THE OFFICIAL MAGAZINE OF UNIT OWNERS ASSOCIATION QLD EDITION NOVEMBER 2019
FOR THE LATEST UPDATES
facebook.com/UOAQ.Inc
BECOME A MEMBER TODAY
click to join
FOR MORE ABOUT UOAQ
uoaq.org.au
Repa nting your scheme What you can do to ensure your painting project is of the highest quality and will last for many years
Shandit Pty Ltd are proudly corporate authorised representatives of Insurance Advisernet Australia Pty Ltd. Authorised representative number 424246
“Would our Committee have been able to achieve what we have over the past 12 months and cope with the work required to get us through? Were it not for the personal interest and dedication of UOAQ then the short answer to that question is ‌ absolutely not!I strongly urge all Queensland unit owners to ensure that their Body Corporate Committee subscribes to an annual membership with the UOAQ - an organisation with a strong voice supporting of all owners in Queensland. Garry Deighton - Chairperson Ocotillo CTS 32327
Shandit Pty Ltd are proudly corporate authorised representatives of Insurance Shandit Pty LtdAustralia are proudly corporate Advisernet Pty Ltd. authorisedrepresentative representatives of Insurance Authorised number 424246
Advisernet Australia Pty Ltd. Authorised representative number 424246
2
UNIT NEWS NOVEMBER 2019
Shandit Pty Ltd are proudly corporate authorised representatives of Insurance Advisernet Australia Pty Ltd. Authorised representative number 424246
BECOME A MEMBER TODAY BECOME A MEMBER TODAY uoaq.org.au
ABOUT US Brisbane
(07) 3220 0959 or uoaq.org.au and request to communicate to a particular person. Bob Boundy, Bradley von Xanten and Philip Greenhill.
Advertisers
We appreciate the support of our sponsors to help us do the work we do. To advertise in Unit News, please contact Jana Koutova on (07) 3220 0959 or editor@uoaq.org.au
Editor
Jana Koutova editor@uoaq.org.au
Gold Coast
Wayne Stevens Mike Murray Greg Melloy Roger Dearing
Help for Members
Members of the UOAQ are welcome to contact committee members of the association for any help on any body corporate matter.
Art Direction
Dan Hancock hi@danhancock.com.au
Published by Unit Owners Association Qld 6th Floor. 333 Adelaide St, Brisbane QLD 4000 help@uoaq.org.au (07) 3220 0959
uoaq.org.au facebook.com/uoaq.inc twitter.com/UnitOwnersQld
Disclaimer Articles contributed to this newsletter are published as a service to members and do not necessarily reflect the opinion or policy of this Association. To contact the committee of the UOAQ for assistance with a body corporate matter please email help@uoaq.org.au
THE LATEST NEWS facebook.com/uoaq.inc
FROM THE EDITOR
T
his month’s edition is packed with treats, no tricks. Thank you to all our contributors for the valuable content with information for owners.
Our Unit News publications are designed to deliver knowledge and practical tips, so that you can make educated decisions about your homes and investments. We look at building efficiency considerations you may take in the areas of energy and painting and paint products for schemes of all sizes. Are you in the process of selling your lot? Questions often arise about placement of signage and the procedures for open houses with your realtor. The BCCM Commissioner’s article on the subject provides useful insights. We continue our series for simple schemes addressing the not uncommon issue of insufficient committee members. This very practical article is well worth reading. Committees with schemes with caretakers may be requested to consent to assignment of MRs for their
THE OFFICIAL MAGAZINE OF UNIT OWNERS ASSOCIATION QLD EDITION NOVEMBER 2019
FOR THE LATEST UPDATES
facebook.com/UOAQ.Inc
Jana Koutova editor@uoaq.org.au Unit News Editor
"We look at building efficiency considerations you may take in the areas of energy and painting and paint products for schemes of all sizes. " scheme. How to manage such requests and what to pay attention to is discussed in this issue. Our contributors have looked at the perspectives from both sides. As always, we value your feedback, good, bad and indifferent, to help us to continue to deliver relevant information and value. Jana Koutova - Editor
BECOME A MEMBER TODAY
click to join
FOR MORE ABOUT UOAQ
Repa nting your scheme What you can do to ensure your painting project is of the highest quality and will last for many years
uoaq.org.au
SPONSORED ARTICLES 4 5 6 7 9 10
Bugden Allen LPE Energy Tracsafe Strata Mastery Rockcote Body Corporate and Community Management
ABOUT THIS EMAGAZINE
To print or download this edition please look for these icons at the top of your browser.
