A. The body corporate is set up to manage and maintain the common property of a strata development or more simply a block of units. Building Management Corporations or Management Corporations are larger forms of Body Corporate’s.

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A. The chairman is the spokesperson for the members. The chairman has the authority to make certain decisions. This authority is set down in the legislation and may be added to by the members through the process of meetings and the passing of resolutions.

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A. The body corporate manager’s role is primarily one of administering the body corporate. That is sending out levy accounts, collecting the fees, maintaining the bank account, paying the bills and conducting the AGM. The manager is required to carry out their duties in accordance with the unit titles act. The management agreement sets out more specific functions to be carried out by the manager and is negotiated with the members or by delegation to the committee.

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A. The primary insurance held by the body corporate is for the repair or replacement of the whole building and public liability cover for the common property. It covers the building insurance of each individual owners unit. Specific policies are available for body corporate’s which may or may not include, loss of rent, electrical equipment and committee member’s liability cover.

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A. Unit owners must insure their own property contents. The public liability insurance for the body corporate does not cover inside private units.

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A. A budget is usually prepared based on the expenditure of the previous year plus any adjustments for future works or extraordinary spending in the previous year taking into consideration inflation.

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A. The draft budget is circulated to the members with the agenda for the Annual General Meeting. At the meeting the budget is reviewed and a motion is put to approve the budget. If a majority votes in favour of the budget it is approved and is then used to calculate how much each unit owner will be charged for the year.

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A. Fees are calculated based on the unit entitlement of each unit as a factor of the total unit entitlement for a building.

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A. Fees are charged quarterly in advance.

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A. Go to the Strata Members Login on the menu bar of this web site changes.

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A. The changes to the law are important because, as from 1 October 2009:

• new rules apply to the operation of bodies corporate established under the Unit Titles Act; and
• new requirements apply to the type of vote that may apply when a body corporate is making a decision (eg whether the vote needs to be a majority vote or a unanimous vote).

On and from 1 October 2009, the rules that apply will depend on whether a body corporate is a “small plan” or a “standard plan”. See question 2 as to what is a “small plan” and what is a “standard plan”.

If a body corporate is part of a “small plan” the rules that apply are contained in Part V of the Unit Titles Act and in schedule 2 to the Unit Titles (Management Modules) Regulations.

If a body corporate is part of a “standard plan” the rules that apply are contained in Part V of the Unit Titles Act and in schedule 1 to the Unit Titles (Management Modules) Regulations.

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A. A “small plan” is one where there are less than four units. However, a condominium development, an estate development or a building development plan cannot be a “small plan” even if the number of units is less than four.

A “standard plan” is a plan where there are four or more units or where the plan relates to a condominium development, an estate development or a building development.

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A. The main relevant Acts (for body corporate managers) are the Unit Titles Act and the Unit Title Schemes Act 2009.

On 1 July 2009 most of the provisions of the following Acts commenced operation:

Land Title and Related Legislation Amendment Act 2008

Unit Title Schemes Act 2009.

Of relevance to this document, the Land Title and Related Legislation Amendment Act 2008 amended the Unit Titles Act so that:

• most of Part V of the Unit Titles Act is repealed;
• regulations can be made providing for “management modules”.

Additionally, the Unit Title Schemes Act made the following amendments to the Unit Titles Act:

• it amended the voting provisions so that the definitions of terms such as “majority resolution”, “ordinary resolution”. “resolution without dissent”, “special resolution” and “unanimous resolution” lined up with the definitions in the Unit Title Schemes Act;
• it amended some of the provisions in the Unit Titles Act regarding the type of vote required. For example:

  • resolutions relating to sections 42(2)(granting or acquiring of easements), 42A(2) (adding land to the common property), 42B (leasing of common property) changed from being “unanimous resolutions” to being “resolutions without dissent
  • resolutions for the purposes of clause 2(4)(f) (keeping of animals and birds) of the articles changed from “unanimous resolution” to “majority resolution”;
  • resolutions for the purposes of clause 2(4)(e) (erection of structures) of the articles changed from “special resolution” to “majority resolution”;
  • resolutions for the purposes of clause 4 (damaging of common property) of the articles changed from “approval in writing” to “majority resolution”

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A. The new management modules commenced operation on 1 October 2009. The provisions of Part V of the Unit Titles Act as in force on 30 June 2009 continued to apply for the period 1 July 2009 to 30 September 2009.

