16 OCTOBER 2012
In April 2011, the Body Corporate and Community Management Act (“the Act”) was amended to effectively allow a previous order made by a Court, Tribunal or Specialist Adjudicator adjusting the contribution schedule lot entitlements (“CSLE”) for a scheme to be overturned/reversed.
The controversial change to the Act resulted in several Bodies Corporate being forced to revert the CSLE for their schemes to their pre-adjusted status on receiving a request to do so from a single lot owner (“the reversion process”).
On 14 September 2012, the Body Corporate and Community Management and Other Legislation Amendment Bill 2012 (“the Bill”) was introduced to Parliament. Significantly, the Bill amends the Act by:
a) prohibiting Bodies Corporate from completing a reversion process which has been commenced but not completed (this change is effective immediately, notwithstanding the Bill has not yet passed); and
b) enabling an owner of a lot to apply to the Body Corporate to “undo” the reversion process, adjusting the CSLE back to the CSLE as previously determined by the relevant Court, Tribunal or Specialist Adjudicator.
We expect, that given the significant public criticism of the 2011 amendments, the Bill will be passed and enacted in the very near future. No doubt, those lot owners adversely affected by the reversion process will seek to “undo” that process soon after the Bill is passed.
New buyers of lots within an existing scheme should be particularly mindful that the CSLE disclosed in the Contract may be susceptible to significant change. We would be pleased to review the history of the CSLE for your scheme and advice you of the potential affect the passing of the Bill will have.
You are a valued Kinneally Miley contact, for more information related to this Legal Update please contact us.
[contactsbox] [leftcolumn]Contact Partner: Francesca Petroccitto
Direct Telephone : 07 3210 5771
Mobile Telephone : 0402 293 644
[email protected]