#12469

There are many ways to formalise the use of part of the common property and all require the consent of the owners corporation. The most common methods to formalise use include – 

  • Obtaining permission or a licence from the owners corporation to use that part of common property
  • Arranging for a lease of that part of common property
  • Arranging for an exclusive use by-law assigning rights with respect to that part of the common property
  • Acquiring freehold rights to that part of common property via strata plan of subdivision.

When should an “exclusive use by-law” be used to formalise the use of part of the common property?

An owners corporation can confer to an owner of a lot  –

1)   a right to exclusively use and enjoy a specific area of common property which other owners are to be prohibited from using, or

2)   a special privilege to undertake an activity or make an installation in respect of a special area of common property, or

3)   a combination of both.

However, a special privilege conferred would not normally permit that owner to construct any building on part of that common property land.

An exclusive use or special privileges by-law may be conferred only on the owner of the lot and operated for the benefit of and is binding upon the owner for the time specified in the by-law. 

All concerned owners must consent in writing to the passing of an exclusive use by-law in relation to common property before the by-law motion is considered at the general meeting.

A special resolution needs to be passed at a general meeting of the owners corporation to pass the by-law. 

For an information sheet on this topic, please email: simone@teyslawyers.com.au

Kind regards,

Simone Balsara

Lawyer

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TEYS Lawyers

The Strata Law Experts

02 9562 6500

https://www.teyslawyers.com.au