Common Property Lease or License - Victoria - SSKB - Strata Managers | Community Experts

Common Property Lease or License – Victoria

Exclusive Use of Common Property

Exclusive! Read all about it!

Do you have exclusive use over common property?

Are you sure?

In the world of strata living, property is divided into two parts – a lot, which is typically the unit you’ve bought, and common property – which most commonly, ahem, refers to the fabric of the building and all the shared areas – such as roof, common facilities, hallways etc.

But you may have access to more than just what’s inside your four walls.

Certain areas of common property can be exclusively used by some lot owners.

Most typically these might be a lawn or garden area right by your front door, a courtyard, a car park or perhaps even basement storage.

In Victoria there are two types of exclusive access and they’re not exactly the same.

  • Licence: A licensee is granted a right to use an area but is not granted exclusive possession of it. For example, you might be granted a licence to use a particular car park but if you’re not parking there, someone else may use it.
  • Lease: A tenant has exclusive possession of the leased area subject only to limited rights granted to the landlord under the lease.

The legislation surrounding the Owners Corporation’s ability to enter into a lease or license over common property is strict.

For a common property lease to be granted, a special resolution (75% voting approval of all unit owners) is required to approve the change.

You will have to pay the charges to change the rule. And depending on the nature of the common property, you may also have to pay the Owners Corporation compensation for the exclusive use. And you have an obligation to maintain that common property in good order.

VicLearn more about exclusive use of common property through lease or license here.

SSKB is Australia’s leading strata management company specialising delivering expert advice and management to Owners Corporation and Body Corporate communities.

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