New Unit Titles Act update

The main changes of the legislation include:

·  clarifying the definitions of principal and accessory units

·  clarifying levy contributions with certain requirements and options for fund          management

·  specifying the governance structures for Bodies Corporate

·  lowering the voting threshold to 75 percent for any decision requiring ‘unanimous’ resolution

·  lowering the meeting quorum threshold to 25 percent

·  clarifying the rights and obligations of owners in Bodies Corporate

·  clarifying financial reporting requirements for Bodies Corporate

·  specifying the requirement for proactive maintenance planning and associated financial planning to ensure properties are actively maintained

·  providing a comprehensive disclosure regime for buyers, sellers, developers and Bodies Corporate

·  trying to provide a cost effective dispute process through the Tenancy Tribunal

One of the most significant changes is that a Body Corporate must set up and maintain a long-term maintenance fund. The money must only be used towards a long-term maintenance plan and must be held in a separate account. 

The long-term maintenance plan must cover at least 10 years enabling the owners to be proactive rather than reactive regarding property maintenance and financial planning.

Another significant change of the new Act is the disclosure requirements. Now, when a purchaser is buying a unit title they are entitled to a certified full and complete disclosure as to the Body Corporate’s finances and other information before settlement. The buyer may delay settlement or even cancel the sale if the seller does not provide any information requested within the prescribed timeframes.

This is an overview of what is in the Unit Titles Act and its Regulations. If you’d like more information of how this affects your body corporate, please feel free to contact one of the Oxygen team.