Body Corporate and Community Management Amendment Bill ... · Body Corporate and Community...

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Queensland

Body Corporate and Community Management Amendment Bill 2010

Contents

Page

1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

3 Amendment of s 46 (Lot entitlements) . . . . . . . . . . . . . . . . . . . . . 6

4 Insertion of new ss 46A and 46B . . . . . . . . . . . . . . . . . . . . . . . . . 7

46A Principles for deciding contribution schedule lot entitlements . . . . . . . . . . . . . . . . . . . . . . . 7

46B Principle for deciding interest schedule lot entitlements . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

5 Insertion of new ss 47A and 47B . . . . . . . . . . . . . . . . . . . . . . . . . 8

47A Adjustment of contribution schedule by resolution without dissent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

47B Adjustment of contribution schedule for particular schemes by order of specialist adjudicator or QCAT . 10

6 Amendment of s 48 (Adjustment of lot entitlement schedule) . . . 12

7 Insertion of new s 48A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

48A Criteria for deciding whether contribution schedule lot entitlements consistent with the principle applied to it . . . . . . . . . . . . . . . . . . . . . . . . . 13

8 Amendment of s 49 (Criteria for deciding just and equitable circumstances) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

9 Amendment of s 51 (Limited adjustment of lot entitlement schedule—after formal acquisition of part of scheme land) . . . . . 14

10 Insertion of new ss 51B and 51C . . . . . . . . . . . . . . . . . . . . . . . . . 14

51B Limited adjustment of lot entitlement schedule—after subdivision of lot. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

51C Limited adjustment of lot entitlement schedule—after amalgamation of lots . . . . . . . . . . . . . . . . . . . . . . . . . 15

11 Amendment of s 66 (Requirements for community management statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

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Contents


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12 Amendment of s 206 (Information to be given by seller to buyer) 17

13 Insertion of new s 206B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

206B Copy of new community management statement to be given . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

14 Amendment of s 209 (Terminating contract for inaccuracy of disclosure statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

15 Insertion of new s 209A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

209A Terminating contract if contribution schedule lot entitlements inconsistent with contribution schedule principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

16 Amendment of s 213 (Information to be given by seller to buyer) 20

17 Amendment of s 217 (Terminating contract for inaccuracy of statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

18 Insertion of new s 217A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

217A Terminating contract if lot entitlements inconsistent with contribution schedule principle . . . . . . . . . . . . . . 22

19 Insertion of new ch 8, pt 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Part 9 Transitional provisions for Body Corporate and Community Management Amendment Act 2010

Division 1 Preliminary

374 Definitions for pt 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Division 2 Interest schedules for particular schemes

375 Interest schedules for particular schemes . . . . . . . . . 23

Division 3 Effect of particular actions relating to contribution schedule lot entitlements

376 Application of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

377 Pre-commencement adjustment actions cease to have effect . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Division 4 Adjustment of contribution schedule lot entitlements for existing schemes to which adjustment order applies

378 Definitions for div 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

379 Application of div 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

380 Motion proposing adjustment of contribution schedule lot entitlements . . . . . . . . . . . . . . . . . . . . . . 27

381 Adjustment if a lot in the scheme has been subdivided . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

382 Adjustment if 2 or more lots in the scheme have been amalgamated. . . . . . . . . . . . . . . . . . . . . . . . . . . 28


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Contents


383 Adjustment if the boundary for a lot included in the scheme has changed . . . . . . . . . . . . . . . . . . . . . . . . . 28

384 Adjustment if material change since contribution schedule lot entitlements decided . . . . . . . . . . . . . . . 28

385 Resolution on motion . . . . . . . . . . . . . . . . . . . . . . . . . 29

386 New community management statement for contribution schedule lot entitlements adjusted under s 385 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Division 5 Other provisions

387 Other adjustments of lot entitlement schedules for schemes . . . . . . . . . . . . . . . . . . . . . . . . . . 30

388 Application of s 206 . . . . . . . . . . . . . . . . . . . . . . . . . . 31

389 Application of s 213 . . . . . . . . . . . . . . . . . . . . . . . . . . 31

20 Amendment of sch 6 (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . . 32


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2010

A BillforAn Act to amend the Body Corporate and Community Management Act 1997 for particular purposes

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[s 1]


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The Parliament of Queensland enacts—

1 Short title

This Act may be cited as the Body Corporate and CommunityManagement Amendment Act 2010.

2 Act amended

This Act amends the Body Corporate And CommunityManagement Act 1997.

3 Amendment of s 46 (Lot entitlements)

(1) Section 46(7)—

omit, insert—

‘(7) For the contribution schedule for a scheme established afterthe commencement of this subsection, the respective lotentitlements must be consistent with—

(a) if the lots included in the scheme are standard formatlots or volumetric format lots, either—

(i) the unimproved value principle; or

(ii) the equality principle; or

(b) if the lots included in the scheme are building formatlots, either—

(i) the equality principle; or

(ii) the relativity principle.

