“In my mind those who wrote this act have no real concept of the practical problems really faced by managers and trustees of bodies corporate,” says Spencer.
Previously developers could simply register amended rules at the time of the opening of the sectional title, which would assist with the practical management of the scheme.
Mike Spencer from Platinum Global says typical examples would be late payment of levy fines and limits on occupation, confirmation that this was a pet-free scheme, and more.
“Now a developer has to apply for an approval certificate from CSOS before the Deeds Office can note the rules. I have no idea how long it is going to take CSOS to give a certificate, but am fairly certain that it is not going to be within seven days - more likely seven months,” says Spencer.
“No developer is going to wait that long to open the register. Furthermore, the rules cannot be changed by the body corporate until 30% of the units have been transferred - in a large phased scheme that could take years. It seems to me that it is going to be difficult to impossible to change rules - thus making proper management more difficult and burdensome.”
He says registered rules run concurrently with the new Section 1 and 2 rules, and care has to be taken to compare one against the other. Rules covered in the new act and not in the registered rules are also in force as rules of the scheme.
In my mind those who wrote this act have no real concept of the practical problems really faced by managers and trustees of bodies corporate,” he says. For example, Spencer says under the old act any trustee who was in arrears with their levy was automatically no longer a trustee. Under the new act this only happens when the body corporate has gone through the process of suing and getting judgement, and the trustee still does not pay.
“This is astounding. Delinquent trustees are not going to take themselves to court for not paying their levies,” says Spencer.