Body Corporate Managers

Disclosure Statements
Queensland law requires that the vendor supply to the purchaser a Disclosure Statement duly endorsed by the Body Corporate Manager.

The ‘standard’ Disclosure Statement contains basic information including:

  • etails of the body corporate secretary & manager
  • the body corporate levies payable by the Buyer
  • any improvements on the common property for which the Buyer is responsible
  • the regulation module for the complex
  • whether a body corporate committee exists
  • details of applicable body corporate assets
A fee is payable on application.
 

 The ‘standard’ Disclosure Statement does not contain all the information that a buyer needs to know, an example being that the Body Corporate could have significant unfunded liabilities which the Buyer could become jointly personally liable for once they become owners.

The ‘long-form’ Disclosure Statement provides additional information including details of:
  • all body corporate liabilities
  • legal action concerning any disputes involving the building or owners
  • body corporate service contract agreements
  • building repairs and maintenance.
Manager
The engagement of a Body Corporate Manager is decided in a General Meeting.
The body corporate appoints a manager in general meeting by passing an Ordinary Resolution.
If the cost of engaging the body corporate manager is more than the major spending limit for the scheme, at least 2 quotes or tenders must be given to owners with the meeting papers.
The manager must disclose any relationship with, or any commission or other benefits payable to, the manager from any provider of goods and services to the body corporate.
Term of Engagement
The maximum term of engagement is 3 years under the Standard, Accommodation and Commercial Regulation Modules.
Under the Small Schemes Module, it is 1 year.

If the term in the agreement purports to be longer than three years (1 year for Small Schemes) it is taken to be 3 years (1 year Small Schemes).
At the end of the term, the engagement expires and the manager must have a new engagement to act as the body corporate manager.

Transfer of a Contract
The transfer of the manager’s contract must be approved by the body corporate (Ordinary Resolution) or as a restricted matter by the committee.
The decision to approve the transfer must be made within 30 days after the body corporate receives all the information reasonably required.
The body corporate cannot ask for or receive a fee or other benefit for approving the transfer.
Code of Conduct
The BCCM Act contains a Code of Conduct for Body Corporate Managers.
Generally, the Codes require managers and their associates to:
  • have a knowledge of the Act
  • act in an honest, fair and professional way, in best interests of the body corporate and
  • keep the body corporate informed of any significant development which might affect their complex.

Managers must not engage in fraudulent, misleading or unconscionable conduct. 
BCCM Act provides that the code is taken to be included in the engagement contract with the manager.

Queensland Community Living Handbook 

Steve Reynolds e: qldclh@gmail.com PO Box 394 Surfers Paradise.4217