New body corporate laws commencing on 1 May 2024

On Friday 21 March 2024, the Queensland Government issued a proclamation in relation to the Body Corporate and Community Management and Other Legislation Amendment Act 2023 (BCCMOLA Act).   

Provisions under the BCCMOLA Act that are not currently in force, will commence from 1 May 2024.  This includes the following:   

Termination of Community Titles Schemes

Where there is less than unanimous support for the termination of a community titles scheme, the changes introduce a new process to facilitate the termination of a scheme for economic reasons provided that specific requirements are met. 

The new process includes:

• preparing a pre-termination report;
• the body corporate at a general meeting deciding whether there are economic reasons for termination passed by majority resolution; and
• the body corporate also passing a termination plan resolution, which requires the body corporate to prepare a termination plan which contains important information for lot owners.

The termination plan must provide for minimum compensation for lot owners as well as compensation for parties with particular contractual interests in the scheme.

After giving lot owners a copy of the termination plan and following a prescribed timeframe, the body corporate may then hold a general meeting to consider a motion for a termination resolution which will only be passed if 75% or more of all lot owners vote for the motion.  

If a lot owner disagrees with the motion, there are consumer protection mechanisms to ensure they can dispute the decision which may involve making an application for an order of a specialist adjudicator or seeking orders from the District Court.

Second-hand smoke in community titles schemes

Body corporates will be permitted to make by-laws that specifically prohibit or restrict the smoking or inhaling of smoking products on the common property of the scheme and on an outdoor area of a lot (but not the inside area of a lot). An outdoor area of a lot includes a balcony, courtyard, patio, and verandah.

Keeping or bringing of animals on a lot or on common property

Body corporate by-laws cannot prohibit the keeping of animals in a scheme, or restrict the number, type or size of animals that may be kept. There are now prescribed requirements that the body corporate must comply with, if a by-law requires an owner or occupier to obtain the body corporate’s permission for keeping of an animal.

These requirements include that the body corporate must not unreasonably withhold approval to keep an animal, the circumstances in which a body corporate may refuse to grant approval for keeping of an animal, and that the body corporate must provide its approval and conditions of approval in writing.

Body corporate towing of vehicles

The law is clarified to establish that nothing in the BCCM Act prevents a body corporate from towing a motor vehicle from the common property for the scheme.

REIQ Resouces

The REIQ has created this Factsheet for members setting out the changes in detail and including best practice advice. 

If you are an REIQ Member and you have queries about how these changes will impact you or your clients, then you can contact the Agency Advisory Service for free advice on 1300 697 347 or ask@reiq.com.au.