Strata Title
17. Priority Vote
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 22 Sep 2015
- A mortgagee or a covenant chargee (the holder of a positive covenant affecting a lot) has a priority to vote on certain issues.
- This means that their vote counts instead of the lot owner’s.
- Priority voting applies to:
- motions requiring special or unanimous resolutions; and
- insurance, budgeting or levy motions where the money to be spent is more than $200 multiplied by the number of lots in a scheme:
- for example in a 5-lot scheme a priority vote can only be used if the expenditure will exceed $1000.
- Two days written notice must be given the concerned owner if the mortgagee or the covenant chargee intends to use its priority vote.
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