The Print icon
The PDF icon
NOVEMBER 2019 UNIT NEWS
3
Who covers bodies corporate’s cost in consenting to assignment of management rights? By Kevin Pai, Partner, Bugden Allen Lawyers
P
ursuant to section 120(4) of the Accommodation Module,1 subject only to the transfer fee provisions in the legislation, bodies corporate cannot require or receive a fee or other consideration for approving the assignment (other than reimbursement for expenses reasonably incurred in relation to the application for its approval).2 These expenses usually comprise legal costs and administrative charges from the body corporate manager. Since K&A Property Services Pty Ltd v Body corporate for Island Park Gardens CTS 20219 [2016] QCAT 308, there is some doubt as to whether bodies corporate can recover their costs in considering an application to assign management rights if consent is ultimately withheld. This is due to a possible defect in the wording of the regulations which was identified in the QCAT decision.3 In that decision it was held that: 4
UNIT NEWS NOVEMBER 2019
“Section 120(6) envisages that certain costs incurred by a body corporate in approving a transfer can be placed upon another party, but it does not provide for the imposition of cost on another party simply in relation to considering an application.” 4 In the absence of a clause in the management rights agreement which addresses this issue, it is important that bodies corporate obtain from the assignor (i.e. the outgoing caretaker), a separate agreement to pay the reasonable legal and administrative costs of the application irrespective of the result.
It is not uncommon for caretakers to contest the validity of an undertaking in the event a body corporate refuses to consent to an assignment, purportedly relying on the Island Park Gardens decision. It should be made clear that Island Park Gardens is authority for the proposition that section 120(6)(b) of the Accommodation Module does not apply if the application is not approved as the section specifically provides that: “fee or other consideration for approving the transfer (other than reimbursement for expenses reasonably incurred by the body corporate in relation to the application for its approval)” (emphasis added).
To address this issue, since Island Park Gardens, Bugden Allen Lawyers have been requiring outgoing caretakers to provide an undertaking from the outset of the assignment process to pay for the body corporate’s costs.
Naturally, if an undertaking is worded correctly, the undertaking will be enforceable in our view. For an undertaking to be enforceable, the following elements are critical: (a) the undertaking is provided by the
caretaker in consideration of the body corporate processing and considering the application for approval, whether or not the application is successful; and (b) the benefit arising from the undertaking (i.e. the payment of the costs) has no relationship to an “approval” being granted. Consenting to an assignment of management rights is complex and needs to be undertaken with care and with the benefit of competent legal advice. If your committee has been requested to consent to an assignment of management rights, our friendly staff in our Brisbane Office would be more than happy to have a chat with you. References 1 Section 122(4) of the Standard Module. 2 Section 120(6)(b) of the Accommodation Module. 3 K&A Property Services Pty Ltd v Body corporate for Island Park Gardens CTS 20219 [2016] QCAT 308 (31 August 2016). 4 At paragraph [45].
Further Information
For more information visit bugdenallenlawyers.com.au BECOME A MEMBER TODAY uoaq.org.au
Reducing the cost of your energy
W
ith the cost of energy constantly in the spotlight and an energy marketplace saturated with confusing offers, it can be difficult to understand what you need to know about energy and how to reduce the cost.
If your strata community is currently utilising a traditional electricity supply model, which sees electricity for the common areas and individual tenants being supplied directly by a retailer, the first thing to do is make sure you are getting the best rate possible. Look for the c/kWh rate on your bill and the daily supply charge and see if another retailer can offer you a better deal. Remember to consider service as well as price, LPE offer low rates and a local account manager which could save you time as well as money. If you are looking for even larger savings on your electricity bills, an LPE Embedded Network or solar solution will provide the largest savings. In an embedded network, a parent meter is installed in front of the individual meters, this results in one supply point to the grid and so only one set of network charges. Depending on the size and current infrastructure of your community, an LPE Embedded Network can provide significant savings to the Body Corporate and individual tenants.
