Sharks Residential Pty Ltd v The Owners - Strata Plan No. 97194

In the case of Sharks Residential Pty Ltd v The Owners - Strata Plan No. 97194, the plaintiff, Sharks Residential, sought to challenge the allocation of unit entitlements within a strata plan. The dispute arose from the unreasonable allocation of unit entitlements at the time of the strata plan's registration on 19 March 2018. The matter was heard by the Civil and Administrative Tribunal of New South Wales.

The primary legal issue before the court was whether the initial allocation of unit entitlements was unreasonable. The court had to determine if the allocation was fair and equitable in accordance with the requirements of the Strata Schemes Management Act 2015 (NSW). The focus was on whether the initial allocation was flawed and needed rectification to ensure equitable distribution among the lot owners.

The Tribunal found that the allocation of unit entitlements upon the registration of the strata plan was indeed unreasonable. The court relied on the evidence presented by the licensed valuer who assessed the lots and provided a schedule for a fair reallocation. The Tribunal ordered a reallocation of unit entitlements as per the schedule, to take effect from the date the next levy is payable by the owners. Additionally, the Registrar was directed to provide a certified copy of the order to Sharks Residential, enabling the necessary registration changes with the NSW Land Registry Services. The rest of the application was dismissed.

This decision underscores the importance of ensuring equitable unit entitlements in strata plans and the role of the Tribunal in rectifying unreasonable allocations. The court's order not only addressed the immediate issue of the unfair allocation but also provided a clear pathway for its implementation, ensuring the interests of all lot owners were considered.