‘Infrastructure contract’ – Is it a lease? Is it a licence? No, it is an easement!

//‘Infrastructure contract’ – Is it a lease? Is it a licence? No, it is an easement!

‘Infrastructure contract’ – Is it a lease? Is it a licence? No, it is an easement!

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The infrastructure contract is the new way to put solar in strata. No longer do you need that pesky exclusive use by law.

Solar in strata

Four score and seven years ago (in law years), putting solar in strata faced a huge snag. To mount solar on common property, an owner needed an ‘exclusive use’ by law.

The problem was, it costs too much to prepare and register the by law. So much so, that the costs would outweigh the gains to the owner. This was especially the case with small systems. And, even if you could, if only one person in the scheme opposed it, it failed.

What happened?

We the people do what we do best when the law is out of date. We ignore it. In the dead of the day, in one not so fowl swoop, up goes solar. The mad guy next door has no chance to complain. And, as for the government, well, we leave them behind.

Then, a review of strata laws comes along. Long after it should have. The green guru and I write a paper. The Fifth Estate starts talking. Landgate and law makers see the snag. A few years later (too many), we are all happy. We now have a way out – the ‘infrastructure contract’.

What is an infrastructure contract?

This is a contract between the strata and a person to allow solar. The ‘person’ can be the owner of the lot, a tenant or, in some cases, a solar retailer. All the strata must do is approve the contract, and it starts.

The most novel thing about it, is that the law deems the contract to be an ‘easement’. So, it ‘runs with the land’. This means it remains binding on any new owner in the scheme. It does not need to be a by law. The cost of doing a by law for solar is now gone.

It is also much simpler for the strata to approve it. A by law needs a ‘resolution without dissent’. The strata can do the contract with an ‘ordinary resolution’. What does this mean in practice? It means the mad guy next door does not have the power to stop it.

Where do I get an infrastructure contract?

While the new laws grant certain rights and duties, they do not create a standard form. This is because people can do solar lots of ways.

This is why you can come to us. We will prepare the contract and step you and the strata through the process. We will make sure the contract complies with the new laws.

Contact us here or below and we can get the solar rolling.

This article is not legal advice. You should get independent legal advice to deal with your situation.

For more information about these contracts, see here. For other articles, see here.

2021-02-19T10:38:54+08:00

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