LPE’s solar solutions for strata communities can also offer savings and add value to the building by making it sustainable. If your Body Corporate would like to use solar to reduce common area energy costs, then an LPE Single Supply Point solar solution can facilitate this. If the goal is to allow all occupants to take advantage of low-cost solar electricity, an LPE Solar Distribution Centre is the solution. Many Body Corporate Committees have already considered solar but have been told it is not feasible for multi tenancy properties. To understand whether your community is suitable for solar electricity, simply get in touch with one of LPE’s solar experts for free, noobligation advice. In addition to electricity, the efficiency of your hot water system should also be considered. LPE provide some of the lowest hot water rates, using environmentally friendly and energy efficient equipment with no upfront costs to the Body Corporate. Options are available for the Body Corporate to own the equipment (Bulk Hot Water) or for LPE to own the equipment (Fully Serviced Hot Water).
It’s important to remember that the more energy you consume the higher your bill will be. Typically, heating and cooling makes up the largest portion of an energy bill at approximately 40% of the total spend. This is closely followed by appliances at nearly . You can reduce this by an additional 10% by simply turning appliances off at the wall. Approximately 21% of your bill will be water heating, make sure your showerheads are energy efficient (at least 3 star energy rating) to make sure you aren’t throwing money down the drain. Only 6% of your electricity bill is made up of lighting, although we tend to think of this as higher as it is the most obvious use of energy in our homes. Understanding how you use your energy and what you can do to reduce it is important. To learn more about this go to localityenergy.com. au and download LPE’s guide on reducing your electricity use which can be found on the ‘Resources’ page.
Further Information
or to speak with a strata electricity expert, call LPE’s local customer service team on 1800 040 168 or email info@localityenergy.com.au localityenergy.com.au THE LATEST NEWS facebook.com/uoaq.inc
NOVEMBER 2019 UNIT NEWS
5
SERIES
Self managed and simple schemes 6. Insufficient committee members By Ross Utting, Tracsafe
This is the sixth article in a series about simple schemes. Most simple schemes can be characterised as being either a low height apartment complex or a collection of independent dwellings. Complexity increases with the number of lots and the variety and extent of infrastructure on the common property. There is no strict cut-off to our definition of simple.
acting as if they are regulated by the small schemes module regulation when they are actually regulated by the standard module. The government does not automatically convert eligible schemes to a less compliant regulation when a new regulation becomes available. Committees acting under the wrong regulation come unstuck when an unrelated issue is addressed by a BCCM adjudicator who will quickly declare the committee as invalid.
How many committee members are needed? Forming a valid committee can be a difficult issue for simple schemes with a small number of lots. The table shows the minimum to maximum number of committee members needed to form a valid committee at an AGM assuming that there is a different owner for each lot. The numbers vary depending upon the regulation module that applies to your scheme.
Electing the committee. When a valid committee does not get formed at the AGM, the only recourse is to hold a subsequent EGM and try again. This can be both expensive and frustrating. If I anticipate that an eligible scheme (residential scheme with six lots or less) is likely to fail to form a committee, I strongly encourage regulation conversion motions be included at the AGM. If the motions are framed correctly and acted upon promptly, the regulation conversion can be completed in a matter of weeks after the AGM. The committee which is invalid after the AGM will become valid once the new CMS is recorded by the Queensland titles registry. Where conversion is not possible due to ineligibility or because the conversion motions were not agreed, the EGM is the only recourse. At that EGM, co-owners can be considered for committee eligibility. If your scheme is under body corporate administration, a BCCM Act chapter 3 part 5 engagement contract may also be proposed at this time. If successful, the body corporate manager becomes the committee. You can expect that the cost of this additional contract to be similar in value to the base administration contract.