‘(7A) For the interest schedule for a scheme established after thecommencement of this subsection, the respective lotentitlements must be consistent with the market valueprinciple.’.

(2) Section 46(8), from ‘In deciding’ to ‘subsection (7)’—

omit, insert—

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[s 4]


‘In deciding the contribution schedule lot entitlements for acommunity titles scheme under subsection (7)(a)(ii) or (b)(i),or the interest schedule lot entitlements for a community titlesscheme under subsection (8)’.

(3) Section 46(7A) to (9)—

renumber as section 46(8) to (10).

4 Insertion of new ss 46A and 46B

After section 46—

insert—

‘46A Principles for deciding contribution schedule lot entitlements

‘(1) The unimproved value principle for deciding contributionschedule lot entitlements for lots included in a communitytitles scheme is the principle that the lot entitlements must beproportionate to the unimproved values of the lots.

‘(2) The equality principle for deciding contribution schedule lotentitlements for lots included in a community titles scheme isthe principle that the lot entitlements must be equal, except tothe extent to which it is just and equitable in the circumstancesfor them not to be equal.

Examples of circumstances in which it may be just and equitable for lotentitlements not to be equal—

1 a layered arrangement of community titles schemes, the lots ofwhich have different uses (including, for example, car parking,commercial, hotel and residential uses) and different requirementsfor public access, maintenance or insurance

2 a commercial community titles scheme in which the owner of 1 lotuses a larger volume of water or conducts a more dangerous or ahigher risk industry than the owners of the other lots

‘(3) The relativity principle for deciding contribution schedule lotentitlements for lots included in a community titles scheme isthe principle that the lot entitlements must demonstrate therelationship between the lots by reference to 1 or moreparticular relevant factors.

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‘(4) A relevant factor for subsection (3) may, and may only, be anyof the following—

(a) how the scheme is structured;

(b) the nature, features and characteristics of the lots;

(c) the purposes for which the lots are used;

(d) the impact the lots may have on the costs of maintainingthe common property;

(e) market values of the lots.

‘(5) In this section—

unimproved value, of a lot, means the unimproved value ofthe lot within the meaning of the Valuation of Land Act 1944,section 3.

‘46B Principle for deciding interest schedule lot entitlements

‘(1) The market value principle for deciding interest schedule lotentitlements for lots included in a community titles scheme isthe principle that the lot entitlements must reflect therespective market values of the lots, except to the extent towhich it is just and equitable in the circumstances for theindividual lot entitlements not to reflect the respective marketvalues of the lots.

‘(2) The following apply for working out the market values of lotsincluded in a community titles scheme—

(a) if a lot included in the scheme is a subsidiary scheme,the market value of the lot is the market value of thescheme land for the subsidiary scheme;

(b) for establishing the market value of a lot created under astandard format plan of subdivision or volumetricformat plan of subdivision, buildings and improvementson the lot are to be disregarded.’.

5 Insertion of new ss 47A and 47B

After section 47—

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[s 5]


insert—

‘47A Adjustment of contribution schedule by resolution without dissent

‘(1) The body corporate for a community titles scheme, byresolution without dissent, may change the contributionschedule lot entitlements of the lots included in the scheme.

‘(2) The notice of the meeting at which the resolution is proposedto be passed must state, or be accompanied by a written noticestating—

(a) the proposed changes to the contribution schedule lotentitlements; and

(b) the reasons for the proposed changes to the contributionschedule lot entitlements.

‘(3) The changed contribution schedule lot entitlements must beconsistent with either—

(a) the deciding principle for the existing contributionschedule lot entitlements; or

(b) another principle if it is a contribution scheduleprinciple.

‘(4) For subsection (3), if the deciding principle for the existingcontribution schedule lot entitlements is the relativityprinciple based on a particular relevant factor, the changedcontribution schedule lots entitlements may—

(a) under subsection (3)(a), be consistent with the relativityprinciple based on the same particular relevant factor; or

(b) under subsection (3)(b), be consistent with—

(i) the relativity principle based on a differentparticular relevant factor; or

(ii) another contribution schedule principle.

‘(5) The body corporate must, as quickly as practicable, lodge arequest to record a new community management statementincorporating the change.

Maximum penalty—100 penalty units.

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Note—

Under section 46(10), a change to a lot entitlement takes effect on therecording of the new community management statement incorporatingthe change.

‘(6) The new community management statement must be preparedand recorded at the expense of the body corporate.

