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Topic
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In minutes of the inaugural meeting the OC of residents inna mixed-use development appoints a car park manager. Throughout the basement, onsite residential carpark signs start to appear. The carpark manager turns out to be the business of the owner of the OC.
In the carpark are 50 onsite carspaces for visitors. The building permit was only granted provided those spaces were provided. The contract of sale says they were still to be allocated.
On the 2 levels above the private residents carpark is the commercial public carpark also owned by the same manager of the private carpark directly below it. On same site.
The developer asks the Minister of Planning to let him move the agreed 50 visitors carparks upstairs. The carpark manager who owns the owner’s corporation does not object. Why should he? It means all visitors in the residential tower will have to pay his business to park , instead of parking for free.
An investigation by council decided the number of spaces to be allocated had been reduced from 50 to 20, via negotiations between the developer and the Minister that overruled Vcat. They also cannot find any clause in the case at Vcat ( where the planning permit was approved) that says the visitors spaces must be set out and be free.
Under what law can the owner of the business (that owns his owner’s corporation business) permit free visitors car parking to be moved to visitors parking that profits his business?
The developer profit’s from release of the 50 additional private car spaces for sale, the carpark operater gets more business, and the lot owners (who were told nothing until an owner triggered a council investigation) have lost valuable onsite real estate that was located on their common property at time of sale.
Residents mistakenly parking in wrong spot are billed by the OC to pay the business belonging to the carpark operator. Is that legal?
How can the loss of common property be proved, and what should be the penalty for irresponsible collusion between the carpark manager and the OC, that are owned by the same person? Can a lot owner sue for anything at Vcat or other court? The property loses a great asset of 50 spare carspaces.
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Replies
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Sounds like a rort. Speak to a lawyer (because you’re going to need one eventually anyway).
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
Agreed. But I don’t see how one person or business can “own the Owners Corporation” unless they own all the lots in the building.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
It seems to be an arrangement that’s becoming more common in Victoria, especially in mixed development strata schemes.
The visitor spaces are managed by a car park operator. There can be a fee charged for visitor parking.
There should be a commercial arrangement between the OC and the car park operator. It would be important to find out the details of that arrangement. The OC might be receiving an income and the arrangement might be for a set period similar to a lease.
Your situation is not unique.
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