This question from a SA lot owner is about purchasing common property.
Question: I’d like to purchase an unused section of common property. How do I measure, value and purchase this plot of common property?
There are three units in our strata. Behind my unit is a small plot of vacant common property that was likely a guest car park at some point but has never been used.
I would like to buy this common property so I can extend my fence and create a backyard. The other two owners are open to this, although another consideration is the land could be subdivided and sold externally to build a new house.
How do I measure, value and purchase this plot of common property?
Answer: You will need an unanimous agreement by the owners and for this to be documented at a duly convened meeting of the corporation.
Firstly in order to occupy or purchase the common property you will need a unanimous agreement by the owners and for this to be documented at a duly convened meeting of the corporation.
You can engage a valuer to determine the value of the land and what cost it should be sold for.
You would also need the assistance of surveyors and conveyancers to draft legal paperwork and change and lodge the strata plans.
If you are to subdivide the land you will need to engage the local council and see what the development policy is for your area.
It is best to keep all the owners involved as you will need them to agree with your proposal.
Your strata manager can be used as a central point for any communications and help you through the process however you will need to be the driver.
This process will take some time and can be costly. Don’t be in a rush and make sure you ask the questions you need and obtain all the information required.
Tyson D’Sylva
Ace Body Corporate Management
E: tyson.d@acebodycorp.com.au
P: 08 8342 1544
This post appears in Strata News #495.
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This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.
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Hi Liza,
Just after a further clarification to your response above, if all of the above has been undertaken by the lot owner who is purchasing the part of the common property and all in agreement, does the lot owner deduct their % share of the land they effectively own being a lot owner of the Body Corporate (ie: Body Corp being collectively owned by all lot owners as tenants in common). Thank you.
Hi Tanya
You would be best to seek advice from a qualified professional.
Thanks
A lot holder would like to purchase part of the common property adjoining his lot.
Who is the appropriate person or persons to handle this ….. the strata manager or the council of owners .
Are all costs associated including purchase, (per square metre),surveying ,changing of strata plan,valuers costs,etc to be paid for by the lot holder ,wishing to purchase the additional area ?????
Thanks
Hi Michael
The following response has been provided by Carrie McInerney, Horner Management:
If a lot holder is interested in purchasing part of the common property it would be up to the lot holder to gather all information, including costs involved, the motion to be put forward to allow the lot holder to purchase the common property and also a motion to amend the strata plan and unit entitlements to reflect the purchase. When I have had a unit owner requesting to purchase common property in the past, I have suggested that they investigate to costs associated with this, being surveyors, valuers, conveyancers, as well as investigating how much it will cost to purchase the land. If the lot holder is happy with the costs, I then advise the lot holder that an Extra Ordinary Meeting will need to be held for owners to vote. If the lot holder is not willing to cover all costs associated with the purchase, I would be requesting they outline why the owners should sell the land and help cover the costs. I do not believe this is part of the strata managers job, or other unit holders to investigate the costs associated.