Incoming Body Corporate Management Changes – Stage Three

The final stage of UTA Amendment changes commence from 9 May 2024 and includes changes to the Long Term Maintenance Fund plans, BC Manager regulation, and updated service agreements. Our General Manager Steven Garland discusses the incoming changes and how we are preparing for our clients.

Last year we highlighted and implemented some of the changes outlined in the Unit Titles (Strengthening Body Corporate Governance and other matters) Amendment Act 2022 under the first two of three stages.

These included changes to the disclosure regime, committee meetings, individualised bank accounts and areas concerning conflicts of interest and codes of conduct.

The last stage of the UTA Amendment Act will be in effect from 9 May 2024. Our focus this year is on making sure that our Bodies Corporate comply with the changes to the Long-Term Maintenance requirements and providing our managed Bodies Corporate (BC) with a written scope of service or service agreement.

What’s Changing for Stage Three?

On the Long Term Maintenance Fund (LTMF) front, plans will now need to extend to 30 years rather than the current 10 years. The rationale behind this is the need to forecast long term rather than in the medium term, which should be beneficial for both current and future owners. For more please refer to section 157C.

Previously Body Corporate Managers were not regulated in the old UTA. Now, the new Act not only defines their role, but lists their duties and functions. For more refer to section 114G – 114J. One of these new requirements is the need for the Manager to specify these in a written agreement, setting out the Managers terms of employment/engagement.

In early April 2024, our BC Managers will be sending out to each managed Body Corporate a draft service agreement for committees to review. The agreement will also provide for any matter prescribed by the new Act plus the Regulations, including reporting requirements and our detailed scope of services.

We anticipate that this process will involve some BC’s seeking customisation to suit their individual requirements which we are more than happy to work in with, whilst others will be happy to have a defined agreement in place that complies with these changes to the UTA.

You can learn more about the UTA changes on the Unit Titles website here.

Kind regards

Steven Garland

General Manager – Body Corporate

Chat to your BC Manager if you have any questions about the incoming changes.