Altering the subdivision – the hoops have been removed

Altering a subdivision (for example, to transfer part of the common property to another entity, or to alter lot liability and entitlements) requires a unanimous resolution of the OC. These are rarely impossible to obtain. An application can be brought to VCAT under s34D of the Subdivision Act to obtain an order to achieve the outcome sought by the unanimous resolution.

Prior to Garde J’s decision in Conroy v Owners Corporation Strata Plan 30438 [2014] VCAT 550, applications to alter the subdivision were usually brought under s34D(1)(b) which imposes a fairly stringent test for an order to be made, including requiring an attempt to pass a unanimous resolution by vote or ballot of the OC.

However, Garde J’s decision clarifies that s34D(1)(a) can be used for these applications, the stringent test does not apply, and a vote or ballot does not need to be held before an application can be made.

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