This article by Jarad Maher, Grace Lawyers addresses recent updates to body corporate seals.
On 28 August 2024, Titles Queensland released updates to its Land Titles Practice Manual, outlining how bodies corporate must now execute documents for lodgement in the titles office.
We previously wrote about the interim guideline issued by Titles Queensland on 19 June 2024, regarding how bodies corporate could temporarily execute titles documents following the removal of the requirement for the Body Corporate seal under the 1 May 2024 legislative changes, here: Body Corporate Seals – an Update from Titles Queensland.
The interim guideline is no longer relevant, and regard must be had to the new requirements.
What are the new requirements?
For the most commonly registered documents, namely a request lodging a new community management statement (CMS), an overview of how these documents can be executed are as follows:
CMS
Significantly, executions can no longer take place on the face of the CMS itself (i.e. in the item 8 execution panel). instead, the titles office have released a new form entitled “Form 20 – BCCM Execution / Relevant Certificate” (Relevant Certificate).
Item 8 of the CMS should state in the execution panel: “See BCCM Form 20 – BCCM Execution”. The Relevant Certificate must then accompany the lodgement.
The main ways a body corporate can execute the Relevant Certificate are as follows:
- Under the signature of a person authorised by the relevant resolution of the body corporate.
Such execution must include the full name of the signatory, and their authority to execute (e.g. “Person Specified as Signatory in the Body Corporate Resolution Authorising the Transaction”). - Under the signature of two committee members, one of whom is the chairperson or secretary.
Such execution must include the full names of the signatories, and their authority to sign (e.g. “Chairperson”, “Secretary” or “Member of the Body Corporate Committee”). - Under the signature of a solicitor for the body corporate.
Form 14 – General Request
A Body Corporate can now execute a Form 14 – General Request (required to accompany each CMS) as follows:
- Under the signature of any committee member.
Such execution must include the signatory’s full name and position, and the name of the scheme. - Under the signature of the body corporate manager.
Such execution must include the signatory’s full name and position, and the name of their company / organisation. - Under the signature of a solicitor for the body corporate.
The above requirements are applicable for both the standard and accommodation modules, and there are various other ways in which execution can occur under other regulation modules, and other circumstances – in particular where a body corporate manager is acting under a part 5 engagement, or where all of the lots in the scheme are under common ownership.
What about other documents?
All Form 14 – General Requests for other matters (e.g. a change of body corporate address) can be executed by a body corporate in the same less formal manner that is permitted for a Form 14 relating to a CMS.
Any other documents requiring registration in the titles office will require execution in the same manner as that for a CMS, except that solicitors are unable to execute on behalf of the body corporate. One of the other available execution methods will need to be adopted.
Additionally, certain transactions under the Body Corporate and Community Management Act 1997 (BCCMA) (i.e. easements, leases, licenses and transfers) will need to continue to meet any further requirements detailed under the regulation modules. Of particular note is the requirement for easements and surrenders of easements to include a signed copy of the resolution (without dissent) authorising the transaction.
Conclusion
Whilst understanding the new execution requirements for bodies corporate in respect of land titles documents are more complex than before the removal of seals, the new requirements provide much greater flexibility to bodies corporate in how they execute documents.
Bodies corporate can now execute titles documents under the signature of any person authorised to do so under the relevant resolution, and a CMS can now be signed by a solicitor authorised to do so.
The removal of the requirement under the BCCMA and regulation modules for a seal to be affixed in the presence of two committee members has enlarged the options available to bodies corporate for executing documents. This enhanced flexibility will ultimately make the process of executing, lodging and registering documents in the titles office far more streamlined.
Jarad Maher
Grace Lawyers
E: [email protected]
This post appears in Strata News #710.
QLD: Executing documents. Do we still affix the body corporate seal?
This video, featuring Jarad Maher from Grace Lawyers was recorded on 29 April, 2024, before Titles Queensland had clarified their position on Seal requirements when executing documents. In the video, Jarad answered the following questions:
- What do strata managers and bodies corporate need to know and do right now to comply?
- Not everyone will have changed over their contracts and motions to remove any mention of seals. If people are still using their old template, are they valid, or could they be challenged?
Have a question or something to add to the article? Leave a comment below.
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This article has been republished with permission from the author and first appeared on the Grace Lawyers website.
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