‘47B Adjustment of contribution schedule for particular schemes by order of specialist adjudicator or QCAT

‘(1) This section applies if—

(a) a community titles scheme is affected by a materialchange that has happened since the last time thecontribution schedule lot entitlements for lots includedin the scheme were decided; and

(b) the owner of a lot included in the scheme believes anadjustment of the contribution schedule lot entitlementsis necessary because of the material change.

‘(2) This section also applies if—

(a) a community titles scheme is established after thecommencement of this section; and

(b) the owner of a lot included in the scheme believes thecontribution schedule lot entitlements for lots includedin the scheme are not consistent with the decidingprinciple for the lot entitlements.

‘(3) The owner of the lot may apply—

(a) under chapter 6, for an order of a specialist adjudicatorfor an adjustment of the contribution schedule for thecommunity titles scheme; or

(b) as provided under the QCAT Act, for an order of QCAT,exercising the tribunal’s original jurisdiction, for anadjustment of the contribution schedule for the scheme.

‘(4) Despite any other law or statutory instrument, the respondentto an application mentioned in subsection (3) is the bodycorporate.

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[s 5]


Note—

The body corporate must be given notice of the application under—

(a) for an application to a specialist adjudicator under chapter6—section 243; or

(b) for an application to QCAT as provided under the QCAT Act—theQCAT Act, section 37.

‘(5) If the owner applies under chapter 6 for an order of aspecialist adjudicator—

(a) at the election of another owner of a lot in thecommunity titles scheme, the other owner may be joinedas a respondent to the application; and

(b) each party to the application is responsible for theparty’s own costs of the application.

‘(6) An owner of a lot in the community titles scheme who elects,under subsection (5)(a), to become a respondent to theapplication must give written notice of the election to thebody corporate.

‘(7) The order of the specialist adjudicator or QCAT must—

(a) if there is a deciding principle for the existingcontribution schedule lot entitlements—be consistentwith the deciding principle, and be just and equitable tothe extent the deciding principle allows; or

(b) if there is no deciding principle for the existingcontribution schedule lot entitlements—be just andequitable.

‘(8) If the specialist adjudicator or QCAT orders an adjustment ofthe contribution schedule, the body corporate must, as quicklyas practicable, lodge a request to record a new communitymanagement statement incorporating the adjustment ordered.


Note—


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‘(9) To remove any doubt, it is declared that, if there is a decidingprinciple for the existing contribution schedule lotentitlements, the specialist adjudicator or QCAT can notchange the deciding principle for the lot entitlements.’.

6 Amendment of s 48 (Adjustment of lot entitlement schedule)

(1) Section 48, heading, ‘lot entitlement’—

omit, insert—

‘interest’.

(2) Section 48(1), ‘a lot entitlement’—

omit, insert—

‘an interest’.

(3) Section 48(5) to (10)—

omit, insert—

‘(5) The order of the specialist adjudicator or QCAT must beconsistent with the market value principle, as applied inrelation to the respective market values of the lots included inthe scheme when the order is made.

‘(6) If the specialist adjudicator or QCAT orders an adjustment ofthe interest schedule, the body corporate must, as quickly aspracticable, lodge a request to record a new communitymanagement statement incorporating the adjustment ordered.

Maximum penalty for subsection (6)—100 penalty units.

Note—

Under section 46(10), a change to a lot entitlement takes effect on therecording of the new community management statement incorporatingthe change.’.

7 Insertion of new s 48A

After section 48—

insert—

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[s 8]


‘48A Criteria for deciding whether contribution schedule lot entitlements consistent with the principle applied to it

‘(1) This section applies if an application is made for an order of aspecialist adjudicator or QCAT for the adjustment of acontribution schedule.

‘(2) This section sets out the only matters to which the specialistadjudicator or QCAT may have regard for deciding whetherthe contribution schedule lot entitlements are consistent withthe deciding principle for the lot entitlements.

‘(3) The specialist adjudicator or QCAT may have regard toonly—

(a) the deciding principle for the contribution schedule lotentitlements; and

(b) the information about the application of the decidingprinciple to the lots included in the scheme that isincluded in the community management statement; and

(c) if the contribution schedule lot entitlements weredecided on the equality principle—the matters to whichthe specialist adjudicator or QCAT may have regardunder section 49; and

(d) the matters forming the basis of the applicant’s beliefthat the contribution schedule lot entitlements are notconsistent with the deciding principle for the lotentitlements.’.

8 Amendment of s 49 (Criteria for deciding just and equitable circumstances)

(1) Section 49(1), after ‘schedule’—

insert—

‘, decided on the equality principle or market value principle’.

(2) Section 49(2)(b), ‘to reflect other than’—

omit, insert—

‘not to reflect’.

