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ROLES AND RESPONSIBILITY* Please Click on "+" sign to expand and "-" sign to collapse the topic.
Body corporate legislation
Most bodies corporate are a community titles scheme registered under the Body Corporate and Community Management Act 1997 (the BCCM Act). In addition to the BCCM Act, each scheme is registered under one of five regulation modules. There are also regulations that apply to all bodies corporate. For a full copy of the BCCM Act and the regulations see:
ROLE OF THE BODY CORPORATE
The role of a body corporate in Queensland is to administer common property and body corporate assets for the benefit of all of the owners, and to undertake functions required under body corporate legislation. What is a body corporate? A body corporate is a legal entity which is created when land is subdivided and registered under the Land Title Act 1994 (PDF) to establish a community titles scheme. All of the owners in a community titles scheme are automatically members of the body corporate when they buy their lot. Community titles scheme Community titles schemes allow you to privately own an area of land or part of a building, as well as share common property and facilities with other owners and occupiers. A community titles scheme is made up of 2 or more lots, so it could be a:
What a body corporate does? The body corporate is given powers under the legislation to carry out its necessary duties. The body corporate:
BODY CORPORATE MANAGER
A body corporate can engage a body corporate manager to supply administrative services to the body corporate. At present body corporate managers are not required to be licensed in Queensland. There are no formal training requirements or qualifications needed to be a body corporate manager. When a body corporate manager is needed There is no legal obligation for a body corporate to have a manager. A body corporate may choose to engage a manager when:
Duties of a body corporate manager The duties of a body corporate manager can differ depending on whether the body corporate has a committee or not. In a body corporate with a committee If a body corporate has chosen a committee, the body corporate manager is engaged to help the committee. The manager can only do what the body corporate asks them to. The duties of the manager are contained in the written engagement entered into with the body corporate. A manager automatically becomes a non-voting member of the body corporate committee. The voting members of the committee can ask a manager not to attend a committee meeting. Maintenance of common property The manager is not responsible for the maintenance of the common property, but may organise work if the committee asks them to. Exercising the executive committee member powers Usually the manager is authorised to perform the duties of secretary and treasurer including:
In a body corporate with no committee A body corporate manager engaged when there is no committee is authorised to carry out all the functions of a committee and to exercise all committee powers. The body corporate manager makes the decisions that a committee would usually make. See sections 58 to 62 of the Body Corporate and Community Management (Standard Module) Regulation 2008 (PDF) (and equivalent sections in other regulation modules) for more information on the responsibilities of a manager during and at the end of a contract. Managing administrative and sinking funds A manager operating in a body corporate with or without a committee can be asked to manage funds. When a manager is authorised to look after the body corporate’s administrative and sinking funds, the manager must:
The body corporate manager must comply with the code of conduct for body corporate managers and caretaking service contractors when performing under their engagement. The code of conduct is automatically included in the terms of their engagement. If there is a difference between the code of conduct and the manager’s engagement, then you should always refer to the code of conduct. Under the code of conduct, a body corporate manager must:
When there is a committee The committee does not have the power to engage a body corporate manager. The body corporate must pass a motion at a general meeting by ordinary resolution to engage a body corporate manager under a contract. The terms of the contract must be included in the documents sent to members of the body corporate before the general meeting takes place. The written engagement must list:
If a body corporate is unable to elect a committee, it can pass a motion at a general meeting to engage a manager. The body corporate can hold an extraordinary general meeting if at the annual general meeting the body corporate:
The notice for the extraordinary general meeting must include the terms of the contract and an explanatory note. The explanatory note must outline:
The engagement must:
How to terminate a body corporate manager A manager’s engagement can be ended if they:
Failing to perform or comply To end a manager’s engagement for failing to perform duties, comply with the Act or code of conduct, the body corporate must issue a remedial action notice. This decision can be made by the committee of the body corporate. The remedial action notice must state:
Serving a remedial action notice when there is no committee If the body corporate wants to terminate a manager’s engagement when there is no committee, the decision to serve the remedial action notice can by made by the owners of a least one half of the lots included in the scheme. Role of the committee
A body corporate must elect a committee at each annual general meeting. The committee is made up of lot owners or people who act for them. The committee is in charge of:
Committee members The following information applies to schemes under the:
If the community titles scheme has more than 7 lots, the maximum number of committee members is 7. If a community titles scheme has less than 7 lots, the maximum number of committee members is the same as the number of lots. This is called the ‘required number of committee members’. The committee will usually include a chairperson, secretary and treasurer (known as the executive). One person may hold all or any two executive positions. For schemes under the Small Schemes Module, the committee consists of a maximum of 2 members. The committee will only include a secretary and treasurer. One person may hold the positions of secretary and treasurer at the same time. For schemes under the Specified Two-lot Schemes Module there is no committee. Find out further information about forming a body corporate committee in Meetings section. The chairperson The chairperson must chair all general meetings and committee meetings which they attend. If the chairperson is not at a meeting, the voters who are there can choose another person to chair the meeting. When chairing a general meeting, the chairperson’s duties include:
The chairperson does not have any more authority than anyone else on the committee. The secretary The secretary's duties include:
If the body corporate has engaged a body corporate manager, it may authorise the body corporate manager to carry out the secretary's duties. The treasurer The treasurer’s duties under the legislation are limited. If there is no body corporate manager, the committee may ask the treasurer to create a reconciliation statement. If the body corporate passes an ordinary resolution at a general meeting, a statement must be prepared, within 21 days after the last day of each month, for each account kept for the administrative and sinking fund, showing the reconciliation of:
If the body corporate has engaged a body corporate manager, it may authorise the body corporate manager to carry out the treasurer’s duties. Non-voting members of the committee If the body corporate engages a body corporate manager or a caretaking service contractor, they are automatically non-voting members of the committee. A non-voting member does not have a right to vote on a committee decision. Restrictions that apply to committee decisions The committee cannot make a decision about:
Committee spending limit Committee spending is limited and money must be available in the budget before the committee can spend it. If there is not enough money in the funds the committee would have to think about calling a general meeting to amend the budget or to raise a special levy. Service contractor/ROLE OF A SERVICE CONTRACTOR AND LETTING AGENT
A body corporate may engage
These people perform specific duties to help a body corporate meet its legal obligations. What is a service contractor? The information in this section applies to schemes registered under the all the regulation modules. Where there is any differences between the regulation modules this will be specifically identified. Service contractors supply services for the benefit of the common property or the lots included in the scheme. A service contractor is someone engaged by a body corporate for at least 1 year to supply services other than administrative services. See section 15 of the Body Corporate and Community Management Act 1997(PDF) for the definition of a service contractor. The services they provide can include but are not limited to:
Body corporate managers are not service contractors. Body corporate managers are contracted by the body corporate to supply administrative services. What is a caretaking service contractor? Schemes that are registered under the Small schemes Module and the Specified two lot Module are not able to engage a caretaking service contractor. A caretaking service contractor is a service contractor for a community titles scheme who can also be authorised as a letting agent for the scheme (or an associate of a letting agent for a scheme.) See section 16 of the Body Corporate and Community Management Act 1997(PDF) for the definition of a letting agent. If they own their lot they are able to vote at general meetings. They are automatically a non-voting member of the committee but are ineligible to be a voting member. The person is often referred to as having the ‘management rights’ and can be known under different names such as the caretaker, building manager, onsite manager or resident manager. What is an authorised letting agent? Schemes that are registered under the Small Schemes Module and the Specified Two Lot Module are not able to authorise a letting agent for the scheme. A letting agent is authorised by the body corporate to let lots and collect rents for investor owners. They must be licensed under the Property Occupations (PDF) Act 2014 . Check licence requirements with the Office of Fair Trading Generally a caretaking service contractor is also authorised to be the letting agent for the scheme and owns or leases a lot and runs the letting agent business from that lot There is no need for a letting agent to give the body corporate details of the letting arrangements. However, they may have to give the body corporate some information on lots for the body corporate roll. Owners do not have to use the authorised letting agent to let their lots. Owners may choose to let their lots privately or use a real estate agent. Codes of conduct A caretaking service contractor must comply with the code of conduct for body corporate managers and caretaking service contractors as well as the code of conduct for letting agents. See the Body Corporate and Community Management Act 1997 (PDF) The code of conduct is automatically included in the terms of their engagement. If there is a difference between the code of conduct and their engagement, then you should always refer to the code of conduct. Under the code a caretaking service contractor must:
SERVICE CONTRACTOR/ENGAGING A SERVICE CONTRACTORSERVICE CONTRACTOR
The information on this page applies to schemes registered under all the regulation modules. Where there are any differences between the regulation modules, this is specifically identified. Service contractors and caretaking service contractors are engaged by the body corporate. The caretaking service contractor is also authorised to conduct a letting agent business for the scheme. Service contractors and caretaking service contractors are not employees. The original owner (developer) may initially engage a service contractor (or authorise a letting agent). The developer sets the initial salary, which should relate to the work done. If the developer does not engage any service contractors, or the original term of engagement expires, the body corporate may decide on a new engagement by ordinary resolution at a general meeting. The body corporate cannot sell the letting or caretaking rights. The general meeting notice where a new engagement (for a service contractor) or authorisation (for a letting agent) is voted on must include the terms of the contract as well as any options of extension or renewal. The new engagement or authorisation must:
Schemes registered under the Small Schemes Module or the Specified Two-Lot Schemes Module cannot engage caretaking service contractors or authorise a letting agent for the scheme. They can only engage service contractors. Terms of engagements The minimum term of engagement of a service contractor is 1 year. The maximum term of engagement of a service contractor and a caretaker service contractor depends on the regulation module applying to the scheme. The Standard Module allows for a maximum term of 10 years. The Accommodation Module and the Commercial Module allow for a maximum term of 25 years. Schemes registered under the Small Schemes or Specified Two-Lot Scheme modules can only engage a service contractor for a maximum term of 1 year. The term of engagement includes any rights or options to extend or renew the contract — whether provided for in the first engagement or agreed to later. SERVICE CONTRACTOR/AMENDING AN ENGAGEMENT
The information on this page is for body corporate schemes registered under the:
For a caretaking service contractor the motion to amend the engagement must be decided by secret ballot. No votes can be cast by proxy. A motion to amend a service contractor engagement can be decided by open ballot and no votes can be cast by proxy. The general meeting notice must include an explanatory note (in the approved form) explaining the amendment. The amendment must:
For schemes registered under the Two-lot Schemes Module, an amendment can be made by lot owner agreement. SERVICE CONTRACTOR/TRANSFERRING AN ENGAGEMENT
This information is for body corporates schemes registered under the:
A person’s right under an engagement as a service contractor, or under an authorisation as a letting agent, may be transferred. If they have body corporate approval, a service contractor can sell their business. A transfer can be approved by a resolution of the committee. Find out how the committee makes decision at a committee meeting or by vote outside a committee meeting. The committee can consider the following:
The committee cannot unreasonably withhold approval. The committee can ask to be reimbursed for reasonable costs incurred during the approval process. The committee cannot receive or ask for any other fee or reward for considering the transfer. Transfer fee If the engagement is transferred within 2 years of the initial contract date, the person transferring their business may be asked to pay a fee. The transfer fee will be either:
SERVICE CONTRACTOR/TERMINATING AN ENGAGEMENT
This information applies to schemes registered under all the regulation modules. Any differences between the regulation modules will be specifically identified. Note: body corporate schemes registered under the Small Schemes Module and the Specified Two-lot scheme Module can only engage a service contractor not a caretaking service contractor. An engagement of a service contractor or a caretaking service contractor or an authorisation as a letting agent can be terminated:
Terminating by agreement The body corporate can terminate a person’s engagement as a service contractor or authorisation as a letting agent if:
Terminating for conviction of offences The body corporate can terminate a person’s engagement as a service contractor or authorisation as a letting agent if the person (or director if it is a company):
Remedial action notice The body corporate can terminate an engagement of a service contractor or authorisation of a letting agent for:
The remedial action notice must state:
If the engagement is terminated, the service contractor and/or letting agent is unable to transfer their business to someone else. Transferring the engagement Instead of terminating an engagement or authorisation the body corporate may make the service contractor and/or letting agent transfer it (i.e. sell it to someone else with approval of the body corporate). They may be able to leave the scheme with some financial return if the engagement is transferred. Read more about transferring an engagement —the process leading up to the transfer or termination of an engagement is complex. Note: The body corporate should consider getting private legal advice before it seeks to enter into, terminate, amend or transfer a legal contract. Resolving disputes The Office of the Commissioner for Body Corporate and Community Management has limited jurisdiction to resolve disputes involving service contractors and caretaking service contractors. The legislation only recognises these disputes as between the body corporate and the contractor. A lot owner cannot lodge a dispute resolution application against a service contractor or a caretaking service contractor. Disputes that are about a contractual matter relating to an engagement, the transfer of the engagement or the review of terms of an engagement are defined as complex disputes. Complex disputes may be determined by the Queensland Civil and Administrative Tribunal or by a specialist adjudicator appointed by the Commissioner. Specialist adjudication An application for specialist adjudication must nominate someone to act as a specialist adjudicator. A specialist adjudicator can only be appointed if all parties to the dispute agree in writing on:
BODY CORPORATE LEGISLATION DEFINITIONS
This content is a list of terms used in the Body Corporate and Community Management Act 1997 (PDF), and definitions of their meanings. This is not meant to be a list of all body corporate related terms. For more body corporate definitions see the dictionary section of Schedule 6 of the Act. Adjustment order For contribution schedule lot entitlements, an adjustment order is an order of a court, tribunal or specialist adjudicator, made before 14 April 2011, providing for an adjustment of the contribution schedule for an existing scheme. An adjustment order does not include an order of a court or tribunal giving effect to a decision that is not made by the court or tribunal or another court or tribunal (including a decision that is not, but is taken to have been, made by a court or tribunal). For example:
Body corporate asset Any real or personal property acquired by the body corporate, other than property that is incorporated into and becomes part of the common property. Body corporate assets may be any property an individual is capable of acquiring. For example:
Common property Freehold land forming part of the community titles scheme land but not forming part of a lot included in the scheme. Complex dispute A complex dispute is a dispute that can only be decided by a specialist adjudicator or the Queensland Civil and Administrative Tribunal in its original jurisdiction—or the appeal of a decision of a specialist adjudicator or the Queensland Civil and Administrative Tribunal. Complex disputes include:
Community management statement A community management statement is a document registered with Registrar of Titles that sets out the identification of a community titles scheme. The community management statement identifies matters such as the:
Community titles scheme A community titles scheme is scheme land and the single community management statement identified with the Registrar of Titles identifying that scheme land. A community titles scheme comprises:
Contractors Body corporate manager A body corporate manageris a person or entity engaged by a body corporate (other than as an employee of the body corporate) to supply administrative services to the body corporate. A body corporate manager may or may not be engaged to carry out the functions of a committee, and the executive members of a committee, for a body corporate. Caretaking service contractor A caretaking service contractor is a service contractor for a scheme who is also a letting agent for the scheme, or an associate of the letting agent. Service contractor A service contractor is a person or entity engaged by the body corporate (other than as an employee of the body corporate) for a term of at least 1 year to supply services (other than administrative services) to the body corporate for the benefit of the common property or lots included in the scheme. Services that a service contractor might provide include:
Debt disputes Debt dispute A debt dispute is a dispute between a body corporate and a lot owner in the scheme about the recovery, by the body corporate from the owner, of a debt under this Act. Related debt dispute A dispute is a related disputeto a debt dispute if:
General meeting resolutions Majority resolution A motion is passed by majority resolution if the votes counted for the motion are more than 50% of the lots for which persons are entitled to vote on the motion. For a motion to be decided by majority resolution, only 1 vote may be exercised for each lot in the scheme. The vote must be written and cannot be exercised by proxy. Ordinary resolution if no poll requested A motion is passed by ordinary resolution, if no poll is requested, if the votes counted for the motion are more than the votes counted against the motion. Only 1 vote may be exercised for each lot included in the scheme, whether personally, by proxy or in writing. Ordinary resolution if poll requested-- A motion is passed, if the total of the contribution schedule lot entitlements for the lots—for which votes are counted for the motion— is more than the total of the contribution schedule lot entitlements for the lots—for which votes are counted against the motion. Only 1 vote may be exercised for each lot included in the scheme, whether personally, by proxy or in writing. Requesting a poll voteA person entitled to vote at a general meeting may ask for a poll on a motion to be decided by ordinary resolution, other than an ordinary resolution conducted by secret ballot. The person must ask for the poll before the meeting decides the next motion on the agenda or, for the last motion on the agenda, before the end of the meeting. The person must ask for the poll either:
Resolution without dissent A motion is passed by resolution without dissent if no vote is counted against the motion. Only 1 vote may be exercised for each lot included in the scheme, whether personally, by proxy or in writing. Special resolution Only 1 vote may be exercised for each lot included in the scheme, whether personally, by proxy or in writing. A motion is passed by special resolution if:
Improvements For the purposes of improvements to common property, animprovementincludes:
Interested persons Access to body corporate records An interested person means:
Inspections of applications and submissions An interested person, for an application, means:
Layered schemes Layered arrangement of community titles schemes A layered arrangement is a grouping of community titles schemes in which there is 1 scheme (principal scheme) which is not a lot in another community titles scheme and which is made up of:
Principal scheme A community titles scheme which has 1 or more lots which are a community titles scheme, and which is not a lot within another community titles scheme. Subsidiary scheme A community titles scheme which is a lot in another community titles scheme (the principal scheme). A subsidiary scheme may be a lot included in the principal scheme or may be a subsidiary scheme for another community titles scheme that forms part of the layered arrangement. Basic scheme A community titles scheme which has no lots which are a community titles scheme. Number of layered lots For a principal scheme in a layered arrangement of community titles schemes, the number of layered lots is the total of the:
