26Restrictions on powers of owners corporation during initial period

#### 26 Restrictions on powers of owners corporation during initial period 26 Restrictions on powers of owners corporation during initial period > > (1) An owners corporation for a strata scheme must not, during the initial period, do any of the following things unless the owners corporation is authorised to do so by an order of the Tribunal under this Division— > > > > > (a) alter any common property or erect any structure on the common property otherwise than in accordance with a strata development contract, > > > > > (b) incur a debt for an amount that exceeds the amount then available for repayment of the debt from its administrative fund or its capital works fund, > > > > > (c) appoint for a period extending beyond the date of the first annual general meeting of the owners corporation— > > > > > > > (i) a strata managing agent, or > > > > > > > (ii) a building manager, or > > > > > > > (iii) another person to assist with the management, maintenance or repair of common property. > > > > > (d) borrow money or give securities. > > > (2) An owners corporation may recover from the original owner— > > > > > (a) as a debt, any amount for which the owners corporation is liable because of a contravention of subsection (1) (b), together with the expenses of the owners corporation incurred in recovering that amount, and > > > > > (b) as damages for breach of statutory duty, any loss suffered by the owners corporation as a result of any other contravention of this section. > > > (3) An owner may recover, as damages for breach of statutory duty, any loss that has been suffered by the owner as a result of a contravention of this section (other than subsection (1) (b)). > > > (4) It is a defence to an action under this section in debt or for damages if it is proved that the original owner— > > > > > (a) did not know of the contravention on which the action is based, or > > > > > (b) was not in a position to influence the conduct of the owners corporation in relation to the contravention, or > > > > > (c) used due diligence to prevent the contravention. > > > (5) A remedy available under this section does not affect any other remedy. > > Note. > > Section 140 places restrictions on the making, amendment and repeal of by-laws during the initial period. > > **s 26:** Am 2023 No 45, Sch 3\[5\].