Wednesday, May 25, 2022

Body Corporate And Community Management Act 1997

Chapter 3
Part 2
Division 1
Section 112

Original owner’s obligations about engagements and authorisations | Section 112

(1)This section applies if—

(a)the body corporate for a community titles scheme intends to—

(i)engage a person as the body corporate manager or a service contractor (the contracted party); or

(ii)authorise a person to conduct a letting agent business (also the contracted party); and

(b)the engagement or authorisation is to be made or given in the original owner control period.

(2)The original owner must exercise reasonable skill, care and diligence and act in the best interests of the body corporate, as constituted after the original owner control period ends, in ensuring each of the following—

(a)the terms of the engagement or authorisation achieve a fair and reasonable balance between the interests of—

(i)the contracted party; and

(ii)the body corporate as constituted after the original owner control period ends;

(b)the terms are appropriate for the scheme;

(c)the powers able to be exercised, and functions required to be performed, by the contracted party under the engagement or authorisation—

(i)are appropriate for the scheme; and

(ii)do not adversely affect the body corporate’s ability to carry out its functions.

Maximum penalty—300 penalty units.

(3)If the body corporate or an owner of a lot included in the scheme incurs loss or damage because of the original owner’s contravention of subsection (2), the body corporate or owner may claim compensation from the original owner in a proceeding brought in a court of competent jurisdiction.

© Sourced from the Queensland Legislation website at 1 April 2020. For the latest information on Queensland Government legislation please go to

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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