Number of lots
Number of committee members (min...max)
-
Small schemes regulation
Standard module regulation
Specified two-lot schemes module regulation
2
1...2
2
N/A
3
1...2
3
-
4
1...2
3...4
-
5
1...2
3...5
-
6
1...2
3...6
-
7
-
3...7
-
>7
-
3...7
-
Your current community management statement (CMS) is the only way to confirm the current regulation module that applies to your scheme. It is common to find older schemes that are 6
UNIT NEWS NOVEMBER 2019
Remaining valid. Committees need to remain valid to function. A committee quorum requires at least half the voting members to be in attendance. If lot owners sell out or resign, quorums can be difficult to form. Additional members can be invited to the committee to get the membership back to the number that were
voted at the relevant AGM/EGM election. Committee numbers cannot be increased beyond the number of members that were formed at that time until a subsequent AGM election is held. Regulation conversion. A committee with significant attention to detail could complete the process for converting a scheme to a different regulation module. Here are some appropriate motions that would need to be passed at a general meeting. The new CMS does not need to be included with the meeting notice but a reasonable description of the impact of scheme change must be included. Special motion - that the body corporate (having read the circulated explanatory note in regard to the change of scheme) changes the BCCM regulation module that governs the scheme to the small schemes module and consents to the change being registered with the Queensland titles registry. Ordinary motion - that the secretary (Rex Tillerson) is authorised to prepare a new community management statement that changes the regulation module to the small schemes module and is authorised to sign, seal, and submit the new CMS and associated general request form 14 to the Queensland titles registry on behalf of the body corporate. The secretary would then need to create a new CMS (using the existing CMS as a basis) and an associated form 14 using the authorised registry templates. The government fee to submit is ~ $100 and this needs to be done within three months of the AGM. Body corporate managers are permitted to prepare and submit a new CMS in regard to regulation module change. I would strongly recommend using a body corporate manager or lawyer to complete a regulation conversion. The process described above is not comprehensive and rejection by titles registry is common unless all documentation is correct.
Further Information Website www.tracsafe.com.au Email contact@tracsafe.com.au Phone 07 31143198 BECOME A MEMBER TODAY uoaq.org.au
Top 3 Assignment of management rights questions now answered
Save $50 UOAQ Members receive a special $50 discount on Strata Mastery BCCM (1 Day) or “New Entrant” (3 Day) Courses.
By Stephanie Yun, Strata Mastery
1. Committee members are often advised that "a body corporate cannot unreasonably withhold consent to the assignment of a management rights agreement” and that "a body corporate cannot impose any terms or conditions on the assignment”. However, this could not be further from the truth. Conditions are commonly imposed on consent to an assignment.
Types of conditions that may be imposed on the Seller/Outgoing Manager at their cost include: • Strata costs to engage legal counsel to consider the assignment (e.g. buyer competency considerations such as qualifications, experience, financial standing, terms of deed of assignment). • Strata administrative costs to consider the assignment (e.g. strata manager fees, including any associated printing and postage charges). • Specialist costs associated with assessing competency (e.g. costs to appoint a suitably qualified and independent consultant to conduct the assignment interview and onsite competency assessment on behalf of the body corporate/committee). • Payment of a transfer fee when applicable (i.e. if the transfer occurs within two years of the agreement being entered into or the last assignment). Types of conditions that may be imposed on the Buyer/Incoming Manager at their cost include: • Training/up-skilling requirements (imposed on inexperienced buyers). • Future caretaker performance management audit/s, in unique circumstances (imposed on inexperienced buyers). THE LATEST NEWS facebook.com/uoaq.inc
2. On what grounds has a body corporate reasonably and successfully argued/denied consent to an assignment of management rights?
• Lack of industry related experience and unwillingness to up-skill/undertake body corporate recommended training programs, if relevant to the work to be performed and to mitigate competency concerns. • Character issues (criminal convictions, histories of disputes, argumentative, dismissive or un-cooperative attitude), see for example in Riverbend Gardens [2016] QBCCMCmr 507. • Physically incapable of performing the required schedule of gardening and cleaning duties and/or not provide a sufficient alternate plan. • Poor communication skills (written and/or verbal). 3. What are some common pitfalls committee members should be made aware of during the assignment process?
