Strata Unit car parking

Keep this in mind when doing your mortgage calculations.

Do you know that Banks may when valuing your unit for your loan, either disregard or heavily discount a right to park that arises by exclusive use by law. The reason is that the Bank can’t take security over this right. Car parking in strata schemes can emanate from either the title for the property which includes the car parking space with the unit or from an exclusive use by law passed by the Owners Corporation. The exclusive use by law gives the owner of a lot the exclusive use to a car parking space and should be registered on the Strata Plan.

However, it is a personal right and it is possible for the right to be taken away by a special resolution of the Owners Corporation which includes the owners agreement. Obviously, this is unlikely as owners would not agree to their right being taken away but Banks approach the matter on the basis that such events are out of their control so they may disregard the value of such car parking right.

If your strata unit car parking space is on the registered title there is no problem.

Call Antunes Lawyers on 02 9964 0499 or contact us to discuss how we can best help you with your legal matter.

The articles on this website comprise legal general information and not legal advice. The general information presented here must not be relied upon without legal advice being sought. In the event that you wish to obtain legal advice on the contents of this general information you may do so by contacting our office or your existing solicitor.