Body Corporate Law

IMPORTANCE OF CLEAR AND ACCURATE BY-LAWS

Cameron Chisholm, Lawyer, MBA Lawyers

Community Titles Schemes across Queensland are governed by various legislation (such as the Body
Corporate and Community Management Act 1997 (BCCM), Building Units and Group Titles Act 1980
(BUGTA), one of the applicable Regulation Modules such as the Accommodation, Standard, Commercial,
Small Schemes or Specified Two Lot Modules or other planning acts applicable to BUGTA), a Community
Management Statement and/or by-laws.

For those under the BCCMA, a Community Management Statement is a document recorded with the
Queensland Titles Registry and comprises amongst other things the module governing the scheme, address
for service, any planned development, statutory encumbrances, service location diagrams, utility
infrastructure, by-laws in effect and any exclusive use areas.

Having an up to date Community Management Statement is important for various reasons of governance,
including the ability to correctly serve a document on the Body Corporate (and having their up-to-date
contact details) and documenting the particular by-laws necessary for each complex.

When the by-laws are either outdated or on a Registrar’s Standard Statement (those in place as of 13 July
2000) then it becomes difficult for a Body Corporate to properly regulate what is permitted at the scheme
or any applicable rules or obligations occupiers, owners and invitees are to abide by.

Those on a Registrar’s Standard Statement will also cause concerns when a lot owner goes to sell because it
is unclear what by-laws apply at the scheme as they should be in a consolidated form. Without this it can
compromise a sale and impact a Body Corporate issuing a new prescribed certificate (Form 33 or Form 34).
For BUGTA, the relevant by-laws and any exclusive use grants still need to be provided.

To comply with the new requirements under the Seller Disclosure regime which commenced on 1 August
2025, Bodies Corporate must produce a clear, consolidated and current set of by-laws that accurately
reflect all valid changes and align with current legislation. If the by-laws are incomplete, outdated or
unavailable, Bodies Corporates may have problems issuing such a valid certificate.

Issuing a Body Corporate prescribed certificate based on incorrect assumptions or errors in what by-laws
apply for the complex can expose both sellers and Bodies Corporate to significant risks including contract
termination on a sale and potential legal challenges. For Bodies Corporate, this means it is vital to clarify
and document the applicable by-laws thoroughly to avoid disruptions in property transactions or even
disputes about enforcement of by-laws.

Bodies Corporate should:

• Audit historical body corporate records, Titles Office searches and documents to confirm the
  applicable by-laws and any exclusive use areas;
• Engage an expert body corporate lawyer to draft a clear, consolidated and modern set of by-laws
  aligned with the current legislation; and
• Register the updated by-laws to ensure enforceability and accurate preparation of the Body Corporate prescribed certificate.

At MBA Lawyers, we know how important it is to get by-laws right. We help Bodies Corporate review
current by-laws and legislation and create tailored by-laws to suit your scheme’s unique needs.

If you need help navigating your by-laws or preparing new by-laws, MBA Lawyers can assist:

(07) 5539 9688
cameron.chisholm@mba-lawyers.com.au

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