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This is a Bill, not an Act. For current law, see the Acts databases.
Queensland
BUILDING UNITS AND
GROUP TITLES
AMENDMENT BILL 1995
Queensland
BUILDING UNITS AND GROUP TITLES
AMENDMENT BILL 1995
TABLE OF PROVISIONS
Section Page
1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3 Insertion of new pt 4, div 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Division 4--Protection for financiers
96A Meaning of "financier" for section 96B . . . . . . . . . . . . . . . . . . . . . . . 4
96B Protection for financier of contract . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
4 Amendment of s 157 (Register of body corporate management
and service contracts) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5 Amendment of s 163 (Statement to be given by seller to buyer) . . . . . . . . 7
6 Replacement of s 170 (Avoidance of contract for noncompliance
with part) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
170 Avoiding contract because of prejudice to buyer . . . . . . . . . . . . . . . 7
7 Amendment of s 222 (Certain arrangements to continue) . . . . . . . . . . . . . . 8
8 Insertion of new ss 222A and 222B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
222A Limitation on exclusive entitlements . . . . . . . . . . . . . . . . . . . . . . . . . 10
222B Limitation on term of appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
9 Amendment of s 223 (Saving of existing community titles
schemes etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
10 Insertion of new s 223A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
223A Use of seal by body corporate manager . . . . . . . . . . . . . . . . . . . . . . . 12
11 Amendment of s 224 (Saving of by-laws) . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
12 Amendment of s 225 (Saving of special rights) . . . . . . . . . . . . . . . . . . . . . . 13
1995
A BILL
FOR
An Act to amend the Building Units and Group Titles Act 1994
s1 4 s3
Building Units and Group Titles Amendment
The Parliament of Queensland enacts-- 1
title 2
Short
Clause 1. This Act may be cited as the Building Units and Group Titles 3
Amendment Act 1995. 4
amended 5
Act
Clause 2. This Act amends the Building Units and Group Titles Act 1994. 6
of new pt 4, div 4 7
Insertion
Clause 3. After part 4, division 3-- 8
insert-- 9
4--Protection for financiers 10
`Division
of "financier" for section 96B 11
`Meaning
`96A.(1) For section 96B, a person is a financier for a contract if a 12
contractor for the contract and the person give written notice signed by both 13
of them to the body corporate under the contract that the person is a 14
financier for the contract. 15
`(2) A person stops being a financier for a contract if the person gives the 16
body corporate under the contract a written notice withdrawing the notice 17
given under subsection (1). 18
`(3) A notice under subsection (2) may be given without the contractor's 19
agreement. 20
`(4) However, a person is a financier for the contract only if the person 21
is-- 22
(a) a financial institution; or 23
(b) a person who, in the ordinary course of the person's business, 24
supplies, or might reasonably be expected to supply, finance for 25
contracts; or 26
s3 5 s3
Building Units and Group Titles Amendment
(c) for a contract in existence immediately before the 1
commencement--a person who, at the time the person supplied 2
finance for the contract, was a person mentioned in paragraph (b). 3
`(5) In this section-- 4
"contract" means a body corporate management contract or service 5
contract. 6
"contractor" means a body corporate manager or service contractor. 7
for financier of contract 8
`Protection
`96B.(1) The body corporate under a financed contract may terminate the 9
contract only if-- 10
(a) the body corporate has given the financier for the contract written 11
notice that the body corporate is entitled to terminate the contract; 12
and 13
(b) at least 21 days have passed since the notice was given. 14
`(2) However, the body corporate may not terminate the contract if the 15
financier is, under arrangements between the financier and the contractor for 16
the contract, acting under the contract in the place of the contractor. 17
`(3) A body corporate may give a notice under subsection (1) only if, but 18
for the subsection, the body corporate is entitled to terminate the contract 19
when the notice is given. 20
`(4) A financier may act under the contract for subsection (2) only if the 21
