Question: Our OC has decided that only our building manager can use our loading zone. Can the OC restrict access to common property?
I live in a large strata building in Victoria. We have three marked ‘loading zone’ parking areas in the garage. The owners corporation (OC) has decided that only the building manager and concierge can use these loading zones. Is the OC permitted to give away common property for the benefit of subcontractors? Does it raise questions about fringe benefits?
Answer: If there is a significant alteration to common property by re-designating the car spaces, that requires a special resolution.
There are two issues here. The first is whether there is a significant alteration to common property by re-designating the car spaces. If so, that requires a special resolution pursuant to Section 52 of the Owners Corporations Act 2006. If it is effectively a lease to a third party, then a special resolution will also be required under Section 14 of the Act.
The other matter that the owners corporation needs to consider is whether there was a planning requirement to have those loading zones and whether the conversion of those car spaces becomes a breach of the planning permit that the property has.
However, if the car spaces were never originally designated as loading zones at the time of subdivision under a planning permit or otherwise pursuant to a special resolution, then the owners corporation might be able to re-designate them if it is appropriate to do so.
In respect to the query concerning fringe benefits, we are unable to provide any comments on that aspect as it is unclear on what basis the spaces are being provided and whether any individual is obtaining a direct benefit. It seems that the spaces are being used for purposes in connection with the provision of services to the owners corporation and not for the direct benefit of an employee.
Phillip Leaman Tisher Liner FC Law E: ocenquiry@tlfc.com.au P: 03 8600 9370