When to tell your body corporate you are selling - Industry News

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When to tell your body corporate you are selling

Published: 20 July 2010.

Contributed by Frank Higginson of Hynes Lawyers

Conventional wisdom in the management industry is not to tell your body corporate you are selling until your contract is unconditional. This is put forward for a number of reasons, which include:

if the sale falls over, the committee might regard you differently in terms of work ethic, supervision etc;
there could be costs incurred which are payable whether the sale proceeds or not; and
there is no point upsetting the apple cart if the sale does not proceed.

We do not necessarily subscribe to this approach. We do not think there is a ‘one size fits all’ approach to dealing with bodies corporate. Each committee has a different personality and it is really up to each resident manager to decide what is best for their particular circumstances.

From our end, we have seen some clients take their committee into their confidence when they list to sell. This makes some of the committee members at least feel informed about what is going on, which can ease the assignment process through when a contract subsequently arrives.

It also removes the risk of the committee feeling ‘ambushed’ with the request to consider an assignment, especially when that request is delivered a month or more after a contract is signed and especially where the proposed settlement date is 30 days or less away.

So while we do not advocate telling your committee the moment you are considering selling, there are certainly circumstances which will exist which mean bringing the committee into your confidence will better serve your interests.

Reply from: BriaN lANEY

5:42pm Tuesday, 20 July 2010

Your first option which it must be said you did not dwell on certaintly could create the possible problems noted.
I personally believe the second option has to be preferred by a countyr mile.Currently I am part way through the process of selling.
I have at all times ensured both the committee and a particularly loyal group of owners .Should the sale for any reason fall over I would with confidence expect the understanding and support of those same people ,
If there was a need to justify selling both my age and the fact that I have enjoyed this position and lifestyle for over 11 years
should be enough.
I enjoyed the item .Very timely,

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