South Australian Current Acts

COMMUNITY TITLES ACT 1996 - SECT 107

107—Offences relating to failure to insure

        (1)         The developer must take out the insurance required by this Division in respect of a community scheme for the benefit of the community corporation before the plan of community division is deposited in the Lands Titles Registration Office and must maintain that insurance in force for at least 6 months after the deposit of the plan.

Maximum penalty: $15 000. ¹

        (2)         A person who owns a community lot must not enter into a contract to sell the lot unless—

            (a)         the insurance required to be taken out under this Division by or on behalf of the community corporation has been taken out and is in force; or

            (b)         the owner, or a person acting on behalf of the owner, has, before the purchaser signs the contract, served personally on the purchaser a written statement that the insurance required to be taken out under this Division by or on behalf of the corporation has not been taken out or is no longer in force.

Maximum penalty: $15 000. ¹

        (3)         The owner of a secondary lot must not enter into a contract to sell the lot unless—

            (a)         the insurance required to be taken out under this Division by or on behalf of the primary community corporation has been taken out and is in force; or

            (b)         the owner, or a person acting on behalf of the owner, has, before the purchaser signs the contract, served personally on the purchaser a written statement that the insurance required to be taken out under this Division by or on behalf of the primary corporation has not been taken out or is no longer in force.

Maximum penalty: $15 000. ¹

        (4)         The owner of a tertiary lot must not enter into a contract to sell the lot unless—

            (a)         the insurance required to be taken out under this Division by or on behalf of the primary and secondary corporations has been taken out and is in force; or

            (b)         the owner, or a person acting on behalf of the owner, has, before the purchaser signs the contract, served personally on the purchaser a written statement that the insurance required to be taken out under this Division by or on behalf of the primary and secondary corporations has not been taken out or is no longer in force.

Maximum penalty: $15 000. ¹

Explanatory Note—

1         It is a defence to a charge of an offence against this Act for the defendant to prove that the alleged offence was not committed intentionally and did not result from any failure on the part of the defendant to take reasonable care to avoid the commission of the offence—see section 153.