Legislation Updates

CAN MANAGEMENT RIGHTS BE “TOPPED-UP” MORE THAN ONCE

In recent years, it has been suggested by some in the industry that caretaking agreements can only be extended (“topped up”) once and never for a term exceeding the maximum allowed in aggregate.

While Mahoneys did not consider there to be any merit to the “one-time top-up” myth, there had not previously been an opportunity to obtain a ruling on this issue from an Adjudicator.

OCCUPATION AUTHORITIES—VALIDITY, ACCESS, EXCLUSIVITY, PROFITS AND TERMINATION

A caretaker or letting agent is commonly granted the right to use part of common property to conduct their duties or provide letting services by ordinary resolution of the Body corporate. This is called an “occupation authority”.

Common problems we hear about occupation authority areas include…

COMMISSIONERS UPDATE: COMMISSIONS AND BENEFITS DISCLOSURE EXPLAINED

Body corporate managers and caretaking service contractors often assist the body corporate to engage service providers such as pool cleaners, gardeners and tradies as well as obtaining insurance quotes.

They may also lawfully receive commissions or benefits from service providers they recommend to a body corporate. However, where ANY benefit is received – be it cash or in-kind – it must, by law, be disclosed to the body corporate.

IMPORTANT INFORMATION RELATING TO THE INTRODUCTION OF THE NEW SELLER DISCLOSURE CERTIFICATES

Members should be aware the Property Law Act 2023, including the new seller disclosure framework, will start on 1 August 2025 and the forms have now been published.
The Property Law Regulation 2024, the Body Corporate and Community Management (Body Corporate Certificates) and Other Legislation Amendment Regulation 2024 and the Proclamation – Property Law Act 2023 are also available.

BY-LAW ENFORCEMENT

Body corporate by-laws are an essential element for regulating the use and enjoyment of common areas and lots within strata title complexes. All owners and occupiers are bound to follow their scheme’s by-laws, while a body corporate must enforce them and act reasonably in doing so. Although it’s a two-way street, owners and occupiers in the scheme can also take action.

IMPORTANT INFORMATION RELATING TO THE INTRODUCTION OF THE NEW SELLER DISCLOSURE REGIME

Last year significant changes were made to the Property Law Act which included changes to the Seller Disclosure regime.

CAN CONVICTED CRIMINALS BE COMMITTEE MEMBERS?

For Bodies Corporate established by the Body Corporate and Community Management Act 1997, there are various rules and regulations that govern who can be a Committee member.

BODY CORPORATES MUST SECURE AGREEMENT BEFORE EXTRA COSTS

Recovering costs from lot owners that are not usual body corporate levies requires careful consideration.  When a lot owner pays a body corporate levy, the money should be used towards purposes that are common for everyone.

DEALING WITH TENANTS WHEN TERMINATING A SCHEME FOR ECONOMIC REASONS

This article discusses further changes to the BCCMA that specifically addresses occupiers who are not owners.

BODY CORPORATE BANK ACCOUNTS

One of the general functions of a body corporate is to administer the common property and body corporate assets for the benefit of owners of lots in the scheme. This includes maintaining common property and, in some circumstances, taking out insurance policies. The funds to finance insurance or maintenance are from owner contributions. But who…