Lot entitlements Contribution schedule lot entitlements The contribution schedule is a schedule recorded in the community management statement that lists each lot’s contribution schedule lot entitlement. The contribution schedule lot entitlement for a lot is the basis for calculating the:
Interest schedule lot entitlements The interest schedule is a schedule recorded in the community management statement that lists each lot’s interest schedule lot entitlement. The interest schedule lot entitlement for a lot is the basis for calculating the:
Plans of subdivision Building format plan A building format plan of survey defines land using the structural elements of a building. For example:
Standard format plan A standard format plan of survey defines land using a horizontal plane and references to marks (such as posts) on the ground (see section 48B of the Land titles Act 1994). Specified two-lot schemes The following terms apply only in a scheme regulated under the Specified Two-lot Schemes Module. Contributing owner The owner of a lot who pays a contribution payable for their lot by the date for payment. Defaulting owner An owner of a lot who does not pay a contribution payable for their lot by the date for payment Lot owner agreement An agreement between the owners of the lots, or their representatives. BODY CORPORATE REGULATION DEFINITIONS
This content is a list of terms used in body corporate regulation modules, and definitions of their meanings. This is not meant to be a list of all body corporate related terms. For more body corporate definitions see the dictionary section of each regulation module schedule. Abstain When a voter chooses not to cast a vote on a motion, either for or against it. No vote is counted for an abstention. Address for service The address which body corporate notices must be sent to. The address for service for a lot owner, and any other person whose address for service needs to be given to the body corporate, is recorded on the body corporate roll. Even if there are 2 or more co-owners for 1 lot, there must be only 1 address for service for a lot. Standard module The address for service in a standard module must be an Australian address. However, if the body corporate hasn’t been notified of an address, the address for service is the residential or business address that the body corporate was last notified of for the lot owner or another person (whether in or out of Australia). Accommodation, Commercial, Small Schemes and Specified Two-lot modules If no address for service has been notified to the body corporate in an accommodation, commercial, small schemes or specified two-lot scheme module, the address for service is the residential or business address that the body corporate was last notified of for the lot owner or another person (whether in or out of Australia). Body corporate debt Any of the following owed by an owner of a lot to the body corporate:
Committee members Non-voting member of the committee The body corporate manager and caretaking service contractor for the community titles scheme are automatically non-voting members of the committee, without further election or appointment, even if they are also lot owners. Non-voting members of the committee are not entitled to vote at committee meetings. Voting member of the committee An eligible person who is appointed to the committee by the body corporate. A voting member is able to vote at committee meetings. They do not include non-voting members of the committee. Corporate owner A corporation that is the owner of the lot. This does not include a body corporate for another community titles scheme that comprises a lot included in the scheme, in its capacity as the body corporate for a subsidiary scheme for the scheme. Corporate owner nominee The person who has been nominated by a corporate owner to represent the corporate owner on the body corporate. A person is a corporate owner nominee, for the purpose of voting at a general meeting, if the corporate owner entity gives the secretary a written notice of nomination, stating either:
General meeting motions Motion with alternatives A motion with alternatives is needed when 2 motions propose alternative ways of dealing with the same issue, or 2 quotes are needed for spending. The voting paper for the motion must list each proposal as an alternative under 1 motion submitted by the committee. Procedural motion A procedural motion is a motion about the conduct of a general meeting. A procedural motion does not need to be included on the agenda. An example of a procedural motion is a motion to reverse a decision of the chairperson to rule a motion out of order. Other motions which do not need to be included on the general meeting agenda include:
Statutory motions A statutory motion at an annual general meeting, means a motion to:
Initial contract date For an engagement or authorisation of a service contractor or letting agent, the initial contract date is the earlier of either:
Quorum A quorum is the minimum number of members required to be at a valid meeting. Committee meetings A quorum at a committee meeting is at least half the number of voting members of the committee. For example, if there are 6 voting members for the committee, a quorum is 3. If there are 7 voting members of the committee, a quorum is 4. When deciding whether there is a quorum, a voting member who is present is counted as 1. If a voting member has the proxy of an absent voting member, and the use of proxies for the meeting is not prohibited, the member is counted as 2. A non-voting member is not counted for deciding whether there is a quorum. General meetings A quorum at a general meeting is at least 25% of the number of voters for the meeting. However, if:
Representative of a lot owner An individual is the representative of the owner of a lot, and entitled to vote for that owner at a general meeting, if the person is either:
A lot owner may revoke the authorisation of their representative in writing to the secretary. Required number for committee The required number of voting members for a committee is:
Transferee The person or entity to which the engagement or authorisation as a service contractor or letting agent is transferred. Transferor The person or entity engaged or authorised as a service contractor or letting agent that transfers the rights under the engagement or authorisation to another person or entity (the transferee). Voter for general meeting A voter for a general meeting of the body corporate is an individual:
FINANCIAL MANAGEMENT* Please Click on "+" sign to expand and "-" sign to collapse the topic.
Budgets and funds/Body corporate budgets
The information on this page is for body corporate schemes registered under the:
Funds A body corporate must have an administrative fund and a sinking fund. Budgets for these funds must be prepared every financial year. The budgets for these funds forecast how much the body corporate expects to spend. How much each owner pays in body corporate levies depends on the budgets that the body corporate sets. Preparing budgets The committee must prepare the budgets for owners to consider at each annual general meeting. A copy of the proposed budgets must be included in the notice of an annual general meeting. A budget can be approved by ordinary resolution. Owners can also propose budgets for annual general meetings or extraordinary general meetings. A proposed budget must be submitted by the owner in the form of a motion. Changing budgets When there is a need to change the budget, an explanatory schedule is sent to owners with the annual general meeting notice. It must include an explanatory note telling all owners that the budget might be adjusted. A body corporate can only adjust a proposed budget at an annual general meeting if:
Budgets cannot be adjusted just because owners think the amounts are too high or too low. If adjusted, a copy of the approved budget must be given to each owner with a copy of the minutes of the meeting. Budget increases The cost of goods and services often increase from year to year. Body corporate levies will normally increase to account for rises in the Consumer Price Index (CPI). All bodies corporate are different so levels of spending (and levies) needed must be decided individually. There is a range of information that can help the body corporate prepare its budget. Owners and the committee can get several quotes for goods or services when deciding how much they need to spend. A body corporate may also choose to obtain a professional sinking fund forecast. Disputing budgets and levies If you (as an owner) believe the proposed budgets and levies are too high, you can vote against any motion to approve the budget. You can also propose a different sinking fund or administrative budget. You can do this by submitting a motion for owners to vote on at the annual general meeting. Even if the annual general meeting decides to approve a budget, you can submit an alternative budget to be considered at an extraordinary general meeting. There are a number of adjudicators’ orders about budgets and whether they are reasonable. For example, Panorama 22 [2001] QBCCMCmr 80 (13 February 2001) discussed the requirements for budgets and says the body corporate is not prevented from making subsequent decisions on their budgets and contributions at an extraordinary general meeting if necessary. You can apply for dispute resolution if you think the budget is unreasonably high. If you apply for dispute resolution, you must explain which budget items you object to and why. You should try all other ways to resolve your dispute before you apply for formal dispute resolution such as proposing alternative budgets that you believe are reasonable and necessary. Spending Putting an item of expenditure in a budget is not authority to spend the money. Spending must be authorised by the body corporate, either at a general meeting or by the committee (within its spending limit). Some expenses can only be paid from the sinking fund (e.g. the replacement of major items like fences or common property carpets). All other expenditure must be paid from the administrative fund. The body corporate cannot transfer money from one fund to the other. Payments from the funds can only be made by written request (like an invoice) or written evidence of payment—(like a receipt). Budgets and funds/Sinking fund
A body corporate must have a sinking fund if is registered under the:
Money paid into the fund A body corporate must have an administrative fund as well as a sinking fund. Money cannot be transferred between the funds. Money paid into the sinking fund includes:
Money spent from the fund Money in the sinking fund can be spent on:
Budgets The body corporate must prepare a sinking fund budgets (and an administrative fund budget) each financial year. The sinking fund budget must:
Planning ahead A body corporate needs to budget for major capital spending for the current financial year and the next 9 years. A body corporate may ask a professional to prepare a sinking fund forecast for it. However a body corporate does not have to get a professional sinking fund forecast. The committee or an owner can estimate the likely spending requirements. This is a matter for each body corporate.. Sinking fund investments The body corporate can invest money from the sinking fund if it’s not needed immediately. This is similar to the way a trustee can invest funds. See section 96(2)(b) of the Body Corporate and Community Management Act 1997(PDF) for more information. It is up to the body corporate to decide how to manage and invest its funds. Budgets and funds/Administrative fund
A body corporate must have an administrative fund if is registered under the:
Money paid into the fund The body corporate must have a sinking fund as well as an administrative fund. Money cannot be transferred from one fund to the other. The regulation modules set out what money must be paid into and out of the sinking fund. Any other money must be paid into and out of the administrative fund. Money that needs to be paid into the administrative fund includes:
Money spent from the fund Money in the administrative fund can be spent on anything that is not required to be paid from the sinking fund, including:
Budgets The body corporate must prepare an administrative fund budget (and a sinking fund budget) each financial year. The administrative fund budget must estimate the necessary and reasonable expenditure for the financial year for:
Administrative fund investments The body corporate may invest money from the fund if it’s not needed immediately. This is similar to the way a trustee can invest funds. See section 96(2)(b) of the Body Corporate and Community Management Act 1997(PDF) for more information. It is up to the body corporate to decide how to manage and invest its funds. Budgets and funds/Promotion fund
A body corporate registered under the Commercial Module can set up a promotion fund. A promotion fund:
Preparing budgets The committee must prepare the budgets for owners to consider at each annual general meeting. A copy of the proposed budgets must be included in the notice of an annual general meeting. Owners can also propose budgets to be considered at an annual general meeting or an extraordinary general meeting. A proposed budget must be submitted as a motion. Changing budgets A promotion fund budget can only be amended at another general meeting. Owners cannot adjust the proposed promotion fund budget at the same general meeting (this can only be done for sinking fund or administrative fund budgets). Owners can be asked to pay a special levy if the body corporate wants more money for the promotion fund. Investing promotion funds The body corporate may invest money from the fund if it’s not needed immediately. This is similar to the way a trustee can invest funds. See section 96(2)(b) of the Body Corporate and Community Management Act 1997 (QLD) (PDF). It is up to the body corporate to decide how to manage and invest its funds. Authority to spend/Committee spending
The following information is for community titles schemes registered under the:
Spending limits The relevant limit for committee spending (how much money a committee can spend) can be set by ordinary resolution of the body corporate (i.e. a motion voted on by the owners at a general meeting). There is no minimum or maximum limit that the body corporate can set. If no amount is set by a general meeting resolution the relevant limit is calculated by multiplying the number of lots in the scheme by $200. For example, in a body corporate with 6 lots, the relevant limit is $1,200 ($200 x 6). GST included The committee must allow for any goods and services tax (GST) in its spending. For example, the committee spending limit for a scheme made up of 12 lots is $2,400 (12 x $200). The committee has a quote for maintenance of $2,300 plus GST. The total amount, including the GST is $2,530. This is more than the committee’s spending limit of $2,400. The committee would need approval by ordinary resolution at a general meeting to accept this quote. Committee spending limits in a layered scheme The relevant limit for committee spending in a layered scheme can be set by ordinary resolution of the body corporate. There is no minimum or maximum spending limit that can be set. If no amount is set, the relevant limit is calculated by multiplying the number of layered lots in the scheme by $200. For example, the principal body corporate consists of 5 lots and common property. Four of the 5 lots are also community titles schemes with 20 lots each. These lots are referred to as the layered lots. In this example the relevant limit for committee spending for the principal body corporate is $16,200. The figure is calculated as: (1 + 20 + 20 + 20 + 20 ) x $200 = 81 lots x $200 = $16,200. Available funds Before the committee approves any spending within its limit it will need to be sure there is enough money in the budget for the specific expense. The committee can call a general meeting to amend the budget or raise a special levy if no money or not enough money is available. Spending in stages The committee cannot divide a single project into smaller parts in order to bring the project within its spending limit. For example, the committee for a scheme made up of 25 lots is limited to spending $5,000 (25 x $200). The committee wants to renovate the main foyer and has obtained quotes. The costs are:
The committee would need approval by ordinary resolution at a general meeting. Spending over the committee spending limit The committee can only spend over its relevant limit if:
Quotes for spending The number of quotes that a committee needs to consider when making decisions is determined by the relevant limit for major spending. The body corporate may set the relevant limit for committee spending higher than the relevant limit for major spending by the scheme. The committee must have at least 2 quotes for any spending that is more than the relevant limit for major spending by the scheme. For example, if the committee spending limit is $12,000 and the major spending limit is $10,000, any spending over $10,000 but under $12,000 can be approved by the committee if it gets and considers at least 2 quotes. The body corporate can obtain extra quotes even if the legislation does not require it. Spending that is not permitted The committee cannot spend more than its relevant limit for spending. It can only spend on items provided for in the budget. If there is no provision in the budget for the expense, the committee cannot authorise the spending even if the amount is within its spending limit. A committee cannot spend on items that can only be approved by a general meeting resolution. A committee should not spend funds above the level approved by the body corporate. Improvements to common property A body corporate committee can organise improvements to the common property. The authority of the committee is again set by spending limits. Detailed information on improvements to the common property by the body corporate and the improvement limits is outlined on our improving common property and lots webpage. Other regulation modules Schemes registered under the Commercial Module must elect a committee but the committee does not have a spending limit. Committees in those schemes can spend as much as needed. Spending must be authorised at either a committee meeting or by voting outside a committee meeting. Schemes registered under the Specified Two-lot Schemes Module do not need a committee. Authority to spend/Body corporate spending
Information on this page is for community titles schemes registered under the:
Schemes registered under the Specified Two-Lot Schemes Module and the Commercial Module do not have spending limits. Major spending limit The limit for major spending is only used to determine how many quotes are required when considering a motion at either a committee meeting or a general meeting. The body corporate can set the major spending limit by ordinary resolution at a general meeting. There is no minimum or maximum amount that can be set. If no amount is set, the limit is the lesser of either:
For example, the limit for a body corporate with 5 lots would be $5,500 ($1,100 x 5 lots), as this amount is less than $10,000. In a 15 lot scheme the limit would be $10,000, because it is less than $16,500 ($1,100 x 15 lots). Note: it does not prevent the body corporate or the committee from spending more than the major spending limit—it just requires 2 quotes to be considered. GST included The body corporate must allow for goods and services tax (GST) when it is spending. For example, the major spending limit for a scheme of 12 lots is $10,000 (as no alternative amount has been set by ordinary resolution). A quote is obtained for maintenance of the building's roof. The cost is $10,000 plus GST. The entire amount, including GST will be spent from the body corporate funds and must be considered as part of the spending. This proposal would be above the major spending limit because the amount being spent is $11,000. Two quotes must be obtained. Major spending limits in a layered scheme The relevant limit for major spending in a layered scheme can be set by ordinary resolution of the body corporate. There is no minimum or maximum spending limit that can be set. If no amount is set, the relevant limit is the lesser of either:
If no amount was set by ordinary resolution, the calculation would look like this: Number of layered lots (1 + 20 + 20 + 20 + 20) x $1,100 = 81 x $1,100 = $89,100. As this total amount is more than $10,000, the relevant limit for major spending for the principal body corporate in this layered scheme is $10,000. Available funds When deciding to approve spending, the body corporate should consider if it has sufficient money available and allocated in the budget. The body corporate can consider a motion to amend the budget or raise a special levy if not enough money is available. Spending in stages The body corporate cannot break down a single project into smaller parts in order to bring it within the major spending limit. If a single project is more than the relevant limit, the cost of any 1 of the parts is taken to be more than the relevant limit for major spending for the scheme. For example, the major spending limit for a body corporate is $10,000. The body corporate is considering painting the building. One quote is obtained. The breakdown of costs is:
The project is ‘painting the building’. The quoted cost of this project of $17,900 is above the major spending limit and 2 quotations would be needed. Spending over the major spending limit If a proposal for spending is to be considered at a general meeting and the amount is more than the major spending limit for the scheme:
Exception for 2 quote rule One quote may be enough in exceptional circumstances where it's not possible to get 2 quotes. For example, if the body corporate wants to buy something that can only be obtained from a single source that would be considered an exceptional reason for not obtaining 2 quotations. Improvements to common property A body corporate may approve improvements to the common property by ordinary resolution if the improvements are within the ordinary resolution improvement range for the scheme (but only one such motion can be approved in each financial year) all subsequent motions in that financial year must be approved by special resolution. Detailed information on improvements to common property by the body corporate and the improvements limit is outlined in our improving common property and lots webpage. Spending approvals See a guide to spending at general meetings for help working out how spending is authorised. Lot entitlements/About 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 in community titles schemes set out each owner’s:
Lot entitlement schedules for your community titles scheme are recorded in a document called the community management statement. Get a copy of your community management statement. Lot entitlement schedules There are 2 lot entitlement schedules. They are the:
For each of the 2 schedules, each lot (or unit) in the scheme is identified and given a whole number. The aggregate or total of all of the lot entitlements is also shown—for the contribution schedule the aggregate is 8 lot entitlements. For the interest schedule it is 16. 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. See the Body Corporate and Community Management Act 1997 (PDF) (QLD) —transitional provisions for more information. How lot entitlements are used Contribution schedule The contribution schedule lot entitlements are used to calculate:
Interest schedule The interest schedule lot entitlements are used to calculate:
Costs for services supplied to a lot (e.g. water and electricity) that can be separately measured and charged are not divided among the owners on the basis of lot entitlements. The owners are separately billed by the service provider for the cost of supplying the service to their lot. Lot entitlements/Setting lot entitlements
This information is relevant to all schemes in Queensland registered under theBody 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. Lot entitlement schedules The community management statement for community titles schemes in Queensland has 2 lot entitlement schedules. They are the:
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 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:
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.
