One of the owners would like to make the courtyard at their unit part of their section or an EUA in order to be able to sell it with the section and get a better price. How can we advise her on this?
There is a difference between making a portion of the common property part of the section – i.e. extending the section – and making a portion of the common property an EUA.
We have a question of the week on the extension of a section. If this is what they want to do they will have to get a special resolution passed and amend the sectional plans – that is a short summary of the process.
Extending the section means that the floor area of the section is increased; the PQ increases and the levy and voting weight increases. They can definitely then get a better price for the section.
Making it an EUA ito the rules will not be a good option because you cannot sell an EUA that was created ito the rules. You can only sell an EUA that was created ito the plans as this is a registered real right. We have a question of the week on that as well. To create an EUA ito the plans you would need a unanimous resolution – which is very difficult to obtain.
My suggestion therefore would be that the owner rather extend their section – it would be easier to achieve