sec.137Amount payable on a transfer within the prescribed period— Act , s 122 [SM, s 147 ]

sec.137 Amount payable on a transfer within the prescribed period— Act , s 122 [SM, s 147 ]

For section 122 (3) of the Act , an amount (the transfer fee ) is payable by a transferor to the body corporate on a transfer of the transferor’s rights under an engagement or authorisation to another entity within the prescribed period. The transfer fee is— if the day on which the body corporate approves the transfer (the approval day ) is not more than 1 year after the initial contract date for the engagement or authorisation of the transferor—3% of the amount representing fair market value for the transfer; or if the approval day is more than 1 year after the initial contract date for the engagement or authorisation of the transferor—2% of the amount representing fair market value for the transfer. Despite subsection (1) , but subject to section 138 , no transfer fee is payable if— a financier, as defined under section 123 of the Act , is exercising a power of sale under the financier’s charge over the engagement or authorisation; or the transferor is transferring the transferor’s rights only because of a genuine hardship that was not reasonably foreseeable by the transferor on the initial contract date. A transfer fee payable under the Act must be paid into the body corporate’s sinking fund. (sec.137-ssec.1) For section 122 (3) of the Act , an amount (the transfer fee ) is payable by a transferor to the body corporate on a transfer of the transferor’s rights under an engagement or authorisation to another entity within the prescribed period. (sec.137-ssec.2) The transfer fee is— if the day on which the body corporate approves the transfer (the approval day ) is not more than 1 year after the initial contract date for the engagement or authorisation of the transferor—3% of the amount representing fair market value for the transfer; or if the approval day is more than 1 year after the initial contract date for the engagement or authorisation of the transferor—2% of the amount representing fair market value for the transfer. (sec.137-ssec.3) Despite subsection (1) , but subject to section 138 , no transfer fee is payable if— a financier, as defined under section 123 of the Act , is exercising a power of sale under the financier’s charge over the engagement or authorisation; or the transferor is transferring the transferor’s rights only because of a genuine hardship that was not reasonably foreseeable by the transferor on the initial contract date. (sec.137-ssec.4) A transfer fee payable under the Act must be paid into the body corporate’s sinking fund.

• (a) if the day on which the body corporate approves the transfer (the approval day ) is not more than 1 year after the initial contract date for the engagement or authorisation of the transferor—3% of the amount representing fair market value for the transfer; or
• (b) if the approval day is more than 1 year after the initial contract date for the engagement or authorisation of the transferor—2% of the amount representing fair market value for the transfer.