Sale of Common Property
Does your Body Corporate have surplus land? If the answer is “yes,” then we can look at whether the sale of common property is a possibility for your body corporate.
There are two ways, processes, in which the sale of common property can be achieved.
The first is where part of the common property is sold, and a new principal unit or accessory unit within the same body corporate is created.
The second is where part of the common property is sold and removed from body corporate and is contained within its own separate fee simple title with no ongoing association to the body corporate.
Both processes involve special resolutions and the completion of the designated resolution process contained in sections 212 to 216 of the Unit Titles Act 2010 (UTA).
In respect of the sale of common property to create either a new principal unit or accessory within the body corporate, you can be complete it by way of a redevelopment under section 68 of the UTA. This involves the deposit of a new unit plan in substitution for the existing unit plan, which creates the new principal or accessory unit. The new owner of the unit will become a member of the body corporate. As part of the process, all owners will have their ownership interests reassessed.
The sale of common property to be contained in a completely separate title is a more complicated process. It requires:
- the cancellation of the existing unit plan
- a subdivision of the underlying lot to create two new titles, the separate title which can sold, and a title containing the remaining units; and
- a new unit title subdivision to create a new unit title development/body corporate for the remaining units.
Both processes necessitate obtaining subdivision consent from the Council and will require input from a surveyor, a valuer, and a lawyer.
The proceeds from the sale of common property must be distributed to all owners in accordance with their ownership interests at the time of the sale. An owner may elect to have their share of the proceeds credited against current or future levies, but the body corporate cannot require this to happen.
For more information, about how to achieve the sale of common property for your body corporate, please contact Anthea Coombes or Vicki Toan.
Matters Advised On
We have recently advised bodies corporate, unit owners, and body corporate managers on the following matters:
- procedural requirements for removing committee members
- the election of a replacement chairperson on the sale of a unit prior to the AGM
- the termination of reinstatement schemes following the completion of repair works
- the allocation of repair costs
- the recovery of unpaid levies.