You would need a common license or lease if you would like to use part of the common property to install your solar panels or personal effect such as your business signage on the common property.
Have you ever wondered what should be included in a common lease or license? Even if you're not a lawyer, it is important to understand their components. Let's have a look at five of them.
Number one, lease or licensed area based on a plan of subdivision. Having the lease or licensed area specified based on a plan of subdivision is absolutely important so that it is clear what is being leased or licensed.
Number two, is the term or period of the common lease or license. This is the length of time or the life of the lease or license. It must be clear to both parties the one who is either leasing or licensing and the Strata community who is actually leasing or licensing part of the common property and that would be the term or the period of the lease under license.
Three, what is the authorized use of the leased or licensed area? Identifying the authorized use of what is being leased or licensed is crucial in a lease or license document.
Four, how much, if any, is the lease or license fee, or is it at a peppercorn rate of $1 considered paid at the start of the common lease or license period? It's important to identify if there's going to be significant money exchanged or is it simply where the Strata community will allow a peppercorn rate which I have said is one dollar paid at the beginning of the lease or license. So that the person or party leasing or licensing the common property is aware of any money or investment that needs to be put in the least or licensed area.
And number five, what are your responsibilities to repair and maintain the lease or license area this is usually passed on to the lease or the license of the area that's being leased or licensed. It's important to clarify, and understand point by point what is going to be their responsibility during the term or the period?
These are the five essential parts of common property, lease, or license, also known as a common lease or license. Do you think there should be items that are or should be included in the list? We want to hear from you.