Is a Reserve Plan required by law?
Not yet, but it may be soon.
The Unit Titles Act 1972 is currently under review. A new Bill is currently being drafted and changes are expected in early 2008.
One of the aims of the amended Act will be to:
“Encourage sound property management practices that will protect the long-term value of Investments by introducing requirements for long-term maintenance plans and long-term maintenance funds by the body corporate; and by broadening the role of the body corporate in relation to maintaining and managing the building as a whole”.
Responsible Bodies Corporate will use a Reserve plan as their best tool to ensure they meet their obligations under the law.
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