This article discusses what information a body corporate is entitled to receive during a management rights sale disclosure, including whether the purchase price must be revealed.
Question: Our building manager is about to sell the management rights. Are we entitled to know how much they are selling the management rights for and how much they paid for them two years ago?
Answer: A body corporate is entitled to ‘the terms of the transfer’ as well as to an understanding of the buyer’s financial position.
At law on an assignment, a body corporate is entitled to ‘the terms of the transfer’ as well as to an understanding of the buyer’s financial position. Collectively, to me at least, this means the body corporate is more than likely entitled to know what the management rights transaction price is once a deal is struck and the buyer is presented to the body corporate for the purposes of consideration of the assignment. However, I don’t think that extends to what the vendor purchased them for as that is not relevant to the transaction at hand.
This post appears in Strata News #637.
Frank Higginson Redchip Strata Law E: FrankH@redchip.com.au P: 07 3193 0500