sec.81CBody corporate must prepare pre-termination report

sec.81C Body corporate must prepare pre-termination report

A body corporate for a community titles scheme must prepare a report (a pre-termination report ) before it considers a motion to decide an economic reasons resolution. Without limiting what may be included in a pre-termination report, the report must include the following— a market valuation of each lot in the scheme; a market valuation of the scheme land; a document prepared by the body corporate that states— the estimated value of each body corporate asset; and the nature and estimated value of each liability of the body corporate; if the body corporate decides the pre-termination report must include information about whether economic reasons for termination mentioned in section 81A (a) exist—a report by an appropriately qualified person on whether the lots can be used for an economically viable purpose; if the body corporate decides the pre-termination report must include information about whether the economic reasons for termination mentioned in section 81A (b) exist— a report by a structural engineer on the condition of any property or assets the body corporate must maintain in good or structurally sound condition; and a report by an appropriately qualified person, taking into account the report of the structural engineer, on the works reasonably required to maintain, repair or, if necessary, replace any property or assets; and a report by a quantity surveyor estimating the cost of the works identified in the report provided under subparagraph (ii) . The body corporate must not appoint a person to prepare a report under this section if the body corporate knows, or reasonably suspects, the person has a conflict of interest in preparation of the report. If a person who is appointed to prepare a report under this section has an interest that conflicts, or may conflict, with preparation of the report, the person— must disclose the nature of the interest and conflict to the body corporate as soon as practicable after the relevant facts come to the person’s knowledge; and must not take action or further action concerning the report that is, or may be, affected by the conflict unless authorised by the body corporate. s 81C ins 2023 No. 29 s 7 (sec.81C-ssec.1) A body corporate for a community titles scheme must prepare a report (a pre-termination report ) before it considers a motion to decide an economic reasons resolution. (sec.81C-ssec.2) Without limiting what may be included in a pre-termination report, the report must include the following— a market valuation of each lot in the scheme; a market valuation of the scheme land; a document prepared by the body corporate that states— the estimated value of each body corporate asset; and the nature and estimated value of each liability of the body corporate; if the body corporate decides the pre-termination report must include information about whether economic reasons for termination mentioned in section 81A (a) exist—a report by an appropriately qualified person on whether the lots can be used for an economically viable purpose; if the body corporate decides the pre-termination report must include information about whether the economic reasons for termination mentioned in section 81A (b) exist— a report by a structural engineer on the condition of any property or assets the body corporate must maintain in good or structurally sound condition; and a report by an appropriately qualified person, taking into account the report of the structural engineer, on the works reasonably required to maintain, repair or, if necessary, replace any property or assets; and a report by a quantity surveyor estimating the cost of the works identified in the report provided under subparagraph (ii) . (sec.81C-ssec.3) The body corporate must not appoint a person to prepare a report under this section if the body corporate knows, or reasonably suspects, the person has a conflict of interest in preparation of the report. (sec.81C-ssec.4) If a person who is appointed to prepare a report under this section has an interest that conflicts, or may conflict, with preparation of the report, the person— must disclose the nature of the interest and conflict to the body corporate as soon as practicable after the relevant facts come to the person’s knowledge; and must not take action or further action concerning the report that is, or may be, affected by the conflict unless authorised by the body corporate.