3 min

Importance of a special resolution being passed before granting a lease or license over a common property Strata Life

    • Management

You see, it's absolutely certain for the strata community to pass a special resolution because it gives the power to all the owners to make a decision if they want to lease or license part of the common property. Now, this wasn't given to the executive committee for the very reason that all the other owners in your community must be given an opportunity to voice out whether they want to lease or license that shared area.
Now, if the executive committee decides to skip that requirement, which is really a legal requirement to pass a special resolution, and decides to make that decision, they're really acting beyond their powers. And what could be the consequence be them opening themselves up to any liabilities that could be made by another owner or even the person that's been granted a lease or license?
So it's absolutely necessary that your strata community passes a special resolution, records that special resolution in the minutes or a ballot, and then confirms in the lease or license document that a special resolution has been passed. In that way, there will be no future arguments that could absolutely be avoided, and no allegations made against the committee in the absence of a special resolution being passed.

You see, it's absolutely certain for the strata community to pass a special resolution because it gives the power to all the owners to make a decision if they want to lease or license part of the common property. Now, this wasn't given to the executive committee for the very reason that all the other owners in your community must be given an opportunity to voice out whether they want to lease or license that shared area.
Now, if the executive committee decides to skip that requirement, which is really a legal requirement to pass a special resolution, and decides to make that decision, they're really acting beyond their powers. And what could be the consequence be them opening themselves up to any liabilities that could be made by another owner or even the person that's been granted a lease or license?
So it's absolutely necessary that your strata community passes a special resolution, records that special resolution in the minutes or a ballot, and then confirms in the lease or license document that a special resolution has been passed. In that way, there will be no future arguments that could absolutely be avoided, and no allegations made against the committee in the absence of a special resolution being passed.

3 min