As QLD caretakers, we are 12 years into our 25 year agreement. An owner has put forward a motion to change from an accommodation to a standard module. Can we challenge this?
We are caretakers of a QLD complex and our agreement is currently at 12 years (out of 25) in an Accommodation module complex.
A disgruntled owner has put a motion forward to change the module to the Standard module. We know that this will affect our ability to sell whilst this is on the table, but what would the module change mean to residents? Approximately 20% of the residences are rentals, plus we have a number of lockups (owners who live overseas).
Are there any strategies that have been successfully deployed to mitigate or defeat such a motion?
The biggest changes would be your caretaking and letting agreement will be capped at 10 years and you will need to get some advice about how this affects you.
This is something we're seeing a lot of lately. I'm seeing a big shift where committees are looking at changing their regulation module. There are some requirements that I think should be factored into what module is appropriate for the scheme and that is something that individual schemes should get some legal advice on.
Generally your short term holiday letting style high rises with predominantly leased lots is more tailored towards your accommodation module where your townhouse Villa style mainly owner occupier lots he's genuinely targeted towards your standard module.
What are the repercussions for owners? Not a huge amount apart from the biggest kick being that the caretaking and letting agreements are capped at your 10 years. As your term is currently at 12 years, you should certainly get some legal advice about what implications that change could have on your agreement.
In terms of challenging it, it's an owner submitted motion. It should be included on the agenda and that's what is required of the committee. The question for both the committee residents and yourself as a caretaker is whether there will be any grounds to challenge that motion, whether it's on the grounds of unreasonability, or whether it's on the grounds that it conflicts with the act or the module again. Unfortunately, that's something that you would need to get some independent legal advice about.
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