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ARTICLE · 15 DECEMBER 2014

What does it mean for a body corporate to act reasonably?

The obligation to act reasonably aims to protect owners from being subjected to arbitrary or capricious decision-making.

AustraliaReal Estate and Construction

Often a body corporate or its committee is accused of acting unreasonably by someone that considers its stance to be unfair or adverse to their interests. That inevitably leads to a debate on what 'reasonable' means. A recent decision has given the industry an answer.

It started with one owner's plan to join together an external deck and daybed to his villa to create a larger external space. That required exclusive use of about 5m² of common property air space next to both of these external areas.

The grant of exclusive use of the common property had to be authorised by resolution without dissent. At the general meeting, 50% of the voters opposed it.

Ordinarily that would be the end of the matter. However, an adjudicator in the Office of the Commissioner for Body Corporate and Community Management has the power to make an order to give effect to a motion that required a resolution without dissent if they are satisfied that the motion did not pass because

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