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. 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. Lot entitlements/Applying lot entitlements
This information is relevant to all schemes in Queensland registered under the Body Corporate and Community Management Act 1997 (the Act) and any of the 5 regulation modules. The community management statement for each community titles scheme in Queensland has 2 schedules of lot entitlements. They are the:
Lot entitlements decide many issues including an owner’s share in body corporate costs. This page gives you some examples of how lot entitlements would be applied when deciding body corporate spending and voting. Owner contributions At its annual general meeting a body corporate approves an administrative fund budget for expected expenses. They may include (but are not limited to):
If, for example, you have 3 contribution schedule lot entitlements and the total contribution schedule lot entitlements for the scheme is 30, you will contribute 3/30 or 10% of these costs. The expenses are divided equally among the owners only if the contribution schedule lot entitlements for each lot in the scheme is equal. A body corporate cannot decide to equally share body corporate costs when the contribution schedule lot entitlements are not equal. The scheme’s lot entitlements would have to be adjusted before owners would pay equal contributions. Insurance If a body corporate is required under the Act to take out building insurance, the premium may not be divided according to the contribution schedule lot entitlements of each lot. This is because insurance is treated differently from most other body corporate expenses. How building insurance costs are divided depends on the type of plan of subdivision that applies to the scheme.
Voting when a poll has been requested Usually when voting on a motion that can be decided by ordinary resolution, each lot in the scheme has 1 vote. However, the Act allows owners to request a poll vote. A poll is another way of counting votes. It takes into account the contribution schedule lot entitlements for the scheme. There are strict laws around requesting a poll vote and counting votes for a poll. Lot entitlements/Adjusting lot entitlements
The community management statement for community titles scheme in Queensland has 2 lot entitlement schedules. They are the:
Adjusting the contribution schedule This information is relevant to community titles schemes registered under all 5 regulation modules. There are 3 ways to adjust the contribution schedule lot entitlements:
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. 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. See section 47A of the Body Corporate and Community Management Act 1997(PDF) (the BCCM Act). 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. All the remainder of the 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 in writing to redistribute their lot entitlements among themselves. The owners of the 2 lots must:
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 are limited. They are:
How decisions are made In deciding whether the contribution schedule follows the principle used to set it, a specialist adjudicator or the QCAT consider:
See section 48A of the BCCM Act. Adjusting the interest schedule As a lot owner you can apply to a specialist adjudicator or the QCAT for an order to adjust the interest schedule lot entitlements. The order of the specialist adjudicator or Queensland Civil and Administration Tribunal must be consistent with the market value principle. Lot entitlements/Changes to lot entitlements laws
This information is relevant to all schemes in Queensland registered under the Body Corporate and Community Management Act 1997 (the Act) before 2013. Lot entitlements allocate each owner’s share of common property and assets, and their rights and expenses in the body corporate. Generally, community titles schemes in Queensland have 2 lot entitlement schedules. They are the:
Laws before 2013 Before 2011, the Act allowed lot owners to apply for an order to change their lot entitlements. If orders were made, these are known as ‘adjustment orders’. In 2011 the Act was changed. Community titles schemes were allowed to change their contribution schedule lot entitlements back to the schedule that was in place before any adjustment orders. This could be done if a lot owner submitted a motion to the body corporate requesting the change. This is known as the ‘2011 reversion process’. The 2011 changes also affected how those disputes were resolved. The 2011 reversion process is explained in more detail below. Changes in 2013 Under the 2013 changes to the Act, bodies corporate no longer had to do the 2011 reversion process. They could also stop any current adjustment orders—those started on or after 14 September 2012. As a result of the changes, any unfinished matters or proceedings relating to a 2011 reversion process no longer applied. See sections 397, 399, 400 and Schedule 5A of the Act (PDF) for more information. The 2013 changes also:
These changes started on 27 March 2013. Any incomplete matters or proceedings relating to a 2011 reversion process ceased to have effect when the changes started—see, sections 397, 399, 400 and Schedule 5A of the Act. Dispute resolution Under the most recent changes in 2013, if a body corporate passes a resolution without dissent to change the contribution schedule lot entitlements, a lot owner who believes the changed entitlements are not in keeping with the relevant principle used can apply to:
For more information see:
Adjudicators cannot determine an application
The 2013 amendments also added requirements for:
Effect of the changes A body corporate no longer has to undertake a 2011 reversion process. Any incomplete matters or proceedings about a 2011 reversion process will cease to have effect. Bodies corporate can register a new community management statement in accordance with an adjustment order (referred to as a relevant decision) which was not able to be registered because of the 2011 amendments. Bodies corporate and committees can reinstate the contribution schedule lot entitlements to the last adjustment order entitlements. For more information see the Act sections:
Lot owner disputes A lot owner can dispute the changed lot entitlements determined by the committee or body corporate under these processes if they believe the changes do not correctly reflect the decided entitlements or last adjustment order entitlements. The owner may apply for an order of a specialist adjudicator or the Queensland Civil and Administrative Tribunal. See the Act:
Recording changesUnder the 2013 amendments, it is an offence if a body corporate does not:
Accounts, audits and contributions/Body corporate accounts
The requirement for your body corporate to have an account and how it should be managed depends on which regulation module applies to your scheme. This information relates to the following regulation modules:
The financial institution account A body corporate must have 1 or more bank accounts kept in its name. The account must be at a financial institution such as a bank, building society or credit union. An account opened after 4 March 2003 must only be opened with the consent of the body corporate. This account can be run by:
Body corporate manager A body corporate manager can be authorised to operate a body corporate's bank account. A body corporate manager cannot make decisions on what and when money is spent from the account and must ensure proper decisions are made before spending either by the:
The financial institution must not let the body corporate manager operate the account after this notice has been given. Statement of accounts The body corporate must keep proper accounting records and prepare them for each financial year. The statement of accounts must:
Cash or accrual The following information is relevant only to schemes registered under either the:
If the accounts are prepared on a cash basis, they must include information about:
The statement of accounts must include:
Administrative and sinking funds There are rules on how to manage the administrative and sinking funds. These include:
Borrowing money A body corporate can borrow money-the rules are different for each regulation module, including:
Standard Module A decision to borrow money can be decided by ordinary resolution at a general meeting unless the amount to be borrowed is more than $250 multiplied by the number of lots in the scheme. If it is more, a resolution without dissent is needed. Accommodation Module and Commercial Module A decision to borrow money can be decided by ordinary resolution at a general meeting unless the amount to be borrowed is more than $250 multiplied by the number of lots in the scheme. If it is more,a special resolution is needed. Small Schemes Module A decision to borrow money can be decided by ordinary resolution at a general meeting unless the amount to be borrowed is more than $3000 (in total). If it is more, a resolution without dissent is needed. Accounts, audits and contributions/Financial reporting
The following information is relevant to schemes registered under the:
Reporting to the committee A body corporate can engage a body corporate manager that is authorised to operate the bank account. A body corporate manager who pays an bill that has been approved by the committee must (if asked) give the committee a written report on the payment. This does not apply if the body corporate manager is engaged in place of the committee (under chapter 3, part 5 of the standard and accommodation modules). Only under a Standard Module must a committee member give a written report (if asked) when they are acting on a committee decision and the spending is:
Reconciliation statements A body corporate manager must prepare a reconciliation statement if they administer the body corporate’s administrative fund and sinking fund. Under the Commercial Module the body corporate manager must also prepare a reconciliation statement for the promotion fund (if there is one). The reconciliation statement must be prepared within 21 days from the last day of each month. The statement is for each account kept for the funds. The statement must reconcile (or match up):
When a manager’s contract ends A body corporate manager, who administers the administrative and sinking funds (or promotion funds for schemes under the Commercial Module), must give financial records to the body corporate when their contract ends (i.e. the termination date of their contract). The records they must provide for each fund they administer are:
Time limits The manager has up to 30 days after their contract ends to give the body corporate these financial records. However, during those 30 days, the committee can give notice to the manager asking for return of all body corporate’s records and property. If a notice is given, the body corporate manager has 14 days to return all the records and property. Read more about returning records. Accounts, audits and contributions/Auditing body corporate accounts
The following information is relevant to schemes registered under the:
Schemes registered under the Specified Two-lot Schemes Module do not require a bank account and therefore do not need an audit. Statement of accounts A statement of accounts shows the body corporate’s income and spending for the year. At its annual general meeting each year, the body corporate must about auditing the accounts. Owners vote to decide if the the accounts are audited or not. Motion not to audit The body corporate can pass a motion at its annual general meeting not to audit its accounts. The motion is passed by special resolution. The motion not to audit must:
If a motion not to audit the accounts is not passed, the body corporate must have its accounts audited. It will need to pass a motion to appoint an auditor, which must be passed by ordinary resolution. Audit at other times If the body corporate decides at the annual general meeting not to audit its statement of accounts for a particular financial year, at any time it can:
Auditor A body corporate must also include on each annual general meeting agenda a motion to appoint an auditor. This normally sits below the motion 'not to audit' the accounts. The motion for the body corporate to appoint an auditor is not voted on if the body corporate has already passed the motion not to have their accounts audited. The motion appointing the auditor must include the name of the auditor. The motion must pass by ordinary resolution. The auditor must provide a certificate reporting on the accounts. A copy of the certificate must be included with the notice of the next annual general meeting to be held after the certificate is received by the body corporate. Qualifications and experience of auditorThe auditor who is appointed by ordinary resolution of the body corporate must:
Small and two-lot schemes Different rules apply for bodies corporate registered under the Small Schemes Module and the Specified Two-lot Schemes Module. Small schemes can decide to audit their accounts, but it is not compulsory for a motion about the audit to be on the agenda of the annual general meeting. Specified Two-lot schemes do not have a bank account and do not need to have an audit. Accounts, audits and contributions/Owner's contributions
Each lot owner must pay a share of body corporate expenses (i.e. owner contributions). Bodies corporate budget for expenses and then levy each owner in the scheme for the money they need to meet those expenses. The following information is relevant to schemes registered under the:
How contributions are decided The annual levies that lot owners must pay each year are decided at each annual general meeting. At that meeting the body corporate must, by ordinary resolution:
Special contribution Additional levies, known as a special contribution, must be collected by the body corporate if it has to pay for unexpected costs during the financial year. These can be costs that were either not included in the budget or not enough money was set aside to meet them. For example, if the cost of painting common property is more than the amount allocated in the sinking fund budget for the work, the body corporate can decide to collect a special contribution from owners to meet the extra cost. To agree to collect a special contribution, the body corporate must pass an ordinary resolution. Interim contribution The committee may fix an interim contribution for either the administrative or sinking fund levies. An interim contribution helps the body corporate meet a shortfall in monies until new levies are set or received from 1 financial year to the next. Interim contributions are calculated on the basis of contributions that were set for the previous financial year. If an interim contribution is levied it must be offset against the relevant budget as decided at next general meeting. Calculating levies The contributions levied on the owner of each lot must be based on the contribution schedule lot entitlements, unless the legislation says otherwise. The contribution schedule lot entitlements are listed in the community management statement recorded for the scheme. One exception is building insurance. Insurance payments for owners in a building format plan are based on the interest schedule lot entitlements, not the contribution schedule lot entitlements. Contribution notice The body corporate must give each owner written notice of the contributions they owe. This notice must be given at least 30 days before a contribution is due. The contribution notice must include:
Discounts and penalties The body corporate can use discounts and late payment penalties to encourage owners to pay contributions by the due date. The body corporate must decide by ordinary resolution to give discounts and charge penalties. A discount may be given to an owner if their contribution is paid to the body corporate by the due date. The discount cannot be more than 20% of the instalment amount. An owner can be charged a penalty if their contribution is not paid to the body corporate by the due date. The penalty will be simple interest at a set rate (not more than 2.5%) for each month that the contributions are overdue. Even if a payment is late, the body corporate can decide to allow the discount or not charge the penalty, in full or in part, if there are special reasons. Unpaid contributions If a contribution is not paid by the due date, the body corporate can start debt recovery action to recover the amount. If a debt has been overdue for 2 years, the body corporate must start debt recovery within 2 months of that date. This does not stop the body corporate from starting debt recovery earlier. Debt recovery The body corporate can lodge a debt dispute claim with:
Conciliation The body corporate or an owner can apply for conciliation through the Office of the Commissioner for Body Corporate and Community Management to determine a dispute about a debt. However, if debt recovery action has been started in the QCAT or a court, the dispute cannot be conciliated. If debt recovery action is started after a conciliation application is lodged, the conciliation application must end. Accounts, audits and contributions/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. 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:
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. 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:
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 (PDF) 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:
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. MEETINGS* Please Click on "+" sign to expand and "-" sign to collapse the topic.
