Occupation authorities are for business purposes only

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Current as at
October 17, 2024

The best ideas are common property – Seneca 

Bodies corporate may, by ordinary resolution (more votes for than against), authorise a manager to occupy part of the common property. 

An occupation authority:

  1. must not unreasonably interfere with the use or enjoyment of a lot or the common property by an occupier; 
  2. can be given on conditions; and
  3. may give exclusive occupation. 

Importantly, an occupation authority is valid only where it is for particular purposes necessary to enable the manager to perform its obligations under the caretaking agreement or to conduct a letting agent business.  

If an occupation authority is not necessary for either of those purposes, the body corporate does not have the authority to grant it. 

The body corporate could instead grant a lease or licence, or where the manager owns a lot, an exclusive use allocation, over the common property.

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