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A. A “majority resolution” is one where the number of votes counted in favour of a motion exceeds 50% of the total number of units.

This is the voting requirement for resolutions contained in:

Unit Titles Act

• Schedule 2(4)(e) (erection or alteration of structures in a unit)
• Schedule 2(4)(f) (keeping of animals or birds in unit or on common property)
• Schedule 2A (withdrawal of permissions about the keeping of animals or birds)
• Schedule 4 (‘damage’ to common property – eg putting screws in a wall that is common property)

Unit Titles (Management Modules) Regulations

There are no references to majority decisions contained in the management modules.

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A. An “ordinary resolution” is one where the management modules states that the vote is to occur by way of ordinary resolution and if the unit entitlememts of the units in the votes counted in favour of a motion exceeds the unit entitlement of the units against the motion.

This is the voting requirement for resolutions contained in:

Unit Titles (Management Modules) Regulations

• clause 2(2) (all motions at general meetings unless the management modules provides to the contrary),
• clause 12(c) (one of the methods of calling a meeting of the committee) and
• clause 54(3) (delegations) of the management modules (for standard plans).

Unit Titles Act

None of the provisions in the Unit Titles Act require motions permit them to be passed by ordinary resolution

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A. A “resolution without dissent” is one where no vote is counted against the motion. This is the voting requirement for resolutions contained in:

Unit Titles Act

• section 40 (borrowing of money),
• section 42(purchasing and selling of property),
• section 42A (additional common property),
• section 42B (leasing of common property by corporations other than estate management or building management corporations) and
• section 53(1A)(a)(expenditure in excess, for matters other than health, safety or security, of amount prescribed by section 53(2), currently $200 per unit)

Unit Titles (Management Modules) Regulations

• clause 4(3)(exercise of powers and functions of the corporation by committees) of the management modules (for standard plans) and matters that, pursuant to decisions taken at the first annual general meeting, must be decided by a resolution without dissent (clauses 23 and 26 of the management modules (for standard plans)

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A. A “special resolution” is one where at least 2/3rd of the number of votes counted are in favour of a motion and the unit entitlements of the votes against the motion do not exceed 25% of the total number of units entitlements. This is the voting requirement for resolutions contained in:

Unit Titles Act

• section 42B(2) and (3) (leasing of common property by statement management corporations and building management corporations),
• section 43 (agreements with members for the repair and maintenance of units),
• section 44(2) (termination of special privileges relating to common property),
• section 53(1) (expenditure in excess of the amount determined in accordance with section 36(1)),
• section 53(2) (to override limitation on expenditure under 53(1) to amount less that the prescribed amount per unit (currently $200) unless, for essential health , safety or security reasons,)78(1) (alteration of articles).

Unit Titles (Management Modules) Regulations

• clause 5(2)(b) (variations in the number of committee members) of the management modules (for standard plans) and matters that, pursuant to decisions taken at the first annual general meeting, must be decided by a special resolution, (clauses 23 and 26 of the management modules (for standard plans)

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A. A “unanimous resolution” is one where the number of votes counted in favour of a motion is the same as the number of units (ie all units vote for the motion). See used in the following provisions::

Unit Titles Act

• Section 36(4)(b) (decision that contributions be shared contrary to the respective proportions of unit entitlements (ie as per section 36(3)) and
• Section 44(1)(grant of special privileges relating to common property)

Unit Titles (Management Modules) Regulations

• Matters that, pursuant to decisions taken at the first annual general meeting, must be decided by a special resolution, a resolution without dissent or a unanimous resolution (clauses 23 and 26 of the management modules (for standard plans)

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A. An “interim resolution” is a resolution made at a meeting of a committee where there was no quorum. Where this occurs the Secretary must give a copy of the resolution to each member of the committee. A voting paper must also be provided.