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9 Amendment of s 51 (Limited adjustment of lot entitlement schedule—after formal acquisition of part of scheme land)

(1) Section 51(2)(a), ‘just and equitable changes’—

omit, insert—

‘changes, subject to subsection (3),’.

(2) Section 51—

insert—

‘(2A) Any required changes set out in the lot entitlement adjustmentadvice must—

(a) be consistent with the deciding principle for the lotentitlements, and be just and equitable to the extent thedeciding principle allows; or

(b) if there is no apparent deciding principle for the lotentitlements—be just and equitable.’.

(3) Section 51(2A) to (5)—

renumber as section 51(3) to (6).

10 Insertion of new ss 51B and 51C

After section 51—

insert—

‘51B Limited adjustment of lot entitlement schedule—after subdivision of lot

‘(1) This section applies if a lot in a community titles scheme (thepre-subdivision lot) is subdivided into 2 or more lots (thepost-subdivision lots).

‘(2) However, this section does not apply if a lot in a communitytitles scheme is subdivided into 2 or more lots, one of which isa subsidiary scheme.

‘(3) The owners of the post-subdivision lots must—

(a) decide the lot entitlements for the post-subdivision lotsby apportioning the lot entitlement for thepre-subdivision lot to the post-subdivision lots—

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[s 10]


(i) consistently with the deciding principle for the lotentitlement; or

(ii) if there is no apparent deciding principle for the lotentitlement—according to the respective marketvalues of the lots, except to the extent to which it isjust and equitable in the circumstances for theindividual lot entitlements not to reflect therespective market values of the lots; and

(b) give the body corporate written notice of the lotentitlements for the post-subdivision lots.

‘(4) If the body corporate is given written notice under subsection(3)(b), the body corporate must, as quickly as practicable,lodge a request to record a new community managementstatement incorporating the change.


‘(5) The new community management statement must be preparedand recorded at the expense of the owners of thepost-subdivision lots.

‘51C Limited adjustment of lot entitlement schedule—after amalgamation of lots

‘(1) This section applies if 2 or more lots in a community titlesscheme (the pre-amalgamation lots) are amalgamated into 1lot (the post-amalgamation lot).

‘(2) The lot entitlements of the post-amalgamation lot are the totalof the lot entitlements of the pre-amalgamation lots.

‘(3) The owner of the post-amalgamation lot must give the bodycorporate written notice of the lot entitlements for thepost-amalgamation lot.

‘(4) If the body corporate is given written notice under subsection(3), the body corporate must, as quickly as practicable, lodgea request to record a new community management statementincorporating the change.


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‘(5) The new community management statement must be preparedand recorded at the expense of the owners of thepre-amalgamation lots.’.

11 Amendment of s 66 (Requirements for community management statement)

(1) Section 66(1)(d)(i)—

omit.

(2) Section 66(1)(d)(ii) and (iii)—

renumber as section 66(1)(d)(i) and (ii).

(3) Section 66(1)—

insert—

‘(da) for a scheme (other than a scheme created under chapter2, part 11) for which development approval is givenafter the commencement of paragraph (d) and to whichparagraph (db) does not apply—if the contributionschedule lot entitlements for each lot included in thescheme are not equal, explain why they are not equal;and

‘(db) for a scheme established after the commencement ofthis paragraph or an adjusted scheme, in relation tocontribution schedule lot entitlements for lots includedin the scheme—

(i) state the contribution schedule principle undersection 46(7) on which the contribution schedulelot entitlements have been decided; and

(ii) if the contribution schedule lot entitlements havebeen decided in accordance with the equalityprinciple and are not equal—explain why they arenot equal; and

(iii) if the contribution schedule lot entitlements havebeen decided in accordance with the relativityprinciple—include sufficient details about theprinciple to show how individual contribution

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[s 12]


schedule lot entitlements for the lots were decidedby using it; and

(dc) for a scheme established after the commencement ofthis paragraph or an adjusted scheme, in relation tointerest schedule lot entitlements for lots included in thescheme—

(i) if the interest schedule lot entitlements reflect therespective market values of the lots—state that theinterest schedule lot entitlements reflect therespective market values of the lots; or

(ii) if the interest schedule lot entitlements do notreflect the respective market values of thelots—explain why the interest schedule lotentitlements do not reflect the respective marketvalues of the lots; and’.

(4) Section 66(4) and (5), ‘subsection (1)(d)(ii)’—

omit, insert—

‘subsection (1)(d)(i)’.

(5) Section 66(6)—

insert—

‘adjusted scheme—

(a) for subsection (1)(db)—means a scheme establishedbefore the commencement of subsection (1)(db) if thecontribution schedule for the scheme is adjusted afterthat commencement; or

(b) for subsection (1)(dc)—means a scheme establishedbefore the commencement of subsection (1)(dc) if theinterest schedule for the scheme is adjusted after thatcommencement.’.

