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Posted 29 August 2012
Category: Urban Renewal, Easements
Owners corporations are from time to time approached by developers carrying out developments on adjoining or nearby sites, requesting a licence to operate a crane over the owners corporation’s property. It is common for developers to approach owners corporation representatives on-site, before legal advice has been obtained, seeking to have a licence deed executed by the owners corporation, which provides for little or no compensation and which fails to adequately address the safety, amenity and other issues involved.
As a practical matter, an owners corporation should probably negotiate with the developer, as there is the possibility of the developer obtaining rights pursuant to an application under various acts, including Section 88K of the Conveyancing Act 1919 or the Access to Neighbouring Land Act 2000 if unable to negotiate an agreement with the owners corporation. However, any such negotiations should be for the purpose of determining whether arrangements satisfactory to the owners corporation can be negotiated, as the owners corporation is under no obligation to grant such a licence unless and until ordered to do so by the Court and as there is little likelihood of the Court doing so if the developer does not properly address compensation, costs, safety and amenity issues. As it is not unknown for developers to withdraw from such negotiations after the owners corporation has incurred substantial legal and other costs, an owners corporation may wish to require a payment of an amount on account of costs as a condition of entering into such negotiations.
The key considerations for owners corporations in these situations are as follows:
We recommend that, if an owners corporation is approached by developer with a request for a crane licence, the owners corporation obtain legal advice before entering into any arrangements with the developer, in order to ensure that these issues are properly addressed.
***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.