The process of strata titling a block of flats and selling as individual units in a community titles scheme can be a lucrative strategy when done right.
Before you start making offers, here is a high level overview of the main steps involved:
– Modifying the building to comply with the requirements of the current building codes to the extent required. Keep in mind that an older building could require significant works to bring it up to the current code. The main area we see issues with becoming compliant is fire regulations with sufficient fire escapes and fire rated products for all common walls.
– Engaging a building certifier to sign off on any building works required to comply with current building codes.
– Engaging a body corporate manager to prepare a budget for the community titles scheme.
– Engaging a surveyor to prepare a survey plan (generally a building format plan).
– Engaging McAndrew Law to prepare the community management statement.
As long as the use of the property remains the same (for example, residential), there may be no requirement to obtain a development approval for the subdivision and creation of the community titles scheme. This will need to be considered on a case by case basis.
McAndrew Law are experts in assisting with the process of converting flats into strata titled units. Feel free to get in touch if you have any questions or if you would like to speak further about your next strata title conversion.