VIC Licence over common property

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Member
20 February 2021
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Hi there,

I live in a block of 15 units in Richmond. There are 5 units on the ground floor which are all owned by a single person and rented out. This person previously owned the whole block and is now progressively selling the units off.

The owner of the block was the sole manager of the owners corporation before he started selling the units off one by one. While he was sole member/manager of the owners corporation, he approved a 99 year licence agreement (as licensee and licensor) which provided that licensee was granted "sole access and occupation" of the common property area in front of the ground floor lots (an area of roughly 50 sqm). Since executing the agreement, he has installed 2.5m high fences with lockable doors around the licenced area so each unit can use the space as a private courtyard. They are an eyesore and, in my view, devalue the other units in the block.

I understand from researching online that, unlike a lease agreement, a licence does not entitle the licensee to "exclusive" use of the land. The fences with locked doors clearly means that the common property which is subject to the licence agreement only for exclusive use of the unit owners/occupiers.

I would like to propose removing the fences at an upcoming AGM and am wondering if anyone can confirm how it may work. For example, do I need to obtain the numbers to successfully pass a special resolution to have the fences removed? Or would it be enough to simply point out that the licences do not provide exclusive access and on that basis the fences must come down? Direction to any relevant relevant legislation (or parts of the legislation) or case law would be much appreciated.

Thanks
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