Community Titles Act 2018

This section applies to a contract if —

it relates to the provision of services or amenities to a community corporation or members of the community corporation; and

it was made before registration of the community titles scheme or when —

the lots in the community titles scheme of 1 member of the community corporation had a relative unit entitlement of 50% or more; or

the relative unit entitlement of 1 tier parcel in the community titles scheme had a relative unit entitlement of 50% or more and the lots of 1 member of the community corporation for the community titles scheme for that parcel had a relative unit entitlement of 50% or more; or

1 person otherwise controlled 50% or more of the voting power of the members of the community corporation.

There is implied in a contract to which this section applies a provision that the community corporation may terminate the contract, by written notice to every other party to the contract, after 5 years have passed since the contract was made.

No cause of action against a person arises from the exercise of the power referred to in subsection (2).

A contract or arrangement is of no effect to the extent that it purports to exclude or restrict the operation of this section.

A purported waiver of a right, remedy or benefit conferred on a community corporation under this section is of no effect.

The Tribunal may, on the application of a party to a contract to which this section applies, by order extend the period of 5 years provided for by subsection (2), so far as it applies to that contract, if satisfied that the contract —

is fair to all members of the community corporation; and

will remain fair to all those members during the extended period.

An extended period under subsection (6) is not to exceed the term specified in the contract or a period of 10 years from the time when the contract was made, whichever is the lesser.