Annual general meetings/Holding an annual general meeting
At an annual general meeting, your body corporate will decide matters such as:
The annual general meeting must take place:
The secretary must send a letter to all lot owners 3 to 6 weeks before the end of the body corporate’s financial year, inviting lot owners to submit motions for the annual general meeting and asking for committee nominations. The financial year The financial year for a body corporate is not always the same as the tax year (1 July to 30 June). The financial year for your body corporate is determined by either the year the body corporate was set up or by the date of the first annual general meeting. Schemes established before 1997 Before the start of the Body Corporate and Community Management Act 1997(PDF) (BCCM Act), the Building Units and Group Titles Act 1980 (PDF) (BUGTA) applied. Building unit plans and group title plans established under BUGTA are called ‘existing plans’. For an existing plan, the financial year ends on the last day of the month in which the first annual general meeting was held (e.g. if the first annual general meeting was held on 10 May 1993, the financial year will be 1 June to 31 May). An adjudicator may make an order under the dispute resolution provisions changing the financial year end date, usually if requested by a general meeting resolution. Schemes established after 1997 For schemes established under the BCCM Act, the financial year ends on the last day of the month, immediately before the month when the community titles scheme was established (e.g. if the scheme was established on 10 May 1998, the last day of the financial year is 30 April. The financial year will be 1 May to 30 April). An adjudicator may make an order under the dispute resolution provisions changing the financial year end date, usually if requested by a general meeting resolution. First annual general meeting The original owner (the developer) must hold the first annual general meeting. The meeting must be called and held within 2 months after either:
The agenda at the first annual general meeting must include specific motions.Refer to section 77(3) of the Standard Module (PDF). There are corresponding sections in all other regulation modules except the Specified Two-lot Schemes Module. The original owner must hand over certain documents to the body corporate at the first annual general meeting. Section 79 of the Standard Module(PDF) provides details. There are corresponding sections in all other regulations modules except the Specified Two-lot Schemes Module. Annual general meetings/Calling an annual general meeting
Who can call an annual general meeting The following people can call the annual general meeting:
Giving lot owners notice Each lot owner must be given a written notice of the annual general meeting. It is the secretary’s job to send the notice taking into account information about who is authorised to call the meeting. The notice must be given to the lot owner personally or sent to the address for service for the lot. The notice must include:
Agenda The agenda must include:
Voting papers The secretary must prepare 1 voting paper for all open motions to be decided at the annual general meeting. The secretary must also prepare a secret voting paper for any motion to be decided at the meeting by secret ballot. If there are 2 or more motions that need a secret ballot, they can appear on the same secret voting paper. A voting paper must:
Explanatory schedule The explanatory schedule is part of the notice of an annual general meeting. It includes material about motions on the agenda such as:
The committee is not subject to a word limit when including an explanatory note. Annual general meetings/Running an annual general meeting
Chairing the annual general meeting The chairperson must chair all of the annual general meetings that they attend. If there is no chairperson or the chairperson is not at the meeting, people at the meeting who have a right to vote can choose another person to chair the meeting. The body corporate manager can advise and help the chairperson. They can only chair the meeting if they are chosen by those people at the meeting who have a right to vote, or if they are the only person forming a quorum at the meeting (see Quorum at general meetings). Duties and powers of the person chairing the meeting include:
Ruling motions out of order A motion must be ruled out of order if:
When declaring the result of voting on motions at the annual general meeting, the person chairing the meeting must state the votes for, against and abstentions on the motion. When declaring the result of an election for a committee position, the person chairing the meeting must state the number of votes cast for each candidate. Amending motions A motion can be amended at a general meeting by the people present and who have a right to vote. A motion to amend a motion is a procedural motion. Any motion once amended is referred to as the amended motion. When counting the votes for and against a motion to amend and an amended motion:
The secretary at the annual general meeting The secretary (or their delegate, e.g. the body corporate manager) must have with them:
Quorum at general meetings A quorum is the minimum number of people who must be at an annual general meeting before it can start. The quorum for a general meeting is at least 25 per cent of the number of voters, except if there are:
If at the adjourned meeting a quorum is not present after 30 minutes, the people who are there (whether personally or otherwise) can form a quorum if:
Minutes Your body corporate must keep full and accurate minutes of every annual general meeting. This includes:
A motion to confirm the minutes of the last general meeting must be on the agenda of the next general meeting held. Extraordinary general meetings/Calling an extraordinary general meeting
An extraordinary general meeting is any general meeting of the body corporate that is not the annual general meeting. An extraordinary general meeting can be held at any time of the year. A body corporate can have as many or as few extraordinary general meetings as it wants. Who can call an extraordinary general meetingAn extraordinary general meeting can be called by a:
Owners requesting an extraordinary general meeting Usually the committee will decide to call an extraordinary general meeting. But owners can also ask for an extraordinary general meeting. The notice requesting the extraordinary general meeting must be given to the body corporate secretary, or in the secretary’s absence, the chairperson (the secretary is taken to be absent if they do not respond to the request within 7 days). The request must include:
The meeting must be held within 6 weeks of receipt of the notice. If the meeting is not called within 14 days, the owners who signed the original request can ask another committee member to call the meeting. The meeting must be called within 14 days of receiving the new request. Giving lot owners notice Each lot owner has to be given written notice of an extraordinary general meeting at least 21 days before the meeting. The notice must be given personally or sent to the owner at their address for service. The meeting notice must include:
Agenda The committee must decide on the agenda. The agenda for the extraordinary general meeting must include:
Voting papers The secretary must prepare 1 voting paper for all open motions to be decided at an extraordinary general meeting. The secretary must prepare a secret voting paper for a motion to be decided by secret ballot. If there are 2 or more motions requiring a secret ballot they can appear on the same secret voting paper. A voting paper for the meeting must:
Explanatory schedule The explanatory schedule is part of the notice of an extraordinary general meeting. It includes material about the motions on the agenda including:
The committee is not subject to a word limit when including an explanatory note. Extraordinary general meetings/Running an extraordinary general meeting
Chairing an extraordinary general meeting The chairperson must chair all of the extraordinary general meetings that they attend. If there is no chairperson or the chairperson is not at the meeting, the people at the meeting who have a right to vote can choose another person to chair the meeting. The body corporate manager may advise and help the chairperson. However, they must not chair the meeting unless the people at the meeting who have a right to vote choose them, or they are the only person forming a quorum at the meeting. The duties and powers of the person chairing the meeting include:
Ruling motions out of order A motion must be ruled out of order if:
When declaring the result of voting on motions at the annual general meeting, the person chairing the meeting must state the votes for, against and abstentions on the motion. Amending motions A motion may be amended at a general meeting by the people present and who have a right to vote. A motion to amend a motion is a procedural motion. Any motion once amended is referred to as the amended motion. When counting the votes for and against a motion to amend and an amended motion:
Records required for an extraordinary general meeting The secretary (or their delegate, e.g. the body corporate manager) must have with them:
Quorum for general meetings A quorum is the minimum number of people who must be at an annual general meeting before it can start. The quorum for a general meeting is at least 25 per cent of the number of voters, except if there are:
Adjourned meetings If a quorum is not present after 30 minutes, the meeting must be adjourned (‘the adjourned meeting’) to be held at the same place, on the same day and at the same time, in the next week. If at the adjourned meeting a quorum is not present after 30 minutes, the people who are there (whether personally or otherwise) can form a quorum if:
Minutes of an extraordinary general meeting The body corporate must keep full and accurate minutes of each general meeting. This includes:
A motion to confirm the minutes of the last general meeting must be on the agenda of the next general meeting held. Committee meetings/Calling a committee meeting
This information is relevant to community titles schemes registered under the:
Any information specific to the Small Schemes Module will be given. Committee meetings are held for committee members to make decisions on behalf of the body corporate. There is no maximum or minimum number of meetings required each year. The committee meets as often as it needs. The body corporate committee can also make decisions outside a committee meeting. Who can call a committee meeting A committee meeting is called by:
If the meeting is not held within 21 days, the meeting may be called by another member of the committee as long as enough members to form a quorum agree. The secretary and chairperson may be presumed absent if no reply is received to the request within 7 days after it has been sent to the body corporate address for service. Adjudicators’ orders A number of adjudicators’ orders refer to questions about the authority of either the chairperson or the secretary to call meetings of their own volition. See the adjudicator’s decision and reasons in the matter of Sani Villa [2000] QBCCMCmr 491 (28 September 2000). This extract from that decision deals with a secretary’s actions in calling a committee meeting: ‘Before calling a meeting of the committee, the secretary should approach fellow committee members to seek consensus as to when a meeting should be held or if a meeting is needed. At the same time the secretary should ask other committee members if they have items they want on the agenda for the committee meeting.’ Note: Under the Small Schemes Module, committee meetings are called and held in the way decided by the committee. The committee also decide the time and place of the meeting. Read more about committee structure under a Small Schemes Module. Meeting notices Written notice of a meeting must be given to each committee member (including non-voting members). The notice must be given at least 7 days before the meeting or at least 2 days if all voting members agree:
There is no requirement under the Small Schemes Module for notice of committee meetings. Meetings can be called and held at times and places decided by the committee. Agenda The notice of the meeting must include an agenda that lists the issues to be considered. The committee can also consider other issues that are not on the agenda. The agenda must include a motion to confirm the minutes of the last meeting as well as a motion to confirm any resolutions passed outside of a committee meeting. Meeting location The committee can decide where to hold a meeting. However it cannot be held more than 15 kilometres from the scheme land if half the number required for a quorum object in writing to the secretary. The limit about the number of kilometres does not apply to schemes registered under the Commercial Module. Committee meetings/Running a committee meeting
The information on this page is relevant to community titles schemes registered under the:
Any information specific to the Small Schemes Module will be given. There is no maximum or minimum number of committee meetings required each year. The committee meets as often as it needs. The committee can also vote outside a committee meeting (i.e. without holding a formal meeting). Quorum for a committee meeting A quorum is the minimum number of members that must be present before a meeting can start. For a committee meeting a quorum is at least half the voting members of the committee. If there are 6 voting members of the committee, a quorum is 3. If there are 7 voting members of the committee, a quorum is 4. Chairing a meeting The chairperson must chair all committee meetings he or she attends. If the chairperson is absent, another member can be chosen to chair the meeting by those present who are eligible to vote. Conflict of interest If a committee member is about to vote on a motion being decided at a committee meeting or by vote outside a committee meeting they must disclose any direct or indirect interest in the issue. If a member discloses a direct or indirect interest in the issue the member is not entitled to vote on a motion involving the issue. This applies if the interest could conflict with the appropriate performance of the member’s duties. Who can attend Non-voting members can attend committee meetings but will be required to be absent for certain agenda items if decided by the committee. For example, if the committee are discussing the person’s engagement the person must not be present. (This does not apply to schemes under the Commercial Module.) Lot owners who are not committee members (non-members) have the right to attend a committee meeting. A lot owner must give the secretary at least 24 hours written notice of their intention to attend. However the lot owner can be asked to leave for certain agenda items (for example, a discussion or vote on a by-law contravention by the lot owner) if decided by the committee. Other persons can be invited to attend a committee meeting by the committee. A non-member may only observe the meeting and may only speak if invited to. They can be directed to leave if they do not comply. Minutes of a committee meeting The committee must keep full and accurate minutes of each committee meeting. Full and accurate minutes include:
Notice of opposition The notice of opposition only applies to schemes under the Standard Module regulation. A notice of opposition is a document, signed by or for the owners of at least half the lots in the scheme opposing a resolution of the committee. The notice of opposition must be given to the secretary within 7 days after receiving a copy of the minutes of the meeting or a copy of the result of a vote outside a committee meeting at which the resolution was passed. However, a notice of opposition cannot be given if:
When the committee can act on its decision A committee can act on the passed resolution only if:
Drafting motions
The legislation does not set out how to word a motion. The following is a guide only. Be clear and concise Keep these general ideas and questions in mind when you are drafting a motion.
Good and bad examples Motion with not enough detail Below is an example of an unsatisfactory motion submitted by a lot owner. It does not give a solution, say how the roof will be fixed, or authorise spending on the repairs. Leaking roof: that the committee fix the waterproofing membrane because it is leaking into units 4, 5 and 6. Ideally the person submitting the motion will obtain a quote for proposed work. The person submitting the motion may choose to word the motion to seek authorisation to spend body corporate funds and engage a suitable contractor to complete the work. If the work is above the major spending limit, the motion should include 2 quotes and be submitted as a motion with alternatives. Motions with good detail Below are good examples of possible motions. Example 1: Leaking Roof: That the body corporate accept the attached quote to engage ABC Engineering to replace the waterproofing membrane above units 4, 5 and 6 at a cost of $3,999. The work is to be paid from the $4,000 available in the sinking fund for roof repairs. As stated in the quote, the work will be guaranteed for 3 years. Example 2: Shade Sail: That the body corporate approves the installation of a shade sail on the exclusive use area of lot 1 in accordance with the attached plans and specifications. The owner of lot 1 will meet all installation and maintenance costs. Submitting motions
A body corporate makes decisions in 2 ways:
Individual committee members, body corporate managers or resident managers cannot make decisions for the body corporate. General meetings Owners are able to submit motions to be voted on at general meetings. Motions must be submitted in writing. The committee may also agree to submit motions to be voted on at a general meeting. The motion can be passed by either:
Annual general meetings This information does not apply to the Small Schemes Module or the Specified Two-lot Schemes Module. If a notice is sent to owners inviting nominations for the committee, owners must also be invited to put in motions for the agenda of the annual general meeting. However owners can submit a motion at any time to be included on the agenda for the annual general meeting as long as they are with the secretary before the end of the body corporate financial year (read more about holding an annual general meeting for more information) The committee also submits motions for the annual general meeting agenda, including statutory motions. However, the committee is not under the same time limits as owners. The committee may put motions on the annual general meeting agenda at any time before the notice and agenda is issued to the owners. Extraordinary general meetings Owners can also submit motions to be considered at an extraordinary general meeting at any time throughout the year. If a motion is submitted, it must be included on the agenda for the next general meeting where practicable. For example, there must be ‘enough time’ from when the motion is received to when the meeting notice is issued for the committee to add it to the agenda. The Act does not provide for a timeframe on this matter. It’s up to the committee to consider if there is enough time to include the motion. Read more about calling an extraordinary general meeting. Motion requirements A motion must:
Even if the motion is unlawful, unenforceable or would, if passed, conflict with the Body Corporate and Community Management Act 1997 (PDF) the committee cannot refuse the owner’s motion. However, the chairperson may rule it “out of order” at the general meeting. Read more about ruling motions out of order. Explanatory notes Owners can add extra information (called explanatory notes) to support their motion for an annual general meeting or an extraordinary general meeting. Explanatory notes must be no longer than 300 words. The committee must include a schedule of explanatory notes with the meeting notice. The committee can also include its own explanatory note about a motion submitted by an owner. This note must be on a separate schedule and must be included with the meeting notice. There is no word limit for the committee’s explanatory notes. Motions with alternatives Motions with alternatives combine all motions dealing with the same issue. There are 2 parts to this type of motion—the motion itself and the alternatives. The motion is submitted by the committee and it identifies the issue to be dealt with. The alternatives are the motions received by the body corporate proposing certain action in relation to the issue. The agenda and the voting paper should list the alternatives under the committee’s motion. For example: A lot owner and the committee each submit motions to a general meeting to engage a different body corporate manager. As both motions deal with the same issue, it is the committee's responsibility to list them as a motion with alternatives on the agenda for the meeting. The motion may look like this: MOTION 1: That the body corporate engage a body corporate manager for a period of 1 year commencing on 1 February 2015. ALTERNATIVE A: That the body corporate engage ABC Pty Ltd at a cost of $5,000 a year, on the terms set out in the attached draft agreement ALTERNATIVE B: That the body corporate engage XYZ Pty Ltd at a cost of $500 a month, in accordance with the attached terms and conditions. Extra information must be included in the notice of a general meeting if a motion with alternatives is listed on the agenda. This information must be included in the explanatory schedule. It must:
Voting on a motion with alternatives Voting on a motion with alternatives is different to other motions. A lot owner may vote either:
Once-a-year motions Some motions cannot be considered more than once in the body corporate’s financial year. These motions include:
