Owner's contributions for two-lot schemes

This information is for schemes registered under the Specified Two-lot Schemes Module.

Even if you only have 2 units in your scheme, you may not be registered under this module. The regulation module applying to your scheme will be listed on your community management statement.

Find out what regulation module applies for your scheme.

Read about owner contributions in other regulation modules.

Agreed body corporate expenses

Each lot owner must pay a share of body corporate expenses (called owner contributions).

An agreed body corporate expense is an amount that the 2 owners that make up the body corporate have decided to pay, by a lot owner agreement.

Some costs will automatically be agreed body corporate expenses. This includes costs the body corporate must meet to comply with:

the Body Corporate and Community Management Act 1997 or the regulation module
a statutory order or notice given to the body corporate
an order of an adjudicator
a judgement or order of a court or the Queensland Civil and Administrative Tribunal.

Contributions

Each lot owner must contribute to an agreed body corporate expense. The contributions are calculated on the contribution schedule lot entitlement of the lot, except if the contributions are for insurance expenses.

For example, if the contribution lot entitlements for each lot are equal, each lot owner will contribute the same amount towards each agreed body corporate expense.

For more information see:

Contributions must be paid by the due date set in the lot owner agreement, or when required by the relevant order.

If no date has been fixed, the contribution must be paid on or before the date stated in the contribution notice for an agreed body corporate expense.

Contribution notice

If the body corporate or a lot owner gets a notice of an agreed body corporate expense, the lot owner can give the other lot owner a contribution notice.

The contribution notice must say:

the total amount of the expense
the share to be paid by each lot owner the due date for payment.

If an owner of a lot gives a contribution notice, it must be given as soon as possible after the notice of an agreed body corporate expense is received.

For example, if an owner gets notice of the cost to renew the body corporate’s insurance, the owner must give the other owner a contribution notice as soon as possible setting out the total cost of the renewal, the amount each owner owes, and the due date.

Unpaid contributions

If an owner does not pay their share of an agreement there are steps the other owner can take.

Section 27 of the Specified Two-lot Scheme Module refers to the ‘defaulting owner’ and the ‘contributing owner’.

A defaulting owner is an owner who does not pay their contribution by the due date.

A contributing owner is an owner who pays their contribution by the due date.

A contributing owner can choose to pay the defaulting owner’s contribution. If they do, the contributing owner can then get that amount back from the defaulting owner as a debt. The contributing owner can also recover any penalty for late payment and any reasonable costs that may have resulted.

The body corporate can recover the overdue amount from the defaulting owner as a debt. The contributing owner can start proceedings on behalf of the body corporate to recover the overdue contribution. Any penalty for late payment and any reasonable costs that may have resulted can also be recovered.

Debt recovery

The body corporate or the contributing owner can lodge a debt dispute claim with:

the Queensland Civil and Administrative Review Tribunal (called a minor civil dispute)
Queensland courts.

A debt dispute or a related debt dispute cannot be decided by an adjudicator.

Conciliation

The body corporate or the contributing owner can apply for conciliation with us to determine a dispute about a debt.

However, if debt recovery action has been started in the Queensland Civil and Administrative Tribunal or a court, the dispute cannot be dealt with in conciliation. If debt recovery action is started after a conciliation application is lodged, the conciliation application must end.