Community Titles Legislation
We are excited to announce that there has been a significant review and update of the Community Titles legislation, which, in the case of the Community Land Management Act (hasn’t been updated, in a significant sense, since 1989).
These updates see the legislation brings in many changes designed to modernise the management of Community Title property and in many respects, the changes mirror the existing Strata legislation, with the legislation being gazetted from 1 December 2021.
We take this opportunity to give a brief explanation of some of the more significant changes in the Community Land Management Act. This is by no means an exhaustive list but should give an overview of how these legislative changes are likely to affect the day to day management of your scheme:-
CHANGES IN TERMINOLOGY
- The Executive Committee is now known as the Association Committee
- The Sinking Fund is now known as the Capital Works Fund
- A Caretake is now known as a Facilities Manager
(NB Meeting Notifications is not new – it is the same as the previous legislation)
- Meeting Notifications – A more standardised approach to notification periods required to hold a General Meeting:-
- Community Associations (with a Precinct Association) – 21 days
- Community Associations (without a Precinct Association) – 14 days
- Neighbourhood Associations – 7 days
NB – add 7 working days for postage to the above dates to get the date in which the meeting notice must be posted.
- Changes in Management:
- Association Managers must always be on a current agreement moving forward for a term of no more than 3 years. Management Agreements cannot be for longer than 12 months at the First AGM.
- Association Managers must declare if a commission is received from any source but most commonly from placing the insurance of Association Property.
- Committee Elections – there are now clearer rules regarding who may be appointed and more specifically who may be excluded:-
- Facilities Managers
- Association Managers
- Agents who manage Lots within the Association
- A person with a connection to the Original Owner unless they have first disclosed that connection.
- A Lot Owner who is unfinancial at the date the meeting notice is sent out and who has not paid outstanding levies prior to the meeting.
- Changes to Part 1 of a Management Statement (By-Laws fixing details of development) may now be determined by Special Resolution instead of by Unanimous Resolution. Previously any Lot Owner voting against the proposed changes would cause the proposed amendment to fail. This has been relaxed to now allow not more than 25% of Lot Owners (present and able to vote at the meeting) in order for the proposal to be resolved.
- The existing COVID-19 Meeting methods will carry over, allowing meetings to be held in various methods, including but not limited to videoconferencing, audioconferencing and pre-meeting electronic voting.
- Tenants are now recognised and must be sent a copy of each General Meeting notice at least 7 days prior to the meeting. If at least 50% of Lots in the scheme are occupied by tenants, the tenants have the opportunity to appoint a Tenant Representative to sit as a non-voting member of the Association Committee.
REVIEW / UPDATE ASSOCIATION REQUIREMENTS
- The Association must conduct a review of the Management Statement within 12 months and make any changes to ensure the Management Statement is in line with the updated legislation.
- Community Associations are now provided with an easier method to exit the Initial Period and hold the First AGM provided Occupation Certificates have been issued. If this is applicable to your Plan, the First AGM will need to be held within 2 months of 1 December 2021.
- Facilities managers must now be on a written agreement that cannot extend beyond 10 years
- A Facilities Management Agreement must be approved by Ordinary Resolution for a General Meeting
For further information on these changes, please consult your Association Manager and they will assist with any queries specific to your property.