New body corporate legislation passed

Legislation

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Earlier this year we published an article discussing the proposed changes to the Body Corporate and Community Management Act. This legislation has now been passed.

Here is a brief overview of some key changes.

Termination of the community titles scheme with 75% owner consent

The new laws will also allow the termination of a community titles scheme with the support of 75 per cent of lot owners, where the body corporate has agreed it is not economically viable for lot owners to continue to maintain or repair the scheme.

The decision about economic viability must be supported by reports produced by independent professionals, and accessible dispute resolution services will be available to ensure the new process is used appropriately, and fairly.

Previously, this required support from all lot owners or an order of the District Court.

This amendment was in response to a recommendation made by Queensland University of Technology in its review of property laws and a key action from the 2022 Queensland Housing summit.

Other reforms will

  • Allow bodies corporate to make by-laws that prohibit smoking on common property or an outdoor area such as a balcony, and to clarify smoking as a nuisance, hazard or unreasonable interference;
  • prevent bodies corporate from making by-laws which create a blanket ban of pets in community titles schemes;
  • clarify and enhance the ability for bodies corporate to tow vehicles from common property in a timely manner;
  • allow an adjudicator to approve to put in place alternative insurance for a body corporate, when it cannot comply with the required level of insurance for particular buildings;
  • enhance by-law enforcement and access to records in layered arrangements of community titles schemes;
  • enhance the code of conduct for body corporate managers and caretaking service contractors;
  • clarify and streamline body corporate administrative and procedural matters; and
  • make minor clarifying amendments to confirm when deposits can be released to developers under ‘off the plan’ contracts. 

Work is underway to ensure the community titles sector is informed of the reforms and will be able to implement the new laws when they commence.

BCsystems will be producing extensive content on this new legislation in the coming months.

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