This article discusses the body corporate’s authority to approve or deny the installation of gas bottles on common property in QLD strata schemes.
Question: The body corporate advised that I’m not allowed to install gas bottles on common property outside my commercial unit due to insurance considerations. Is the body corporate able to do this, or can I install gas bottles?
Answer: No occupier or owner has the right to use common property for their own use without a use right being granted by the body corporate.
Tyrone Shandiman, Strata Insurance Solutions:
Whether you can install gas bottles on common property is ultimately a decision for the body corporate, regardless of insurance considerations. While insurance is sometimes raised as a reason for refusal, unless the insurer has confirmed in writing or there is a specific exclusion or condition noted on the policy schedule, gas bottles installed in accordance with council regulations are unlikely to impact the insurance cover.
It is worth noting that under the Body Corporate and Community Management Act 1997, a body corporate can pass on any increase in insurance premiums that result from the way a lot owner uses their lot. This means that even if there is an increase in risk due to the gas bottles, the cost could be apportioned to the relevant owner rather than being a blanket reason for refusal.
That said, this request relates to the use of common property, and the body corporate has the legal authority to approve or deny how common areas are used. This includes determining whether gas bottles can be stored or installed, regardless of any potential insurance implications. If insurance has been raised as a concern, it may be reasonable to ask the body corporate to provide written confirmation from their insurer or broker to support the position they have taken.
Todd Garsden, Mahoneys:
No occupier or owner has the right to use common property for their own use without a use right being granted by the body corporate. For an occupier or owner to use common property to store gas bottles, they would need an exclusive use right or lease/licence. Otherwise, the body corporate could lawfully require that the gas bottles not be kept on the common property.
Todd Garsden Mahoneys E: tgarsden@mahoneys.com.au P: 07 3007 3753
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.
This post appears in Strata News #766.
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