Friday, October 30, 2020

Body Corporate And Community Management Act 1997

Chapter 5
Part 2
Division 5
Section 218E

Security instruments | Section 218E

(1)This section applies if an instrument is received from the buyer of a proposed lot as security for the payment of an amount under the contract for the sale of the lot—

(a)by a recognised entity on behalf of the seller; or

(b)by any other person on behalf of the seller; or

(c)by the seller.

Example of an instrument for subsection (1)—

bank guarantee

(2)For subsection (1)(a), the recognised entity must keep the instrument at the prescribed place until—

(a)the instrument is returnable to the buyer according to law; or

(b)the instrument is given to the issuer of the security in exchange for the amount it secures.

Maximum penalty—200 penalty units or 1 year’s imprisonment.

(3)The amount given in exchange for the instrument under subsection (2)(b) is trust money.

(4)The amount given must be—

(a)held by the recognised entity who held the instrument in the entity’s prescribed trust account; and

(b)dealt with by the recognised entity in accordance with this division and the law governing the operation of the entity’s prescribed trust account.

Maximum penalty—200 penalty units or 1 year’s imprisonment.

(5)For subsection (1)(b), the person must give the instrument directly to a recognised entity.

Maximum penalty—200 penalty units or 1 year’s imprisonment.

(6)For subsection (1)(c), the seller must give the instrument directly to a recognised entity.

Maximum penalty—200 penalty units or 1 year’s imprisonment.

(7)If the instrument is given to a recognised entity under subsection (5) or (6), subsections (2), (3) and (4) apply as if the instrument were received from the buyer by the recognised entity on behalf of the seller as provided in subsection (1)(a).

(8)In this section—

prescribed place means—

(a)for a recognised entity that is a law practice—an office of the practice in Queensland; or

(b)for a recognised entity that is the public trustee—an office of the public trustee in Queensland; or

(c)for a recognised entity that is a real estate agent—the office of the real estate agency in which the agent carries on the business of a real estate agent.

© 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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