New BCCM Form 14 (version 11) Information Statement
Pursuant to the Body Corporate and Community Management Act 1997 (Qld), the Seller or Seller's agent must attach a Body Corporate and Community Management ("BCCM") Form 14 Information Statement to a contract for a lot sold in a community titles scheme.
The new BCCM Form 14 (version 11) Information Statement has been released and is effective for all contracts in a community titles scheme from 1 August 2013.
No Transitional Period
There is no transitional period. The New BCCM Form 14 (version 11) Information Statement must be attached to all contracts in a community titles scheme from 1 August 2013.
Using the BCCM Form 14 (version 10) Information Statement from 1 August 2013 may create termination rights for the buyer. A Contract issued with the BCCM Form 14 (version 10) Information Statement but not fully signed and dated will need to be cancelled and a new contract issued with the correct form.
Community Management Statement Disclosure Obligations
The Community Management Statement ("CMS") is no longer required to be disclosed to the buyer of a registered lot sold in a community titles scheme. Under the old legislation, providing the incorrect or outdated CMS created termination rights for a buyer.
The new BCCM Form 14 (version 11) Information Statement advocates that buyers undertake the search themselves. A copy of the proposed CMS must be disclosed to buyers for off the plan lots sold in a community titles scheme.
Other Disclosure Obligations
The Seller of a lot sold in a community titles scheme is no longer required to disclose the following:
- a statement about the extent to which the lot owner's contributions are based on the contribution schedule lot entitlements;
- a statement about the extent to which the lot owner's contributions are based on the interest schedule lot entitlements; and
- a statement that the entitlements are set out in the community management statement.
Are you buying or selling in a community titles scheme? ClarkeKann are available to assist with any query you have regarding the new BCCM Form 14 (version 11) Information Statement and disclosure obligations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
