Rights To Common Areas after leaving Leaseback

5 posts / 0 new
Last post
Rights To Common Areas after leaving Leaseback

Does anyone know of any resources about the rights of an owner to the use of common areas after termination of a leaseback contract.

specific problem we have in our Residence. The owners (not the Promoter) own all common areas including the swimming pool and spa. All owners inc. non leaseback pay for the charges via the tantiemes for the pool and spa areas. 
Our copro regs state that the pool and spa are considered a 'commercial' common area and is allocated to the Tourism Operators use for 18 years.

The Operator allows a private owner to use the pool but not his guests even though we pay our full charges inc. water, electricity, cleaning and maintenance for these areas.

I could understand that the private owners could not use the pool / spa if they did not pay the charges for this area.

We have exhausted all channels of communication with the Operator except moving to take legal action. Any links to case histories would be great.

Any advice, information from other owners who have had a similar situation or links to any resources would be much appreciated.

"Our copro regs state that the pool and spa are considered a 'commercial' common area and is allocated to the Tourism Operators use for 18 years."

But do the co-owners still "own" the pool and spa common area even if the Tourism Operator has "use" of those areas for 18 years?

Why not write a resolution for vote at next AGM to remove that clause and change co-owners regs?

Macdara,

We still own the pool and spa but the RDT operator still has around 100 of the 120 apartments. 15% of the tantiemes are also owned by business units in the residence. Bizarrely, the business owners also pay for the electricity/ water / maintenance of the spa and pool area.

I would assume that removing the clause from the regs would lead to legal action and compensation to the operator if it effected their operation. I would have thought that we could either use the pool as we pay the charges for it and own it OR because of the term 'commercial' common area we have no right to use the pool and the operator should be paying all the expenses for the area as do the other commercial shops and restaurants on their commercial areas in the Residence?

I have never seen a legal reference to what exactly the definition of a 'commercial' common reference is?

I did find a court case where non lessor owners won a court case regarding the costs of an  RDT reception desk. The judge decided that the reception desk was not relevant for non lessors as this was part of the operators own commercial activity for its own clients and therefore the non lessors should not pay for Reception.

The operator installed an electronic card access system 2 years ago for the pool and spa to prevent our access.

You have no contact details available for private messaging.

Might be useful for receiving "advice" if an email address were available...

Hello,
"who own the pool"? 

If owners have 85% and business(operator?) have 15% of tantiemes then surely the 120? apartment-owners own the 120 apartments and also co-own 85% of the pool and other shared areas?

It kind of sounds like your operator has an 18-year quasi "lease" on the pool by way of co-pro regs but 50% of tantiemes at an AGM could remove that clause from co-pro regs. Of couse the operator could look for compensation just in the same way operators would get compensation if you did not renew lease.

I'm an ex-owner and out of the leaseback merrygoround but I and some other owners always avoided legal action but used our full rights as owners at AGMs and ensured 50%+ of owners posted pouvoirs (postal votes) to AGM so we could pass and create co-pro regs to owners advantage.
There have been changes in co-pro laws in June 2020 to strengthen owners rights so a small owners council "conseil syndical"  can now make article-24 decisions outside AGM. 

Owners flexing your muscles in AGM could get your operator to negotiate. 

I would think your goal is to take control of pool and exit leases when you see fit but of course operator will need some compensation but negotiate to keep to minimum.

"The Operator allows a private owner to use the pool but not his guests even though we pay our full charges inc. water, electricity, cleaning and maintenance for these areas."

I think above could be owverruled by owners council "conseil syndical" but a resolution at AGM could also be used.

You must sign up or login to access more forums.