Adjusting lot entitlements

The community management statement for community titles scheme in Queensland has 2 lot entitlement schedules.

They are the:

• contribution schedule
• interest schedule.

Adjusting the contribution schedule

There are 3 ways to adjust the contribution schedule lot entitlements:

• a vote is passed at a body corporate general meeting
• 2 or more lot owners agree
• a decision is made by a specialist adjudicator or the Queensland Civil and Administrative Tribunal.

General meeting

A body corporate can change its contribution schedule lot entitlements by ‘resolution without dissent’, at a general meeting.

The notice of general meeting where the motion is proposed must explain the proposed change and the reasons for it.

The changes must be consistent with either the principle on which the existing contribution schedule was decided or another contribution schedule principle.

See setting lot entitlements for more information on the principles that apply for contribution schedules.

The body corporate must, within 3 months, put in a request to record a new community management statement including the changed contribution schedule lot entitlements.

The community management statement is the document that records the lot entitlement schedules for your community titles scheme.

Learn more about this in section 47A of the Body Corporate and Community Management Act 1997 (the BCCM Act).

Specified Two Lot Schemes Module

For schemes registered under the Specified Two-lot Schemes Module there is no need to call general meetings as all decisions are made by lot owner agreement. The same information applies as given above with the exception of calling and holding a meeting.

The remaining information must be relayed in a lot owner agreement and if both owners agree, the body corporate can lodge the request to record a new community management statement.

Agreement of lot owners

The owners of 2 or more lots can agree to redistribute their lot entitlements among themselves. The owners of the 2 lots must:

• agree in writing to change the lot entitlements of the lots

and

• ensure that the total lot entitlements of the lots will not be affected.

Decision of specialist adjudicator or QCAT

As a lot owner you may apply for an adjustment of the contribution schedule lot entitlements; however, the reasons you can apply are limited.

You can apply for an adjustment if:

• the body corporate passes a motion and you believe that the new contribution schedule does not follow the principle used as a basis for the change
• you believe that an adjustment of the contribution schedule is needed because there has been a material change to the community titles scheme (e.g. 1 or more lots have been added or removed—see schedule 6 of the BCCM Act).
• the community titles scheme is set up after the start of the 2011 amendments and you believe the contribution schedule does not follow the principle used to set the lot entitlements.

If you have a reason to apply, you can:

• apply for a specialist adjudicator under  the BCCM Act

or

• apply for an order from QCAT to adjust the contribution schedule.

For more information, see sections 47AA and 47B of the BCCM Act.

How decisions are made

In deciding whether the contribution schedule follows the principle used to set it, a specialist adjudicator or QCAT will consider:

• the principle on which the contribution schedule was decided
• information in the community management statement on how the deciding principle was applied
• why the applicant believes the lot entitlements do not reflect the equality principle, with respect to section 49 of the BCCM Act (if the contribution schedule lot entitlements was decided on the equality principle,)
• the applicant's reasons for seeking an adjustment
• any matters raised by each respondent to support their claim that the entitlements are consistent with the deciding principle.

For more information, see section 48A of the BCCM Act.

Adjusting the interest schedule

A body corporate can change the community management statement including its interest schedule lot entitlements by ‘resolution without dissent ’, at a general meeting.

The community management statement is the document that records the lot entitlement schedules for your community titles scheme—see section 47A of the BCCM Act.

The change must be consistent with the market value principle, as explained on setting lot entitlements.

Within 3 months, the body corporate must put in a request to record a new community management statement including the changed interest schedule lot entitlements.

For schemes registered under the Specified Two-lot Schemes Module, there is no need to call general meetings as all decisions are made by lot owner agreement. The above information applies, except calling and holding a meeting.

The remaining information must be relayed in a lot owner agreement and, if both owners agree, the body corporate can lodge the request to record a new community management statement.

As a lot owner you can also apply to a specialist adjudicator or QCAT for an order to adjust the interest schedule lot entitlements.

The order of the specialist adjudicator or QCAT must also be consistent with the market value principle.

See setting lot entitlements for more information.