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Body corporate disputes involving caretakers can generate considerable confusion and frustration. Our interactions with clients indicate that further clarification of the options available to resolve caretaker disputes and the legal requirements for termination would be helpful. In this article, we will highlight what the relevant legislation says about terminating an engagement and what steps the committee might consider before things escalate. We will also clarify the role of our office in relation to caretaker disputes.

Our legislation provides the body corporate must lodge a new community management statement within 3 months of the date of the resolution that approved it. The  Acts Interpretation Act 1954, provides that where the term “must” is used in relation to a power, it requires that power to be exercised. However, the relevant provision does not stipulate the consequences of non-compliance with that timeframe. You’d be forgiven for presuming a community management statement lodged after the 3-month time-limit was invalid. However, that doesn’t appear to be the case. 

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