Committee meetings Body corporate legislation does not deal with owners’ motions to committee meetings. However the minutes of committee meetings must include details of any correspondence (notes or letters) presented to the meeting. Therefore an owner can send correspondence to the committee and this can include a request for the committee to vote on at its next meeting. However, if a request is put more formally as a motion, it can be dealt with more efficiently. A number of adjudicators’ orders refer to committee transparency and adding items to agendas. You can search for adjudicator’s orders on the Australasian Legal Information Institute (AustLII) website. Voting at body corporate meetings/Committee voting
Committee members make decisions by voting at committee meetings. For schemes registered under the Small Schemes Module a committee is made up of a secretary and a treasurer. If both positions are held by 1 person, decisions are made by that person. If there are 2 people (in the secretary and treasurer positions) they must agree on any decisions. Schemes registered under the Specified Two-lot Schemes Module do not have committees. Information on this page is for schemes registered under the:
Making a decision at a committee meeting Each voting member of the committee has 1 vote on any matter decided by the committee. Even if an executive member holds more than 1 position on the committee, they still have only 1 vote. For example if a person is both a secretary and a treasurer they only have 1 vote on the committee. To vote, a voting member of the committee must be present at the meeting, or represented by a proxy. Declaring an interest If a committee member or their proxy has a direct or indirect interest in a matter to be decided by the committee, and this could affect the way they do their duties they must tell the committee. They must not vote on the issue. Passing the motion A motion is passed at a committee meeting if a majority of voting members present (and entitled to vote) is in favour of the motion. If there is a tied vote the motion is lost. For example, if there are 7 voting members present, a majority is 4 members. If there are 6 voting members present, 4 votes will still be needed to pass a motion. Proxies A voting member of the committee can appoint another voting member of the committee as their proxy. The proxy can then vote for the committee member at a committee meeting. To appoint a proxy, the voting member must complete the proxy form and give it to the secretary before the start of the committee meeting (or at an earlier time if 1 is set by the body corporate). Restrictions There are restrictions on the use of proxies. Restrictions include:
The body corporate can pass a special resolution to limit or ban committee proxies. Voting outside a committee meeting The committee can make decisions without holding a formal committee meeting. This is sometimes called a ‘flying minute’ or a ‘VOC’. To vote outside a committee meeting, notice of the motion must be given to all committee members. The committee members must vote on the motion in writing. The legislation does not say how much notice must be given for the motion or when votes must be made. The notice of the motion must be given to lot owners as well as committee members. Passing the motion To pass the motion a majority of all voting members of the committee who are eligible to vote (not just a majority of those who return a vote) must be in favour of the motion. Committee members can contact one another before or during the vote. When notice of the motion is given to the committee members, advice of the motion must also be given to lot owners. A record of the motion voted on must be given to all committee members and all owners within 21 days after the motion is decided. Emergency vote In an emergency, notice of the motion only needs to be given to those committee members that it is reasonably practical to contact. Votes can be made verbally or in some other form. Advice of the motion can be given to owners when it is reasonably practical to do so. Any motion voted on outside a committee meeting must be confirmed at the next committee meeting. Voting at body corporate meetings/General meeting voting
Information on this page is for community titles schemes registered under the:
Who can vote When voting at a general meeting each lot gets 1 vote on each motion listed on the voting paper. If a lot owes a body corporate debt, a vote cannot be exercised for the lot on:
However, a voter for a general meeting must be an individual. Their name must be on the body corporate roll as:
For example, a person who owns more than 1 lot in the same name, is normally only considered as being 1 voter (1 individual). Read more about quorums and how they are calculated when:
How to vote A body corporate may decide, by special resolution, that voting will be done in another way. If this decision has not been made you can vote for motions:
Voting personally You can vote personally at a general meeting by:
Voting by voting paper You can make a written vote by completing a voting paper and giving it to the secretary before the start of the general meeting. A written vote:
Voting by proxy A proxy is a person who represents a voter at a general meeting. You can appoint a proxy by filling in the proxy form and giving it to the secretary before the start of the meeting (unless an earlier time is set by the body corporate). A proxy:
Restrictions on proxies Restrictions on the use of proxies include:
Voting electronically A body corporate can decide by ordinary resolution to allow voters to vote electronically. If this happens, you can send an electronic vote to the secretary. The vote must be made according to the Electronic Transactions (Queensland) Act 2001 (PDF)(PDF) and the instructions given with the voting papers for the meeting. Voting outside a general meeting Schemes registered under the Commercial Module and the Small Schemes Module can decide on motions outside a general meeting. A body corporate can make a decision outside a general meeting if:
Schemes registered under the Standard Module and the Accommodation Module cannot vote outside a general meeting. Voting at body corporate meetings/General meeting resolutions
Many body corporate decisions have to be made at a general meeting. A decision is made at a general meeting if a motion is included on the agenda, and owners vote to pass the motion. This is called a resolution. There are different types of resolutions for general meetings. When a motion is included on a general meeting agenda, the voting paper must say what type of resolution is needed to pass the motion. The Body Corporate and Community Management Act 1997 (PDF) says how to count the votes for each type of resolution to work out whether the motion passes or fails. In some cases the legislation will say what type of resolution is needed to pass a motion on a certain issue. If no resolution type is given the issue can be decided by an ordinary resolution. The committee may also be able to decide the issue. Ordinary resolution Ordinary resolutions are the most common type of general meeting resolution. A motion is passed by ordinary resolution if the votes counted for the motion (“yes” votes) are more than the votes counted against the motion (“no” votes). If a voter abstains from voting, that is not included in the count of votes. Examples of motions which need an ordinary resolution include:
Special resolution The motion is passed by special resolution only if:
The types of motions which need a special resolution include:
Resolution without dissent A motion is passed by resolution without dissent only if there are no votes against the motion (i.e. there are no, “no” votes). If a voter abstains from voting, that is not included in the count of votes. Examples of motions which need a resolution without dissent are:
Majority resolution Majority resolutions are uncommon. A motion is passed by majority resolution if the votes counted for the motion (“yes” votes) are more than 50% of the lots whose owners are entitled to vote on the motion. Votes must be in writing. Proxies are not allowed. If a voter abstains from voting, that is not included in the count of votes. An example of a motion which needs a majority resolution is a motion to transfer a letting agent’s management rights. Voting at body corporate meetings/Voting by a poll vote
This information is for schemes registered under the:
When a poll vote can be used A poll vote can only be used on a motion that can be decided by ordinary resolution. When voting on a motion to be decided by ordinary resolution each lot has 1 vote. A poll is a different way of counting votes for the motion. It takes into account the contribution schedule lot entitlements for the scheme. Asking for a poll Any person entitled to vote at a general meeting can ask for votes (on a motion to be decided by ordinary resolution) to be counted by a poll. The person must ask for the poll:
Counting votes if a poll is asked for Instead of counting each vote for and against a motion, a poll counts the contribution schedule lot entitlements of the lots voting for and against a motion. The motion is passed only if the total ‘contribution schedule lot entitlements’ of the lots that vote for the motion are more than the total contribution schedule lot entitlements of the lots that vote against the motion. For example, a scheme has 8 lots and all lot owners are entitled to vote on a motion that can be decided by ordinary resolution. Three owners vote for the motion (“yes” votes) and 5 owners vote against the motion (“no” votes). The motion is lost, because there are more votes against the motion than in favour of the motion. However, an owner immediately asks for a poll vote. The votes must now be re-counted taking into account the contribution schedule of lot entitlements for the scheme. The owners of 3 lots voted in favour of the motion. These owners have different lot entitlements.
The owners of the other 5 lots voted against the motion. These owners all have 1 lot entitlement each. The tally of the votes against the motion is 5. Under a poll vote the motion is passed— 8 in favour and 5 against. BY-LAWS* Please Click on "+" sign to expand and "-" sign to collapse the topic.
Making by-laws
By-laws are a set of rules that a body corporate makes to control and manage:
The by-laws for a body corporate are in the community management statement which is recorded for each community titles scheme. The body corporate committee may want to give copies of the by-laws to owners and occupiers, so they know their rights and responsibilities. Making and changing by-laws A body corporate can make new by-laws, or change its existing ones at any time. To do this a body corporate must pass a motion to record a new community management statement that includes changes to the by-laws. Usually a motion agreeing to change the by-laws must be agreed to by a special resolution at a general meeting. If the change includes a new or amended exclusive use by-law, a resolution without dissent is needed. The body corporate must register its new community management statement with the Titles Registry Office it has 3 months, from the date the motion to change the by-laws is passed, to do this. A by-law starts on the day the registrar records the new community management statement that contains the by-law (unless the by-law sets a later date). Recording by-laws with the Titles Registry Office does not automatically make them valid. Invalid by-laws A body corporate can only make a by-law on a matter allowed under the Body Corporate and Community Management Act 1997. By-laws cannot:
If an adjudicator decides that a by-law is invalid, they may make the body corporate record a new community management statement—removing or amending the invalid by-law. However a body corporate’s recorded by-laws apply unless and until an adjudicator decides a by-law is invalid. Examples of invalid by-laws Not consistent with the Act A by-law would be inconsistent with the Body Corporate and Community Management Act 1997 if it said that the body corporate did not have to hold annual general meetings. Discriminates between types of occupiers A by-law that only allows owners and not tenants to use the common property pool, may be discriminating between different types of occupiers. Monetary liability A body corporate could not make a by-law that made an owner or occupier pay a bond before moving in, because it would be imposing a monetary liability. Enforcing by-laws
A body corporate is responsible for enforcing its own by-laws. Owners and occupiers can also take action to enforce the by-laws. The steps that must be taken depend on who is enforcing the by-laws. Body corporate enforcing by-laws If a body corporate believes that an owner or occupier is breaching the by-laws, the body corporate can speak to the owner or occupier informally to try to fix the issue. If that doesn't work, the first formal step under the Body Corporate and Community Management Act 1997 (PDF) is for the body corporate to give a by-law contravention notice to the person it believes is breaching the by-laws. The decision to give a by-law contravention notice can be made by the committee, or the body corporate at a general meeting. The body corporate usually cannot take action to enforce the by-laws until it has sent a by-law contravention notice. Types of contravention notices Continuing contravention notice The continuing contravention notice is our Body Corporate and Community Management form 10. The body corporate can give a continuing contravention notice to an owner or occupier if it believes that they are breaching a by-law, and it is likely that this will continue. An example of this type of breach is where an owner has made a change to the outside look of their lot without the approval required in the by-law. The purpose of the notice is to ask the person to fix the problem within a certain time. The notice must:
Future contravention notice The future contravention notice is our Body Corporate and Community Management form 11. The body corporate can give a future contravention notice to an owner or occupier if it believes the person has breached a by-law and it is likely that the contravention will be repeated. This notice would apply if, for example, an occupier often had parties which breached a noise by-law.The purpose of the notice is to ask the person not to repeat the breach.The notice must
Who the notice is sent to The body corporate sends the contravention notice to the person they believe has breached the by law. If the body corporate believes an occupier, who is not the owner, has breached the by-laws, the contravention notice must name the occupier and not the owner or property manager. However, the body corporate must also give a copy of the notice to the owner. The body corporate must give a copy to the owner as soon as possible after giving the notice to the occupier. Not complying with a contravention notice If a person does not comply with a by-law contravention notice, the body corporate can decide to either
Owner or occupier enforcing by-laws An owner or occupier can take steps to enforce the by-laws if they reasonably believe that:
Taking it further If the committee does not tell the owner or occupier who is making the complaint (the complainant) within 14 days that a contravention notice has been issued, the complainant can apply for conciliation against the person they believe is breaching the by-laws. The complainant must try to fix the issue with the other person before they apply for conciliation. Before lodging an application you should read Practice Direction 6 about by-law enforcement applications. If the body corporate advises that it has issued a contravention notice, but the complainant is not satisfied with their action to enforce it, the complainant can apply for conciliation against the body corporate. A complainant usually cannot apply for conciliation about a by-law breach unless they have given their body corporate a notice about the breach. An owner or occupier cannot start proceedings in the Magistrates Court. Urgent by-law issues In some cases, a body corporate can make a dispute resolution application without issuing a contravention notice. In some cases, an owner or occupier can make a dispute resolution application without giving the body corporate a notice about the breach. This would apply if:
Exclusive use by-law
An exclusive use by-law is attached to a lot in a body corporate. It gives the occupier of that lot the right to the exclusive use (or other special rights) to a part of the common property or a body corporate asset. For example, an exclusive use by-law may give the occupiers of a unit an exclusive right to use the common property next to that unit as a courtyard, or part of the basement as a car space. The part of the common property, or asset, is usually identified in the by-law. An exclusive use by-law cannot give rights to utility infrastructure that is common property or a body corporate asset. Making an exclusive use by-law The rules for making exclusive use by-laws are stricter than those for making other by-laws. An exclusive use by-law may be attached to a lot only if:
The by-law will only apply when the new statement is recorded. Removing an exclusive use by-law Once an exclusive use by law is recorded it is difficult to have it removed or changed. An exclusive use by-law will only end if:
Reallocating exclusive use areas Two or more owners can decide to swap the areas of common property or body corporate assets identified in the exclusive use by-laws applying to their lots. This is done by an agreed allocation. The owners must give details of the reallocation to the body corporate. Once the body corporate is told of the reallocation, the body corporate must lodge a new community management statement that includes the changes. A general meeting resolution is not necessary in this case. By-law conditions The body corporate can impose conditions when giving exclusive use rights. For example, the person who benefits from an exclusive use by-law might have to pay the body corporate a regular fee. If an owner does not make the payments this becomes a body corporate debt. The body corporate can recover the debt from:
Maintaining an exclusive use area The lot owner with exclusive use or other rights must maintain and pay any operating costs for the exclusive use area—unless the by-law says otherwise. However, if the lot was created under a building format plan of subdivision and the by-law does not say otherwise, the owner is not responsible for:
Improving exclusive use areas An exclusive use by-law may allow the owner who has the benefit of the by-law to make improvements to that area. This can include installing fixtures (like an air conditioner) or making other changes to the common property. If the by-law does not give the right to make improvements, the owner can only make an improvement if the body corporate agrees. The committee can approve improvements to exclusive use areas if the cost is $3,000 or less. Improvements over $3,000 must be approved by ordinary resolution at a general meeting. Enforcing by-laws in the Two-lot Schemes Module
The body corporate is responsible for enforcing its by-laws. Depending on who is taking action to enforce the by-laws, there are different steps that must be taken. This information outlines how to deal with by-law breaches for schemes registered under the Specified Two-lot Schemes Regulation Module. Contravention notices If a lot owner believes that another owner or occupier is breaching the by-laws, they can speak to them informally to try and resolve the issue. If that doesn’t work, the first formal step under the Body Corporate and Community Management Act 1997 (PDF) is to give a by-law contravention notice to the person it believes is breaching the by-laws. There are 2 types of contravention notices, continuing contravention notices and future contravention notices. Continuing contravention notice The lot owner (the complainant) may give a continuing contravention notice to an owner or occupier if they reasonably believe the person is breaching a by-law, and it is likely that they will continue. For example, if an owner has made a change to the outside of the appearance of their lot without the approval required in the by-law. The purpose of this notice is to ask the person to fix the problem within a certain time. The notice must:
When the notice is issued, the person (complainant) must also:
Future contravention notice The lot owner (the complainant) may give a future contravention notice to an owner or occupier if they reasonably believe the person has breached a by-law, and it is likely that the breach will be repeated. This notice would apply if an occupier often had parties which breached a noise by-law. The purpose of the future contravention notice is to ask the person not to repeat the breach. The notice must:
When the notice is issued, the person (complainant) must also:
Complaint by an occupier If the occupier of a lot believes that another owner or occupier has breached a by-law, they can ask the owner of the lot they occupy, to give a contravention notice. They do this by giving the owner a Notice to owner of a contravention of a body corporate by-law (Specified Two-Lot Scheme) (BCCM Form 25). Failure to comply with a contravention notice If a person does not comply with a contravention notice they have been given, the complainant may choose to:
Dispute resolution applications An owner or occupier can apply to us to enforce the by-laws if they have undertaken the required steps. Application by a lot owner A lot owner can only lodge an application with us to enforce a by-law if they have issued a contravention notice to the owner or occupier they believe is breaching the by-law. However, an exemption may apply in urgent circumstances. Application by an occupier An occupier who believes another owner or occupier is breaching a by-law must first give the owner of the lot they occupy a notice of the by-law breach. The occupier can only lodge an application with us to enforce a by-law if the owner of their lot has not sent a contravention notice or told them within 14 days of getting the complaint notice that they have sent the contravention notice. However, an exemption may apply in urgent circumstances. Urgent by-law issues In some cases an application may be made to us without following the steps above. This would apply if:
BODY CORPORATE INSURANCE* Please Click on "+" sign to expand and "-" sign to collapse the topic.