An interim resolution of a committee becomes a resolution of the committee if votes are received from at least 50% of the members and if the votes in favour are greater than the votes against. There is a period of 14 days for the casting of the votes.

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A. Only motions that can be passed by an ordinary resolution.

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A. An “interim resolution” is a resolution made at a meeting of a corporation where there was no quorum. Where this occurs the Secretary must give a copy of the resolution to each member.

An interim resolution of a corporation becomes a resolution of the corporation if no further meeting is called within 28 days or if the decision is confirmed at a meeting that takes place within those 28 days.

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A. Only motions that can be passed by an ordinary resolution.

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A. In order to be legally effective, a decision should be made at either a committee meeting or at a meeting of the corporation (subject to the comments made above concerning interim resolutions).

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A. Yes, breaches of some of the clauses do constitute offences. See below for the details.

6 Offences

(1) The original proprietor for a small or standard plan must comply with a requirement under the management module applying to the corporation that the original proprietor give the corporation, or the committee of the corporation, particular documents at the first annual general meeting of the corporation.

Maximum penalty: 100 penalty units.

(2) Each committee member commits an offence if the committee for a standard plan fails to comply with a requirement under the management module applying to the corporation that the committee:

1. ensure particular records are kept for the corporation; and
2. prepare a financial statement at the end of a financial year showing particular information.
   

Maximum penalty: 20 penalty units.

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A. A member is not financial if they have not paid the amount by the time the amount is due to be paid.

Thus if an amount is due on 30 September 2009 and has not been paid by that day the member will be a non financial member after 30 September 2009. They will remain non financial until such time as the outstanding amount is paid.

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A. Non financial members lose the right to vote unless the resolution is one that requires a unanimous resolution or a resolution without dissent.

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A. In the main this is a land use matter regulated by the Planning Act.

However, if the use of the land is in breach of the Planning Act, article 2(4)(d) may apply. Other articles relating to uses that cause substantial annoyance may also apply (article 2(4)(d))

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A. The scheme supervisor is a person appointed by the Minister to hold or occupy that office. The position is the central point of contact concerning issues with the operation of the unit tiles legislation and has functions and powers given under the Unit Title Schemes Act. The scheme supervisor has no formal powers in respect of the Unit Titles Act.

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A. The current scheme supervisor is Robert Bradshaw, until 31 December 2009. After that day Micheil Brodie.

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A. A body corporate has the powers, authorities, duties and functions conferred or imposed by or under the Unit Titles Act.

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A. Parts of the complex not within a unit as defined by the units plan. Common property can include lawns, gardens, driveways, garbage storage areas, stairs and infrastructure such as pipes and wiring.

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A. In simple terms, it is the privately owned area or space within a units subdivision

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A. Aside from references to building units, the word “building” is only used in the Act or in the management module in:

• the definitions of “structural cubic space” and in section 4(2) of the Unit Titles Act (dealing with boundaries); and
• section 47A of the Unit Titles Act (restrictions on the power of a corporation to do certain things in the initial period of the life of a units plan).

The word “building” is not defined in either the Unit Titles Act or in any general legislation such as the Interpretation Act.

Most issues relating to “buildings” involve the question of whether parts of the building are within units or common property. Common property is the entire parcel of land that is not part of a unit.

Generally speaking:

• those parts of a building that are “structural cubic spaces” are not part of the unit;
• those parts of a building (constituting boundaries between units) that are between walls or between a ceiling and a floor are not part of a unit.

However, these general principles can be displaced by the units plan which can provide for different boundaries.

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A. Yes, a person can be given a special privilege relating to common property if authorised by unanimous resolution provided special privilege is not be a lease.

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A. By monies held in sinking fund, by raising special levy or by financing.

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A. It may borrow monies if authorised by a resolution without dissent.

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A. The body corporate may serve a notice in writing giving particulars of the breach and requiring remedy with period specified.

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A. Yes, it may itself remedy the breach.

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A. No, the Unit Titles Schemes Act provides for by-laws of a scheme that are either standard or as specified in the scheme statement. A contravention of a by-law leaves the offender liable to a maximum fine of 20 penalty units, which is $2600.

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A. The body corporate rather than the police or government.

