Unit Titles Act 2010

140 Compensation for, or termination of, service contracts

• (1) This section applies to a service contract—

  • (a) to which the body corporate of a unit title development is a party; and

  • (b) that was entered into before the date that the control period ended in relation to the unit title development concerned.

  (2) The appropriate decision-maker may, on the application of the body corporate, require a person, or, as the case may be, persons, described in subsection (3) to pay compensation to the body corporate if it appears to the appropriate decision-maker that the body corporate has suffered loss or damage because that person has, or, as the case may be, those persons have, failed to comply with section 139.

  (3) The persons referred to in subsection (2) are—

  • (a) the original owner:

  • (b) an associate of the original owner who was a member of the body corporate during the control period.

  (4) An application under subsection (2) must be made within 3 years after that date that the control period ended.

  (5) The appropriate decision-maker may, on an application made by the body corporate, make an order terminating the service contract if it appears to the appropriate decision-maker that the contract is harsh or unconscionable.