Queensland Consolidated Acts

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997 - SECT 114

114 Limitation on benefit to body corporate under service contractor engagement

(1) The engagement of a person as a service contractor for a community titles scheme must not include, whether directly or indirectly, a requirement for the payment of an amount to, or the conferral of a benefit (other than the services the service contractor is engaged to supply) on, the body corporate.

(2) If an amount is paid to, or a benefit is accepted by, the body corporate under a requirement mentioned in subsection (1) , the person who paid the amount or conferred the benefit may recover the amount, or the value of the benefit, as a debt.

(3) Subsection (1) does not apply to an amount or benefit representing fair market value for an entitlement conferred (not including the actual engagement as service contractor) by the body corporate under the engagement.

Examples of operation of subsection (3)—

1 If under the engagement the service contractor may make use of a body corporate asset, the engagement might include a requirement for the service contractor to pay an amount of rent for the asset’s use. To the extent that the amount is more than a fair rent, the amount would be recoverable under subsection (2) .

2 If under the engagement the service contractor may use a part of the common property (for example, utility infrastructure), the engagement might include a requirement for the service contractor to pay an amount of rent for the use of the part of the common property. To the extent that the amount is more than a fair rent, the amount would be recoverable under subsection (2) .

(4) Also, subsection (1) does not apply to an amount or benefit for the reasonable costs incurred by the body corporate in preparing an agreement between the body corporate and service contractor for the engagement.

(5) This section applies only to an engagement (including the extension, renewal or replacement of an engagement) the term of which starts after the commencement.