The State Government has recently passed legislation amending the provisions of the Body Corporate and Community Management Act 1997.
The principal effect of the amendments is to increase the disclosure obligations of a Seller to a Buyer.
Accordingly, the changes to the Act require:
- A copy of the Community Management Statement to be provided to the Buyer with the Disclosure Statement prior to the Buyer signing the contract.
- In addition to the details of the annual contributions required to be paid to the Body Corporate, the Seller is also required to disclose the extent to which the annual contributions are based upon either the Contribution Schedule Lot Entitlements and/or the Interest Schedule Lot Entitlements for the lots in the Scheme; and
- The entitlements as disclosed in the Community Management Statement.
A new version of the Form 14 "Warning" is also to be released.
Changes have also been made to the manner in which both Interest Schedule Lot Entitlements and Contribution Schedule Lot Entitlements are to be determined. The law now requires that Contribution Schedule Lot Entitlements for each lot must be proportionate to the unimproved value of the lots or equal (except to the extent to which it is just and equitable in the circumstances for them not to be equal).
Likewise, the Interest Schedule Lot Entitlements must reflect the respective market values of the lots (except to the extent to which it is just and equitable in the circumstances for individual lot entitlements to not reflect those values).
Should you have any further questions or require further information in relation to the changes to the Act please do not hesitate to contact:
Bruce Durie
Director
(07) 3370 5100
bruced@mccarthydurie.com.au
