Purchasing common property

Discussion in 'Adding Value' started by Vik, 3rd Oct, 2008.

  1. Vik

    Vik Member

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    HI, I would like to pick your brain...
    I own and live in a flat (house of 10 flats) which has a garden in front of it (common property) opening onto the street. I wish to lease (long-term, appx 50 years) or possibly purchase part of this garden from the rest of the owners.
    What sort of remuneration would be the best to offer in my proposal? Thanks
     
  2. boomtown

    boomtown Member

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    I dunno but sounds like a very expensive legal nightmare. I would think it would be easier just to buy elsewhere.
     
    Last edited: 3rd Oct, 2008
  3. AdamP

    AdamP Member

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    Definatley a legal nightmare.

    Public Liability Insurance would have to be considered.

    What is the purpose for you wanting to buy it?
     
  4. lizzie

    lizzie when i grow up ...

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    back in the painting clothes
    buy the other 9 flats ... (tongue in cheek symbol)
     
  5. buzzlightyear

    buzzlightyear Member

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    Legal issues aside, you need to put a value on the land and get approval (from all the owners) through the body corporate.

    I think that will be the biggest challenge? How big is the piece of land?
     
  6. The Y-man

    The Y-man Member

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    At least Vik wants to pay for the piece of land. I had an owner in a block where we own an aprtment try to do it on the sly - he put in a proposal to build a fence around the segment of common property (similar to description by Vik - hey maybe Vik is that owner :D ) for "security reasons". Of course, what it was going to do was to give private use of the common property to that unit.... with all the other units chipping in to build the fence! :eek:

    Cheers,

    The Y-man
     
  7. Vik

    Vik Member

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    Thanks everyone.

    The purpose is that I would like to open up the windows as French doors to the garden. It's a relatively small area and is no use to anyone otherwise.

    I have enquired, I am aware of that I need to get 75% of owners to agree to me leasing that area; however in my proposal I need to offer a few options of remunerations...

    It's just a try if I don't get the permit I get over it (don't think I would attempt to buy the pother 9 flats :D) I thought I would offer something like painting all windows on the building, or re-carpeting corridors etc...

    Cheers
     
  8. Jon Chown

    Jon Chown Member

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    For security and better use of otherwise useless balcony, this is not an uncommon occurence. The land would be given as exclusive use and the upkeep and maintenance would be payable by the owner of the unit receiving the use. Cost of fencing would also be borne by the unit owner.

    Before doing too much, I would advise a quick ask around to ascertain if there would be many objections. If not, I feel that you should get some agents in to try to calculate how much extra value the courtyard would add to the unit. Then perhaps you could offer around half as a starting point.
     
  9. boomtown

    boomtown Member

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    Do you need exclusive use if you just want to open up windows into patio doors? Or do you want to fence it for security reasons?
     
  10. Vik

    Vik Member

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    Yes, I would like to fence it off as it would open to the street and the windows would be too exposed. It would be exclusive use...
     
  11. wish-ga

    wish-ga Member

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    People do not like to relinquish common property. And for good reason. Common property is not in limbo until someone makes 'use of it'. It is already company owned. By the owner's corporation. Without common property surrounding the entire block it is hard for the executive committee to maintain the block.

    "I thought I would offer something like painting all windows on the building, or re-carpeting corridors etc..."......shows you no idea of all that is involved. It can not be achieved with handshake type agreement. What you do has to stand for the 'lot' irrespective of who is the resident.

    Paying for the sq meterage is not as fair as it sounds. What of land value? Usually divided among the lots. Land appreciates in value to be shared among the owners and you want to buy extra land? Your purchase will affect the values of the other owners.

    And a purchase of land is permanent.

    A better idea, have a by-law drawn up (you pay costs).

    Put it on the agenda for the next Annual General Meeting (I assume you already attend these. Unlikely a blow-in will go down too well). Or call an extraordinary general meeting to address it with the owners. There is a lot of legal issues with calling a meeting so make sure you know what is involved (I have done it. It is no picnic).

    I suggest the by-law state the area is for the use of the owner of Lot # (covers future owners). Lot # has the responsibility of maintaining the fence and upkeep of the land as decided by the executive committee in line with other property maintenance.

    Upkeep means you pay a percentage of the maintenance. If the patch is 9% of the available land you pay 9% out of your pocket to the company who does the grass/shrubs etc. The other 91% comes out of the kitty.

    If your lot size changes your levies will go up accordingly. A change in the way land is allocated (even for bylaw and not ownership) must be indicated on the block plan. You pay for surveying and new plans to be drawn up. So that new plans can be included in the contracts given out with the sale of each lot. The ones you had with your contract when you bought would no longer be current. Subsequently your strata managers would be notified and recalculate how much each lot pays.
     
    Last edited: 15th Oct, 2008