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As with most things, the key is receiving well-informed advice ahead of time from the Body Corporate’s manager and, if necessary, a solicitor. There is no clear answer, meaning that the terrain a Body Corporate must successfully navigate can be uncertain. So does that mean that the Termination Motion should contemplate the caretaker or letting agent commencing proceedings against the Body Corporate challenging the termination? Or is it merely enough to inform lot owners that the Remedial Action Notice has not been complied with by the Deadline? The District Court in the decision of Body Corporate for Palms Springs Residences CTS 29467 v J Patterson Holdings Pty Ltd QDC 300 found that Bodies Corporate owed a fiduciary duty to lot owners to provide such information to “ fully and fairly inform members” of what is being considered. Unfortunately, neither the BCCMA nor the Regulation Modules provide much in the way of guidance when it comes to the content of a Termination Motion or the explanatory material that accompanies it. In most situations, this will require the Body Corporate to convene an extraordinary general meeting where lot owners vote on a motion that either approves or rejects termination ( Termination Motion). If a properly prepared Remedial Action Notice has not been complied with by the Deadline, terminating management rights may only be approved by an ordinary resolution of the Body Corporate, decided by secret ballot. The Body Corporate for The Rocks Resort effectively tripped and fell at the first. Because the Remedial Action Notices failed to comply with the minimum requirements set out in the Regulation Module, all of them were deemed to be defective, meaning that all steps taken by the Body Corporate in reliance on those notices were invalid and of no effect.Ī journey of a thousand miles begins with a single step. The Body Corporate issued eight (8) Remedial Action Notices which all had a Deadline of within 14 days – rather than not less than 14 days. This was a lesson learnt the hard way by the Body Corporate in the case of Peterson Management Services Pty Ltd v Body Corporate for The Rocks Resort QCAT 255 (). It is extremely important that all minimum requirements are met, as any defect could be fatal. a deadline of “not less than” 14 days after being given to the caretaker or letting agent.setting out what must be done to remedy the Breach within a stated period ( Deadline) and.
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BREACH AND CLEAR DEADLINE TOO HARD SERIES
Terminating Management Rights in Queensland – Strata Snapshot Series featuring Mario Esera