• Upon receipt of assignment advice/request, ensure that the body corporate is acting in the best interest of all lot owners and engaging an independent body corporate specialist law firm to execute the assignment on behalf of the body corporate. • Ensure that the outgoing manager/seller agrees (in writing) to meet any/all assignment related costs, in the event that the transfer/assignment fails. • Ensure that the body corporate clearly identifies who will in fact be the building manager where a corporation or company is stipulated – find out which person is responsible for the day-today performance of the duties and be satisfied about how the
business will be resourced and who will be controlling it – for example see Sirocco Resort [2006] QBCCMCmr 426. • If the buyer requests a warranty that there are no existing breaches, then ensure that any/all existing caretaker noncompliances is not outstanding, and the body corporate is satisfied with the general condition of the common property at hand-over. Strata Mastery are body corporate and management rights training specialists and ABMA Code (Australian Building Management Accreditation) State Course Facilitators. Fully customised, site specific, training courses are conducted onsite and are attended by voting members (chairperson, secretary, treasurer, ordinary members) and/or non-voting members (caretaker). Responsible members wanting to further their understanding of building compliance statutory obligations, BCCM legislative duties, functions and body corporate best practice minimum objective performance standards, where caretaking agreements may be unclear, will greatly benefit from undertaking the Strata Mastery, 3 Day, “New Entrant Induction” training program.
Further Information
for your FREE UOAQ Member Training Kit, please do not hesitate to contact Strata Mastery at: enquiries@stratamastery.com.au or call 07 3861 1432. NOVEMBER 2019 UNIT NEWS
7
R
epainting a Strata Titled building for both the Owners and the Body Corporate Committee is one of the largest expenses they face. A poor selection of either the Painter or the products can result in major additional expense if the paint breaks down prematurely. Many Unit Owners are probably unaware that, under a QBCC licence, a Painter is only required to warrant his work for 6 months, and generally a Paint Manufacturer’s Warranty covers the supply of the paint only, not the labour or the (often very costly) scaffolding. What can the owners do to ensure their painting project is of the highest quality and will last for many years?
Currently, it is recommended in many instances that a Body Corporate engage a professional to arrange the works and provide a warranty that the painting project will last for 10 to 15 years, depending on the system chosen. This service also attracts a fee.
Repa nting your scheme By Jason Browne, Queensland State Sales Manager, ROCKCOTE
ROCKCOTE Enterprises Pty Ltd, a large Queensland based player in the Paint and Coatings Industry, have put forward a proposal to arrange Body Corporate Repaint projects where ROCKCOTE products are used on most of the areas being refurbished, and in conjunction with quality Applicators who will warrant their workmanship. Rockcote can:
• Site inspect the buildings and prepare a Specification and Scope of Works. • Obtain competitive quotations from reliable and respected Painters based on the Specification and Scope of Works. • Once a contractor has been engaged, a ROCKCOTE representative will oversee the work to ensure the Specification and Scope of Works have been strictly adhered to by the contractor. A written acknowledgement that the work has been completed to specification will be provided to the Body Corporate Committee. On receipt of this, the Body Corporate can confidently make payment to the Contractor. On completion of the works, both ROCKCOTE and the Painting Contractor shall provide their warranties to the Body Corporate. Who better to warrant the project than the people who both make the products and have worked closely in conjunction with the Applicators? Whilst this almost sounds too good to be true, ROCKCOTE does not charge the owners for this service. We are focused on having our products used correctly and protecting our reputation as manufacturers of high-quality Architectural Coatings. ROCKCOTE has been creating stunning finishes for the interior and exterior of residential and commercial buildings for 40 years. Proudly Australian owned and operated, ROCKCOTE understands the needs of Australian architects and designers and works closely with builders, applicators and painters to create products that exceptional performance in Australian conditions. Behind ROCKCOTE’s innovative product development is a commitment to delivering the best
8
UNIT NEWS NOVEMBER 2019
BECOME A MEMBER TODAY uoaq.org.au