12 Amendment of s 206 (Information to be given by seller to buyer)

(1) Section 206(2)(b)—

omit, insert—

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‘(b) state—

(i) the amount of annual contributions currently fixedby the body corporate as payable by the owner ofthe lot; and

(ii) that the annual contributions are based on thecontribution schedule lot entitlements for the lotsincluded in the scheme; and

(iii) that the contribution schedule lot entitlements forthe lots included in the scheme are set out in thecommunity management statement for the scheme;and’.

(2) Section 206(2)(c) and (f)—

omit.

(3) Section 206(2)(d) to (h)—

renumber as section 206(2)(c) to (f).

(4) Section 206(2)—

insert—

‘(g) be accompanied by a copy of the communitymanagement statement for the scheme.’.

13 Insertion of new s 206B

After section 206A—

insert—

‘206B Copy of new community management statement to be given

‘(1) This section applies if, after the contract is entered into butbefore it settles, a new community management statement forthe community titles scheme is recorded.

‘(2) The seller must, within 14 days (or a longer period agreedbetween the buyer and seller) after subsection (1) starts toapply, give the buyer a copy of the new communitymanagement statement.

‘(3) The buyer may cancel the contract if—

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[s 14]


(a) it has not already been settled; and

(b) the buyer would be materially prejudiced if compelledto complete the contract, given the extent to which thenew community management statement is differentfrom the community management statement last advisedto the buyer; and

(c) the cancellation is effected by written notice given to theseller within 14 days, or a longer period agreed betweenthe buyer and seller, after the seller gives the buyer thefurther statement.

‘(4) Subsections (1) to (3) apply in relation to each time a newcommunity management statement for the community titlesscheme is recorded before the contract settles.’.

14 Amendment of s 209 (Terminating contract for inaccuracy of disclosure statement)

(1) Section 209(1)(b)(ii)—

renumber as section 209(1)(b)(iii).

(2) Section 209(1)(b)—

insert—

‘(ii) the copy of the community management statementthat was attached to the contract when it wasentered into is different from the communitymanagement statement most recently advised tothe buyer, and the buyer would be materiallyprejudiced if compelled to complete the contract,given the difference;’.

(3) Section 209(1)(c)(ii), ‘paragraph (b)(ii)’—

omit, insert—

‘paragraph (b)(iii)’.

(4) Section 209(3), ‘subsection (1)(b)(ii)’—

omit, insert—

‘subsection (1)(b)(iii)’.

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After section 209—

insert—

‘209A Terminating contract if contribution schedule lot entitlements inconsistent with contribution schedule principle


(a) the seller is the original owner for the community titlesscheme; and

(b) the buyer reasonably believes—

(i) the contribution schedule lot entitlements for thelots included in the scheme are inconsistent withthe contribution schedule principle on which theywere decided; and

(ii) the buyer would be materially prejudiced ifcompelled to complete the contract.

‘(2) Subject to subsection (3), the buyer may terminate thecontract at any time before it settles by giving signed, datednotice of termination to the seller.

‘(3) The termination must happen not later than 90 days, or alonger period agreed between the buyer and seller, after thebuyer’s copy of the contract is received by the buyer or aperson acting for the buyer.

‘(4) The notice of termination must state that the contract isterminated under this section.’.

16 Amendment of s 213 (Information to be given by seller to buyer)

Section 213(2)(a)—

omit, insert—

‘(a) must state—

(i) the amount of annual contributions reasonablyexpected to be payable to the body corporate by theowner of the proposed lot; and

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[s 17]


(ii) that the annual contributions are based on thecontribution schedule lot entitlements for the lotsincluded in the scheme; and

(iii) that the contribution schedule lot entitlements forthe lots included in the scheme are set out in theproposed community management statement forthe scheme; and’.

17 Amendment of s 217 (Terminating contract for inaccuracy of statement)

(1) Section 217(b)(iii), ‘66(1)(d)’—

omit, insert—

‘66(1)(da)’.

(2) Section 217(b)(iv)—

renumber as section 217(b)(vii).

(3) Section 217(b)—

insert—

‘(iv) the community management statement mostrecently advised to the buyer is required undersection 66(1)(db)(i) to state the contributionschedule principle on which the contributionschedule lot entitlements have been decided anddoes not include the statement;

(v) the community management statement mostrecently advised to the buyer is required undersection 66(1)(db)(ii) to explain why thecontribution schedule lot entitlements are not equaland does not contain the explanation;

(vi) the community management statement mostrecently advised to the buyer is required undersection 66(1)(db)(iii) to include sufficient detailsabout the relativity principle to show howindividual contribution schedule lot entitlementswere decided by using it and does not include thedetails;’.