Building insurance and valuation
A body corporate must have insurance for:
The 2 common types of survey plan are:
Buildings in a building format plan Schemes that are registered under a building format plan of subdivision are usually multi-storey buildings like blocks of residential units. Some townhouses can also be registered under a building format plan of subdivision. In this type of scheme, a body corporate must insure (for the full replacement value) each building that contains an owner’s lot (e.g. a unit or apartment). Buildings in a standard format plan Schemes are usually registered under a standard format plan of subdivision if they are low-rise developments. An example is a townhouse complex where there is a building on each lot with a backyard or courtyard. The body corporate must insure (for the full replacement value) each building that shares a wall with another building (known as a common wall). The lot owner is responsible for insuring their own building if it is:
Optional building insurance The body corporate can set up a voluntary insurance scheme to insure buildings that do not have common walls. The owner of a lot with a free-standing building does not have to take part in a voluntary insurance scheme. An owner who does take part in a voluntary insurance scheme must:
What the policy must cover The building insurance which a body corporate takes out must cover:
Valuation If the body corporate has to insure 1 or more buildings, it must get those buildings valued for the full replacement cost. An independent valuation must be done at least every 5 years. Each owner must pay part of the cost to have the property valued. How much they pay depends on their share of the building insurance premium. The body corporate collects money for the cost of valuations as part of the owner contributions to the administrative fund. These are collected each year. Insurance definitions The legislation defines the terms building and damage. Building definition A ‘building’ includes any improvements made to the building and fixtures added to the building. It does not include:
Damage definition Damage includes:
Getting insurance information At its annual general meeting each year the body corporate must give owners information about its insurance policies and any valuations that have been done. Details for the valuation must include the:
Compulsory insurance
A body corporate must have insurance for:
Public risk insurance The body corporate must have public risk insurance for:
Public risk insurance must cover amounts the body corporate could be liable to pay for:
The body corporate can take out more insurance than it has to under the regulation module that applies to the scheme. For example, it can get cover for committee members —known as office bearers’ liability. Insuring common property and assets The body corporate must insure the common property and the body corporate assets for their full replacement value. The insurance policy must cover:
Insurance premium and excess
A body corporate must take out insurance for its community titles scheme. Each owner must pay part of the costs for that insurance (i.e. the premium). The body corporate collects money for the insurance premiums as part of owner contributions to the administrative fund. These are collected each year. Premiums for building insurance How much you (as an owner) pay towards the building insurance depends on what type of survey plan your body corporate scheme is registered under. Building format plan If your scheme is registered under a building format plan (or volumetric format plan of subdivision), your share of the insurance premium is based on the interest schedule lot entitlement. Standard format plan In a standard format plan, if the body corporate has to insure buildings with common walls, your share of the insurance premium relates to the cost of reinstating the buildings on your lot. If your body corporate sets up a voluntary insurance scheme, and you decide to take part, you must pay an amount that relates to:
Adjusting building insurance premiums In some cases the body corporate can change the amount an owner pays towards the insurance premium. The body corporate can do this if:
Premium for common property and assets insurance What you pay for insurance of the common property and body corporate assets is based on the interest schedule lot entitlements. Premium for public risk insurance What you pay for body corporate public risk insurance is based on the contribution schedule lot entitlements. Changes that affect insurance premiums Improvements to lots You must tell the body corporate if you make improvements or changes that could affect the insurance premium. This includes improvements to:
This must be done as soon as possible after the improvements have been made. If you do not tell the body corporate, you may have to pay for any repair or replacement costs that are not covered by insurance. Use of lots You must give the body corporate details if your lot is used in a way that is likely to affect the premium for the body corporate’s building insurance or public risk insurance. Excesses The body corporate can decide to take out an insurance policy where an excess has to be paid on an insurance claim. An excess is an amount of money paid (by the body corporate or an owner) towards a claim you make on the insurance policy. The excess must not create an “unreasonable burden” on the owners of individual lots. Who pays the excess Who pays the excess on an insurance claim depends on a number of things. For example, if the body corporate claims on its insurance because a lot has been damaged by water from a leak in that lot, the lot owner would normally pay the excess. However, if the damage to the lot happened because the body corporate did not properly maintain the common property, it would be reasonable for the body corporate to pay the excess. As a guide, if the event affects:
MBCS Insurance claims process
MAINTENANCE AND IMPROVEMENTS* Please Click on "+" sign to expand and "-" sign to collapse the topic.
Body corporate maintenance
The body corporate and owners are both responsible for maintenance in a community titles scheme. Sometimes it can be hard to work out who is responsible for what. An important first step is to find out:
Community titles schemes are registered under a plan of subdivision. This is recorded as a survey plan. The survey plan shows the boundaries of the common property and the lots in that scheme. There are several types of survey plans. Boundaries will be defined differently depending on the type of plan registered. The 2 common types of survey plans are:
Maintenance of common property and lots A body corporate must maintain the common property in a good and structurally sound condition. The owner of a lot must maintain their lot in good condition. Maintenance can include work that is needed to prevent damage. For example, a body corporate or lot owner may have to take steps to prevent termite damage to lots or the common property. An owner may be liable if they do not maintain their lot and this causes damage to another lot or common property. A body corporate may also be liable if it does not maintain common property and that results in damage to a lot. Maintaining lots and common property is different to making an improvement. Building format plan maintenance
A building format plan is a form of subdivision which usually applies to multi-story unit complexes, and in some cases, other developments like townhouses.
A building format plan defines land using the structural elements of a building, including floors, walls and ceilings. Defining lots and common property The Land Title Act 1994 defines a building format plan (BFP), previously known as a building unit plan (BUP). Where 1 lot is separated from another lot or common property by a floor, wall or ceiling, the boundary of the lot is the centre of the floor, wall or ceiling. This diagram represents a typical 2-storey building format plan. It shows how common property and lots may be drawn on a plan.
On a building format plan, the boundaries of a lot are represented by hard black lines. The diagram of level A shows the common property surrounding the building and parts of the 4 lots (units) on level A. Plans can also show visitor parking spaces, carports or other features such as swimming pools. This common property and the lots together make up the scheme land. The diagram of level B shows the rest of the 4 lots and a common property balcony running along the eastern (right) side of the building. The thin line around this balcony shows that it is outside the boundaries of the lots, so the balcony is on common property. Compare this to the hard black lines around the smaller balconies on the western (left side) of lots 2 and 3. This shows that these balconies are within the boundaries of lots 2 and 3. Where a balcony is included in a lot (as in lots 2 and 3 in the diagram of level B) the boundary of the lot is the face of the balcony. Body corporate maintenance The body corporate must maintain common property, as well as some things that are not on common property. The body corporate is usually responsible for maintaining:
The lot owner is generally responsible for:
Paying for maintenance
Standard format plan maintenance
A standard format plan (SFP), previously known as a group title plan(GTP), defines land horizontally, using marks on the ground or a structural element of a building (e.g. survey pegs in the ground or the corner of a building).
A community titles scheme registered under standard format plan can include a townhouse complex where each lot has a building and a yard. The boundaries of lots in the scheme are defined by the measurements shown on the survey plan and any marks put on the ground when the survey was done. This diagram of a standard format plan shows 5 lots and an area of common property. Each boundary on the plan is clearly defined using the reference marks. 
Body corporate maintenance The body corporate is usually responsible for maintaining:
Lot owner maintenance he lot owner is generally responsible for:
Paying for maintenance The body corporate must consider its spending limits and budgets if it needs to spend money on maintenance. The body corporate cannot pay for, or levy owners for, maintenance that a lot owner is responsible for (such as painting the building), unless it:
Improving common property and lots
The body corporate and a lot owner in a community titles scheme can both make improvements to the common property, if they are approved.
Maintenance or improvement It can be hard to tell whether work is an improvement or maintenance. An improvement can include:
A change can include adding, removing or swapping something. See section 36 of the Acts Interpretation Act 1954 (PDF). The BCCM Act does not define maintenance. Adjudicator’s orders have used a ‘like for like’ rule when deciding whether the work is maintenance or an improvement. For example, if you replace a wooden fence with a similar wooden fence it is maintenance. If you replace a wooden fence with a colorbond fence it is an improvement because there is a change to the existing fence. However, if you can’t get the same product or material, a change is not automatically an improvement. For example, the body corporate is repairing some foyer tiles. It can’t get the same tiles, so uses a similar, modern tile. This can still be considered maintenance. Most day-to-day work is maintenance. Improvements by a body corporate This information is for schemes under the:
The 3 improvement limits are shown in this table. They are:
*If a number of improvements make up 1 project, the approval needed will be based on the total cost of the project. The body corporate (or committee) will need to consider whether the proposed work is maintenance or an improvement, when it considers what approval is needed. An owner who disagrees can apply for dispute resolution. Specified Two-lot Schemes Module For schemes registered under the Specified Two-lot Scheme Module, the body corporate can make improvements to the common property if authorised by a lot owner agreement. Commercial Module For schemes registered under the Commercial Module, the body corporate can make improvements to common property if they are approved by ordinary resolution at a general meeting or by an adjudicator. The committee cannot approve improvements to the common property. Improvements by a lot owner An owner can make an improvement to common property if approved by the committee or the body corporate at a general meeting. The committee can approve an improvement by an owner if the:
The owner must:
If the improvement increases the body corporate’s insurance premium, the owner may have to pay the extra. Specified Two-lot Schemes Module For schemes registered under the Specified Two-lot Schemes Module the body corporate can allow an owner to make improvements to the common property. This would need a lot owner agreement. There are no limits on the cost of the improvement. Commercial Module There is no limit on the value of the improvement under the Commercial Module. This means the committee can approve all improvements to common property made by an owner of a lot regardless of the cost. Alterations to a lot The BCCM Act does not restrict the changes or improvements an owner can make to their own lot. If an owner wants to change their lot they should consider whether the change will affect common property. The lot owner should also see whether there are any by-laws that affect what change or improvements they can make. For example putting hard floors (like timber or tiles) in a lot is the subject of many body corporate disputes. Because of this, some bodies corporate have by-laws which say owners need approval for changes to flooring. Even if an improvement or change to a lot does not need approval under a by-law, an owner should consider how the change would affect others in the scheme, including neighbours. For example, if hard floors make extra noise for a lot below, this may be a breach of a by-law about noise or may create a nuisance which is against section 167 of the Act (PDF). For more on by-laws about hard flooring and tiling, see the appeal decision of the Queensland Civil and Administrative Tribunal: Princess Palm (PDF). Utility infrastructure maintenance
Utility infrastructure is the pipes, cables, wires, sewers, drains, plant and equipment which supply a utility service to the lots or the common property in a community titles scheme.
Utility services include:
Utility infrastructure and common property The body corporate is usually responsible for utility infrastructure that is part of common property. If the utility infrastructure is not part of common property, the lot owner is generally responsible for maintaining it. All utility infrastructure in a community titles scheme is part of common property except for utility infrastructure that:
It is important for both the body corporate and lot owners to understand the boundaries of lots and know if utility infrastructure is part of common property. Building format plan This diagram gives an example of utility infrastructure responsibilities in a building format plan. 
Standard format plan This diagram gives an example of utility infrastructure responsibilities in a standard format plan. 
Exclusive use by-laws Exclusive use by-laws cannot give exclusive use rights to utility infrastructure that is part of common property. When different rules apply In some cases a lot owner (or occupier) can be responsible for maintenance even if the items are on common property or outside their lot. This can include:
Utility infrastructure installed under an agreement with the original owner (developer) or the body corporate (for example, cable television equipment), may remain the property of the service provider. It will only be part of common property if ownership is transferred to the body corporate under the terms of the agreement. Other maintenance issues
The legislation that controls bodies corporate cannot include specific laws about every possible maintenance issue in a community titles scheme. If the legislation does not deal directly with your issue, the first thing to do is see where the item is located and who is responsible for that location and that item. This will depend on the plan of subdivision your building/s is registered under and the regulation module that applies. Adjudicators are able to make orders in most body corporate disputes. Search online at the Australasian Legal Information Institute for decision by adjudicators from the Office of the Commissioner for Body Corporate and Community Management. This page lists some of the maintenance issues that may come up in your body corporate. It also gives you a link to adjudicators’ orders on the topic to help you work out who is responsible for the maintenance. Dividing fences Questions about fences that divide properties may come under the Neighbourhood Disputes (Dividing Fences and Trees) Act 2011 (PDF)(previously known as the dividing fences legislation). Section 311 of the Body Corporate and Community Management Act 1997(PDF) says that responsibility for a:
Pest control The body corporate is generally responsible for any pest inspection, prevention and treatment work on common property. A lot owner is responsible for any pest inspection and treatment work that is needed within their lot. See the adjudicator’s order in Magnetic International Resort Hotel for more on who is responsible for pest control. Supply of services by a body corporate To benefit lot owners and occupiers, the body corporate may offer to supply or arrange for services that owners or occupiers are responsible for. For example, the body corporate could:
The body corporate can only supply a service to an owner or occupier if it has an agreement with the owner or occupier. It is not enough for the body corporate to have passed a general meeting resolution agreeing to provide the service. Paying for services The body corporate can charge its costs as part of the service supply agreement with the owner or occupier. These costs can include:
Supply charges for the service must be paid by each user. They are not part of the body corporate levies. FORMING A BODY CORPORATE COMMITTEE* Please Click on "+" sign to expand and "-" sign to collapse the topic.
Committee structure
A body corporate must have a committee. The committee will be responsible for the day-to-day running of the body corporate. Committee membership is different between the regulation modules. The following information applies to schemes registered under the:
Need for a committee Bodies corporate must choose a committee at each annual general meeting. Once the committee has been elected the body corporate must keep the same number of members for the rest of the year. The body corporate cannot increase or decrease the number of people on the committee until the next annual general meeting. If a committee member leaves their position for any reason (called a casual vacancy) the vacant position may be filled by the committee or at an extraordinary general meeting. If not all positions on the committee are filled at the annual general meeting, the body corporate may need to hold an extraordinary general meeting to fill the remaining positions. If the body corporate is unable to fill at least 3 committee positions, or if not all executive positions are filled, the body corporate can choose to engage a body corporate manager to act as the committee. This would require a special resolution at the same extraordinary general meeting. Members of the committee The committee consists of:
Voting members The term ‘voting member’ means a member of the committee other than a non-voting member. The chairperson, secretary, treasurer and ordinary members are voting members. Non-voting members Any body corporate managers and caretaking service contractors engaged by the body corporate are automatically non-voting members of the committee. Number of voting members The regulations say that a body corporate must have the ‘required number’ of committee members. This means the committee must have a minimum of 3 but no more than 7 voting members. If there are 7 or greater lots in a scheme, the body corporate committee must have at least 3 voting members and a maximum of 7 voting members. If there are fewer than 7 lots, the maximum number of voting members equals the number of lots. For example, if there are 5 lots in the scheme, the body corporate committee must have at least 3 voting members and a maximum of 5 voting members. Committee structure under Small Schemes Module In schemes registered under the Small Schemes Module the committee consists of a secretary and a treasurer. These are the voting members of the committee. One person may hold both positions, or the positions may be held by 2 people. The body corporate may also engage a body corporate manager, who would be a non-voting member of the committee. A body corporate operating under the Small Schemes Module cannot engage caretaking service contractors (but it may engage a service contractor). Committee structure under Commercial Module In schemes registered under the Commercial Module, the committee still consists of a secretary, treasurer, chairperson, ordinary members and non-voting members. However a non-voting member, for example a body corporate manager, may be chosen to be a secretary or treasurer (or both). If this happens, the body corporate manager who is chosen to be secretary ot treasurer (or both) still does not have a vote at a committee meeting. Nominations and eligibility for body corporate committees
The Body Corporate and Community Management Act 1997 (PDF, 1.4MB) sets out how you can nominate someone to be appointed to a body corporate committee, and who is eligible to be a voting member on the committee. The following information applies to schemes under the:
Standard and Accommodation Modules Making a committee membership nomination Before the annual general meeting each year, the secretary must send a written invitation to each lot giving them the opportunity to make a nomination for committee membership. There is no form for this—the committee can choose how to write the invitation. The invitation must be given to each lot owner at least 3 weeks before, but no more than 6 weeks before, the end of financial year for the scheme. If an owner wants to make a nomination, they must send their nomination back to the secretary by the end of the body corporate’s financial year. We do not produce a committee nomination form. Details of what needs to be included on a nomination form can be found in the Regulation Module that applies to your scheme. For more information contact your body corporate. When the secretary gets a completed nomination form, they must let the owner know that they have received it. They must do this ‘as soon as it is practicable’. When the secretary acknowledges the nomination, they don’t have to say whether or not it is a valid nomination. Number of nominations owners can make Each lot owner can only nominate 1 eligible person for committee membership. However, the 1 person nominated can be nominated for more than 1 position on the committee. If there is more than 1 owner of a lot, only 1 nomination may be made by the owners of that lot. If an owner owns more than 1 lot in the scheme, they may be able to nominate more than 1 person. An owner who owns:
A lot owner is not able to nominate a person for committee membership if the lot owner owes the body corporate money when the secretary gets the nomination. Who is eligible to be nominated The following sets out who lot owners can nominate for committee membership. Who an individual can nominate A lot owner who is an individual can nominate any of the following individuals:
Who a corporation can nominate A lot owner that is a company may nominate any of the following individuals:
Who a subsidiary scheme can nominate The body corporate for a subsidiary scheme may nominate a representative to sit on the committee of the principal scheme. The representative must be a member of the committee for the subsidiary scheme. If the committee has not appointed a representative, the chairperson automatically fills this role. People who are not eligible to be voting members A person is not eligible to be a voting member of the committee if they:
Small Schemes and Commercial Modules Nominations for committee membership There is no requirement under the Small Schemes Module or the Commercial Module for the secretary to invite owners to make committee membership nominations. Nominations for the secretary or treasurer may be given in writing before the meeting or orally at the meeting. A lot owner is not able to nominate a person for committee membership if the lot owner owes a body corporate debt when the secretary gets the nomination. Eligibility for committee membership Owners who are an individual are eligible to be voting members of the committee. Only 1 co-owner may be on the committee. Owners can also nominate other individuals for committee membership. A person is not eligible to be a voting member of the committee if they are:
Standard Module elections
This information on body corporate committee elections explains how a committee is elected in schemes registered under the Standard Module only. Schemes registered under the Specified Two-lot Schemes Module do not have a committee. Running an election A body corporate must choose a committee at the annual general meeting each year. Elections must be run so that all owners who are entitled to vote can do so and that their votes are kept secure. Normally elections must follow the process in sections 16 to 27 of the Standard Module (PDF, 1.06MB). However, the body corporate can pass a special resolution to hold its elections in another way, as long as that method is fair and reasonable. The committee election is the last item on the agenda of the annual general meeting. An eligible candidate may be elected to hold 1, 2 or all 3 of the executive positions (chairperson, secretary and treasurer), but they cannot simultaneously hold an executive and ordinary position. The elected committee members start their role as soon as the meeting ends. Need for a ballot Lot owners must complete and return nominations by the end of the body corporate’s financial year. If only 1 nomination is received for any executive position on the committee, a ballot will not be required for that position and the person nominated can be elected unopposed. If the number of nominations for the ordinary positions is fewer than or equal to the number required, each nominee is elected unopposed and no ballot will be required. Separate ballots must be held for the positions of chairperson, secretary and treasurer. Another ballot is required for the ordinary member positions. However, it is not necessary to have separate ballot papers for each position. Note: the election must be conducted by secret ballot unless the body corporate has passed an ordinary resolution deciding to hold open ballots (see sections 21 and 22 of the Standard Module (PDF, 1.06MB) for information on running secret ballots and open ballots). Ballot papers The secretary must prepare ballot papers for any position for which a ballot is needed. If satisfied that a nomination is valid, the secretary includes each candidate’s name and details on the ballot paper. The secretary must send the ballot papers, ballot envelope and (in the case of a secret ballot) particulars envelope to owners with the notice of the annual general meeting. Voters complete the ballot papers and give or forward them to the secretary before or at the annual general meeting. Election process The ballots occur in the following order:
