Bailey's on Balmoral [2008] QBCCMCmr 303 (27 August 2008)

Number of Scheme:	29593
Name of Scheme:	Bailey’s on Balmoral
Address of Scheme:	24 Collings Street BALMORAL QLD 4171

TAKE NOTICE that pursuant to an application made under the abovementioned Act by

The State of Queensland (represented by the Department of Housing), the Owner of lot 6

I hereby authorise the applicant, The State of Queensland (represented by the Department of Housing) to incur emergency expenditure on behalf of the body corporate in order to effect the renewal of an insurance policy in the name of “Body Corporate for Baileys on Balmoral CTS No. 29593” in the amount of $1,544.41.

I hereby order that the applicant is to be reimbursed for the cost of the insurance renewal to an amount of $1,544.41 from the body corporate’s funds or if no body corporate funds are held, as soon as the body corporate has funds to effect such reimbursement.

Bailey’s on Balmoral Community Titles Scheme is a 6 lot scheme under the Body Corporate and Community Management Act (Act) and the Small Schemes Regulation Module.

This is an application by The State of Queensland (represented by the Department of Housing), the owner of lot 6 (applicant) for authorisation to incur emergency expenditure on behalf of the body corporate for renewal of an insurance policy in the name of “Body Corporate for Baileys on Balmoral CTS No. 29593” in the amount of $1,544.41 (as per copy of the renewal notice attached).

The applicant also seeks an order that the department of Housing be reimbursed for the cost of the insurance renewal to an amount of $1,544.41 from the body corporate’s funds, or if no body corporate funds are held, as soon as the body corporate has funds to effect such reimbursement.

The applicant states that as a lot owner, it has made numerous inquiries regarding the non-isssue of levy notices for this scheme as the last levy notice was issued in November 2007 and no notices of Annual General Meeting have been issued since that time. The affairs of the body corporate were previously administered by Body Corporates Australia Pty. Ltd. However, I understand that due to illness of the sole director of that company the affairs of this body corporate have not been attended to for some time.

The applicant is concerned that the body corporate has not been meeting its statutory obligations and in particular, is concerned that the insurance policy for the scheme will lapse on 22 September. As no levies have been collected since November 2007 and no financial statements are available, the applicant does not know if the body corporate has funds to renew the insurance policy.

The applicant has sent letters to other members of the body corporate seeking information about running the scheme and the insurance policy of the scheme. However, only one lot owner responded and was unable to provide any further information in this regard. Further, the body corporate is not in possession of the scheme records as these are held by the former body corporate manager and attempts to retrieve those records have been unsuccessful to date.

As there is no functioning body corporate, the applicant seeks this order to enable it to incur emergency expenditure on behalf of the body corporate. The renewal is due for payment on 22 September and therefore sufficient time is required to arrange payment.

The applicant sought three quotations through an insurance broker who obtained the following quotations:

I accept submissions from the applicant to the effect that it has attempted to contact all of the other lot owners. I am further satisfied from the material provided that unless I make an order authorising emergency expenditure, the body corporate will in all probability be uninsured . Under the Small Schemes Module, the body corporate is required to insure the building to full replacement value.

In the circumstances I am satisfied that it is appropriate to make an order authorising emergency expenditure on behalf of the body corporate for renewal of an insurance policy in the name of “Body Corporate for Baileys on Balmoral CTS No. 29593” in the amount of $1,544.41.

I am also satisfied that it is appropriate to make an order that the applicant should be reimbursed for the cost of the insurance renewal to an amount of $1,544.41 from the body corporate’s funds or if no body corporate funds are held, as soon as the body corporate has funds to effect such reimbursement.

Order
For these reasons, I consider it is appropriate to authorise emergency expenditure as above.

Queensland Body Corporate and Community Management Commissioner - Adjudicators Orders

Bailey's on Balmoral [2008] QBCCMCmr 303 (27 August 2008)