In a unit title complex, the body corporate wants to install a new lift which will significantly increase the value of all units. Under the Unit Titles Act 2010, what type of resolution is required?
Correct Answer
B) Special resolution (75% or more)
Installing a new lift constitutes a significant improvement to common property that will substantially increase the value of units. Under the Unit Titles Act 2010, this requires a special resolution with 75% or more of unit owners agreeing.
Why This Is the Correct Answer
Option B is correct because installing a new lift constitutes a significant improvement to common property under the Unit Titles Act 2010. This type of substantial capital improvement that will materially increase unit values requires a special resolution, which needs approval from 75% or more of unit owners. The Act specifically requires this higher threshold for major improvements to ensure broad consensus among owners for decisions involving significant expenditure and permanent alterations to the property.
Why the Other Options Are Wrong
Option A: Ordinary resolution (more than 50%)
An ordinary resolution (more than 50%) is insufficient for installing a new lift. While ordinary resolutions cover routine body corporate matters like annual budgets and minor maintenance, significant capital improvements that substantially increase property values require the higher threshold of a special resolution under the Unit Titles Act 2010.
Option C: Unanimous resolution (100%)
A unanimous resolution (100%) is not required for installing a lift. While some extraordinary matters may require unanimous consent, the Unit Titles Act 2010 specifically provides for special resolutions (75%) for significant improvements to common property. Requiring unanimity would make such improvements practically impossible to achieve.
Option D: Committee resolution only
A committee resolution alone cannot authorize such a significant expenditure and improvement. Installing a lift affects all unit owners substantially and requires formal approval from the body corporate membership through the proper resolution process. Committee decisions are limited to delegated operational matters, not major capital improvements.
Deep Analysis of This Property Law Question
This question tests understanding of decision-making thresholds in unit title complexes under the Unit Titles Act 2010. The installation of a new lift represents a significant capital improvement to common property that will substantially enhance the value of all units. Such major improvements require careful consideration as they involve substantial costs, affect all unit owners, and permanently alter the property. The Act establishes different voting thresholds based on the significance and impact of decisions. Ordinary resolutions suffice for routine matters, while special resolutions are required for substantial changes that affect unit values or common property significantly. This graduated approach ensures that major decisions affecting all owners receive broad consensus while allowing routine management to proceed efficiently. Understanding these thresholds is crucial for property managers and real estate professionals advising body corporates.
Background Knowledge for Property Law
The Unit Titles Act 2010 establishes a hierarchy of decision-making for body corporates. Ordinary resolutions (>50%) cover routine matters like budgets and minor repairs. Special resolutions (≥75%) are required for significant matters including major improvements to common property, changes to body corporate rules, and substantial expenditures. Unanimous resolutions (100%) apply only to extraordinary matters like changing the unit entitlement schedule. The Act aims to balance efficient decision-making with protection of minority interests, ensuring major decisions affecting all owners receive substantial consensus while preventing small groups from blocking reasonable improvements.
Memory Technique
Remember 'LIFT needs 75%' - when you think of installing a LIFT (or any major improvement), picture 75% of people agreeing to 'lift up' the property value. Major improvements that 'lift' property values need 75% special resolution approval.
When you see questions about significant improvements to common property (lifts, pools, major renovations), immediately think '75% special resolution'. If it's routine maintenance, think 50% ordinary resolution. If it changes fundamental ownership rights, think 100% unanimous.
Exam Tip for Property Law
Look for keywords like 'significant improvement', 'substantially increase value', or 'major capital work' - these trigger special resolution requirements (75%). Routine matters need ordinary resolutions (50%), while fundamental changes need unanimous consent (100%).
Real World Application in Property Law
A 20-unit apartment complex built in the 1980s has an aging building with no lift access to upper floors. Several elderly residents struggle with stairs, and the body corporate committee proposes installing a modern lift costing $150,000. This would significantly improve accessibility and increase all unit values by approximately $10,000 each. The committee must call a special general meeting and achieve a 75% special resolution from unit owners before proceeding with this major common property improvement.
Common Mistakes to Avoid on Property Law Questions
- •Confusing ordinary and special resolution thresholds
- •Thinking committee decisions are sufficient for major improvements
- •Assuming unanimous consent is required for all significant changes
Related Topics & Key Terms
Key Terms:
More Property Law Questions
Under the Real Estate Agents Act 2008, what is the maximum period for which a real estate agent's licence can be issued?
What is the primary purpose of the Land Transfer Act 2017?
Under the Unit Titles Act 2010, who is responsible for maintaining the common property in a unit title development?
What is the statutory cooling-off period for off-the-plan unit title sales under the Unit Titles Act 2010?
A real estate agent discovers that a property they are marketing has a significant structural defect that the vendor has not disclosed. Under the Real Estate Agents Act 2008, what should the agent do?
- → Under the Property Law Act 2007, what is the effect of a properly executed deed compared to a simple contract?
- → A purchaser discovers after settlement that the vendor's solicitor held a power of attorney that had been revoked before the sale. What protection does the Land Transfer Act 2017 provide?
- → Under the Real Estate Agents Act 2008, in what circumstances can the Real Estate Agents Authority refuse to issue a licence to an applicant?
- → A unit title body corporate wishes to create a new rule requiring all unit owners to obtain body corporate approval before making any alterations to their units. Under the Unit Titles Act 2010, what type of resolution is required to pass this rule?
- → A property has been sold subject to an existing tenancy, but the Land Transfer register shows no notation of the tenancy. Under the Property Law Act 2007 and Land Transfer Act 2017, what is the likely legal position?
- → Under the Real Estate Agents Act 2008, what is the maximum period for which a real estate agent's licence can be issued?
- → Which document is required to be registered under the Land Transfer Act 2017 to transfer ownership of fee simple land?
- → Under the Unit Titles Act 2010, what percentage of unit owners must vote in favour to pass an ordinary resolution at a body corporate meeting?
- → According to the Property Law Act 2007, what is the minimum period of notice required to terminate a periodic tenancy where rent is payable monthly?
- → A real estate agent discovers that a property they are marketing has a significant structural defect that the vendor has not disclosed. Under the Real Estate Agents Act 2008, what must the agent do?
People Also Study
Agency Practice
130 questions
Sale & Purchase Process
130 questions
Professional Conduct & Ethics
110 questions
Property Management
90 questions
Related Study Resources
Previous Question
An agent working under the Real Estate Agents Act 2008 receives two offers on the same property simultaneously - one verbal offer communicated by phone and one written offer delivered in person. Both offers are identical in terms. What should the agent do?
Next Question
In a unit title development, a unit owner wants to install air conditioning that requires alterations to the external wall of their unit. Under the Unit Titles Act 2010, what approval is typically required?