Sunset Clauses, Ban on Smoking, Pets Allowed – New apartment Laws Looming for Queensland

The Body Corporate and Community Management and Other Legislation Amendment Bill 2023 (BCCMOLA Bill) had its third reading in Parliament on 14^th November,

The Bill’s changes may come into effect before the end of 2023.

Land Sales Act: Sunset clauses – Retrospective application

The LSA will have a new Division: 4A Off-the-plan contracts—Sunset Clauses sections 19A – 19F. The new laws will regulate sunset clauses in off-the-plan contracts.

Sellers/ Property developers may terminate

A property developer (seller) may terminate an off-the-plan contract under conditions laid out in s 19D.

A seller may terminate

• after giving the buyer notice (s 19D(1)(a)(i))
• 28 days before sunset date (s 19D (3))
• and receives buyer’s written consent (s 19D(1)(a)(ii)
• Or under Supreme Court order (s 19F).

Buyer’s Obligations

After the seller the notice the buyer:

• must act reasonably (s 19E(2)(a)); and
• respond to the notice (s 19E2(b));

If there is no response, then buyer’s consent is presumed (s 19E(3)).

These new laws are retrospective. They apply to contracts entered into before but are not settled when the amendments start. In other words, they may apply to existing unsettled off-the-plan contracts.

BCCM Act

The main changes to the BCCM Act are:

Community Titles Scheme termination – Part 9 BCCM has been overhauled.

Resolution w/out Dissent Body Corporate s 78

• A community titles scheme can be terminated if the body corporate decides by resolution without dissent to terminate (s 78 (a)) and
• an agreement about termination issues is entered into between all registered proprietors and each lessee (registerable or short lease) (s 78 (b)(i); (b)(ii)).

Court Order Termination s 79

A court may order scheme termination if an application comes from

• Body corporate
• Lot owner
• Administrator (appointed via dispute resolution)

The factors the court will consider are outlined in s 79.

Body Corporate – Economic Reasons

If the Community Titles Scheme is to be terminated for economic reasons, (s 81A), the Bill has outlined the process to follow.  Basically, the steps are:

• Body corporate formulates a termination plan (s 81B)
• Body corporate prepares a pre-termination report (s 81C)
• Gives lot owners a copy of pre-termination report 120 days before (s 81D)
• Holds general meeting to discuss if there are economic reasons to terminate the titles scheme (s 81D) and at meeting if appropriate pass a resolution to termination
• Needs 75% or more to pass the resolution
• If the resolution is passed, a facilitator is appointed to implement the termination plan (s 81M)
• The body corporate is dissolved s 81S

Other

Smoking – bodies corporate can make by-laws that prohibit smoking in outdoor and communal areas of a community titles scheme: eg balconies, courtyards, patios (s 169A)

Pets — cannot be banned by bodies corporate (s 169B); except in specific circumstances listed ins169B(6) eg the animal poses an ‘unacceptable risk’ (s169B(6)(a)). Bodies corporate also cannot restrict size or number or type of animals that can be kept. Approval and conditions must be given in writing.

Towing – clarifies the procedures for towing vehicles that block access or are causing a problem (s 163A)

Disputes –  clarifies procedures for dispute resolution between bodies corporate v owners/occupiers and between lot owners/occupiers (s 184 and s 185).

If you or your clients have any questions about the impact of the above please contact Bennett Carroll.

* The information presented in this article is accurate on the date of posting 24/11/2023, we will continue to keep you updated with any changes.

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