In our other article, we took you through the body corporate code of conduct for committee members. In this issue we’re diving into the codes for body corporate managers, caretaking service contractors, and letting agents. Under the Body Corporate and Community Management Act 1997 (the Act), this cohort is governed by:
- Schedule 2 for body corporate managers and caretaking service contractors
- Schedule 3 for letting agents.
In some cases the caretaking service contractor may also act as the letting agent for a scheme, meaning both codes could apply simultaneously.
While each code includes provisions tailored to the specific responsibilities of body corporate managers, caretaking service contractors, and letting agents, they also share common principles, including:
- acting honestly, fairly, and professionally
- exercising skill, care, and diligence
- acting in the best interests of the body corporate
- complying with legislation
- supplying goods and services at a competitive price
- prohibiting misleading, fraudulent, or unconscionable conduct.
These shared principles ensure that all parties operate with integrity and professionalism while fulfilling their distinct functions and obligations within the scheme.
Body corporate managers and caretaking service contractors
Management agreements vary widely across the industry. To ensure consistency, the code of conduct establishes a minimum standard for body corporate managers and caretaking service contractors. If there is any inconsistency between the contract’s terms and the code, the code will take precedence.
In Queensland, body corporate managers are not regulated outside this framework, making the code an important tool for accountability.
In addition to general obligations, the code requires body corporate managers and caretaking service contractors to:
- maintain knowledge of the Act
- keep the body corporate informed of relevant matters
- manage conflicts of duty or interest
- maintain proper records.
These requirements help ensure that body corporate managers and contractors operate transparently and in the best interests of the body corporate.
Letting agents
Letting agents that are authorised by the body corporate to operate a letting agent business for the scheme, can also operate under a contract with the body corporate to provide caretaking services.
The code governing letting agents explicitly prohibits conduct that causes a nuisance. In particular, letting agents must not create hazards or unreasonably interfere with another person’s lawful use and enjoyment of a lot or common property.
Additionally, under the Property Occupations Act 2014, letting agents are required to hold a licence. This means if an issue cannot be resolved within the body corporate framework, the parties may have access to other regulatory avenues.
Breaches of the code of conduct
If a body corporate manager, caretaking service contractor, or letting agent breaches the code, the body corporate committee may issue a remedial action notice (RAN), which must:
- clearly identify the nature of the breach.
- provide the recipient with at least 14 days to rectify the breach.
If the recipient fails to comply with the RAN, the body corporate can consider terminating the engagement by ordinary resolution at a general meeting. You can read more about terminating caretaker contracts in issue 38 of the BCCM Common Ground Newsletter.
Importance of the codes
The codes under the Act establish minimum standards for committee members, body corporate managers, caretaking service contractors, and letting agents. They:
- promote accountability by defining expected behaviours and performance standards
- provide a structured process for addressing breaches
- outline actions bodies corporate can take to ensure compliance and uphold the integrity of the scheme.
By setting clear expectations and providing mechanisms to address issues, the codes of conduct ensure that all parties involved in a body corporate operate with professionalism and respect for others. This framework not only supports harmonious community living but also protects the rights and responsibilities of all stakeholders.
This post appears in Strata News #812.
Commissioner for Body Corporate and Community Management P: Information Service Freecall 1800 060 119
This article has been republished with permission from the author and first appeared on the Commissioner for Body Corporate and Community Management website.