financier has previously given written notice to the body corporate of the 22
financier's intention to act under the contract. 23
`(5) For acting under the contract for subsection (2), the financier may 24
authorise a person to act for the financier, but only if the body corporate has 25
first approved the person. 26
`(6) For deciding whether to approve a person under subsection (5), the 27
body corporate may have regard only to-- 28
(a) the character of the person and any associates; and 29
(b) the competence, qualifications and experience of the person and 30
any associates, and the extent to which the person and any 31
associates have received or will receive training. 32
s4 6 s4
Building Units and Group Titles Amendment
`(7) However, the body corporate must not-- 1
(a) unreasonably withhold approval of the person; or 2
(b) require or receive a fee or other consideration for approving the 3
person (other than reimbursement for legal expenses reasonably 4
incurred by the body corporate in relation to the application for its 5
approval). 6
`(8) When the financier is acting under the contract under subsection (2), 7
the subsection does not operate to stop the body corporate from terminating 8
the contract for something done or not done after the financier started to act 9
under the contract. 10
`(9) Nothing in this section stops the ending of a financed contract by the 11
mutual agreement of the body corporate, the contractor and the financier. 12
`(10) In this section-- 13
"contract" means a body corporate management contract or service 14
contract. 15
"contractor" means a body corporate manager or service contractor. 16
"financed contract" means a contract for which there is a financier. 17
"financier" see section 96A. 18
"terminate", for a contract, means to terminate the contract other than 19
under section 95.1'. 20
of s 157 (Register of body corporate management and 21
Amendment
service contracts) 22
Clause 4. Section 157-- 23
insert-- 24
`(3) The body corporate under a financed contract under section 96B2 25
1 Section 95 (Discretionary termination of early appointments of body corporate
manager or service contractor)
2 Section 96B (Protection for financier of contract)
s5 7 s6
Building Units and Group Titles Amendment
must note in the register the giving and withdrawing of all notices under 1
section 96A(1) and (2).3'. 2
of s 163 (Statement to be given by seller to buyer) 3
Amendment
Clause 5. Section 163, `section'-- 4
omit, insert-- 5
`part'. 6
of s 170 (Avoidance of contract for noncompliance with 7
Replacement
part) 8
Clause 6. Section 170-- 9
omit, insert-- 10
contract because of prejudice to buyer 11
`Avoiding
`170.(1) A person who enters into a contract to buy a lot or proposed lot 12
may, by giving written notice (a "notice of avoidance") to the seller, avoid 13
the contract if the person is materially prejudiced by-- 14
(a) the seller's failure to comply with this part; or 15
(b) the contents of a supplementary notice given under section 167.4 16
`(2) The notice of avoidance must be given to the seller within 30 days 17
after-- 18
(a) subject to paragraphs (b) and (c), for a failure to comply with this 19
part--the buyer or the buyer's agent becomes aware of the 20
failure; or 21
(b) for an inaccuracy in a statement given under section 1635--the 22
buyer enters into the contract to buy the lot; or 23
(c) for an inaccuracy in a supplementary notice given under 24
section 167--the buyer or the buyer's agent receives the 25
3 Section 96A (Meaning of "financier" for section 96B)
4 Section 167 (Inaccuracies and changes of circumstances)
5 Section 163 (Statement to be given by seller to buyer)
s7 8 s7
Building Units and Group Titles Amendment
supplementary notice; or 1
(d) for the contents of (other than an inaccuracy in) a supplementary 2
notice given under section 167--the buyer or the buyer's agent 3
receives the supplementary notice. 4
`(3) If the seller is the original owner of the lot, the contract may be 5
avoided even though it is an executed contract, but the right to avoid the 6
contract under this section is lost if notice of avoidance is not given within 7
6 months after settlement. 8
`(4) If the seller is not the original owner of the lot, the right to avoid the 9
contract under this section is lost once settlement has taken place. 10
`(5) For this section, the buyer is taken-- 11
(a) to have been aware of all information given to the buyer or the 12
buyer's agent by or for the seller; and 13
