Saturday, 15th June 2019

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jray
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Is it possible for an Owners Corporation to sell part of the common property to an unrelated party such as the owner of the land that is adjoining the parcel.  If so, under what section(s) of the Strata Schemes Management Act or Strata Schemes (Freehold Development) Act is such a subdivision and sale of common property authorised and would a unanimous resolution be required.

John

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mini
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Yes, an owners corporation can transfer common property. As far as formalities are concerned, a special resolution (not a unanimous resolution) would be required: section 25 of Strata Schemes (Freehold Development) Act 1973.

jray
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Thanks for the clarification Mini. In Queensland selling off part of the common property requires a resolution WITHOUT DISSENT.

 

The difference can be imporant. In Brisbane where I own a unit a recent proposal was to sell the one-bedroom 89 square meter unit accomodation for the Resident Manager that is part of the common property and upgrade the accodation by purchasing a larger two-bedroom unit.

 

To make the change the outlay was estimated at $350K. The dissent was minor so likely a Special Resolution would have ben achievable. Instead by Ordinary Resolution $85K is to be expended to upgrade the existing one-bedder to two. Whilst in NSW the new regulations are not yet available it seems the Govt here is determined virtually everything can be done without need for a resolution without dissent. In NSW an entity by Special Resolution can lease to itself ALL the common property. In QLD that can also be done by Special Resolution but with the proviso that such a lease cannot prevent acces to units or to exclusive use areas. In that situation in NSW I guess one would have to argue that such a lease, in so far as acess to units became a trespass, was a fraud upon the minority.

 

 

 

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AnnaDBedgood
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LindsayLDouthit
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