Is this unusual? Cause for concern?

C

Compleks

I just got e-mailed the section 32 for a property I am interested in.
Along with the section 32 was another legal document concerning the courtyard attached to the property.

I have a hard time reading legal jargon. But from what I can gather, the courtyard is not actually part of the purchase. However there is a legal agreement between the licensee and the body corporate which grants exclusive use and occupation of the area for 99years (starting 1994).
Plus a fee of $1 per annum. Yes, one dollar a year.

Is this fairly standard with 'private' courtyards? Or is this something I should be concerned about.
First I've ever heard of it.

Thank you.
 
Compleks said:
I just got e-mailed the section 32 for a property I am interested in.
Along with the section 32 was another legal document concerning the courtyard attached to the property.

I have a hard time reading legal jargon. But from what I can gather, the courtyard is not actually part of the purchase. However there is a legal agreement between the licensee and the body corporate which grants exclusive use and occupation of the area for 99years (starting 1994).
Plus a fee of $1 per annum. Yes, one dollar a year.

Is this fairly standard with 'private' courtyards? Or is this something I should be concerned about.
First I've ever heard of it.
Click to expand...

Not uncommon but it would slightly lessen the value of the property compared to if you owned the courtyard outright. It is however better than if the courtyard (despite being fenced) was legally common area and there was no 99 year agreement.

In the late '60s many units were built intending to be let out to singles who wouldn't be there long until they got married and bought a house together. Common clotheslines and laundries were typical. Although there was space buildings did not necessarily have their own private courtyard. There was also a law which required complexes to have a tradesmans toilet, normally at the rear near the laundry.

Smart owners found there was value to be added if space could be converted into seperate courtyards (and parking), and washing machines installed in bathrooms instead of the common area. In some cases this could be done by putting up fences between each unit and giving each one their little clothesline. However while we are trained to assume that fences must mean property boundaries often the title stuff wasn't done, either at the time or when the complex was converted to strata title before selling.

If you are able to get unanimous agreement at the body corporate meeting you may be able to agree to formally purchase the courtyard for a few thousand so it becomes properly yours. This won't make any difference for the tenant or the chargeable rent but may be desirable if planning to sell.

Also read up on the different forms of title - eg strata, stratum and company as these are found in older style units.
 
Thanks heaps Spiderman.

I have been told this property is strata titled. I just got the section 32 and don't know where to find the info.
Hopefully get it looked over soon though.

I'm looking for a place to live myself. But will probably rent it out sometime down the line.
 
We recently sold hubby's dad's retirement unit which had exclusive use of part of the common area under 99 year lease which gave him a bigger outdoor area and yard. It was a major selling point and we had no trouble selling it.
Marg
 
Thanks for the feedback everyone.

One concern with this is that I may be limited with what I can and can not do in this space. My solicitor has mentioned that it can be difficult to get the owners corp approval for any sort of 'construction'.

Has anyone had a similar situation? Say for example I wanted to re-pave the area and build a brick bbq, and maybe build some raised planter boxes for growing some herbs or whatever.
How limited am I in what I can do with this space??

Thanks for any input.
 
Thanks marg.

So regardless whether it's on title or just licensed I would have to go through the same process? So it won't really make a difference either way?
 
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