A developer wishes to create a strata subdivision but discovers an existing mortgage over the land. What must occur before strata titles can be issued?
Correct Answer
B) The mortgage must be discharged or consent obtained from the mortgagee before registration
Before a strata plan can be registered, any existing mortgage over the land must either be discharged or written consent must be obtained from the mortgagee. This protects the mortgagee's security interest and prevents the subdivision from affecting their rights without consent.
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Previous Question
A developer subdivides land and creates a strata scheme with 20 lots. Unit 15 has a floor area of 120 square meters in a building with total floor area of 2,000 square meters. What is Unit 15's unit entitlement likely to be based on floor area?
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A property developer creates a strata scheme but retains ownership of the basement car park while selling individual apartments. Years later, a dispute arises about maintenance responsibilities. Under strata legislation, what is the most likely outcome?