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A. Same as Unit Titles Act. Disputes will continue to be dealt with by the Local Court

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A. The Supreme Court deals with matters such as the cancellation and alteration of units plans.

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A. No, except as provided for by Part V of the Unit Titles Act.

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A. Yes, a proprietor, mortgagee of a unit or person authorised by proprietor may inspect.

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A. Yes, the body corporate is entitled to charge a fee for supplying a certificate or making books and records available, not exceeding the cost to provide the service.

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A. As a general rule body corporate managers must be licensed.

For the purposes of the Agents Licensing Act, a person must be licensed as a “real estate agent” if they are a body corporate manager as referred to in section 87(1) of the Unit Title Schemes Act or are a person who for reward exercises a power or performs a function on behalf of a corporation or members of a corporation under the Unit Titles Act.

The difference between the two is that a person who deals with the administration of units under the Unit Titles Act is only required to be licensed if they are paid for what they do. A person who administers units under the Unit Title Schemes Act is required to be licensed regardless of whether they are paid. However, under the Agents Licensing Act, the Agents Licensing Board may grant exemptions from the need for a licence. The Board has not yet considered the issue.

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A. Under section 52 of the Unit Titles Schemes (Management Modules) Regulations which now apply to both the existing Unit Titles Act and the new Unit Titles Schemes Act Clause;

52 Interest on late payment
(1) The body corporate may charge interest for the late payment of contributions and special levies.
(2) The interest rate is:

(a) an amount, decided by the body corporate, not more than the rate fixed from time to time for section 85 of the Supreme Court Act; or
(b) if the body corporate does not decide an amount – the rate fixed from time to time for section 85 of the Supreme Court Act.

(3) The body corporate may decide to waive the interest in a particular case.

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A. The Interest Entitlements are set by a valuer and based on valuations of all the units at the time of the issue of the unit plans. These may or may not be the same as the Contribution Entitlements which determine what share of a budget each unit is responsible for contributing.

The key matters, in a developer working out what should be the Contribution Entitlements requirement, are set out in section 39(6) (copied below).  The section operates so that the contribution levy does not have to the same share of the total for all of the units if the factors referred to in subsection (6) apply.

Thus, if the scheme is such that the running costs of operating the part of it in which the unit is located are higher for that part than the other parts then there is justification for the Contribution Entitlements levy being different, For example, one part might have a lift (which costs money to operate) whilst other part might not have a lift.

A cavalier developer needs also to take account of section 40 (see also copied below). It permits the Local Court to adjust unit entitlements on the same basis that the developer should have considered when making the original decision.  That is, the purpose of section 40(4) is to permit the court to go back in time to when the original determination was made and, on the basis of the facts as at that time, make a determination.  What the developer should be doing is assessing what are the likely costs for the development as a whole and then working out what is the fair share for each unit to bear.  The key policy principle is the view of any departure from that of equal responsibility needs to be justified by reference to some facts as set out in (6).  The developer needs to get a valuation but this is probably of not of particular relevance to the Contribution Entitlements.

The above information is consistent with the explanatory statement tabled when the legislation was introduced.  The relevant parts of the explanatory statement are:

Clause 39. Unit entitlements

This clause defines contribution schedule, interest schedule and unit entitlement. It also (in effect) defines contribution entitlement and interest entitlement.

These definitions provide, respectively, for:

· the basis for working out shares of costs in running the scheme; and

· the basis for working out respective shares in the event that the scheme is dissolved (and like matters).

The clause also provides for the basis on which the entitlements are determined for the purpose of the scheme statement that is lodged as referred to in clause 18(1)(d). The responsibility for lodging the initial scheme statement rests with the original owner (developer) of the land as set out in clause 20(1)(a).

In preparing the contribution entitlement the person responsible for the scheme statement must ensure that the contributions are equal unless it is just and equitable to do otherwise. However the developer may also take into account the characteristics of the scheme and the units, whether the scheme is layered and the market value of the units.

In preparing the interest entitlement the person responsible for lodging the scheme statement must ensure that the various interest entitlements should reflect the differences in the market value between the units. As with contribution entitlements the sponsor can also take account of the characteristics of the scheme and the units, whether the scheme is layered and the market value as determined by a valuer as defined in the Valuation of Land Act.

