Can I grant a licence agreement for my exclusive use area without the owners corporation's permission?

NSW
Parking & Storage
question
Lookupstrata community member

I have an exclusive area attached to my lot. Can I grant a licence agreement for that area to a person without the owners corporation's permission?

answer
Matthew Jenkins
Matthew Jenkins Bannermans Lawyers

This is the usual course when a lot owner leases their lot and includes the exclusive use area in the lease.

An exclusive use by-law granting an owner the exclusive use rights to an area of common property is like a lease over the common property. The benefitted owner has the use of that area of common property to the exclusion of all other owners and occupiers on certain conditions.

Unless the by-law provides that the benefitted owner is not able to licence the area to others or must seek consent to sublease or sublicense the area, the lot owner is able to licence the area to a person without the consent of the owners corporation. I would be surprised if the exclusive use by-law dealt with assignment of the rights.

This is the usual course when a lot owner leases their lot and includes the exclusive use area in the lease.

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