Copies of Community Management Statements in Sale Contracts – No longer required

By recent amendments to the Body Corporate and Community Management Act 1997 information required to be given by a Seller to a Buyer pursuant to Section 206 has been amended such that the requirement to disclose a copy of the Community Management Statement (commonly referred to as a CMS) on the sale of an existing lot has now been removed. It is no longer a requirement that a copy of the current CMS be attached to the Contract.

The writer is somewhat curious as to why this amendment has been made. The purpose of the original provision for the inclusion of a CMS in the Contract was for disclosure purposes to the Buyer (i.e. taking a consumer protection type approach)

Despite this change, it is strongly recommended that apart from the usual enquires from the Body Corporate, a copy of the CMS will need to be obtained and considered by any Buyers of community titled property. This responsibility for obtaining this CMS has now reverted back to the Buyer or the Buyer’s legal representative rather than that obligation being on the real estate agent (or other person complying the contract) to attach at the time the Contract is prepared.

Gold City Councils Local Law 17- Potential Rights to Terminate

The Local Law 17 which relates to the maintenance works and waterway areas commenced 5 July 2013. Broadly speaking Local Law 17 imposes disclosure requirements for Sellers and provides potential termination rights for Buyers. A useful information sheet has been issued by the Gold Coast City Council (“GCCC”). This may be found at http://www.goldcoast.qld.gov.au/local-law-no-17-maintenance-of-works-in-waterway-areas-2013-information-sheet-16990.html. The information sheet notes that disclosure requirements and potential termination rights relate to “relevant lots” which are those lots that have “specified prescribed works” completely or partially on the lot or are waterfront land connected to a specified prescribed work (example revetment walls, training walls, jetty’s or pontoons).

Despite the important impact of Local Law 17 in relation to properties in the GCCC region, there is no requirement to record the applicably of Local Law 17 on the title to affected properties.

Whether you are buying or selling any property in the Gold Coast area you may need to consider a number of additional factors including making specific enquires as to whether or not the property is a relevant lot for the purpose of Local Law 17 by examining the physical property and/or making enquires with the GCCC.

In summary Section 15 of Local Law 17 applies to a contract for the sale of a relevant lot (being a lot on which a specified prescribed work is completely or partially situated or a waterfront lot that is connected to a specified prescribed work). Section 15.2 provides that the Seller of a relevant lot must ensure that certain information is disclosed in the contract and if such information is not disclosed then the Buyer may have a right to terminate the contract.

Consequently, care should be taken when buying or selling property within the Gold Coast area to ensure that it is not caught or affected by Local Law 17. For completeness, a warning should however be given in that Local Law 17 may be affected by Section 57A of the Property Law Act. As result of the application of that provision in any potential termination may be contested and if so could potentially lead to protracted litigation and consequential costs.