This article about getting ready for the new strata QLD reforms on the 1 March 2021 has been provided by William Marquand, Tower Body Corporate.
The March 1 regulation changes cover multiple amendments to the Body Corporate legislation.
Headline items such as changes to the quorums and electronic voting will capture most people’s attention, but there are also a number of smaller changes that can impact the way your building is run. Look out for the new rules below:
We have created a handy summary Factsheet of the Reforms for quick reference. You can download the pdf here.
Roll updates:
Owners must now provide roll update information to the Body Corporate (including lease details and the sale of a lot) within one month.
The Body corporate has 14 days to update the details received on the roll.
Implication: This is important for new purchasers and owners with tenants. New buyers who don’t update their details can’t complain if they are charged late fees for unpaid levies if they haven’t provided their contact details. Owners and agents need to keep tenant details up to date. If tenants need to be contacted and details aren’t available owners could be to blame.
Modules affected: standard, accommodation, commercial, small scheme.
Insurance:
Insurance is no longer subject to the Committee spending limit.
Implication: Committees can now select and approve an insurance policy for their scheme. This regulation tidies up what is already a common practice at many schemes. It reflects the reality of the insurance market where renewals don’t always fall in line with meetings and quick decisions are sometimes required to be made.
Modules affected: standard, accommodation, small scheme.
VOCs or VOCMs (vote outside a committee meeting):
VOCs must now be decided within 21 days of issue or the motion will expire. If there have not been enough ‘yes’ votes to pass a motion the motion will be considered defeated.
Implication: Previous legislation allowed for the VOC to be issued but no conclusion reached. VOCs will now provide a definitive answer within 21 days. Committees need to be aware that if they don’t respond the motion may be defeated. While this may be appropriate, it also allows owners to challenge that decision.
Modules affected: standard, accommodation, commercial.
Committee member financial status:
If a committee member has a debt to the body corporate they are unfinancial and cannot vote at a meeting or via a VOC.
Implication: To be active, committee members need to stay up to date with their payments. Arrears will need to be checked before each meeting. Note that even if the member can’t vote their presence at the meeting still counts towards the quorum.
Modules affected: standard, accommodation, commercial.
Body Corporate Manager to receive documents:
A body corporate manager is now permitted to receive documents on behalf of the Secretary.
Implication: While this is already common practice it clarifies the procedure. Claims that voting papers may be challenged as they were sent to the BCM rather than the secretary are no longer valid.
Modules affected: standard, accommodation, commercial.
Commissions:
Body corporate contractors now have to declare any commission they receive and the amount of that commission.
Implication: this is a welcome transparency change for the industry that allows owners to clearly see the value of commissions received by agents while working on owners’ behalf.
Modules affected: standard, accommodation, commercial, small schemes.
For more information please go to the BCCM website.
Have a question or something to add to the article? Leave a comment below.
Read next:
- Strata Reform in QLD Building Up a Head of Steam For 2021
- QLD: Standard Module Regulation changes – General meetings
Visit Strata By-Laws and Legislation, Strata Law Reform
OR Strata Legislation QLD pages.
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