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Leases in strata or community title schemes

The complexities of leasing property within strata or community title schemes require specialized legal understanding. This guidance note addresses key legal considerations unique to these arrangements, ensuring practitioners navigate obligations and rights effectively. Topics covered include:

Topics Covered

  • Landlord’s obligation to repair the building or structure
  • Tenant’s right to use common property
  • Tenant’s obligation to contribute towards strata levies
  • Tenant’s proposed use of premises

Essential Insights

  • Assess landlord repair obligations carefully to align with owners’ corporation responsibilities and lease enforceability.
  • Consider tenants’ rights to use common property, which extend beyond standard lease provisions in strata schemes.
  • Evaluate the nuanced strata levy contributions tenants may be required to pay, distinguishing operational from capital costs.
  • Examine strata by-laws meticulously to confirm the tenant’s intended use complies with scheme restrictions and evolving regulations.
  • Understand complex interactions between lease terms and strata governance, where oversights may expose parties to unintended liabilities.

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