The BCCM and Other Legislation Amendment Bill 2023

The BCCM and Other Legislation Amendment Bill 2023

This update was provided by the Legal Affairs and Safety Committee, of the Queensland Parliamentary Service on 25th August 2023. We thank them for the opportunity of sharing this.

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On 24 August 2023 the Hon Yvette D’Ath MP, Attorney-General and Minister for Justice and Minister for the Prevention of Domestic and Family Violence introduced the Body Corporate and Community Management and Other Legislation Amendment Bill 2023 into the Queensland Parliament.

The Bill was referred to the Legal Affairs and Safety Committee for consideration. The committee is required to report to the Parliament by 6 October 2023.

 About the Bill

The proposed changes include:

• allow for the termination of uneconomic community titles schemes (for example, unit blocks) for defined economic reasons with the agreement of 75 per cent of lot owners;
• strengthen protection for ‘off the plan’ home buyers from developers invoking sunset clauses in contracts for the sale of land;
• permit bodies corporate to prohibit smoking in outdoor and communal areas;
• prevent bodies corporate from blanket banning pets;
• clarify and enhance the ability for bodies corporate to tow vehicles from common property in a timely manner.

Objective of the Bill

The Body Corporate and Community Management Act 1997 (BCCM Act) provides for the establishment, administration, and termination of community titles schemes. The BCCM Act sets out the legislative framework for community titles schemes, addressing a wide range of matters including governance and decision-making structures, meeting requirements, financial and property management, insurance, and by-laws.

The Land Sales Act 1984 (Land Sales Act) regulates contracts for what are commonly known as ‘off the plan’ sales of land in Queensland (more technically, the sale of proposed lots). Provisions dealing with ‘off the plan’ sales of apartments and other lots proposed to be included in community titles-style developments in Queensland are contained in the BCCM Act, the Building Units and Group Titles Act 1980 (BUGT Act),and the South Bank Corporation Act 1989 (South Bank Act).

The policy objectives of the Bill are to:

1. deliver a key action of the 2022 Queensland Housing Summit by reforming the BCCM Act to allow for termination of uneconomic community titles schemes to facilitate renewal and redevelopment;
2. deliver a 2020 election commitment to implement amendments to the BCCM Act to allow an adjudicator the power to approve alternative insurance arrangements, and make supporting amendments to complement this change;
3. modernise and improve the operation of the BCCM Act in relation to by-laws and other governance issues, including administrative and procedural matters;
4. strengthen buyer protections under the Land Sales Act by limiting when sunset clauses can be used to terminate ‘off the plan’ contracts for the sale of land; and
5. make minor amendments to confirm the policy intent of existing provisions of the BCCM Act, BUGT Act, Land Sales Act, and South Bank Act (collectively referred to as the relevant Acts) about the release of deposits paid by buyers under ‘off the plan’ contracts for the sale of land (Land Sales Act) or lots in community titles-style developments (BCCM Act, BUGT Act, and South Bank Act).

From August 2013 to January 2018, the Commercial and Property Law Research Centre of the Queensland University of Technology (QUT) undertook a broad- ranging, independent review of Queensland’s property laws (Property Law Review) for the Government. Among other things, the review considered aspects of the BCCM Act and related legislation, including scheme termination, by-laws, and procedural issues.

Relevant recommendations of the Property Law Review were considered by the Community Titles Legislation Working Group (CTL Working Group), which is comprised of key stakeholders from the community titles sector. This consideration has informed the amendments being pursued under policy objectives 1 and 3 above. While views of the CTL Working Group have also informed policy objective 2, alternative insurance arrangements were not within the scope of the Property Law Review. Policy objectives 4 and 5 concern property law matters that are not limited to the community titles sector and were not part of the Property Law Review or the CTL Working Group’s terms of reference.

Public briefing

The committee will hold a public briefing on Monday, 11 September 2023. Details will be posted on the committee’s web page.

Other information

The Bill and Explanatory Notes are available at these links and from the Office of the Queensland Parliamentary Counsel at www.legislation.qld.gov.au.

The Minister’s explanatory speech for the Bill can be accessed here.