sec.81BWhat is a termination plan

sec.81B What is a termination plan

A termination plan is a document prepared by a body corporate for a community titles scheme that sets out the following matters for the termination of the scheme— the arrangements necessary to ensure the sale of the scheme to a single entity, including, if known— the name of the entity that is proposing to buy the scheme; and the proposed sale price; and the proposed day for settlement of the contract; and if the scheme is to be sold by public auction or tender— the proposal for marketing the sale of the scheme; and the minimum reserve price for the sale or details of the way in which a minimum reserve price is to be set; and the day of the public auction or tender; the proposed day on which the owners of the lots are to provide vacant possession of their lots; the costs and expenses to be deducted from the sale price; how the following will be distributed for each lot in accordance with the respective market value of a lot principle— the assets and liabilities of the body corporate; the proceeds of the sale of the scheme; an estimate of the amount to which each owner of a lot will be entitled on the sale of the scheme; how the interests of a lessee of a lot included in the scheme or other scheme land, that would, but for the sale of the scheme, extend beyond the proposed sale will, on the sale of the scheme, be compensated by the lessor; the arrangements requiring the facilitator to, at least 2 months before the day of settlement for the contract, give written notice to each lessee of a lot included in the scheme or other scheme land stating— the day of settlement; and if section 81V applies in relation to the lease—that the lessee’s lease will terminate on the settlement day under that section; and the day on which the owner of the lot is to provide vacant possession of the lot; how the interests of a person who has a contractual arrangement with the body corporate that would, but for the sale of the scheme, extend beyond the proposed sale will, on the sale of the scheme, be compensated by the body corporate; any other terms and conditions of the proposed sale that the body corporate considers are relevant to the termination of the scheme. Without limiting subsection (1) (a) to (i) , the termination plan must provide that each of the following entities must receive at least the minimum compensation amount on the sale of the scheme— each owner of a lot included in the scheme; each person who has a leasehold interest in the scheme. For subsection (1) (h) , if the contractual arrangement is for management rights for the scheme, the amount of compensation to be paid to the caretaking service contractor must not be less than the market value of the management rights valued at the day the pre-termination report is given to lot owners. The minimum compensation payable is the amount worked out using the formula— where— A is the amount to which a person would be entitled if, at the time the scheme is sold, the scheme land were compulsorily acquired under the Acquisition of Land Act 1967 . D is the amount of any debt the person owes to the body corporate. In this section— lessor includes a provider under the Residential Tenancies and Rooming Accommodation Act 2008 . respective market value of a lot principle is the principle that the market value of a lot in a community titles scheme is the value expressed as a percentage of the sum of the market value of all of the lots in the scheme. s 81B ins 2023 No. 29 s 7 amd 2024 No. 27 s 90 (sec.81B-ssec.1) A termination plan is a document prepared by a body corporate for a community titles scheme that sets out the following matters for the termination of the scheme— the arrangements necessary to ensure the sale of the scheme to a single entity, including, if known— the name of the entity that is proposing to buy the scheme; and the proposed sale price; and the proposed day for settlement of the contract; and if the scheme is to be sold by public auction or tender— the proposal for marketing the sale of the scheme; and the minimum reserve price for the sale or details of the way in which a minimum reserve price is to be set; and the day of the public auction or tender; the proposed day on which the owners of the lots are to provide vacant possession of their lots; the costs and expenses to be deducted from the sale price; how the following will be distributed for each lot in accordance with the respective market value of a lot principle— the assets and liabilities of the body corporate; the proceeds of the sale of the scheme; an estimate of the amount to which each owner of a lot will be entitled on the sale of the scheme; how the interests of a lessee of a lot included in the scheme or other scheme land, that would, but for the sale of the scheme, extend beyond the proposed sale will, on the sale of the scheme, be compensated by the lessor; the arrangements requiring the facilitator to, at least 2 months before the day of settlement for the contract, give written notice to each lessee of a lot included in the scheme or other scheme land stating— the day of settlement; and if section 81V applies in relation to the lease—that the lessee’s lease will terminate on the settlement day under that section; and the day on which the owner of the lot is to provide vacant possession of the lot; how the interests of a person who has a contractual arrangement with the body corporate that would, but for the sale of the scheme, extend beyond the proposed sale will, on the sale of the scheme, be compensated by the body corporate; any other terms and conditions of the proposed sale that the body corporate considers are relevant to the termination of the scheme. (sec.81B-ssec.2) Without limiting subsection (1) (a) to (i) , the termination plan must provide that each of the following entities must receive at least the minimum compensation amount on the sale of the scheme— each owner of a lot included in the scheme; each person who has a leasehold interest in the scheme. (sec.81B-ssec.3) For subsection (1) (h) , if the contractual arrangement is for management rights for the scheme, the amount of compensation to be paid to the caretaking service contractor must not be less than the market value of the management rights valued at the day the pre-termination report is given to lot owners. (sec.81B-ssec.4) The minimum compensation payable is the amount worked out using the formula— where— A is the amount to which a person would be entitled if, at the time the scheme is sold, the scheme land were compulsorily acquired under the Acquisition of Land Act 1967 . D is the amount of any debt the person owes to the body corporate. (sec.81B-ssec.5) In this section— lessor includes a provider under the Residential Tenancies and Rooming Accommodation Act 2008 . respective market value of a lot principle is the principle that the market value of a lot in a community titles scheme is the value expressed as a percentage of the sum of the market value of all of the lots in the scheme.