products on the Australian market, a refusal to compromise on quality and a belief that people live best when they live in harmony with nature. ROCKCOTE pioneered the use of premixed cement renders on Australian building sites and now produces two million bags annually in our state-ofthe-art render plant. ROCKCOTE EcoStyle was the first full range of Australian made non-toxic, very low VOC paint suitable for interior and exterior use. ROCKCOTE is recognised nationally for our versatile coloured render systems, watertight walling systems and our dedication to reviving the traditional building arts by developing natural building materials that suit modern construction. At ROCKCOTE, we understand the complexity of refurbishing body corporate buildings: the decisions that need to be made; the information required, and the processes involved. We know from experience that every project is different and that assembling a dedicated and proficient team ultimately yields the best results. Our philosophy is to work closely with the Unit Owner’s Association, strata and facilities professionals, and body corporate committees to understand the needs of each project and develop a system that is right for your building in your location. A ROCKCOTE Business Development Manager with local experience will take the time to listen and understand the geographic, aesthetic, legislative and maintenance requirements before proposing a solution. The Business Development Manager is involved in the process from start to finish: • Provides answers to all your questions Supplies finish and colour samples • Develops tailored specifications based on your project needs • Draws on our substantial network of reputable applicators to provide quotes on-site assistance and guidance along the way • Provision of warranties and advice on ongoing maintenance Rockcote high-performance membranes
Armour and Armour Flex are products that we regularly recommend and include as part of our warranted systems. Some of the advantages of ROCKCOTE Armour and Armour Flex that make them a vastly superior option to standard exterior paint and alternative standard membranes, are: • Heavy-duty High build Water repellent • Vapour permeable • Dirt and mould resistant Superior crack-bridging • Can be tinted to match any colour There's more to a quality strata title repaint than just the paint and the workmanship
For residents, painting can be inconvenient with scaffold limiting access to gardens and paths, outdoor furniture needing to be protected or moved, and parking and traffic issues as tradesmen move in and around the buildings. Because this may at times become an irritation for the THE LATEST NEWS facebook.com/uoaq.inc
residents, the Painters staff must be clean, patient, tolerant and efficient. Not walk on plants, cover paths and furniture, give residents early notice when their part of the building will be painted and generally be polite and considerate. ROCKCOTE is also aware of these factors. The Contractors they will invite to competitively quote on the work will be chosen not only for their workmanship but also for their professionalism on the job and on their reputation for having a minimal impact on the lifestyle of the residents. A fully warranted repaint of their building, overseen by the Paint Manufacturer, at no cost to the Body Corporate, is available. Competitively quoted using the highest quality materials by very reputable tradesmen is a terrific option for the Owners, and well worth considering. A colour consultant service can be offered
ROCKCOTE can also arrange for Colour Consultants if required, and any related fees will be between the Body Corporate and the individual Consultant (no extra fees from ROCKCOTE).I hope and trust that the information I have shared with you is of benefit and I would welcome the opportunity to meet with you to explain further and explore options with you regarding your complex. The best way a body corporate committee can take advantage of this offer
Call or email one of the following ROCKCOTE Representatives who will visit you at your building to discuss your aims, desired outcomes and budgets: Jason Browne, Queensland State Sales Manager 0412 160 219 - jbrowne@rockcote.com.au Anthony Greenwood, Business Development Manager - Sunshine Coast Region 0408 796 859 - agreenwood@rockcote.com.au Jake Phillips, Business Development Manager - Brisbane Region 0407 021 421 - jphillips@rockcote.com.au Michael Flanagan, Business Development Manager - Brisbane Region 0458 500 150 - mflanagan@rockcote.com.au Based on your feedback, your ROCKCOTE Area Manager will closely inspect your property and evaluate the condition of the existing paintwork. With this information, ROCKCOTE will prepare a Refurbishment Specification and Scope of Works for your approval.
Further Information
further information regarding ROCKCOTE's high- performance membrane paints can be found on the ROCKCOTE website at www.rockcote.com.au NOVEMBER 2019 UNIT NEWS
9
Sold?