(b) to have become aware of the information when it is given.'. 14
of s 222 (Certain arrangements to continue) 15
Amendment
Clause 7.(1) Section 222(2) to (4)-- 16
omit, insert-- 17
`(2) However, the provisions of this Act, and not the former Act, apply 18
to a body corporate management contract or service contract entered into on 19
or after 24 October 1994 unless subsection (3) applies to the contract. 20
`(3) This subsection applies to a contract if-- 21
(a) the contract is a body corporate management contract or service 22
contract; and 23
(b) an original owner disclosed an intention for the body corporate to 24
enter into the contract in-- 25
(i) a prospectus registered with the Australian Securities 26
Commission before the commencement; or 27
(ii) if subparagraph (i) does not apply--a notice given under 28
section 496 of the former Act to a buyer entering into an 29
6 Section 49 (Duties of original proprietor)
s7 9 s7
Building Units and Group Titles Amendment
agreement before 24 October 1994 to buy a lot; and 1
(c) if paragraph (b)(i) applies--the prospectus contemplated the 2
registration of a plan (the "plan"); and 3
(d) if paragraph (b)(ii) applies, and there was only 1 agreement 4
entered into before 24 October 1994 to buy a lot-- 5
(i) the agreement to buy a lot was entered into in contemplation 6
of the registration of a plan (the "plan"); and 7
(ii) the buyer of the lot was not an associate of the original 8
owner; and 9
(e) if paragraph (b)(ii) applies, and there were 2 or more agreements 10
entered into before 24 October 1994 to buy lots-- 11
(i) a notice under section 49 of the former Act was given to 12
each buyer; and 13
(ii) each agreement to buy a lot was made in contemplation of 14
the registration of a plan (the "plan"); and 15
(iii) the buyer of at least 1 lot was not an associate of the original 16
owner; and 17
(f) the plan was not registered under the former Act; and 18
(g) the contract would have been a prescribed arrangement within the 19
meaning of the former Act if it had been entered into by the body 20
corporate before the commencement; and 21
(h) the plan is registered under this Act, and the contract takes effect, 22
within 3 years after the commencement. 23
`(4) For subsection (3)(b), it is sufficient if the prospectus or notice 24
disclosed the general nature of the contract. 25
`(5) If subsection (3) applies to a contract, the provisions of the former 26
Act (including the provisions about prescribed arrangements) apply or 27
continue to apply, and this Act does not apply, to the contract. 28
`(6) If under subsection (5) the former Act applies or continues to apply 29
to a contract (the "original contract"), the former Act-- 30
(a) applies or continues to apply to the original contract if it is 31
transferred or changed (other than by extending its term); and 32
s8 10 s8
Building Units and Group Titles Amendment
(b) also applies to a new contract entered into because of a right or 1
option for 1 or more renewals contained in the original contract. 2
`(7) The provisions of the former Act about prescribed arrangements 3
continue to apply under this section with any necessary changes and any 4
changes prescribed under a regulation.'. 5
of new ss 222A and 222B 6
Insertion
Clause 8. After section 222-- 7
insert-- 8
on exclusive entitlements 9
`Limitation
`222A.(1) This section applies if-- 10
(a) under section 95,7 a body corporate terminates the appointment of 11
a body corporate manager or service contractor; or 12
(b) under section 96, 8 a body corporate terminates a body corporate 13
management contract or service contract; or 14
(c) a body corporate management contract or service contract is 15
terminated by mutual agreement; or 16
(d) a body corporate management contract or service contract comes 17
to an end and is not renewed under a provision of the contract 18
providing for its renewal. 19
`(2) For subsection (1)-- 20
"appointment" means an appointment in force immediately before the 21
commencement. 22
"contract" means a contract in existence immediately before the 23
commencement. 24
`(3) A by-law (other than an exclusive use by-law) (the "affected 25
by-law") of the body corporate providing for a person (the "first person") 26
7 Section 95 (Discretionary termination of early appointments of body corporate or
service contractor)
8 Section 96 (Termination of body corporate management contract or service
contract)
s8 11 s8
Building Units and Group Titles Amendment
