Body Corporate Interview Questions

CHARACTER

1. Have the proposed transferees and related persons of the proposed transferees provided resumes and two written character references to the body corporate?

2. Have any of the proposed transferees or related persons of the proposed transferees been convicted (whether or not a conviction is recorded) of an indictable offence involving fraud or dishonesty?

3. Have any of the proposed transferees or related persons of the proposed transferees been convicted (whether or not a conviction is recorded) on indictment of an assault or an offence involving an assault?

4. Have any of the proposed transferees or related persons of the proposed transferees been convicted, in Queensland or elsewhere, within the preceding five years of a serious offence?

"Serious offence" means any of the following offences punishable by three or more years’ imprisonment:

(a) an offence involving fraud or dishonesty;
(b)  an offence involving the trafficking of drugs;
(c)  an offence involving the use or threatened use of violence; (d) an offence of a sexual nature;
(e) extortion; (f)  arson;and
(g) unlawful stalking

FINANCIAL STANDING

5. Have the proposed transferees engaged  an  accountant or  a  suitably  qualified professional to carry out a feasibility study and due diligence of the Caretaking and Letting business?

6. Are the proposed transferees borrowing money to purchase the management rights?
If  so,  then  what  percentage  of  the  value  of  the  management  rights  is  being borrowed?

7. Are the proposed transferees purchasing the Managements Rights in the name of a company? If yes, please provide the Body Corporate with a current Australian Securities & Investments Commission search which will identify the current directors of the company.

8. If the proposed transferees are purchasing the management rights in a name of a company, then are the proposed transferees prepared to give the body corporate a written guarantee by the directors for the performance of the company's obligations under the management rights?

9. Are any of the proposed transferees or related persons of the proposed transferees affected by bankruptcy action?

PROPOSED TERMS OF TRANSFER

10. What is the proposed settlement date for the Contract of Sale for the Management Rights and are there provisions for a suitable changeover period?   If yes, please provide details.

11. Will the proposed transferees be occupying the Manager's Lot (i.e. living on site)?  If yes, please provide details. If not, who will be living on site?

12. Are the proposed transferees purchasing both the Letting Agent Business and the Caretaker Manager's Lot in the same name?  If not, has a Deed been prepared to satisfy the provisions of Section 116 of the Body Corporate and Community Management Act 1997?

COMPETENCE

13. What is the state of health of the proposed transferees and any related persons of the proposed transferees?

14. Will the proposed transferees and any related persons of the proposed transferees be employing staff? If yes, please provide details.

15. In what capacity will the proposed transferees or related persons of the proposed transferees be involved in the day-to-day management of the Caretaking and Letting business?

16. Will the proposed transferees and any related persons of the proposed transferees take out and maintain professional indemnity insurance?   If yes, please provide a copy for the Body Corporate.

17. Do the proposed transferees and any related persons of the proposed transferees have access to copies of the Body Corporate and Community Management Act, Regulation Module and other relevant legislation (i.e. Property Agents and Motor Dealers Act and Regulation)?

18. Do the proposed transferees and any related persons of the proposed transferees have access to a copy of the Caretaking and Letting Agreement and are fully aware of the terms and conditions of the Agreement, specifically, the matters pertaining to the duties under the Agreement?

19. Have the proposed transferees and any related persons of the proposed transferees obtained a copy of the Body Corporate's By-Laws and are fully aware of the obligations required in respect of the By-Laws?

20. Have the proposed transferees and any related persons of the proposed transferees obtained a copy of the Code of Conduct pertaining to Caretaker Managers and Letting Agents?

21. Are the proposed transferees and any related persons of the proposed transferees fully  aware  that  the  code  of  conduct  establishes  a  standard  of  conduct  that reasonably should be expected of all Caretaking Managers?

22. Are the proposed transferees and any related persons of the proposed transferees fully aware that the code of conduct provide minimum standards of conduct under which  the  letting  agent  must  operate,  not  only  in  conducting  the  letting  agent business but also in respect of the letting agent's interaction with all lot owners and lot occupiers, and other persons lawfully on scheme land such as a real estate agent, a prospective buyer of a lot in the scheme, and trades people?

23. Are the proposed transferees and any related persons of the proposed transferees fully aware that the code of conduct establishes the basis on which         the body corporate may initiate action to require a transfer of the management     rights?

QUALIFICATIONS

24. Do  any  of  the  proposed  transferees and  any  related  persons  of the  proposed transferees  have  any  formal  trade  or  educational qualifications? If  yes, please provide details.

25. Do any  of  the  proposed transferees and  any  related  persons  of the  proposed transferees have any clerical skills? If yes, please provide details.

EXPERIENCE

26. Have any of the proposed transferees and any related persons of the proposed transferees ever owned or worked in a management rights business before?  If yes, please provide details including the reason for leaving.

TRAINING

27. Does the Contract for Sale of the Management Rights provide for training by the current Caretaker Manager?  If yes, please provide details.

28. Is there a checklist of matters that require consultation with the current Caretaker Manager before settlement of the Contract for Sale of the Management Rights?

29. Have any of the proposed transferees or related persons of the proposed transferees successfully completed the specified courses/modules that are the necessary requirements to obtain a Restricted Letting Agent's Licence?  If yes, please provide details.

30. Have any of the proposed transferees or related persons of the proposed transferees applied and been granted a Restricted Letting Agent's Licence? If not, then are there any reasons why such a licence may be refused?