Wednesday, September 30, 2020

Body Corporate And Community Management Act 1997

Chapter 3
Part 2
Division 1
Section 115

Limitation on benefit to body corporate under letting agent authorisation | Section 115

(1)The authorisation of a person as a letting agent for a community titles scheme must not include, whether directly or indirectly, a requirement for the payment of an amount to, or the conferral of a benefit on, the body corporate.

(2)If an amount is paid to, or a benefit is accepted by, the body corporate under a requirement mentioned in subsection (1), the person who paid the amount or conferred the benefit may recover the amount, or the value of the benefit, as a debt.

(3)Subsection (1) does not apply to an amount or benefit representing fair market value for an entitlement conferred (not including the actual authorisation as letting agent) by the body corporate under the authorisation.

Examples of operation of subsection (3)—

1If under the authorisation the letting agent may make use of a body corporate asset, the authorisation might include a requirement for the letting agent to pay an amount of rent for the asset’s use. To the extent that the amount is more than a fair rent, the amount would be recoverable under subsection (2).

2If under the authorisation the letting agent may use a part of the common property (for example, utility infrastructure), the authorisation might include a requirement for the service contractor to pay an amount of rent for the use of the part of the common property. To the extent that the amount is more than a fair rent, the amount would be recoverable under subsection (2).

(4)Also, subsection (1) does not apply to—

(a)an amount or benefit for the actual authorisation as letting agent if—

(i)the amount or benefit represents fair market value for the authorisation; and

(ii)the authorisation is the first authorisation given after the original owner control period ends; and

(iii)no authorisation was given during the original owner control period; or

(b)an amount or benefit for the reasonable costs incurred by the body corporate in preparing an agreement between the body corporate and letting agent for the authorisation.

(5)This section applies only to an authorisation (including the extension, renewal or replacement of an authorisation) the term of which starts after the commencement.

© Sourced from the Queensland Legislation website at 1 April 2020. For the latest information on Queensland Government legislation please go to https://www.legislation.qld.gov.au.

Disclaimer: Reproduced from the Body Corporate and Community Management Act 1997. This website does not give legal advice or other professional advice. You should seek legal or other professional advice before acting and not rely on any of the content on this website.

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