If you own a property in an older strata scheme in Western Australia, there may be an option you don't know about.
Certain older strata schemes can be converted from a traditional strata plan to a survey-strata plan using a specific conversion pathway under Western Australia's Strata Titles Act 1985. The process is particularly relevant to single-tier strata schemes registered before 1 January 1998.
For eligible schemes, conversion to survey-strata can provide clear ownership of the land and allow some areas of common property to be incorporated into existing lots.
Yet many strata property owners who have owned their properties for many years are unaware that this option exists.
At Successful Stratas, we believe that owners of older strata properties should understand what options may be available to future proof their property.
What is the difference between strata and survey-strata?
In a traditional strata scheme, the ownership of a lot is closely associated with the building or structure shown on the strata plan.
A survey-strata scheme is different.
A survey-strata plan defines lots by the surveyed land boundaries. The buildings themselves are not shown on the survey-strata plan as they are on a traditional or built strata plan. This provides a more definitive way of defining ownership of the land.
It is important to understand that converting to survey-strata does not mean creating any additional lots. The conversion provisions are intended to allow the division of common property between the existing strata lot owners. They are not intended to subdivide an existing strata lot.
Which older strata schemes may be eligible?
The special conversion provisions apply to single-tier strata schemes registered before 1 January 1998.
The West Australian Strata Titles Act 1985 specifies that this part of the legislation applies only to a single-tier strata scheme and does not apply where the strata plan was registered on or after 1 January 1998.
A single-tier scheme is broadly a villa or townhouse development not strata apartments or flats where a lot (or unit), or part of a lot (or unit), is above or below another. This means that not every strata scheme will qualify. For example, an older group of villas, townhouses or similar single-level properties may be worth investigating, whereas a multi-storey strata development is unlikely to qualify under this particular conversion pathway. The first step is therefore to establish exactly what type of strata scheme you have and when the existing strata plan was registered.
What about driveways, access and services?
Conversion to survey-strata can require easements to protect rights that may previously have been dealt with through the traditional strata arrangement.
Depending on the circumstances, the survey-strata plan may need to deal with matters such as:
- vehicle access;
- pedestrian access;
- service access;
- rights to light and air;
- support;
- party walls;
- intrusion;
- utility services; and
- other rights affecting the lots.
The Strata Titles Act 1985, Regulations and Policies specifically identify a range of short-form easements that may be created as part of a conversion. These matters are important because the fact that a property has operated satisfactorily under an old strata arrangement does not necessarily mean that exactly the same legal arrangements can simply be carried across to a survey-strata plan.
What about planning requirements?
This is another important consideration.
Although the special conversion pathway does not require WAPC or local government approval in the same way as a conventional subdivision process, there are still obligations relating to relevant planning requirements. Including the following matters:
- car parking
- vehicle access and turning;
- rights to light and air;
- rights of support;
- private open space;
- pedestrian access; and
- access for services and facilities.
The proposed lots therefore need to be carefully assessed before proceeding.
This is an important reason why property owners should not assume that an eligible scheme will automatically be suitable for conversion.
What happens to the unit entitlements?
Conversion to survey-strata also changes the basis on which unit entitlement is determined.
The unit entitlement for lots on a survey-strata plan is based on the land value, rather than the value of the buildings. This can be an important consideration for owners because the result may differ from the existing unit entitlements.
A new schedule of unit entitlement must be prepared and certified by a licensed valuer as part of the process.
Before proceeding, the following points need to be consider:
- Is the scheme actually eligible? The registration date and single-tier status need to be confirmed.
- .What does the existing strata plan show? The existing lot boundaries and common property need to be examined carefully.
- What is the physical arrangement of the property? The existing buildings, access, driveways, open space and services all need to be considered.
- Are easements required? The survey-strata arrangement may require new or amended easements.
- Will the proposed lots satisfy relevant requirements? Planning and other statutory requirements need to be considered.
- What will happen to unit entitlements? The new survey-strata unit entitlements are based on land value.
- Do all owners support the proposal? The special conversion pathway requires a unanimous resolution. However, if only the majority of owners vote in favour of the resolution the State Administrative Tribunal can be asked to consider passing the resolution.
How does the conversion process work?
While every project is different, the process will generally involve a number of stages.
Step 1 — Review the existing strata scheme
Step 2 — Establish eligibility
Step 3 — Investigate the proposed arrangement
Step 4 — Prepare the proposed survey-strata plan
Step 5 — Determine the new unit entitlements
Step 6 — Obtain the required owner resolution and consents
Step 7 — Lodge the documentation with Landgate
Step 8 — Registration
The exact documentation and professional requirements will depend on the individual circumstances of the scheme.
Why many owners have never heard of this option
The conversion provisions are not new. They have been part of Western Australia's strata legislation for many years. However, they apply to a relatively specific category of strata scheme and are not the normal process used for creating a new survey-strata development. As a result, many owners of older strata properties may never have considered whether their existing scheme could be converted which is precisely why it can be worthwhile asking the question.
Could your strata scheme be worth investigating?
If you own an older strata property in Western Australia, start by checking:
- When was the existing strata plan registered?
- Do all owners appear willing to investigate the possibility?
If the scheme appears to meet the basic criteria, a more detailed investigation may be worthwhile.
Please note: Proper procedures must be followed, and legal documents need to be prepared and executed correctly to avoid future problems. Successful Stratas can manage the entire process on your behalf and offers a no obligation meeting with all owners to discuss the process. If you have a strata title conversion issue you wish to discuss, call on 9593 2719 or email info@stratas.com.au.