Frank is an owner of one of six apartments in a waterfront unit titled development.  The owners in the building did not have a “functioning” Body Corporate committee in place. 

Frank had heard that there had been changes to the law regarding selling unit titled properties but didn’t know if those changes applied to small Bodies Corporate like theirs.  He made a decision to sell his apartment and contacted his lawyer to find out whether he had to sign disclosure documents, given that it was such a small development.

Although there are parts of the new law that do not apply to Bodies Corporate of 9 units or less (including the requirement to have a Body Corporate committee), the disclosure requirements do apply.

Owners in Bodies Corporate where there are only two units in the development are required to disclose in the same way as those selling in large apartment complexes.

Frank was therefore required to sign a pre-contract disclosure statement before an Agreement for Sale and Purchase with a proposed purchaser could be signed.  Luckily, because he had advice before he put his apartment on the market, he had all the information ready to include in the statement and was able to easily do so.  It can sometimes take a couple of weeks to get a pre-contract disclosure statement ready…so it’s important to get the process moving as early as possible.