sec.174Disposal of interest in and leasing or licensing of common property— Act , s 154 [SM, s 184 ]

sec.174 Disposal of interest in and leasing or licensing of common property— Act , s 154 [SM, s 184 ]

This section sets out the way and the extent that the body corporate is authorised— to sell or otherwise dispose of common property; and to grant or amend a lease or licence over common property. The body corporate may— if authorised by resolution without dissent— sell or otherwise dispose of part of the common property; or grant or amend a lease or licence for more than 3 years over the whole of the common property; or grant or amend a lease or licence for more than 10 years over part of the common property; and if authorised by special resolution— grant or amend a lease or licence for 3 years or less over the whole of the common property; or grant or amend a lease or licence for 10 years or less over part of the common property. Despite subsection (2) , the body corporate may grant or amend a lease or licence over the whole or part of the common property, without the authority of a resolution without dissent or special resolution, if the community management statement provides for the lease or licence. The body corporate must not lease or license common property if— the lease or licence would interfere with access to a lot, or to a part of the common property over which exclusive rights have been given under a by-law; or the common property leased or licensed is land a person has the right to occupy for the person’s engagement as a service contractor or authorisation as a letting agent. An instrument lodged for registration under the Land Title Act 1994 to give effect to a transaction under this section must be accompanied by— a relevant certificate certifying the transaction has been authorised under this section; and a certificate of the relevant planning body certifying the transaction has been approved or noted under the relevant Planning Act; and if the transaction is associated with a reduction in the common property—a request to record a new community management statement for the community titles scheme in place of the existing statement for the scheme. The body corporate may not grant a lease or licence over utility infrastructure that is common property. If a lot is owned by 2 or more people, a requirement under this section for a lot owner to sign a relevant certificate is complied with if only 1 owner signs the relevant certificate. In this section— relevant certificate means a certificate signed by— if the resolution authorising the transaction under subsection (2) specifies a person who must sign the certificate—the person; or otherwise— at least 2 members of the committee, 1 of whom must be the chairperson or secretary of the committee; or if all the lots in the community titles scheme are in identical ownership—an owner or the representative of the owner; or if the body corporate has engaged a body corporate manager under a chapter 3 , part 5 engagement— the body corporate manager; and 1 other person who is an owner of a lot included in the scheme or the representative of the owner. relevant Planning Act means— if the relevant planning body for the community titles scheme is the local government—the Planning Act; or if the relevant planning body for the community titles scheme is MEDQ—the Economic Development Act 2012 . relevant planning body , for the community titles scheme, means— to the extent the common property for the scheme the subject of the transaction is located in a priority development area—MEDQ; and to the extent the common property for the scheme the subject of the transaction is located in a local government area but not in a priority development area—the local government for the local government area. representative , of an owner of a lot, means a person whose name is recorded on the body corporate’s roll as the representative of the owner. s 174 amd 2024 SL No. 40 s 11 (sec.174-ssec.1) This section sets out the way and the extent that the body corporate is authorised— to sell or otherwise dispose of common property; and to grant or amend a lease or licence over common property. (sec.174-ssec.2) The body corporate may— if authorised by resolution without dissent— sell or otherwise dispose of part of the common property; or grant or amend a lease or licence for more than 3 years over the whole of the common property; or grant or amend a lease or licence for more than 10 years over part of the common property; and if authorised by special resolution— grant or amend a lease or licence for 3 years or less over the whole of the common property; or grant or amend a lease or licence for 10 years or less over part of the common property. (sec.174-ssec.3) Despite subsection (2) , the body corporate may grant or amend a lease or licence over the whole or part of the common property, without the authority of a resolution without dissent or special resolution, if the community management statement provides for the lease or licence. (sec.174-ssec.4) The body corporate must not lease or license common property if— the lease or licence would interfere with access to a lot, or to a part of the common property over which exclusive rights have been given under a by-law; or the common property leased or licensed is land a person has the right to occupy for the person’s engagement as a service contractor or authorisation as a letting agent. (sec.174-ssec.5) An instrument lodged for registration under the Land Title Act 1994 to give effect to a transaction under this section must be accompanied by— a relevant certificate certifying the transaction has been authorised under this section; and a certificate of the relevant planning body certifying the transaction has been approved or noted under the relevant Planning Act; and if the transaction is associated with a reduction in the common property—a request to record a new community management statement for the community titles scheme in place of the existing statement for the scheme. (sec.174-ssec.6) The body corporate may not grant a lease or licence over utility infrastructure that is common property. (sec.174-ssec.6A) If a lot is owned by 2 or more people, a requirement under this section for a lot owner to sign a relevant certificate is complied with if only 1 owner signs the relevant certificate. (sec.174-ssec.7) In this section— relevant certificate means a certificate signed by— if the resolution authorising the transaction under subsection (2) specifies a person who must sign the certificate—the person; or otherwise— at least 2 members of the committee, 1 of whom must be the chairperson or secretary of the committee; or if all the lots in the community titles scheme are in identical ownership—an owner or the representative of the owner; or if the body corporate has engaged a body corporate manager under a chapter 3 , part 5 engagement— the body corporate manager; and 1 other person who is an owner of a lot included in the scheme or the representative of the owner. relevant Planning Act means— if the relevant planning body for the community titles scheme is the local government—the Planning Act; or if the relevant planning body for the community titles scheme is MEDQ—the Economic Development Act 2012 . relevant planning body , for the community titles scheme, means— to the extent the common property for the scheme the subject of the transaction is located in a priority development area—MEDQ; and to the extent the common property for the scheme the subject of the transaction is located in a local government area but not in a priority development area—the local government for the local government area. representative , of an owner of a lot, means a person whose name is recorded on the body corporate’s roll as the representative of the owner.