The chair then records the count of votes. Any function of the chair in the election can be delegated to an independent person. However, there is no requirement for a returning officer to be appointed. Executive positions If no nominations are received for any executive position, the person chairing the meeting must invite nominations from eligible persons. Nominations can be accepted from:
If 2 or more candidates get the equal highest number of votes, the winner is decided by chance in a way the meeting decides (e.g. by a toss of a coin). The chair must tell the meeting the result of the election and the number of votes cast for each candidate. This is recorded in the minutes. Ordinary positions The ballot for ordinary positions on the committee is held after the executive positions are filled. The nomination of a person for an ordinary position will not be considered if they have already been elected as an executive member. If the number of candidates for ordinary member positions plus the number of elected executive members is fewer than the required number of committee members, the chair must invite nominations at the meeting to reach the required number of committee members. Nominations can be accepted from:
The candidate with the most votes is elected first, the candidate with the next highest votes is elected second and so on, until each available position is filled. If 2 or more candidates get the same number of votes, the deadlock may be decided by chance in a way the meeting decides (e.g. a toss of a coin). The chair must tell the meeting the result of the election and the number of votes cast for each candidate. This is recorded in the minutes. Vacancies from the annual general meeting An extraordinary general meeting must be called within 1 month if the election at the annual general meeting results in:
If 1 co-owner of a lot has been elected to the committee, 1 other co-owner of the lot may be nominated as an ordinary member of the committee, but only if necessary to bring the number of voting members of the committee to 3. The agenda of the extraordinary general meeting must include a motion to approve the engagement of a body corporate manager to act in place of the committee under Chapter 3 Part 5 of the Standard Module. The motion will only be considered if either:
Accommodation Module elections
This information on body corporate committee elections explains how a committee is elected in schemes registered under the Accommodation Module only. Schemes registered under the Specified Two-lot Schemes Module do not have a committee. Running an election A body corporate must choose a committee at the annual general meeting each year. Elections must be run so all owners who are entitled to vote can do so and that their votes will be kept secure. Normally elections must follow the process in sections 17 to 28 of the Accommodation Module (PDF, 1.0.4MB). However, the body corporate can pass a special resolution to hold its elections in another way, as long as that method is fair and reasonable. The committee election is the last item on the agenda of the annual general meeting. An eligible candidate may be elected to hold 1, 2 or all 3 of the executive positions (chairperson, secretary and treasurer), but they cannot simultaneously hold an executive and ordinary position. The elected committee members start their role as soon as the meeting ends. Need for a ballot Lot owners must complete and return nominations by the end of the body corporate’s financial year. If only 1 nomination is received for any executive position on the committee, a ballot will not be needed for that position and the person nominated can be elected unopposed. If the number of nominations for the ordinary positions is less than or equal to the number required, each nominee is elected unopposed and no ballot will be required. Separate ballots must be held for the positions of chairperson, secretary and treasurer. Another ballot is required for the ordinary member positions. However, it is not necessary to have separate ballot papers for each position. The Accommodation Module sets out some procedures for conducting a ballot. For those matters not set out in the regulations, the body corporate can decide by ordinary resolution how to conduct the ballot. Ballot papers The secretary must prepare ballot papers for any position for which a ballot is needed. If satisfied that a nomination is valid, the secretary includes each candidate’s name and details on the ballot paper. The secretary must send the ballot papers and ballot envelope to owners with the notice of the annual general meeting. Voters complete the ballot papers and give or forward them to the secretary before or at the annual general meeting. Election process The ballots occur in the following order:
The chair then records the count of votes. Any function of the chair in the election can be delegated to an independent person. However, there is no need for a returning officer to be appointed. Executive positions If no nominations are received for any executive position, the person chairing the meeting must invite nominations from eligible people. Nominations can be accepted from:
If 2 or more candidates get the equal highest number of votes, the winner is decided by chance in a way the meeting decides (e.g. by a toss of a coin). The chair must tell the meeting the result of the election and the number of votes cast for each candidate. This is recorded in the minutes. Ordinary positions The ballot for ordinary positions on the committee is held after the executive positions are filled. The nomination of a person for an ordinary position will not be considered if they have already been elected as an executive member. If the number of candidates for ordinary member positions plus the number of elected executive members is less than the required number of committee members, the chair must invite nominations at the meeting to reach the required number of committee members. Nominations can be accepted from:
The candidate with the most votes is elected first, the candidate with the next highest votes is elected second and so on, until each available position is filled. If 2 or more candidates get the same number of votes, the deadlock may be decided by chance in a way the meeting decides (e.g. by a toss of a coin). The chair must tell the meeting the result of the election and the number of votes cast for each candidate. This is recorded in the minutes. Vacancies from the annual general meeting An extraordinary general meeting must be called within 1 month if the election at the annual general meeting results in:
If 1 co-owner of a lot has been elected to the committee, 1 other co-owner of the lot may be nominated as an ordinary member of the committee, but only if necessary to bring the number of voting members of the committee to 3. The agenda of the extraordinary general meeting must include a motion to approve the engagement of a body corporate manager to act in place of the committee under Chapter 3 Part 5 of the Accommodation Module. The motion will only be considered if either:
Commercial Module elections
This information on body corporate committee elections explains how a committee is elected in schemes registered under the Commercial Module only. Schemes registered under the Specified Two-lot Schemes Module do not have a committee. Running an election A body corporate must choose a committee at the annual general meeting each year, unless all lots in the scheme are owned by the same person or by only 2 different people. Elections must be run so that all owners who are entitled to vote can do so and that their votes are kept secure. The body corporate must run the election in the way decided by special resolution. The way decided must be fair and reasonable. An eligible candidate may be elected to hold 1, 2 or all 3 of the executive positions (chairperson, secretary and Committees in schemes with 1 or 2 owners If all lots are owned by the same person, the committee is made up of the individual who is the owner, or their nominee. That person holds the 3 executive positions. If all lots are owned by 2 owners, the committee consists of the 2 owners. They must decide between them who will hold the executive positions. If they cannot agree, the 2 committee members will hold the executive positions jointly. Alternative to a committee If no committee has been appointed, the Body Corporate and Community Management Act 1997 (PDF, 1.4MB) (PDF) allows the body corporate to authorise a body corporate manager to exercise the powers of a committee and executive committee members. The authorisation must be made in writing. The body corporate can, in writing, revoke the authorisation at any time. Small Schemes Module elections
This information on body corporate committee elections explains how a committee is elected in schemes registered under the Small Schemes Module only. Schemes registered under the Specified Two-lot Schemes Module do not have a committee. Running an election A body corporate must choose a committee at the annual general meeting each year, unless either:
The positions of secretary and treasurer may be held by 1 person or 2 people. The community management statement can contain rules which outline how the body corporate chooses the committee. The body corporate can pass a special resolution to decide how to hold an election if this is not set out in the community management statement. Committee in schemes with 1 or 2 owners If all lots are owned by the same person, the committee is made up of the individual who is the owner, or their nominee. That person is both secretary and treasurer. If all lots are owned by 2 owners, the committee consists of the 2 owners, or their nominees, unless both owners agree that only 1 of the owners will be the committee. If there are 2 committee members, they must decide between them who will be the secretary and who will be the treasurer. If they cannot agree, the 2 committee members will hold both positions jointly. However, the above does not apply if the body corporate has passed a resolution to engage a body corporate manager to act for the committee, under Chapter 3, part 5. Alternative to a committee Instead of appointing a committee, the body corporate can engage a body corporate manager (under Chapter 3 Part 5 of the regulation) to carry out the functions of the committee, the secretary or the treasurer. The body corporate must pass a special resolution at a general meeting to engage, or amend an engagement, of a body corporate manager to act for the committee. If a body corporate manager is engaged in this way, there is no committee. Removing committee members
The legislation details the term of office of a committee member. It also outlines how a body corporate can remove a committee member from office. This information is relevant to schemes registered under the:
Term of office The position of a voting member of the committee becomes vacant (known as a casual vacancy) if the member:
Code of conduct If it decides to by ordinary resolution, the body corporate can remove a voting member from the committee for a breach of the Code of conduct for voting members of the committee. Before it can pass a resolution to remove a committee member for a breach of the code of conduct, the body corporate must:
Remove for another reason As an alternative to the code of conduct process, a body corporate may remove a member from office by ordinary resolution at a general meeting. The person submitting the motion to a general meeting does not need to give the reason for the removal. If the submitter of the motion does give a reason that refers to the code of conduct, then the process outlined above applies. It is suggested there is a separate general meeting motion for each member being removed. Filling casual vacancies
The number of committee members a body corporate has for the whole year is determined at each annual general meeting. Throughout the year, the body corporate cannot increase or decrease its numbers on the committee. For example, if 6 people were elected to the committee at the last annual general meeting the body corporate must ensure it keeps 6 members for the whole year. From time to time a casual vacancy can occur. There are many reasons for this and some of those include:
Commercial Module If a position on the committee becomes vacant (for any of the reasons outlined above) the committee must—even if it does not have enough members to form a quorum—appoint an eligible person to the committee, or call an extraordinary general meeting to appoint someone to fill the vacancy. Small Schemes Module If a position on the committee becomes vacant (for any of the reasons outlined above) the body corporate must hold an extraordinary general meeting to appoint someone to fill the vacancy. The person appointed must be eligible. Standard and Accommodation Module Removal by ordinary resolution If the body corporate passes an ordinary resolution at a general meeting to remove a committee member from their position, it can pass a resolution to fill the vacancy at the same general meeting. Otherwise it can fill the vacancy at the next general meeting. While the person appointed must be eligible to hold a position on the committee, there is no need to invite nominations or hold a ballot. Filling other vacancies If a position on the committee becomes vacant (except when a member is removed by ordinary resolution) and there are still enough committee members to form a quorum, the committee may either call:
The process for filling a vacancy at a general meeting is different to electing a committee at an annual general meeting. This process is set out in sections 39, 40 and 41 of the Standard and Accommodation Module, and includes the following:
BODY CORPORATE RECORDS AND REGULATIONS* Please Click on "+" sign to expand and "-" sign to collapse the topic.
Access to records
A body corporate must keep certain records, and allow some people to see and copy those records. Who can access body corporate records This information is for schemes registered under the:
You can see and/or get copies of a body corporate’s records if you are:
Asking for access to records If you are entitled to see the records, you must:The body corporate must let you see and/or give you copies of the records within 7 days of getting your written request and fee. You can request that copies of documents which exist in the records be given to you. You must identify the documents you want. You do not have to personally search the records to obtain copies of identifiable documents. If you cannot name the specific documents, you will need to search the records yourself and find the documents you want copied. You can appoint another person to do the search for you. The body corporate can only charge the copying fee when supplying copies. A search fee will only apply if you inspect the records in person. It is an offence for a body corporate not to allow access to its records when requested. A fine in excess of $2,400 applies. A body corporate must give committee members reasonable access to its records at no cost. A body corporate can be asked by a buyer for an information certificate. When access can be refused A body corporate does not have to make a document available if it reasonably believes the document has defamatory material in it. A body corporate may be able to keep records confidential because of ‘legal professional privilege’. To be ‘privileged’ the document would need to be:
The Privacy Act 1998 (Cwlth) and the Information Privacy Act 2009 (QLD) (PDF) may apply to the body corporate (and its agent). The privacy restrictions do not apply to information that must be given by law. This means the body corporate cannot refuse to make documents available because of privacy legislation. See the adjudicator’s decision in Club Lodge for more information on making documents available. Access to records in the Specified Two-lot Schemes Module For schemes registered under the Specified Two-lot Schemes Module, a lot owner (or their representative) is entitled to reasonable access to the body corporate’s records. The body corporate, or a person appointed to keep the records, must make them available. A lot owner’s first request is free. Otherwise, fees apply to see or get copies of the records. The body corporate does not have to give access if:
Keeping and disposing of records
A body corporate must keep certain records. There are rules about how these records must be kept and when they can be disposed of. Keeping records This information is for schemes registered under the:
A body corporate must keep:
The body corporate must also keep rolls and registers . These are:
A body corporate can choose to keep any other records. Disposing of records Some records can be disposed of after 6 years (unless they are still current). They are:
Records in a Specified Two-lot Schemes Module A body corporate in a Specified Two-lot Schemes Module must keep:
Some records can be disposed of after 6 years (unless they are still current). They are:
These records can be disposed of after 2 years (unless they are still current):
Returning records
A body corporate must keep certain records. It can ask a person who has its records (or other body corporate property) to return them. Documents held by an individual A body corporate can ask for its records to be returned if the person got the records as:
For schemes registered under the Specified Two-lot Scheme Module, the request can be given by 1 or both lot owners. Often a body corporate will ask someone to return records after their body corporate management contract ends or when they stop being a committee member. However, the body corporate can ask for records to be returned at any time. It is an offence not to do so. A fine of up to $2,356 applies. A person cannot keep records until the body corporate pays a debt or meets some other obligation. Documents held by a body corporate manager If a body corporate manager’s engagement ends and they have records in electronic form, the body corporate can ask them to give it the records:
Body corporate rolls and registers
The body corporate must keep up-to-date information about lots (the roll) and registers. Registers record things like:
The roll of lots and entitlements The roll is a detailed list of information about each lot in a community titles scheme , as well as the original owner (developer). Information that must be kept on the roll includes:
Notices for roll A lot owner must tell the body corporate if there are any changes to information kept on the roll. They must do this within 2 months of the change. For example, within 2 months of becoming the owner of a lot, the owner must tell the body corporate their address and how they became the owner. Forms for roll information See the information for body corporate roll form for a guide to the details you must provide to the body corporate if you are an owner (or acting on behalf of the owner). A body corporate can send an information required by body corporate form if the lot owner has not given the body corporate all the information needed for the roll. Address for service The lot owner must give the body corporate an ‘address for service’. This is the address where notices from the body corporate and other information will be sent. If the address for service changes, the lot owner must give the body corporate the new address in writing. If no address for service is given, the body corporate will send all correspondence to the last address it has for the lot (whether inside or outside Australia). For schemes registered under the Standard Module, the address for service must be an Australian address. This is not required for schemes registered under the other regulation modules. There must only be 1 address for service even if there are 2 or more lot owners. Register of assets A body corporate asset is an item of real or personal property bought or received by the body corporate. A body corporate asset does not include property which becomes part of the common property. For example, a rainwater tank is a body corporate asset before it is installed. After it is installed it forms part of the common property. Any assets valued at more than $1,000 must be listed in an assets register. The register must include:
Register of engagements and authorisations The body corporate must have a register of any engagements of body corporate managers and service contractors and any authorisations of letting agents. The register must include:
Register of common property authorisations If a service contractor or letting agent is allowed (authorised) to use the common property, or if a lot owner is allowed to improve the common property, information about this must be kept in a register. The register must include:
Register of exclusive use allocations The body corporate must keep a register of areas and assets affected by an exclusive use by-law . These are by-laws that give a lot exclusive use of common property or body corporate assets. The register must include:
Register of reserved issues The body corporate can decide to stop its committee from making decisions on particular issues. These are known as reserved issues. Reserved issues can only be decided by ordinary resolution at a general meeting. The body corporate must keep a register of reserved issues. The register must include:
Regulation modules/ABOUT REGULATION MODULES
Most bodies corporate are a community titles scheme registered under the Body Corporate and Community Management Act 1997 (PDF). As well as the Act there are regulation modules which set out more detailed laws that a body corporate must follow. How modules apply There are 5 regulation modules for bodies corporate in Queensland. This is a general guide to the type of scheme each module is aimed at:
If you want to find out if your scheme is registered under the BCCM Act or find out what regulation module applies to your body corporate, you can get a copy of the community management statement from Titles Registry. Schemes that do not have a Community Management Statement registered do not fall under the BCCM Act and regulations. How modules are set Only 1 regulation module applies to a body corporate at any time. The regulation module for the scheme is set by the developer (original owner) of the scheme, unless the body corporate changed it later. Once a scheme is built, the developer has to register it by recording the plan of subdivision and a community management statement with the Lands Titles Registry. A community management statement has details about the scheme, including which regulation module applies. Changing a regulation module A body corporate can change the regulation module it is registered under if it believes another regulation module is more suited to the scheme. REGULATION MODULES/TWO-LOT SCHEMES MODULE
The Specified Two-lot Schemes Module aims to make the day-to-day management of community titles schemes with only 2 lots easier for owners. A body corporate under the Two-lot Schemes Module is formed by the owners of the 2 lots. Applying the Specified Two-lot Schemes Module The Specified Two-lot Schemes Module applies if:
Residential lots A residential lot is a lot that is used for residential purposes (people live there) including short or long term leases. In some cases the Specified Two-lot Schemes Module can still apply even when the lots are not residential. This could happen if:
For example, a new building with 2 lots was registered under the Specified Two Lot Schemes Module with the intention of selling the lots for people to live in. The lots were bought by someone who set them up as shops. The Specified Two Lot Schemes Module will still apply unless the body corporate changes the community management statement. Lot owner agreements Unlike other regulation modules where decisions are made either at committee or general meetings, a body corporate under the Specified Two-lot Schemes Module makes decisions by lot owner agreements. Lot owner agreements must:
Electronic communication (e.g. emails) must be consistent with the Electronic Transactions (Queensland) Act 2001 (PDF). An agreement made by 1 co-owner of a lot applies to all co-owners of that lot. For more information on committee and general meetings in other regulation modules see:
Owner’s representative The owner of a lot can be represented by someone else. The owner’s representative can be:
The owner’s representative must give the other lot owner:
The owner’s representative can make a lot owner agreement. Engaging a body corporate manager or service contractor The body corporate can (by a lot owner agreement) engage, or amend the engagement of a body corporate manager or a service contractor. An engagement must be in writing and it must set out:
Body corporate accounts The body corporate can (by a lot owner agreement) decide to keep body corporate funds in 1 or more accounts with a financial institution (e.g. bank or building society). However it is not required to do so by law. Funds held under a previous regulation If a scheme has changed from another regulation module (e.g. the Standard Module) to the Specified Two-lot Schemes Module, and the body corporate has funds that are held in a financial institution, the body corporate must:
Body corporate records The body corporate must (by a lot owner agreement) appoint someone to keep body corporate records. This person can be a lot owner; a representative of a lot owner, a body corporate manager or the owners of both lots. REGULATION MODULES/CHANGING A REGULATION MODULE
There are 5 regulation modules for bodies corporate in Queensland. The regulation module that applies to your body corporate is listed in its community management statement. A body corporate can change its regulation module at any time if it:
General meeting motion This information is for bodies corporate registered under the:A general meeting motion proposing to change the regulation module must include an explanatory note in the approved form which outlines the effects a change in the regulation module will have. The approved form is the BCCM Form 19. The explanatory note must be sent with the voting paper for the general meeting. Small and two-lot schemes If your scheme is registered under the Small Schemes Module or the Specified Two-Lot Schemes Module you do not have to include the BCCM Form 19 explanatory note with a motion or proposal to change the regulation module. Criteria to change You can only change your body corporate to a different regulation module if your scheme meets the criteria set out in the new module. Standard Module There are no restrictions under the Standard Module. Accommodation Module Under the Accommodation Module, the lots are mostly accommodation lots (or were when the community management statement was recorded). An accommodation lot is a lot that is let or available to be let, or is part of a hotel. Commercial Module Under the Commercial Module, lots are mostly commercial lots (were or were intended to be when the community management statement was recorded.) A commercial lot is for commercial, retail or industrial use, and is not an accommodation or residential lot. Small Schemes Module Under the Small Schemes Module there are no more than 6 lots, the scheme is not layered and there is no letting agent. Specified Two-lot Schemes Module Under the Two-lot Schemes Module — there are only 2 lots and both are residential (or were when the identifying this regulation module was recorded). The scheme is not layered and there is no letting agent. BODY CORPORATE DISPUTES* Please Click on "+" sign to expand and "-" sign to collapse the topic.
