Setting lot entitlements

This information is relevant to all schemes in Queensland registered under the Body Corporate and Community Management Act 1997 and any of the 5 regulation modules.

Lot entitlements are set by the original owner (the developer) when a community titles scheme is established.

See how lot entitlements are used to determine your costs and rights.

Lot entitlement schedules

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

They are the:

• contribution schedule
• interest schedule.

From 2011 original owners were required to set lot entitlements according to certain principles.  

Contribution schedule principles

The principles for deciding contribution schedule lot entitlements are:

• the equality principle

  or

• the relativity principle.

The equality principle

Lot entitlements must be equal under the equality principle (except to the extent that it is just and equitable for them not to be equal). For example, if there is a commercial community titles scheme where the owner of 1 lot uses more water or runs a more dangerous or higher risk activity than the other lot owners it may be just and equitable for that lot to have a higher contribution schedule lot entitlement.

The relativity principle

Under the relativity principle, lot entitlements must consider the relationship between the lots according to a number of factors.

Factors include:

• how the scheme is structured
• the nature, features and characteristics of the lots
• what the lots are used for
• how each lot affects the costs of maintaining the common property
• the market value of each lot.

The interest schedule principle

The principle for deciding interest schedule lot entitlements is the market value principle except to the extent that it is just and equitable not to reflect the market value.

The community management statement must say whether the market value principle applies and if not, explain why.

If you want to find out more about market values you may want to speak to a property valuer or a real estate agent.

Schemes after 14 April 2011

Contribution schedule

For any scheme established on or after 14 April 2011, or an adjusted scheme, the community management statement must show the deciding principle for the contribution schedule.

• If the equality principle is used but the entitlements are not equal, explain why they are not equal.

  or

• If the relativity principle is used, explain how the principle was applied.

An adjusted scheme is a scheme that was established before 14 April 2011 but that has since adjusted the contribution schedule or interest schedule.

Interest schedule

For the interest schedule, the community management statement must say whether the market value principle applies and if not, explain why.

Schemes from 13 July 1997 to 2011

Before 2011, contribution schedule lot entitlements were set on the basis that entitlements must be equal (except to the extent that it is just and equitable for them not to be equal).

These lot entitlements will continue to apply unless an adjustment is made to 1 or both of the schedules.

See adjusting lot entitlements for more information.

Schemes before 13 July 1997

The registered plans for schemes created before 13 July 1997, have only 1 schedule of lot entitlements. For these schemes, the law says that the contribution schedule lot entitlements and interest schedule lot entitlements are identical to the single schedule endorsed in the original plan.