Section 206 and 223

Body Corporate and Community Management Act 1997

Section 206 and Section 223 (Current as at 3 July 2017)

206 Information to be given by seller to buyer

(1)   The seller (the seller) of a lot included in a community titles scheme (including the original owner of scheme land, or a mortgagee exercising a power of sale of the lot) must give a person (the buyer) who proposes to buy the lot, before the buyer enters into a contract (the contract) to buy the lot, a disclosure statement.

(2)   The disclosure statement must—

(a)    state the name, address and contact telephone number for—

(i)        the following –

(A)         if the scheme is a specified two-lot scheme—each person who is responsible for keeping body corporate records under the specified two-lot schemes module;

(B)          otherwise—the secretary of the body corporate; or

(ii)      if it is the duty of a body corporate manager to act for the body corporate for issuing body corporate information certificates—the body corporate manager; and

(b)   state the amount of annual contributions currently fixed by the body corporate as payable by the owner of the lot; and

(c)    identify improvements on common property for which the owner is responsible; and

(d)   list the following—

(i)        if the scheme is a specified two-lot scheme—the body corporate assets of more than $1000 in value;

(ii)      otherwise—the body corporate assets required to be recorded on a register the body corporate keeps; and

(e)   state whether there is a committee for the body corporate or a body corporate manager is engaged to perform the functions of a committee; and

(f)     include other information prescribed under the regulation module applying to the scheme.

(3)   The disclosure statement must be signed by the seller.

(4)   The disclosure statement must be substantially complete.

(5)   If the contract has not already been settled, the buyer may terminate the contract if the seller has not complied with subsection (1).

(6)   The seller does not fail to comply with subsection (1) merely because the disclosure statement, although substantially complete as at the day the contract is entered into, contains inaccuracies.

223 Implied warranties

(1)   The warranties stated in this section are implied in a contract for the sale of a lot.

(2)   The seller warrants that, as at the date of the contract—

(a)    to the seller’s knowledge, there are no latent or patent defects in the common property or body corporate assets, other than the following—

(i)      defects arising through fair wear and tear;

(ii)      defects disclosed in the contract; and

(b)   the body corporate records do not disclose any defects to which the warranty in paragraph (a) applies; and

(c)    to the seller’s knowledge, there are no actual, contingent or expected liabilities of the body corporate that are not part of the body corporate’s normal operating expenses, other than liabilities disclosed in the contract; and

(d)   the body corporate records do not disclose any liabilities of the body corporate to which the warranty in paragraph (c) applies.

(3)   The seller warrants that, as at the completion of the contract, to the seller’s knowledge, there are no circumstances (other than circumstances disclosed in the contract) in relation to the affairs of the body corporate likely to materially prejudice the buyer.

Examples for subsection (3)—

1. An administrator has been appointed under the order of an adjudicator under the dispute resolution provisions.
2. The body corporate has failed to comply with the provisions of this Act to the extent that its affairs are in disarray, records are incomplete and there is no reasonable prospect of the buyer finding out whether the warranty mentioned in subsection (2)(b) has been breached.

(4)   For subsection (2), a seller is taken to have knowledge of a matter if the seller has actual knowledge of the matter or ought reasonably to have knowledge of the matter.