to carry on a business as a body corporate manager or service contractor is 1
repealed, but only to the extent that an entitlement it gives is to be enjoyed 2
exclusively by the first person. 3
`(4) If a by-law is affected under subsection (3), the body corporate must 4
not give a person-- 5
(a) an entitlement, if the entitlement would conflict with someone 6
else's entitlement under the continuing operation of the affected 7
by-law; or 8
(b) an authority under section 97, 9 if use of the common property 9
under the authority would substantially interfere with someone 10
else's access to a part of a lot or common property used by the 11
first person immediately before the by-law was affected to carry 12
on the business mentioned in subsection (3). 13
`(5) To the extent a by-law is repealed under subsection (3), the body 14
corporate must lodge a written notice with the registrar advising of the 15
repeal. 16
on term of appointment 17
`Limitation
`222B.(1) This section applies to a body corporate management contract 18
or service contract if it-- 19
(a) was entered into on or after 24 October 1994, but before the 20
commencement; and 21
(b) is not a contract to which section 222(3) applies. 22
`(2) If the contract provides for the appointment of a body corporate 23
manager or service contractor for a term longer than 10 years, the contract is 24
taken to provide for a term of only 10 years. 25
`(3) For subsection (2), the term of the contract is the term decided after 26
allowing for rights or options of renewal.'. 27
9 Section 97 (Use of common property by service contractor)
s9 12 s 10
Building Units and Group Titles Amendment
of s 223 (Saving of existing community titles 1
Amendment
schemes etc.) 2
Clause 9.(1) Section 223(3)-- 3
omit, insert-- 4
`(3) If an instrument under the former Act was signed, or a plan under 5
the former Act was sealed by a local government, before the 6
commencement or a later day prescribed under a regulation, the provisions 7
of the former Act for lodging the instrument or plan continue to apply. 8
`(3A) If an instrument or plan under the former Act is lodged for 9
registration, but not registered, before the commencement, registration is to 10
be finished under this Act to the greatest practicable extent.'. 11
(2) Section 223(9)-- 12
omit, insert-- 13
`(9) If a seller of a lot or proposed lot (other than the original owner) 14
entered into a contract before the commencement for the sale of the lot or 15
proposed lot-- 16
(a) section 4010 of the former Act applies to the contract, and applies 17
even though, if it is for the sale of a proposed lot, the lot is not 18
created until the plan is registered after the commencement; but 19
(b) a body corporate may, rather than comply with section 40 of the 20
former Act, give a certificate under section 161(4)11 of this Act.'. 21
of new s 223A 22
Insertion
Clause 10. After section 223-- 23
insert-- 24
of seal by body corporate manager 25
`Use
`223A.(1) Until the annual general meeting of a body corporate first 26
happening after the commencement, a body corporate manager may 27
continue to use the body corporate's seal in the way the body corporate 28
10 Section 40 (Supply of information, certificates and copies by body corporate)
11 Section 161 (Information to be given to interested persons etc.)
s 11 13 s 12
Building Units and Group Titles Amendment
manager could use it under the former Act immediately before the 1
commencement. 2
`(2) Subsection (1) applies subject to an ordinary resolution of the body 3
corporate under section 47(3).12'. 4
of s 224 (Saving of by-laws) 5
Amendment
Clause 11.(1) Section 224-- 6
insert-- 7
`(4A) For deciding, for subsection (4)(b), whether a by-law could have 8
been made under this Act, section 97(5)13 is taken not to have been 9
enacted.'. 10
(2) Section 224(5), `before 1 January 1996'-- 11
omit, insert-- 12
`within 18 months after the commencement'. 13
(3) Section 224(10)-- 14
omit. 15
of s 225 (Saving of special rights) 16
Amendment
Clause 12. Section 225-- 17
insert-- 18
`(2) For deciding, for subsection (1)(b), whether rights are of a type that 19
could be given by an exclusive use by-law under this Act, section 97(5)14 is 20
taken not to have been enacted.'. 21
© State of Queensland 1995
12 Section 47 (Body corporate's seal)
13 Section 97 (Use of common property by service contractor)
14 Section 97 (Use of common property by service contractor)
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