Changing Unit Entitlements

A minority of owners in our Strata Plan are unhappy with their unit entitlements – claiming they are too high.

Two years ago a special resolution was put to an AGM to engage a valuer to review values and unit entitlements.  That motion failed to secure the required 75%.

At the last AGM a general resolution was put on the agenda – in similar terms and was passed.  Our strata manager said it didn’t require a special resolution although the previous year they said it did!

The valuer’s report has been received.  It is not a valuation at the time the strata plan was registered – is that significant in this process?

It concludes that the “penthouses” unit entitlements should be reduced by 33% while other lots should increase by between 6% and 24%.

The OC is going to call an EGM to consider this matter.  We have enquired at Fair Trading and Registrar Generals and both said we need a special resolution about changing the entitlements and then need to apply to the CTTT for orders.

Our strata manager says we only need an ordinary resolution to lodge an application to the CTTT for orders to vary the unit entitlements.  Some of us do not see how that can be correct (for these orders) given the information we received from Fair Trading and the Registrar General’s Office and the requirements of the LTO for lodging such a change to the Strata Plan.

Please tell us the facts including what sections of what Act apply.

Thank you