The Queensland Government has passed various amendments to the legislation governing Body Corporate and Community Management. Once this legislation comes into effect, it will result in significant changes to body corporate law which affect various aspects of communal living, property management and property development. Passed on 14 November 2023, the new legislation is set to come into effect on 1 May 2024.
The most significant change pertains to the termination of community titles schemes, a change set to streamline the process of selling and revitalising aging or dilapidated properties, bringing Queensland's regulations into line with those of other states.
Download the Snapshot of Changes here.
Secondly, sunset dates in off the plan contracts are being amended to limit developers from terminating pursuant to the clauses, with the termination upon expiry of sunset dates in off the plan contracts currently only possible with buyer's consent or under an order of the Supreme Court.
Two of the other changes are new rules regarding smoking, having pets in community title schemes and the towing of vehicles parked on common property. The new laws are intended to empower bodies corporate to establish by-laws that restrict smoking in outdoor and communal areas. Furthermore, pets hold a special place in the hearts of many, and this legislation seeks to accommodate and support pet ownership.
How do the laws affect Community Titles Schemes and Lot Owners?
Under the existing framework, the termination of a community titles scheme can only occur in the absence of owner objections or if the Court deems termination to be just and equitable.
However, the forthcoming legislation will enable a scheme to be terminated upon a resolution passed by the consent of 75% of lot owners, provided that it is no longer financially viable to continue with the maintenance or remediation of the scheme.
This provides more flexibility regarding property development and looks to consider all lot owners best interests.
How do the laws affect Sunset Dates in Off the Plan Contracts?
Off-the-plan land sale contracts often include a clause that provides for the contract to be terminated if a relevant event does not happen by the sunset date (these are known as 'sunset clauses'). Currently, termination upon expiry of sunset dates in off the plan contracts is now only possible with buyer's consent or under an order of the Supreme Court.
The new legislation limits when developers can terminate pursuant to these clauses. Buyers must act reasonably in responding to a request for consent. A Buyer is deemed to give consent if they don't respond to the notice, and this applies retrospectively to all unsettled off the plan contracts.
How do the updated Body Corporate Laws affect Smoking and Smokers?
One of the intentions of the new laws is to better empower bodies corporate to establish by-laws prohibiting smoking, including the use of vaping devices, on common property and outdoor spaces, such as balconies.
Rather than creating an across the board right to ban smoking, these laws offer a structured approach, allowing each scheme to tailor their regulations to suit their unique circumstances.
The new laws have also provided greater clarity around second-hand smoke in such properties, with the amendments stating that subjecting another resident to second-hand smoke within their unit or on common property as a nuisance, hazard, and unreasonable interference, which should not be tolerated.
How do the new Body Corporate Laws affect Pets and Pet Owners?
The amendments to the body corporate legislation will also reduce the barriers to lot owners and occupiers keeping animals in community titles schemes. One aspect of this was establishing that by-laws which prohibit pets, or restrict the size, type or quantity of pets, are unreasonable and that bodies corporate must consider each request to keep an animal on its merits, considering all relevant facts and circumstances and ignoring irrelevant factors.
As a result, bodies corporate will be prohibited from implementing by-laws which ban pets outright from community title schemes. These amendments have been developed after continued findings that by-laws which prohibit pets are invalid and after some bodies corporate have unreasonably refused requests to keep animals.
The amendments aim to strike a balance between all stakeholders' interests, enabling bodies corporate to deny pet applications only in specific situations. Furthermore, the legislation emphasises that bodies corporate can impose conditions on pet owners to safeguard the well-being of all residents.
What other changes will be made to Body Corporate Laws?
More Efficient Vehicle Removal: The amendments will clarify and enhance the ability of bodies corporate to promptly remove vehicles from common property when necessary.
Improved Code of Conduct: The new laws will improve the code of conduct governing body corporate managers and caretaking service contractors, ensuring a higher standard of professionalism and service.
In essence, these new changes are poised to significantly impact Community Titles Schemes and Lot Owners in Queensland.
By facilitating the termination of schemes with the support of 75% of lot owners and introducing measures to address issues like smoking in communal areas and pet ownership, the legal landscape governing community living is evolving to meet the needs and preferences of modern residents.
These proposed amendments not only offer more flexibility for property redevelopment but also foster a more inclusive and adaptable living environment, ultimately aligning Queensland with the regulatory standards observed in major urban centres across the country.
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