The following question is from a NSW strata lot owner enquiring about strata unit entitlements NSW. Thank you to Leanne Habib, Premium Strata for providing a response.
Question: What are the rules of strata voting at the AGM concerning strata unit entitlements NSW?
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My concern are the rules of strata voting at AGM concerning entitlements?
I live in an old strata heritage block of 6 units with 3 garages built in the 1930’s. It would be interesting to hear if other owners of older units built in the 30, 40, and 50’s have similar problems.
The 3 garages are separate lots on title with the units. I believe that when the units where initially sold, the new owners had first option to buy the garage lots. I also believe the present owners can sell their garage lots to others owners within the unit complex.
I think giving strata owners of garages an extra vote at meetings should be cancelled out.
On reading the Strata Schemes Management ACT 2015 – Sect 4 I found it very interesting:
No mention of Garages being a “lot” — What is mentioned is Utility Lot — meaning a Utility lot is designed to be a primarily used for storage or accommodation of boats, MOTOR VEHICLES or goods, and not for human occupation as a residence, office, shop or like.
The 3 owners of the 3 garages use their extra voting power to block maintenance for the units. I strongly object to allowing Utility lots being given an extra vote at meetings. I am hoping that the new Strata Laws will address this by giving everyone just one vote at all meetings.
Answer: The one lot / one vote rules continue to apply under the new legislation.
The one lot / one vote (special resolutions and demand for poll excepted) rules continue to apply under the new legislation.
Ultimately, if owners are abusing their voting rights to prevent the Owners Corporation from complying with its statutory duties, the disgruntled owners could make application for a compulsory appointment to ensure repairs and maintenance were properly undertaken.
Leanne Habib
Premium Strata
P: 02 9281 6440
E: info@premiumstrata.com.au
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.
The photo associated with this post has been supplied by Flickr: Thomas Abbs – Garages.
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In the situation a motion is likely to be swayed by utility lot owners, if it suits you, you can call for a Poll, in which the motion depends on total unit entitlements instead. See SSMA 2015 Section 14 (3) and (4).
Hi Nick strata owner
We have received the following reply back from Leanne Habib, Premium Strata:
Also, Section 106 (5) SSMA 2015 entitles an owner of a lot to recover from the owners corporation, as damage for breach of its statutory duties to repair and maintain the common property, any reasonably foreseeable loss suffered as a result of the owners corporation breach. In addition to all your other rights, you may also make application to the NSW Civil & Administrative Tribunal for the Owners Corporation to carry out the requisite repair/maintenance works (though you would have to apply for mediation first).