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After section 217—

insert—

‘217A Terminating contract if lot entitlements inconsistent with contribution schedule principle


(a) the seller is intended to be the original owner for thescheme when it is established; and

(b) the buyer reasonably believes—

(i) the proposed contribution schedule lot entitlementsfor the lots proposed to be included in the schemeare inconsistent with the contribution scheduleprinciple on which they are proposed to bedecided; and

(ii) the buyer will be materially prejudiced ifcompelled to complete the contract.

‘(2) Subject to subsection (3), the buyer may terminate thecontract at any time before it settles by giving signed, datednotice of termination to the seller.

‘(3) The termination must happen not later than 90 days, or alonger period agreed between the buyer and seller, after thebuyer’s copy of the contract is received by the buyer or aperson acting for the buyer.

‘(4) The notice of termination must state that the contract isterminated under this section.’.

19 Insertion of new ch 8, pt 9

Chapter 8—

insert—

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‘Part 9 Transitional provisions for Body Corporate and Community Management Amendment Act 2010

‘Division 1 Preliminary

‘374 Definitions for pt 9

‘In this part—

amending Act means the Body Corporate and CommunityManagement Amendment Act 2010.

commencement means commencement of this section.

‘Division 2 Interest schedules for particular schemes

‘375 Interest schedules for particular schemes

‘(1) This section applies to a community titles scheme establishedafter the commencement if a contract for the sale of a lotintended to come into existence as a lot included in thescheme was entered into before the commencement.

‘(2) Section 46(8) does not apply in relation to the interestschedule for the community titles scheme.

‘(3) In deciding the interest schedule lot entitlements for thecommunity titles scheme, regard must be had to—

(a) how the scheme is structured; and

(b) the nature, features and characteristics of the lotsincluded in the scheme; and

(c) the purposes for which the lots are used.

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‘(4) Despite subsection (2), section 48(5) applies to an order of aspecialist adjudicator or QCAT adjusting the interest schedulefor the community titles scheme.

‘Division 3 Effect of particular actions relating to contribution schedule lot entitlements

‘376 Application of div 3

‘(1) This division applies to each of the following (each apre-commencement adjustment action)—

(a) a motion proposing an adjustment of the contributionschedule lot entitlements for lots included in acommunity titles scheme that—

(i) was made before the commencement; and

(ii) has not been passed by the body corporate at thecommencement;

(b) a resolution of the body corporate for a community titlesscheme to adjust the contribution schedule lotentitlements for lots included in the scheme that—


(ii) has not been given effect at the commencement;

(c) an application under section 48, as in force from time totime before the commencement, to a specialistadjudicator or QCAT for the adjustment of thecontribution schedule lot entitlements for lots includedin a community titles scheme that has not been decidedat the commencement;

(d) a decision of a specialist adjudicator or QCAT to adjustthe contribution schedule lot entitlements for lotsincluded in a community titles scheme that—


(ii) has not been given effect at the commencement;

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(e) an appeal against a decision of a specialist adjudicatoror QCAT relating to the adjustment of the contributionschedule lot entitlements for lots included in acommunity titles scheme that has not been decided atthe commencement;

(f) a decision of an appeal entity to adjust the contributionschedule lot entitlements for lots included in acommunity titles scheme that—


(ii) that has not been given effect at thecommencement.

‘(2) For subsection (1)(b), (d) and (f), a body corporate’sresolution, or a specialist adjudicator’s, QCAT’s or appealentity’s decision, to adjust the contribution schedule lotentitlements of lots included in a community titles scheme hasnot been given effect if a new community managementstatement incorporating the adjustment has not been recorded.


appeal entity means a court or tribunal having jurisdiction tohear and decide an appeal against a decision of a specialistadjudicator or QCAT relating to the adjustment of thecontribution schedule lot entitlements for lots included in acommunity titles scheme.

‘377 Pre-commencement adjustment actions cease to have effect

‘(1) Each pre-commencement adjustment action ceases to haveeffect at the commencement.

‘(2) Without limiting subsection (1)—

(a) the pre-commencement adjustment action is taken tohave never been made; and

(b) no further action may be taken in relation to thepre-commencement adjustment action.

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‘Division 4 Adjustment of contribution schedule lot entitlements for existing schemes to which adjustment order applies

‘378 Definitions for div 4

‘In this division—

adjustment order means an order of a court, tribunal orspecialist adjudicator, made before the commencement,providing for an adjustment of the contribution schedule lotentitlements for lots included in a prescribed scheme.

changed entitlements, for a prescribed scheme, means thecontribution schedule lot entitlements for the scheme after theresolution under section 385 is made.

pre-adjustment order entitlements, for a prescribed schemeto which an adjustment order applies, means—

(a) if the adjustment order is the only adjustment orderapplying to the scheme—the contribution schedule lotentitlements for lots included in the scheme as they wereimmediately before the order was made; or

(b) otherwise—the contribution schedule lot entitlementsfor lots included in the scheme as they wereimmediately before the first adjustment order applyingto the scheme was made.

prescribed scheme means a community titles schemeestablished before the commencement if there is a decidingprinciple for the contribution schedule lot entitlements for lotsincluded in the scheme.

