The BCCMA details obligations that the original owner of a new Community Title Scheme must meet be the First Annual General Meeting of the Body Corporate or be at risk of penalty units which could mean $$$.
Obligations of the original owner include:
- Exercising reasonable skill, care and diligence and act in the best interests of the body corporate when selecting contractors and negotiating terms of the agreements. (maximum 300 penalty units)
- Ensuring when the scheme is established that required insurance under the regulation module which applies to the scheme is in place for a full twelve months from the date of registration of the scheme. (maximum 150 penalty units)
- The original owner must call and hold the first annual general meeting of the body corporate (maximum 150 penalty points) as well as call for committee nominations for election at the first annual general meeting.
- To handover the following records to the body corporate:
- A register of assets
- All plans and specifications of buildings forming part of scheme land
- All policies of insurance
- An independent valuation of each building that the body corporate must insure
- Any other documentation relevant to the body corporate
- The body corporate seal
- Contracts for any building work carried out on scheme land
- Certificates of building classification and fire safety certificates
- Administration and Sinking fund budgets
- Sinking Fund Forecast
(maximum 20 penalty units)
Understanding and most importantly complying with the above will make the set up a community titles scheme that much easier for all involved and is vital in delivering a successful community titles scheme to the new owners. Remember new owners in one successful community scheme may become your prospective purchasers in the next!