The attached Court of Appeal Decision relates to the question of exclusive letting rights for Management Rights operators. It had appeared from earlier precedents that the Body Corporate did not have the right to grant a Manager exclusive letting rights to any apartment complex and thus bind the Apartment Owners to that arrangement. The attached Court of Appeal Decision dated the 6th August 2013 shows that the Court of Appeal upheld the High Court Decision that the appointment of an exclusive letting agent is not “ultra vires”, meaning beyond the power of the Body Corporate. This should mean that contracts for the sale of Management Rights which include a Body Corporate provision that the Body Corporate appointed Manager has exclusive letting rights, should remain binding. The Apartment Owners would usually still have the option to remove their property from the letting pool with the appropriate notice. If however an exclusive letting appointment is enforceable, they are not able to arrange for anyone other than the Body Corporate appointed Manager to let their apartments.
This summary is not intended to offer legal advice or opinion. As always, it is imperative that independent professional legal advice be obtained in these matters.
View the full Court of Appeal Decision here
