Re: Developer demands vote in sales contract

Hi GB2011

I assume you are in NSW.

There are a few things to consider.

Firstly, there is a recent Queensland Supreme Court decision on exactly this issue. In Wilson v Mirvac Queensland Pty Ltd [2010] QSC 87, Justice Wilson considered whether a buyer had been materially prejudiced by the omission of CCTV security, a BBQ, furniture and artwork from the body corporate assets.

Secondly, section 113(1)(a) of the Strata Schemes Management Act restricts what the original owner can do during the initial period. It is unclear from your post as to what stage the development is at.

Finally, developers owe fiduciary duties (ie duties of a higher order than contractual duties) to lot owners. For example, there is a duty not to change a scheme materially.

Further instructions would be required to provide more precise advice but the above should give some guidance to you.

Let me know if you have any questions.

Regards

Chris Kerin
Senior Lawyer

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TEYS Lawyers
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26-32 Pirrama Rd
Pyrmont NSW 2009

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