We do not have enough parking in our scheme. We now have the opportunity to enter into a lease agreement with the neighbors to rent some vacant land from them to serve as extra parking for the Body Corporate. What type of resolution is needed for this?

If you look at the STSM Act you will see the following:

Section 5

  1. (1) In addition to the body corporate’s main functions and powers under sections 3 and 4, the body corporate—
  • may, subject to subsection (2), purchase land to extend the common property, if duly authorised thereto in writing by all the owners;

 

However, the STSM Act is silent about leasing land outside the scheme’s common property.

Speaking to some experts the following is suggested –

The Body Corporate needs to pass an ordinary resolution to allow the Trustees to enter into such a lease agreement – and the expense has to be included in the budget (ordinary resolution)