Selling Management Rights After a Module Change: What Contract Term Applies?

By admin,

The developer of our scheme sold the 25 year caretaking and letting agreements to a building manager. We were originally under the Accommodation Module. After three years, the building manager sold the management and letting rights. We then changed to the Standard Module.

The new manager thinks he can sell a 10 year agreement. Can he only sell the remainder of the term under the original caretaking agreement? Is he able to offer a 10 year agreement? Notwithstanding the change of module, does the original agreement term remain in force together with any approved extensions?

Car Park Management in Student Accommodation: Occupational Authority vs By-Law Breaches

By admin,

We have a 170 lot student-only accommodation building. The caretaker has an occupational authority (OA) over the common property security gated car park.

They manage the car park via a lottery system. Provided tenants can support their "student" status as specified in the Development Application (DA), they apply for a parking space each semester.

The caretaker also has a letting agency that handles the letting of approximately 80% of units to students. The remainder are either self-managed or managed by external agents.

Caretaker Contract Extensions: Must a Committee Put a Top-Up Motion to Owners?

By admin,

Our scheme operates under the Accommodation Module. Our caretaker has asked for a 5-year extension or top up to his existing contract. The caretaker doesn't own a lot.

Can a motion to grant a top-up only be submitted for voting at a general meeting by either a lot owner or the body corporate committee? Further, is a committee compelled to put forward a general meeting motion for the management rights top-up simply because the caretaker requested it?

 

When Caretaking Agreements Conflict With New BCCM Regulations: What Are the Options?

By admin,

What happens if a caretaking agreement becomes inconsistent with later BCCM regulations? Could an adjudicator determine if there is a significant inconsistency requiring a deed of variation? Could we undertake a statutory review? Would this situation meet the strict criteria for a review?

CPI Overpayments to Caretakers: Who Bears the Tax Consequences When Errors Are Repaid?

By admin,

Our body corporate management company recently reviewed the CPI calculation for the on-site caretaker (contractor) salary increases from 2011-2022 and noticed a discrepancy. The body corporate management company’s accounting department incorrectly calculated the CPI. Therefore, the caretaker was overpaid during 2011-2022 period.

The body corporate asked the caretaker to repay the overpayment. The caretaker is asking for a tax adjustment for the error. Is the body corporate or the body corporate management company responsible for the tax adjustment payment?

Termination or Buyback? Committee Powers and Owner Approval When Ending a Caretaking Agreement

By admin,

Owners in our complex voted to pursue the termination of the caretaking agreement.

In the meantime, the caretaker has suggested a price she would sell to the body corporate. The committee is fine-tuning the offer. What actions can the committee take without prior approval by owners?

Can a Body Corporate Charge a Caretaker for the Chairperson’s Time When Discussing a Management Agreement?

By admin,

I am a new chairperson at a resort under the accommodation module. The caretaking and letting management company asked me to attend a meeting to clarify their managing agency agreement. Can the body corporate invoice the caretaker for my time and deposit the money into our sinking fund?

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