Crosslease issues with no common area defined and exclusive are

[schrodinger]

Hi guys,

I wonder if anyone has encountered it, it is the first time I see this kind of title / lease documents. There are two units in the block, attached. The back unit has a big backyard with fence. The front part of the driveway from the road to back unit I thought initially should be common area. However when I and my solicitor check the titles and lease documents of both units , we both can't see anywhere mention about the front part of the driveway is common area, nor anything about the whole driveway.

On the title plan, the backyard marked as (A) said it is with flat at the back but my solicitor said that there is no exact term in the lease document saying that (A) is exclusive to the back flat.

The owner of the back unit have been living there for 15 years and said never have any problem with front unit people but if it is not in the title and lease document. The front unit people can legally park their cars in front of the back unit garage door, right?

Also if the backyard of the back unit is not exclusive to back unit then it will have lower market value from the perspective of valuers and buyers.

What are your thoughts? Thanks a lot in advance!

[Leftette]

I'm no lawyer, first off. However I'd not be surprised that on a x-lease site if it's not mentioned then by default it's common area. That would include the backyard and the entire drive, so yes, technically unit 1's car could park in front of unit 2's garage, but seriously, what sort of a-hole would do that?

[Glizzle]

You cant think about this as legal or not, Leftette is right you're pretty much just a asshole and your partner in this cross lease could dispute that you aren't giving them access to there share if you block the Driveway,. This isnt anything to do with a legal matter but more a domestic dispute of land usage, remember you own the land 50/50.
Its like having a business partner and writing up what each will do then the other one crosses into your work or you lock him out. These nothing legally you can do about it, but it will make running that business ****en hard, and this is the fun of cross-leases, you're essentially got a business partner.
On top of that, you arnt going to find a exact term, you both own the land its that simple, If say you started using the back land and it went before a judge as a dispute, he will just look at the flat plan and go off that, he isn't going to listen to you're But its not define as "exclusive use".

[PTILoveYou]

Looks like the cross-lease agreement was not well drawn up then.

In this situation, I would personally do this:
1) talk to the neighbour, see if he/she sells to you. If not, or you don't intend to buy them out, go to step 2)
2) talk to the neighbour, ask if he/she want to spend some money (half share) to get the properties re-surveyed, and get lawyers to draw up new cross-lease agreements. This aims to better define the exclusive and common areas of the properties, so that in the future it makes things clearer for the buyers, and actually may result in increase in value

[Glizzle]

Gary if your going to those lengths just create a full freehold.

[PTILoveYou]

Gary if your going to those lengths just create a full freehold.

Yeah fee simple would be best.

Not sure if you need to pay council contributions though, apparently that might be considered a subdivision? Never done anything like that before, just heard rumours.

[TheLibrary]

However when I and my solicitor check the titles and lease documents of both units , we both can't see anywhere mention about the front part of the driveway is common area, nor anything about the whole driveway.

This made me look at the lease documents for my property.........its doesn't specifically say the driveway is common area in isolation, but does say (in non legal jargon) that the occupiers of the flats can expect to enjoy their home, and driveways, paths etc are to be used as access only to each owners flat..............which means no parking.

[Wayne]

What are you looking for Schrodinger?
Is there a problem or are looking to see if there might be a problem?
I presume you are looking to buy the front unit?

[schrodinger]

What are you looking for Schrodinger?
Is there a problem or are looking to see if there might be a problem?
I presume you are looking to buy the front unit?

Hi Wayne, I am looking to buy the back unit. The concern for me is the title does not define the common area and the backyard of back unit is not defined as exclusive for back unit. The issues I think i have described in my original post?

For the backyard exclusive issue, it will impact the value of the back unit. If it is not exclusive, I have to lower my price accordingly but it is in multi offer and I think I may lose it. Hard call.

[Wayne]

I see - thanks for the clarification.
These things generally just 'work themselves out' but you are right to be concerned about putting money on that.
When the areas of use (areas naturally used by each unit) are the same or similar there isn't any issue as people see the logic.
But I gather the 'big backyard' is a larger proportion of the overall property than the front unit enjoys.
If that is the case then you are right to think that someone in the front unit in the future could come along and plant their hobby do-up car on 'your' backyard.