‘379 Application of div 4

‘This division applies if—

(a) an adjustment order increased the contribution schedulelot entitlement for a lot included in a prescribed scheme;and

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(b) before the commencement, a new communitymanagement statement reflecting the increase has beenrecorded.

‘380 Motion proposing adjustment of contribution schedule lot entitlements

‘(1) The owner of the lot may submit a motion to the bodycorporate proposing to adjust the contribution schedule lotentitlements for lots included in the prescribed scheme toreflect the pre-adjustment order entitlements for the scheme,subject to sections 381 to 384.

‘(2) If a lot in the prescribed scheme has been subdivided into 2 ormore lots since the pre-adjustment order entitlements weredecided, the motion must be accompanied by a valuation by aregistered valuer stating the respective market values of thelots.

‘(3) The body corporate is responsible for all costs associated witha motion submitted under this section.

‘(4) Subsection (1) does not apply to a person who becomes anowner of the lot after the adjustment order was made.

‘(5) Subsection (1) ceases to apply 3 years after thecommencement.

‘381 Adjustment if a lot in the scheme has been subdivided

‘(1) This section applies if a lot (the pre-subdivision lot) in theprescribed scheme as it was when the pre-adjustment orderentitlements were decided comprises 2 or more lots (thepost-subdivision lots) when the resolution under section 385is made.

‘(2) The changed entitlements for the prescribed scheme mustapportion the pre-adjustment order entitlement for thepre-subdivision lot between the post-subdivision lotsaccording to the respective market values of thepost-subdivision lots, except to the extent to which it is justand equitable in the circumstances for the individual

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contribution schedule lot entitlements not to reflect therespective market values of the lots.

‘382 Adjustment if 2 or more lots in the scheme have been amalgamated

‘(1) This section applies if 2 or more lots (the pre-amalgamationlots) in the prescribed scheme as it was when thepre-adjustment order entitlements were decided comprisesonly 1 lot (the post-amalgamation lot) when the resolutionunder section 385 is made.

‘(2) The changed entitlements for the prescribed scheme mustprovide for the contribution schedule lot entitlement of thepost-amalgamation lot to be the total of the pre-adjustmentorder contribution schedule lot entitlements of thepre-amalgamation lots.

‘383 Adjustment if the boundary for a lot included in the scheme has changed

‘(1) This section applies if a constructing authority has givenadvice mentioned in section 51(1) to the body corporate inrelation to a boundary change for lots included in theprescribed scheme that happened after the pre-adjustmentorder entitlements were decided.

‘(2) The changed entitlements for the prescribed scheme must takeaccount of the boundary change having regard to the lotentitlement adjustment advice obtained by the body corporateunder section 51 in relation to the boundary change.

‘384 Adjustment if material change since contribution schedule lot entitlements decided

‘(1) This section applies if the prescribed scheme has beenaffected by a material change that happened after thepre-adjustment order entitlements were decided.

‘(2) The changed entitlements for the prescribed scheme must takeaccount of the material change.

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‘(3) However, any adjustments of the pre-adjustment orderentitlements to take account of the material change must be—

(a) consistent with the deciding principle for thepre-adjustment order entitlements; and

(b) just and equitable to the extent the deciding principleallows.

‘385 Resolution on motion

‘(1) This section applies if a motion is submitted under section380.

‘(2) Within 3 months after receiving the motion, the bodycorporate must—

(a) identify the pre-adjustment order entitlements; and

(b) call a general meeting of its members to decide what (ifany) changes to the pre-adjustment order entitlementsshould be made under sections 381 to 384.

‘(3) The notice of the meeting must be accompanied by writtenevidence of the pre-adjustment order entitlements.

‘(4) At the general meeting, the body corporate—

(a) must decide what (if any) changes to the pre-adjustmentorder entitlements should be made under sections 381 to384; and

(b) is taken to have passed a resolution without dissent tochange the contribution schedule lot entitlements of thelots included in the prescribed scheme to thepre-adjustment order entitlements, subject to thechanges (if any) decided under paragraph (a).

‘386 New community management statement for contribution schedule lot entitlements adjusted under s 385

‘(1) This section applies if, under section 385, the body corporatefor the prescribed scheme is taken, at a general meeting, to

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have passed a resolution to change the contribution schedulelot entitlements of the lots included in the scheme.

