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Brand New Apartments - When does the Developer have to call and hold our First Body Corporate AGM?

The Developer for a new Gold Coast apartment building* has a duty to call and hold the First AGM for the new Body Corporate within the timeframe in regulation 84 of the Body Corporate and Community Management (Accommodation Module) 2020.


The Timeframe for Calling and Holding the First AGM


The First AGM for the Body Corporate must be called and held within 2 months of the first of the following 'Trigger Dates' to happen:

  1. More than 50% of the lots included in the community titles scheme are no longer in the ownership of the Developer ("Trigger Date "A"); or

  2. 6 months elapses after the community titles scheme is established (i.e. being the date the first community management statement (CMS) for the scheme is recorded): s.24 of the Body Corporate and Community Management Act 1997 ("Trigger Date "B").

How to work out Trigger Date "A"


If the date that the Developer no longer owned more than 50% of the lots in the scheme is not known, then you could take steps to work out the exact Trigger Date "A", by carrying out historical title searches indicating when each of the new lots in the scheme transferred ownership from the Developer to each purchaser may need to be done.


Where to buy historical title searches


It costs about $30.10 to obtain a historical title search for an apartment (lot) in a community title scheme through Titles Queensland.


Sometimes Titles Queensland may require you to call them to obtain an historical title search. So it may be quicker and easier to register for a free account through an approved online distributor of historical title searches such as CITEC.


Once you know the date that the Developer was no longer the owner of more than 50% of the lots in your scheme, you know the Trigger Date "A". Add 2-months to that Trigger Date "A" to work out when the Developer must call and hold the First AGM.


How to work out Trigger Date "B"


Locate the first CMS - look for the date it was lodged (on the sticker at the top of the first page) e.g:

As an example, the above example CMS, the lodgment date is '23/08/2021'.


Then add 6-months from the CMS lodgment date = "End of 6 month period".


Then add another 2 months to the End of the 6 month period - that will be the date by which the Developer must hold the First AGM (unless


Examples:


Alternative 1: If Trigger Date A (developer no longer owns more than 50% of the lots) happens on 15 September 2021, then the First AGM must be called and held before 14 November 2021.


Alternative 2: If the CMS is lodged on 23 August 2021 and the developer retains more than 50% of the lots for the first 6-month period (i.e. until 22 February 2022), then the First AGM must be called and held before 22 April 2022 (2-months after the 6-month period after the CMS is lodged).


What is the Maximum Penalty for a Developer who does not hold the First AGM within the required timeframe?


The maximum penalty for a Developer who does not call and hold the First AGM within the required timeframe is $20,550 (150 penalty units x $137 Qld penalty unit as at 14.01.22).


Regulation 84(4) provides that if the Developer does not call and hold the first AGM within 2 months of the first of Trigger Date "A" and Trigger Date "B" to happen, then an Adjudicator from the Office of the Commissioner for Body Corporate and Community Management can make an order (on the application of a lot owner) appointing a person to call the first AGM within a stated time.



What we believe


Here at The Nuu Co, we believe that Property Developers using their voting power at the First Extraordinary General Meeting for new Bodies Corporate to lock the Body Corporate into Body Corporate Manager contracts with the maximum term of 3 years permitted by regulation is not best practice. We believe owners should have the freedom to choose the body corporate manager that acts in their best interests 100% of the time. For a proposal from The Nuu Co, contact us today.


Please note: This blog article contains general information only and does not constitute legal advice. It is open to you to seek your own independent legal advice about your particular circumstances.


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