For “market value” the valuer will often need to make a prediction given that, for units in buildings, they may not exist when the entitlement is determined.

Clause 40. Adjusting unit entitlements under Court order

This clause allows for a unit owner to seek an order of the Local Court for the adjustment of unit entitlements. In making an order the Court must have regard to the principles set out in subclauses 39(5), (6) and (7) – i.e. that the contribution entitlements should be equal and the interest entitlement of a unit should reflect the ratio of the market value of the unit to the market value of all units in the scheme.

Upon the making of such an order, the body corporate is required to lodge a new scheme statement.

The intention of this clause is to permit reviews of interest entitlements by the Local Court of the entitlements as determined by a scheme statement’s sponsor at the time when the scheme statement is lodged.

It is not intended that a unit owner be entitled to seek a review based on the fact that the unit has become more valuable (in a relative sense) than other units. This may happen, for example, if an owner makes substantive improvements to his or her unit whereas other owners make no improvements. Alternatively, a unit may lose a view or may suffer some other detriment not shared by others. These kinds of changes do not affect the underlying interest entitlement in the land.

The sections mentioned above in the act are:

38(6) Except as otherwise provided by the regulations, the following must be taken into account for subsection (5):
(a) the characteristics of the scheme and units;
(b) whether the scheme is a layered scheme, higher scheme or subsidiary scheme;
(c) the market value of the units as determined by a valuer as defined in section 4(1) of the Valuation of Land Act.
40 Adjusting unit entitlements under court order
(1) A unit owner may apply to the Local Court for the adjustment of the unit entitlements (including the unit entitlements of other units).
(2) Despite any other provision of a law of the Territory:
(a) the respondents for the proceedings of the application are the body corporate and each unit owner who has given written notice to the body corporate to join as a respondent; and
(b) each party to the proceedings is responsible for the party's own costs.
(3) The Local Court must:
(a) approve the application by making an order adjusting the unit entitlements as the Court considers appropriate; or
(b) refuse the application.
(4) In deciding the application, the Local Court must:
(a) have regard to section 39(5) and (6); but
(b) disregard:
(i) the applicant's state of knowledge about the unit when acquiring the unit; and
(ii) the current market value of the unit.

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A. The disclosure statement will contain the information required by Section 45 of the Unit Title Schemes Act. This will be information that answers the following questions:

1. What is the estimated amount of the annual contributions reasonably expected to be payable to the body corporate for the unit.
2. What are the proposals concerning the engagement or proposed engagement of a body corporate manager or service contractor.
3. What are the proposals (if any) concerning letting agents.
4. What are the body corporate assets.
5. What are the existing and proposed scheme statements, management modules and by-laws of the scheme and higher schemes (whether existing or proposed to be formed or changed).
6. What is the method of adjudicating disputes arising from the disclosure statement as prescribed by regulation.

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To make a valid application you will need to show a history of unreasonable nuisance noise coming from the unit and have identified the parties responsible. You and other third parties should have logged regular complaints with the police (at least six) about the residence behaviour prior to making the application for the “Noise Abatement Order”. You will then need to attend the court for a hearing to state your case and be able to justify the complaint.

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A. A Quorum at general meeting or AGM exists if persons (or their proxies) who together have the right to vote in relation to at least 50% of the total interest entitlements of the scheme are present at the meeting.

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A. If there is no quorum present at the general meeting, the meeting may take place but all resolutions made at the meeting are interim resolutions. Interim resolution may only be made under this clause on a motion that may be passed by an ordinary resolution. The secretary of the body corporate must give the details of each interim resolution and the minutes of the meeting to each person with a right to vote at the meeting within 14 working days after the meeting. If an interim resolution is made at the meeting, a person may call a further general meeting within 29 working days after the date of the interim resolution. An interim resolution becomes a resolution of the body corporate if no further meetings are held 29 working days after the date of the interim resolution.

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A. Yes under section 9 of the Unit Titles Scheme (Management Modules) Regulations a committee can remove a committee member for breach of code. A copy of code of conduct can be found in section 77 of the Act.

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