‘(2) Within 3 months after the body corporate’s general meeting,the body corporate must lodge a request to record a newcommunity management statement incorporating the change.


Note—


‘(3) Despite section 60(1), if the difference between the newcommunity management statement and existing communitymanagement statement is limited to changes incorporating thechanged entitlements, the new community managementstatement may be recorded for the prescribed scheme withoutthe endorsement on the statement of a communitymanagement statement notation of each relevant planningbody for the scheme.

‘(4) The body corporate must, within 14 days after the newcommunity management statement is recorded, give a copy ofthe statement to each relevant planning body for theprescribed scheme mentioned in subsection (3).

‘(5) The new community management statement must be preparedand recorded at the expense of the body corporate.

‘Division 5 Other provisions

‘387 Other adjustments of lot entitlement schedules for schemes

‘To remove any doubt, it is declared that sections 47A to 48 asin force immediately after the commencement also apply inrelation to a community titles scheme established before thecommencement.

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‘388 Application of s 206

‘(1) This section applies in relation to the sale of a lot included in acommunity titles scheme—

(a) if a contract for the sale of the lot to the person whoproposes to buy the lot (the buyer) has not been enteredinto before the commencement; and

(b) whether or not the person who proposes to sell the lot(the seller) to the buyer has complied with previoussection 206 in relation to the sale.

‘(2) The seller must give the buyer a disclosure statementcomplying with current section 206 before the buyer entersinto a contract to buy the lot.

‘(3) If the seller has, before the commencement, given the buyer adisclosure statement under previous section 206, the sellercomplies with current section 206 in relation to the buyer if—

(a) the seller gives the buyer a new disclosure statement thatcomplies with current section 206; or

(b) the seller gives the buyer a written notice that—

(i) states the matters mentioned in current section206(2)(b); and

(ii) is accompanied by a copy of the communitymanagement statement for the community titlesscheme.


current section 206 means section 206 as in forceimmediately after the commencement.

previous section 206 means section 206 as in force from timeto time before the commencement.

‘389 Application of s 213

‘(1) This section applies in relation to the sale of a lot intended tocome into existence as a lot included in a community titlesscheme when the scheme is established—

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(a) if a contract for the sale of the lot to the person whoproposes to buy the lot (the buyer) has not been enteredinto before the commencement; and

(b) whether or not the person who proposes to sell the lot(the seller) to the buyer has complied with previoussection 213 in relation to the sale.

‘(2) The seller must give the buyer a disclosure statementcomplying with current section 213 before the buyer entersinto a contract to buy the lot.

‘(3) If the seller has, before the commencement, given the buyer adisclosure statement under previous section 213, the sellercomplies with current section 213 in relation to the buyer if—

(a) the seller gives the buyer a new disclosure statement thatcomplies with current section 213; or

(b) the seller gives the buyer a written notice that states thematters mentioned in current section 213(2)(a).


current section 213 means section 213 as in forceimmediately after the commencement.

previous section 213 means section 213 as in force from timeto time before the commencement.’.

20 Amendment of sch 6 (Dictionary)

(1) Schedule 6—

insert—

‘adjustment order, for chapter 8, part 9, division 4, see section378.

amending Act, for chapter 8, part 9, see section 374.

building format lot see the Land Title Act, schedule 2.

changed entitlements, for chapter 8, part 9, division 4, seesection 378.

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contribution schedule principle means a principle undersection 46 applicable to deciding the contribution schedule lotentitlements for lots included in a community titles scheme.

deciding principle, for lot entitlements, means the principleon which the lot entitlements were decided, whether or not theprinciple is or has been identified as an applicable principlefor deciding the lot entitlements under this Act as in forcefrom time to time.

equality principle, in relation to contribution schedule lotentitlements, see section 46A(2).

market value principle, in relation to interest schedule lotentitlements, see section 46B(1).

material change, for a community titles scheme, means achange that has, or may have, a significant effect on thecontribution schedule lot entitlements for lots included in thescheme, including, for example—

(a) the addition of 1 or more lots, other than by asubdivision not involving the addition of a subsidiaryscheme; or

(b) the removal of 1 or more lots, other than by anamalgamation.

pre-adjustment order entitlements, for chapter 8, part 9,division 4, see section 378.

pre-commencement adjustment action see section 376(1).

prescribed scheme, for chapter 8, part 9, division 4, seesection 378.

relativity principle, in relation to contribution schedule lotentitlements, see section 46A(3) and (4).

standard format lot see the Land Title Act, schedule 2.

unimproved value principle, in relation to contributionschedule lot entitlements, see section 46A(1).

volumetric format lot see the Land Title Act, schedule 2.’.

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(2) Schedule 6, definition commencement—

insert—

‘(c) for chapter 8, part 9, see section 374.’.

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