Can a body corporate committee lend money to lot owners to pay for services undertaken to their lot?
The body corporate is located in Queensland, is a Building Format Plan and the Standard Module Regulations apply. Can a body corporate committee lend money to lot owners to pay for services undertaken to their lot?
If this is permitted, do these loans have to be approved by the body corporate at a general meeting?
There is no scope for the body corporate to lend funds, however....
The body corporate is a creature of statute such that its powers and limited to what the legislation provides for.
The regulation modules provide for the ability of a body corporate to borrow funds. However, there is no scope for the body corporate to lend funds.
That being said, there is a mechanism in the legislation that contemplates a circumstances where the body corporate can be engaged to carry out, or arrange for, services to be provided to lots (such as maintenance work) as long as the arrangement is by agreement with the lot owner and includes a mechanism for recovery of those costs. I could foresee a carefully drafted agreement to work within that mechanism that may act similar to lending.
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Todd is an experienced property lawyer who heads up Mahoneys body corporate team.
Todd specialises in body corporate law and predominantly acts for bodies corporate, body corporate managers and lot owners on all matters affecting bodies corporate.
Todd is an active member of the Strata Community Association (Qld). In 2019 he was appointed to the Strata Community Association (Qld) legislation committee and assists in making submissions on behalf of the Strata Community Association (Qld) on issues such as legislative reform in body corporate law.
As Todd is also a body corporate committee member, he understands the day to day requirements of administering a body corporate.
Todd has a focus on achieving practical and commercial results for his clients and understands the market in which bodies corporate operate within.
Todd also provides body corporate managers, and other industry stakeholders, with presentations and training on matters affecting the body corporate industry.
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