There are five different Body Corporate regulation modules to be considered when a body corporate is assessing the scheme. This is depending on the individual circumstances of the scheme. Over the following weeks we will be reviewing each Module.
The first Module to be discussed is the “Standard Module.”
The Standard Module
A new regulation module, the Body Corporate and Community Management (Standard Module) Regulation 2008 (the Standard Module) commenced on 30 August 2008. This regulation module replaces the Standard Module regulation which commenced in 1997. This Body Corporate regulation module is considered to be highly regulated and is generally used in schemes which are predominantly residential.
Committee- Section 98
It is essential for a Standard Module scheme to have a Committee; this is chosen at the compulsory Annual General Meeting. The Committee must compromise of a chairperson, secretary and treasurer. Members of the body corporate (the lot owners) are eligible to be voting members of the Committee and may nominate themselves for Committee membership.
Expenditure- Section 151
The body corporate of a Standard Module scheme is able to limit Committee spending, although, if no amount is set, the amount is then defaulted to multiplying the quantity of lots included in the scheme by $200.00. For example, if there are 200 lots in a particular scheme, the Committee spending amount is $40,000.00.
Financial- Section 146
A Standard Module scheme must establish and maintain an administrative and sinking fund.
The following must be paid into the Sinking fund:
(a) the amount raised by way of contribution to cover anticipated spending of a capital or non-recurrent nature (including the periodic renewal or replacement of major items of a capital nature and other spending that should be reasonably met from capital); and
(b) amounts received under policies of insurance for destruction of items of a major capital nature; and
(c) interest from investment of the sinking fund.
The administration fund incorporates recurrent spending such as maintenance of gardens and lawns on common property.
Records- Section 204
Standard Module scheme Committee members are allowed reasonable access (without payment of a fee) to all body corporate records. General members of the body corporate are entitled access to the records on the exchange of payment.
Improvements to common property by a lot owner- Section 164
If authorised by ordinary resolution of the body corporate, a lot owner may make an improvement to the common property. If the improvement is minor ($3000 or less), the Committee may give approval.
Body Corporate Debt- Section 145
(2) If the amount of a contribution or contribution installment has been outstanding for 2 years, the body corporate must, within 2 months from the end of the 2-year period, start proceedings to recover the amount.
Action can be commenced earlier, but body corporate need to be careful that they apply a reasonable approach.
We welcome you to contact our offices on (07) 5574 3560 or email info@nautiluslaw.com.au. We thank you for considering Nautilus Law Group.
In the coming weeks we will address the Accommodation, Small, Commercial and two-lot scheme modules.
Stay Tuned!
