Changes to the Body Corporate Act
The Body Corporate and Community Titles Act changed on 15 April, 2011.
When providing a disclosure statement to a buyer who is entering into a contract to purchase a unit, that forms part of a complex run by a body corporate, then the disclosure statement will now have to provide the following:-
A clause, stating the amount of the annual contributions, which will also have to set out whether the contributions are calculated in regard to the contribution lot entitlements, interest lot entitlements or a mixture of the two.
The disclosure statement must have a copy of the current community management statement attached.
If a new community management statement comes into existence after the contract was originally signed, then a copy of that community management statement will need to be given to the buyer and the buyer will be entitled to terminate the contract, within fourteen (14) days after receiving the new community management statement, if the buyer is substantially affected.
Transitional Arrangements
If a contract has been signed by both the buyer and the seller, then the old rules will apply.
If the contract has not been signed by both the buyer and the seller, then you need to give a new contract and new disclosure statement, complying with the new rules, to the buyer.
We recommend that all principals conduct further training with sales people and administration staff that prepare contracts for the sale of units in a body corporate. Roland Taylor of our office is happy to provide that training, free of charge, if requested.