ACT: Q&A Deregistering Unit Plans for a Dual Occupancy

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This question about deregistering unit plans has been answered by Jan Browne, Bridge Strata.

Question: For our dual occupancy units, we have obligations under the Unit Titles Management Act which can be exempted. Should we look at deregistering the unit plans?

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I have been researching for the last few months trying to find information about deregistering unit plans, but I have not been successful.

I currently live in a dual occupancy in the ACT.

My neighbour and I are currently using a Strata Management Services, which we are currently trying to cancel after the Management Agreement expires.

My understanding is that we have obligations under Unit Titles Management Act which can be exempted if registered in such way with Land Titles Office. Will you kindly assist us to further understand the process involved and if my understanding is correct?

We do not have any common property, and we are eligible to have separate building insurance for each unit.

Answer: The owners corporation is responsible for managing the common property and enforcing its rules.

If registered as a units plan then there are legislated requirements. But the owners can at each meeting by unanimous resolution exempt themselves from insurance (unless common property areas) and also, exempt the plan from the requirements of a sinking fund forecast.

If the owners want to investigate the options of deregistering unit plans they would need to engage legal advice. The ability to do this will depend on the common infrastructure and size of the land. See the excerpt from UNIT TITLES (MANAGEMENT) ACT 2011 – SECT 101

101 Exemption from building insurance requirements

1. If the replacement value of all common property buildings (or parts of buildings) on the land is less than an amount prescribed by regulation, the owners corporation may, by unanimous resolution, exempt itself from the requirement to take out building insurance under section 100 (1) for any risk stated in the exemption resolution.
2. An owners corporation for a units plan containing only class B units may, by unanimous resolution, exempt itself from the requirement to take out building insurance for any risk stated in the exemption resolution for all buildings (or parts of buildings) that are on the class B units.
3. An exemption resolution under this section has effect from the date of the annual general meeting when it is passed until the date of the next annual general meeting.

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This post appears in Strata News #217.

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Jan Browne
Bridge Strata
P: 02 6109 7700
E: [email protected]

This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.

Visit Maintenance and Common Property OR Australian Capital Territory Strata Legislation

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