Leases over common property

Lot owners have successfully upheld their rights in relation to leases granted over car spaces and courtyards on common property.

In 2004 a block of 12 apartments was renovated by a developer and sold to individual purchasers. 8 of the 12 purchasers paid an additional purchase price to obtain a lease from the owners corporation over a car space or courtyard on common property.

9 years later, the validity of the leases was denied by the owners of the other 4 apartments on the basis that the leases were not validly granted by the owners corporation. The 8 lot owners applied to VCAT to have the issue resolved. VCAT determined that the leases were valid: Jackson v Owners Corporation PS5119437 [2015] VCAT 1537

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