WHAT IS AN EXCLUSIVE USE AREA?

WHAT IS AN EXCLUSIVE USE AREA?

Often this will be a garden, patio, or parking bay, but may also be a garage or storeroom, that the owner does not own but will have been granted exclusive use. There are several ways that exclusive use areas can be created and protected. Under the 1971 Act, these areas were usually created under the Schedule I rules of the scheme. When the current Act came into effect in 1988, a more sophisticated way of creating exclusive use was introduced, resulting in registered exclusive use areas, deemed to be real rights, capable of being bought, sold and bonded.

In the opinion of many property practitioners, this method was too sophisticated for general use, resulting in an amendment to the current Act that introduced exclusive use areas created under the current rules. Please note that exclusive " use areas created under rules do not enjoy the same status as registered exclusive use areas. However, for most purposes, the method is adequate and much cheaper to implement. Registered exclusive^ use areas will be shown on the sectional plan, while those created under the rules will be reflected in the rules of the scheme. Developers and bodies corporate can choose either method to create exclusive use areas.

It is very important for a purchaser to establish exactly what he or she is buying before committing to the purchase. If it is not shown on the plan or in the rules, it probably does not exist! The Sectional Title Buyer's Checklist, which is included in this booklet, covers all the major points.

 

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