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.
This post appears in Strata News #495.
Have a question about purchasing common property or something to add to the article? Leave a comment below.
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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