South Australian Current Acts

COMMUNITY TITLES ACT 1996 - SECT 142B

142B—Developer stands in fiduciary relationship with community corporation

        (1)         For the avoidance of doubt—

            (a)         the developer stands in a fiduciary relationship with the community corporation and, before the community corporation is established, with the proposed community corporation; and

            (b)         the duties owed by the developer under this Act are in addition to, and do not derogate from, the duties arising out of that fiduciary relationship.

        (2)         Without derogating from subsection (1), where the community corporation intends, during the developer control period, to delegate functions or powers to a body corporate manager or to enter into a contract for services, the developer must exercise reasonable skill, care and diligence and act in the best interests of the community corporation (as it will be constituted after the developer control period ends).

Explanatory Note—

An application may be made under section 142 if the developer contravenes this subsection.

        (3)         In this section—

"developer control period" means a period during which—

            (a)         the community corporation is constituted solely by the developer; or

            (b)         the developer owns the majority of lots in the community scheme or in any other way controls the voting of the corporation.