Buyer and seller beware with changes to body corporate law
|| 19 Apr 2011
||Natalie Graeff, Manager Corporate Communication
||(07) 3842 5868
||0488 433 884
||07 3221 9329
Major changes to the sale of units, apartments and lots in community titles schemes became law on 14 April 2011 with significant impacts to property buyers and sellers.
The Body Corporate and Community Management and Other Legislation Amendment Act 2010 most notably states that a seller of a lot in a community titles scheme must give a buyer a copy of the community management statement for the scheme before they sign a sale contract.
Queensland Law Society Chief Executive Officer Noela L’Estrange said there are a number of critical factors in these changes that buyers and sellers need to be aware of.
“The community management statement sets out important information about the community titles scheme including how the common property of the scheme is owned, what proportion of upkeep expenses each lot must pay and also the by-laws of the scheme.
The seller must also provide a disclosure statement which includes the contributions the body corporate requires the owner of the lot to pay and how that amount is set by common property ownership and upkeep obligations.
In addition, there are changes to the ways in which contributions are set within new developments and also how these contributions can be adjusted once set”.
Buyers who are not certain about their obligations as a lot owner in a body corporate or any aspect of the community management statement are encouraged to find a solicitor at qls.com.au.