September 2018 – Terminate your body corporate manager contract

Tracsafe can help you terminate your body corporate manager contract.  The sad part is when we encounter an existing body corporate manager behaving poorly both as schemes try to leave and subsequently as schemes switch to a new body corporate manager.  In the case this month, the body corporate manager had signed a three year contract with […]

Exit fees charged by Body Corporate Managers

This month we took on a new do-it-yourself client who had been using a Body Corporate Manager.  Their principal reason for moving away from the Body Corporate Manager was the significant exit fee stated in their proposed new contract.  The Committee would have happily signed the new contract provided the exit fee clause was struck out.  The Body […]

Tenant keys

The rental agency of a lot in a Building Format scheme that we manage came to us requesting that we provision a key for the unit that they are managing as the tenant needed an additional key.  BCCM adjudications have been clear (http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/qld/QBCCMCmr/2000/71.html) that the body corporate is liable for the maintenance of locks and the […]

Unfair Body Corporate contracts

Good news!  Remember our post from a while back that looked at the indemnify clauses that some Body Corporate Managers insert in their contracts.  These clauses are akin to a get out of jail free card for the professional advice that a Body Corporate Manager exercises when administering your scheme.  Well, the Federal government has been listening. Since […]

Prior Body Corporate Manager gets scheme arrangement wrong

Last month, we took over a scheme that was being administered by a well known Brisbane Body Corporate Manager who shall remain nameless.  Four of the lots in the scheme were needing major renovation of a lintel that was rusted.  The estimated contract works was ~ $70-80,000.  The Body Corporate Manager was expecting to raise a special levy […]

Body Corporate Manager fees at end of contract

When a relationship between a Body Corporate Manager and a Committee breaks down, there is often considerable time and effort expended by both the Committee and the Body Corporate Manager to address the problems.  The final outcome is often that any existing contract is discontinued.  Committees can get shocked when the records are finally handed over and […]

Chapter 3 Part 5 Appointment

We recently reviewed a Body Corporate administration renewal of a four lot scheme.  The total remuneration of the Body Corporate Manager was in excess of $3,000 not including insurance commission.  The BCM had engaged the Body Corporate with a Chapter 3 Part 5 engagement.  That remuneration seems excessive!  However, in partial defence of the BCM, the use of the […]

Hold Harmless – Why we use our own contract

Be very careful when entering into contracts with Body Corporate Managers.  You may find a ‘Release and Indemnity’ clause in the contract which in summary says that the Manager can not be sued by the Body Corporate.  Additionally, the Body Corporate is responsible if the Manager is sued by some other party even if the Manager contributed […]

Managers that say one thing – but do another

Worked through a stressful changeover of a small Body Corporate this month.  The exiting Body Corporate Manager (Brisbane central city based) was refusing to handover the books until the lot owners made prepayments.  Seems that there was enough money for the insurance that was falling due or for the final Manager fees but not both!  My recommendation was […]

Levy periods

Sometimes, we come across the records of a Body Corporate Manager that give real cause for concern.  A Body Corporate in North Queensland has recently transitioned to Tracsafe using our Body Corporate Bookkeeping service.  When we inspected the minutes of the last AGM as prepared by the prior Body Corporate Manager, we were somewhat alarmed.  The financial year […]