No Licence over a Courtyard, Water Meter, or the Tap

Dropulich & Ors v McHarg & Ors [2008] VSC 238

GoStrata’s CaseWatch is a short, sharp and easy-to-understand review of important and interesting Court and Tribunal decisions affecting Australian strata title stakeholders.

---

Quick Read

This Victorian Supreme Court decision about a small courtyard and a water meter and tap in a small St Kilda strata building was about the validity of a common property licence to one strata owner. The primary issue involved the procedures the strata corporation followed to grant [and later ratify] the licence by a series of strata corporation actions and strata meetings.  There was a second issue about the implied rights of strata owners to access common property. After reviewing the history, the Victorian Supreme Court decided that the strata building had failed to properly approve and sign the licence and that it was not effectively ratified retrospectively either.  So, it’s a timeless reminder that Victorian [at least] strata buildings must strictly follow requirements about the required decisions, signing documents, and disclosures for ratification.

---

Implications

The key implications of this strata case are as follows.

• The 2001 Regulations (Subdivision (Body Corporate) Regulations 2001) permit strata buildings to lease or licence common property by special resolution.

• The 2001 Regulations (Subdivision (Body Corporate) Regulations 2001) prevents strata buildings from signing licences with their seals if that is not also specifically approved.