QLD: Q&A Can an exclusive use area be approved conditionally to avoid upfront costs?

This article discusses if a QLD body corporate can conditionally approve an exclusive use area.

Question: Can an owners corporation approve an exclusive use area at an AGM, subject to legal and survey conditions?

The creation of an exclusive use area requires a “no dissent” vote at an AGM. Is it possible to submit a detailed proposal for the area and have it voted on without first obtaining legal advice or a survey, provided the matter is referred to the committee, subject to specific conditions?

For example, the conditions could include:

1. no adverse legal advice,
2. a completed survey plan, and
3. agreed limitations on use of the area.

Would this approach satisfy the Act’s requirements while avoiding significant upfront costs in case the proposal is rejected? The intention is not to avoid expenses, but to secure in-principle approval and prevent unnecessary delays caused by waiting for another AGM.

Answer: There is no requirement for legal advice or an exclusive use plan to accompany a request for exclusive use.

There is no requirement for legal advice or an exclusive use plan to accompany a request for exclusive use, but a lot owner could reasonably dissent on the basis that insufficient material was presented.

At a minimum, such a proposal needs to include sufficient detail so that owners are aware of exactly what they would be approving. A less formal sketch plan can be sufficient without the need to prepare an exclusive use plan.

However, the motion should not leave it up to the committee to finalise, though. It should include everything necessary to give effect to the grant (such as details as to the exclusive use by-law to be inserted, any pre-conditions and authorisation of the new CMS being lodged).

Todd Garsden
Mahoneys
E: [email protected]
P: 07 3007 3753

This post appears in Strata News #765.

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