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ARTICLE · 30 MAY 2018

Property pitfalls: when it is unreasonable for a body corporate to refuse a motion?

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Article discusses power of adjudicator to make orders resolving disputes in community title schemes.

AustraliaReal Estate and Construction

In community titles schemes, body corporates are often called upon to make decisions concerning the rights of owners. Tensions can rise where a lot owner has proposed a motion and their motion is rejected – and often parties will seek to take the matter further.

Section 276 of the Body Corporate and Community Management Act 1997 (Qld) (BCCM Act) provides adjudicators with certain powers to make orders to resolve disputes in community titles schemes. An adjudicator can make an order giving effect to, or varying, a motion that has been considered but not passed, provided the opposition to the motion is 'unreasonable' in the circumstances.

The relevant enquiry for the adjudicator in these types of decisions will be whether the opposition was unreasonable, not whether the decision itself was unreasonable. This distinction can be easily muddied. The leading case on this issue is Ainsworth v Albrecht [2016] HCA 40.

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