What is a layered scheme
A layered scheme is a grouping of community titles schemes, where one body corporate sits within the umbrella of another body corporate.
It is made up of:
- a principal scheme (which is not itself a lot within a community titles scheme)
- one or more subsidiary schemes (at least one of which must be a basic scheme).
You can find examples of layered arrangements in schedule 1, parts 2 and 3 of the Body Corporate and Community Management Act 1997 (BCCM Act). The other illustrations in schedule 1 give examples of basic schemes, changes to scheme structures, and management structures for basic and layered schemes.
To find out if your lot is part of a layered scheme, check your community management statement (CMS). If your lot is part of a layered scheme, the statement for your subsidiary scheme will have 2 community title scheme numbers listed: the basic body corporate’s number and the principal body corporate’s number.
Principal scheme
A principal scheme includes:
- at least 2 lots (where at least 1 lot is a basic scheme)
- the land for all the community titles schemes in the grouping
and
- its own common property.
Only a basic scheme that is not a subsidiary scheme may become a principal scheme in a layered arrangement.
A principal scheme has its own CMS, including by-laws.
Only the following regulation modules can apply to be a principal scheme:
- Accommodation Module
- Commercial Module
- Standard Module
Schemes registered under the Small Schemes Module or the Specified Two-lot Schemes Module cannot be principal schemes.
The principal body corporate
The role of the principal body corporate is the same as the role of the body corporate for a basic scheme, which includes:
- enforcing its by-laws
- maintaining the common property
- holding committee and general meetings.
There are a few differences between layered schemes and basic schemes, as outlined by this page.
These differences will also apply to a subsidiary scheme that in turn has lots that are subsidiary schemes.
Subsidiary scheme
In a layered arrangement, each community titles scheme other than the principal scheme is a subsidiary scheme.
In a more complex layered arrangement, there may be subsidiary schemes that have their own subsidiary schemes. However, there must be at least one subsidiary scheme that is a basic scheme.
A subsidiary scheme can be registered under any of the 5 regulation modules.
How members of a subsidiary scheme can use the principal scheme’s body corporate assets and common property will depend on the information contained in the CMS of the principal scheme.
Basic scheme
A community titles scheme with no lots that are a community titles scheme.
More information
Learn more about:
- creating a layered scheme
- running a layered scheme (including forming a committee, running meetings, and the differences to managing other schemes)
- disputes in a layered scheme.