Commentary

76 Charges over common parts

COMMONHOLD vol 8(1)
| Commentary

76 Charges over common parts

| Commentary

2: DEALINGS WITH COMMON PARTS

76 Charges over common parts

On a commonhold association becoming registered as proprietor of any common parts, any subsisting charge will automatically be extinguished to the extent that it relates to those common parts1.

A charge over common parts may only be created if it is a legal mortgage and if it is first approved by a unanimous resolution of the commonhold association2. There is no statutory prohibition of other forms of charge so long as they do not extend to the common parts. Thus a commonhold association may charge its other assets by way of floating

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