized strata of 41 Units. This is a four story building, including 4 ground level commercial unit owners. The strata is 12 years old.
All commercial unit owners are struggling to either trade or sublet their spaces. Long term, this seems to be due to better located competition and, more recently, COVID.
Can the ground floor commercial unit premises be changed to or converted into residential unit space?
Answer: The lease purpose clause form 4 and 5 of your units plan determines what each unit within a whole building is allowed to be used a
This is a really broad question without having more detail so it’s really hard to answer, ‘Can the ground floor units be changed or converted into a residential unit space’, without having more information on things like:
- your lease purpose clause
- what’s in your DA,
- what those units are permitted to be
It really depends on the conditions that obviously detail what your units are allowed to be. The lease purpose clause form 4 and 5 of your units plan determines what each unit within a whole building is allowed to be used as and there are different categories. Some are purely residential, some are commercial mixed use. Then further, can it be a hospital or a medical centre and things like that. There are a lot of restrictions.
We do not have a clear cut answer without looking at what is in your form 4 and 5. Your first step would be to have a look at your unit plan and your lease purpose clause with those forms 4 and 5, as they determine in what capacity the units can be used. Then, you might need to submit a DA application to change what they’re allowed to be permitted for and that’s something that you’d need to seek further legal advice on, or obtain further advice about if you go down that road depending on what you find on form 4 and 5.
Calli Fenwick Signature Strata P: 02 6185 0347 E: nina@signaturestrata.com.au
This post appears in Strata News #504.
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