Sale of a lot By Chris Irons, Commissioner for Body Corporate and Community Management
M
ost of my articles focus on rights and responsibilities for owners of lots in a community titles scheme. On the other side of the coin, what about the implications for the sale or potential sale of a lot in a scheme? Firstly, there’s no requirement under the Body Corporate and Community Management Act 1997 for a lot owner to have to seek the approval of the body corporate to sell their lot or to put their lot up for sale. There is also no obligation for the owner to inform the body corporate of their intention to do so. Naturally if a lot is up for sale it might be the case that the real estate agent handling the sale might want to put up some signs and conduct an open house. We get regular enquiries about the placement of signs relating to the sale of a lot. While the Act and its Regulation Modules do not specifically discuss signage, it might typically be a by-law issue. 10
UNIT NEWS NOVEMBER 2019
Remember, the body corporate has a responsibility to maintain common property and also an obligation to enforce by-laws. The body corporate may well have an obligation to regulate how “for sale” or “open house” signs are placed on common property. If there is a registered by-law stating that any signage on common property must have body corporate approval, then an owner selling their lot would need to seek that approval prior to the placement of the sign. As is the case with any by-law related issue, the body corporate should not unreasonably withhold the permission. Each case will always be considered on its merits. For example, a body corporate might have to consider whether the placement of “for sale” signs interfere with the use and enjoyment of common property. Following this through to its logical conclusion, if a “for sale” sign is blocking or restricting access to common property, then it might be quite reasonable for the body corporate to refuse permission. Bear in mind that we are only talking about the placement of signs as they relate to common property. If the signs in question are intended to be placed outside of the boundaries of common property then the seller of the lot might need to check if the signs are being placed on local council land, which is not the responsibility of the body corporate. All of these considerations apply to “open house” signs as well. On the topic of an open house, one of the possible issues this raises is the access to scheme land by invitees (i.e. the people attending the open house). This may not be much of an issue if the scheme land is openly accessible from the street, but if the scheme is only accessible by a locked entrance, such as a gate or electronic locking system, there may be valid concerns about non-occupiers of the scheme gaining access. In the first instance I’d be suggesting early and open communication between the seller of the lot, the agent hosting the open house and the committee (and onsite manager if applicable). Communicate early in the piece the intent to hold an open house, on what days and on what times. Regardless of whether a by-law requires this, it is common courtesy to make it clear, as it may have an impact on the other occupiers of the scheme. Then, suggest some workable options. Rather than keeping
propped open a secure door, for example, the agent might be better placed waiting at the door to let people in and escorting them to the lot. The agent might also be able to buzz people in via intercom, if there is one, although consideration should be given as to how the agent is going to advise visitors how to get to the lot. A further consideration is for when visitors to the open house want to inspect common property. Visitors may, for example, want to look at the pool or car park once they finished their inspection of the lot. The seller of the lot and the agent would be best advised to have a plan for this. Ideally, someone would escort visitors around common property. If this sounds too onerous, then consider it from the perspective of occupiers – be they owners or tenants – in the scheme who might encounter strangers walking around the property. Naturally, it might raise some concerns. Providing some notice and exercising some control over how visitors conduct themselves would go a long way towards overcoming those concerns. This information is being provided solely from a body corporate perspective. My office does not regulate the conduct of real estate agents and concerns in this regard should be addressed to the Office of Fair Trading at www.fairtrading.qld.gov.au. Once the sale is completed, that is usually the end of that owner’s involvement in the scheme. I say “usually” because the owner could of course have some further involvement in other ways – there is, for example, no restriction on a former owner being appointed proxy or power of attorney for another owner, or they may own another lot. Also, a former owner may, in some circumstances, continue to have an interest in a dispute resolution application with my office, even after they cease to be registered owner. Adjudicators have made orders about signage. Examples include Noosa Glades Two [2000] QBCCMCmr 566 (6 November 2000) and Kookaburra Park Eco Village [2008] QBCCMCmr 467 (16 December 2008). You can find adjudicators’ orders at austlii.edu.au.
Further Information
for further information please contact the Information and Community Engagement Unit of my office on 1800 060 119 or visit our website www.qld.gov.au/bodycorporate. BECOME A MEMBER TODAY uoaq.org.au