Commonhold unit
Section 20: Other transactions
68.Section 20(1) forbids any provision of a commonhold community statement from preventing or restricting a unit-holder’s exercise of his right to create, transfer or grant an interest or charge over his unit, for instance, in appropriate circumstances, granting a right of way, or borrowing on a mortgage and so charging the unit as security. Subsection (3) however requires that no interest, other than a lease, can be created unless the commonhold association is either a party to it or consents in writing. By subsection (6), the subsection (3) requirement does not apply to the creation of charges, so the unit-holder’s rights to charge the unit are restricted only so far as provided in the Act itself or in any subordinate legislation made under it. Subsection (4) provides that, where a commonhold association is to act under subsection (3) it must only act following approval by a 75% majority of the members voting. Subsection (5) renders void any agreement, however made, which is in contravention of subsection (3), so a unit-holder who purports to act where in fact there is no unanimous consent of the association members is unable to make an instrument or agreement that will have effect. Subsection (2) makes subsection (1) subject to the provisions of sections 17 and 19 about leasing. Section 20 only deals with matters that would appear on the register.
