One of the owners runs a business from his section in the scheme. The Trustees contacted us to check the legality of allowing this.

Not going into too much detail we have to look at what constitutes running a business from a section. 

1) Someone who has customers or employees coming to his section, for instance, someone making ice in his garage and selling it from his section.

2) Someone working from home like an Accountant who does the clients’ books at home but the clients do not visit his unit and he has no employees for his business

If you look at the scenarios above, I would think that scenario 1 is running a business and scenario 2 is not.

Looking at the stipulations in the STSM Act:

PMR 30.  The body corporate must take all reasonable steps to ensure that a member or any other occupier of a section or exclusive use area does not—

  • use the common property so as to unreasonably interfere with other persons lawfully on the premises, in breach of section 13(1)(d) of the Act; Was Section 44(1)(d)
  • use a section or exclusive use area so as to cause a nuisance, in breach of section 13(1)(e) of the Act;  Was Section 44(1)(e)
  • contravene the provisions of any — Was PMR 68(1)(ii)
  • law or by-law relating to the use of a section or an exclusive use area; or
  • conditions of a license relating to use of the building or the common property, or the carrying on of a business in the building; or
  • conditions of title applicable to sections or exclusive use areas;

Running a business from a section can also have serious implications on the zoning of a scheme.  It is normally zoned for residential purposes and the rates and taxes calculated accordingly.