Types of dispute resolution/Practice directions
Practice directions are guides written by the Commissioner for Body Corporate and Community Management to help explain the rules for body corporate disputes and the steps you must follow. Practice directions give more information about the Body Corporate and Community Management Act 1997 (PDF, 2MB). They do not replace the Act or the Commissioner’s ability to decide what is required for a particular dispute. You can now download all 33 Practice Directions (PD) in one document. General—relating to most disputes:
Disputes—details the requirements for specific types of disputes:
Conciliation—details the requirements for conciliation:
Adjudication—details the requirements for adjudication:
Types of dispute resolution/Self resolution for disputes
If you have a dispute with the body corporate, the committee or another owner or occupier you must try to resolve it with the other party first. This is known by the Office of the Commissioner for Body Corporate and Community Management (the BCCM Office) as self resolution or internal dispute resolution. It is any reasonable steps taken by you to resolve the issue within the body corporate before making a formal dispute resolution application. It can involve you:
Get the committee involved If the committee can make a decision on your issue the first step may be to write to them outlining the matter and your request (this is called a motion). Sometimes the committee may not be able to make a decision— for example where an owner wants to make an improvement to the common property for the benefit of his or her lot and the work is valued at more than $3,000. You may have to submit a motion to the next general meeting if the committee cannot make a decision. Whenever you contact the committee (or the body corporate manager) you should do so in writing. Benefits of self resolution If you can resolve a dispute among yourselves it will:
A successful result Here is an example of how a dispute was resolved successfully. A lot owner (J) often let water run off her balcony after watering her plants with a timing device. The lot owner below (M) complained that water poured from rainwater spouts into his courtyard and onto his BBQ and furniture. The body corporate committee, responding to a letter with a written motion from M, asked J to either stop watering or remove the plants. J refused, saying that it was her right to maintain plants in her own home and that the spouts were there to drain water from her balcony. The argument got worse. J and M were yelling at one another whenever they were outside. J said she was proud of her plants and didn’t want them removed because they provided screening and a good environment for her unit. M said he had recently bought the BBQ and furniture, and enjoyed entertaining. He felt that the overflow from the watering was at its worse when he had guests. The committee helped J and M discuss the issues and reach an agreement. M agreed to move his furniture. J agreed to buy trays to put under each plant, to put in water-retaining soil, and to water less. J also agreed to change the timing device so plants weren't watered when M was likely to be entertaining. If self resolution fails You can apply for dispute resolution with us if self resolution fails. In most cases you must attempt conciliation as the compulsory first step in dispute resolution. In conciliation an impartial person (a conciliator) with knowledge of the Body Corporate and Community Management Act 1997 (PDF) helps those involved in a dispute to negotiate their own resolution. Conciliation normally involves either a face-to-face meeting or a teleconference between you, the other parties and the conciliator. You will be asked to show that you have tried self resolution before you can apply for dispute resolution. Types of dispute resolution/Conciliation for body corporate disputes
In conciliation an independent person who understands body corporate law (a conciliator employed by the Department of Justice and Attorney-General) helps you and the other parties try to resolve your dispute. You must show that you have tried to solve the problem yourself (called self resolution) before you can apply for conciliation. Download the conciliation application form. There are fees for conciliation applications. Benefits of conciliation Conciliation can often resolve issues more quickly than adjudication—a more formal dispute resolution process where parties provide written submissions and we make an order. Conciliation can help those involved to:
Role of the conciliatorA conciliator:
A conciliator does not:
Preparing for conciliation To get the best from your conciliation, you should:
Attending a session Only the people involved in the dispute can attend meetings with the conciliator. However, you may be able to have a support person with you, usually a friend, if the conciliator agrees. In some circumstances a conciliator may also allow an agent to represent you. If you can't attend a scheduled conciliation session you must let the conciliator know as soon as possible. In exceptional circumstances, the conciliator may arrange another session. If you are the applicant and don't attend the conciliation session (or make a reasonable attempt to be there) you may not be able to apply for adjudication on that dispute. A respondent (i.e. the other person in the dispute) who does not make a reasonable attempt to attend may have to repay the applicant's conciliation and adjudication application fees, if the applicant asks the adjudicator for this outcome in an adjudication application. If you agree An agreement you and the other party reach will be written up by the conciliator. You and the other party will then sign that agreement. Conciliation agreements are not enforceable under the Body Corporate and Community Management Act. Consent orders If you reach an agreement in the conciliation session, and both parties want the agreement formalised as a consent order (meaning the agreement will be enforceable), the Commissioner must refer the agreement to an adjudicator for a consent order. The adjudicator may, in his or her discretion, issue a consent order. If you don’t agree You may choose to apply for adjudication if your dispute cannot be resolved by conciliation. You will be charged an adjudication fee. If you apply for adjudication you will have to abide by the adjudicator’s decision. Privacy Please be aware that we will provide your application to the other party. Read more about privacy and access to personal information. Types of dispute resolution/Adjudication for body corporate disputes
Adjudication is a more formal process than conciliation. An adjudicator makes a decision after considering the application and written submissions from all those affected by the dispute. You can only make an adjudication application if you (as the applicant) have tried self resolution and in most cases attempted conciliation with the Office of the Commissioner for Body Corporate and Community Management (the BCCM office). Download the adjudication application form. What disputes can be decided by adjudication Adjudicators determine disputes that involve claimed contraventions (breaches) of:or
Disputes an adjudicator cannot decide An adjudicator cannot:
The adjudication process Applying To apply for adjudication, you must complete the adjudication application form. You will be asked for more details if your application is not complete, is unclear, or does not meet the requirements of the legislation. Your application could be rejected if you do not provide all the information requested. You can amend or add to your application after it is lodged. If your amendment is not received before submissions have been sought from others, conditions may be imposed (e.g. you may have to send the amendments to everyone who has been asked to make a submission). Submissions The respondent (i.e. the other person in the dispute) and others affected by the dispute will usually be asked to make a written submission. If invited to make a submission, it is an individual's choice if he or she wants to do so. However, if you choose not to make a submission you need to be aware that this may limit your ability to appeal any order made. Those invited must make any submissions within a specified timeframe. In some cases, the Commissioner may extend the time limit. The body corporate, a committee member or anyone who has made a submission may ask for a copy of the application and all submissions. The BCCM Office must charge a legislative fee for the copies and it must be paid by whoever requests them. Right of reply You (the applicant) can make a written reply to the submissions. You are the only person who has a right of reply. Your reply must not bring up any new issues. If it does, your reply might have to be circulated to the others involved for further submissions. This could delay the dispute. Ways to resolve the dispute Once the reply period has ended, the Commissioner will decide the best way to resolve the dispute. The most common options include:
What the adjudicator considers When considering a dispute, an adjudicator has the power to:
The adjudicator will make a formal order deciding the dispute after considering:
Adjudicator’s orders An adjudicator must decide whether an order should be made. An adjudicator can make an order that is ‘just and equitable’ to resolve the dispute. For example:
An adjudicator can dismiss an application if it is frivolous, vexatious or without substance. You (the applicant) may have to pay up to $2,000 in costs if your application is dismissed for one of these reasons. An adjudicator can also dismiss an application for other reasons such as:
Withdrawing an application If you decide you don’t want to proceed with your application—because the dispute is resolved or for any other reason—you can ask in writing to withdraw the application. The application fee will not be refunded. Enforcing an adjudicator’s order The Magistrates Court can enforce the adjudicator's order. The court can impose fines of up to $48,000 if you do not comply with an order. Appealing against an order You can appeal an adjudicator's order with the Queensland Civil and Administrative Tribunal as per section 289 of the Body Corporate and Community Management Act. You must start the appeal within 6 weeks from the date of the adjudicator’s order (unless a later start is allowed by the court). Specialist adjudicators You can ask for a specialist adjudicator to be appointed to decide a dispute. This can be useful if your dispute is complex or requires expert knowledge. You and the other people in the dispute must agree on both appointing a specialist adjudicator and who that person will be. You must also agree on how you will pay the costs. Privacy Please be aware that we will make your application available to others in the dispute. Some information in your application will also be made public if the adjudicator makes an order. Read more about privacy and access to personal information. Types of dispute resolution/Enforcing adjudicators’ orders
An adjudicator has powers under the Body Corporate and Community Management Act 1997 (PDF, 1.4MB) (the Act) to decide disputes about a breach of the Act or the community management statement for a community titles scheme. An adjudicator is an independent decision maker and their decision is legally binding. Once an order is made it is expected that it will be followed. Adjudicators' orders can be enforced through the Magistrates Court. Enforcement is not an appeal—it is not a review or re-hearing of the original application. Neither the adjudicator who made the order nor the Commissioner for Body Corporate and Community Management are involved in proceedings to enforce an order. Contact the Magistrates Court for more information on the enforcement process. Starting an enforcement proceeding If an adjudicator’s order made in your favour is not complied with, you can apply to the Magistrates Court to have the order enforced. For example, an enforcement proceeding to get the person to do the work or pay the money as ordered by the adjudicator. You can look at sections 286 and 287 of the Act which explain what you need to do to enforce an order in the Magistrates Court. The forms and processes to enforce an order also have to comply with the Uniform Civil Procedure Rules 1999(PDF, 1.9MB) (UCPR). To start an enforcement proceeding you must give the Magistrates Court registrar both:
After it has been registered with the Magistrates Court, the adjudicator's order can be enforced as if it was a judgement of the court. Once you have the court's judgement, you can take enforcement proceedings. Enforcing an order to perform work If the order required a body corporate, committee, committee member or an owner or occupier to do something, the Magistrates Court may make an order appointing an administrator to do it. See section 287 of the Act for more information. If you want an administrator appointed, you must give the court the name of a suitable and willing administrator and complete form 9 (DOC, 48KB) of the UCPR. Enforcing an order to pay money You can apply to the court for:
Fines Anyone who does not carry out an adjudicator's order (other than an order for the payment of money) has committed an offence. They can be fined 400 penalty units which is currently in excess of $48,000. They may also have to pay other legal and court costs. You can look at section 288 of the Act which explains what you need to do to ask a court to impose a fine on the person who has not complied with the order. The form and process to do this has to comply with the Justices Act 1886. The court may then impose a penalty for non-compliance with the order and may also order the person to pay your costs for taking this action. This is a separate action you can choose to take that is not related to enforcing the order (outlined above). If you want to ask the Magistrates Court to impose a fine you must be one of the following:
The adjudicator who made the order, and the Commissioner for Body Corporate and Community Management, have no role in prosecuting someone for not complying with an order. Fees Fees may apply for registering an adjudicator’s order in the Magistrates Court. Fees may apply for filing a complaint and summons in the Magistrates Court. Types of dispute resolution/Adjudicators' decisions
Reading a decision that an adjudicator has made in a past case can help you understand how the body corporate legislation is interpreted and applied. The subject matter or details of a past dispute may not be the same as a situation within your own body corporate. However the adjudicator's decision may give you general information about the dispute resolution process. It will also help you understand how adjudicators make 'just and equitable' decisions when resolving body corporate disputes. A list of adjudicator's decisions made since 2000 is available online. You can search the online database of decisions by the name of the scheme which was involved in the dispute, the date of the decision, or words in the decision. Decisions made before August 2008 While adjudicator's decisions made before August 2008 may be relevant they will reference regulation modules made in 1997 rather than the current regulation modules. Also, many sections of the BCCM Act (PDF) were renumbered in March 2003. So decisions made before that date will reference the previous section numbers. Types of dispute resolution/Search of adjudicators' orders
Body Corporate and Community Management Act 1997.
Body corporate fees/Fees for body corporate dispute applications
You must pay a fee if you are applying for adjudication and/or conciliation. We can only process applications if the fee has been paid. The prescribed application fees for conciliation and adjudication are:
Inspecting applications and submissions During the adjudication process an ‘interested person’ can see or get copies of the application, submissions and reply to submissions. An interested person is usually:
The fees to inspect the application and/or the submissions are:
Fees for copies of the application, submissions and the reply to submissions are:
Body corporate fees/Fees for search of adjudicators’ orders
A body corporate dispute may go to adjudication if it cannot be resolved by conciliation or self-resolution. To resolve a dispute, an adjudicator makes an order. You can apply to see if any orders (or current adjudication applications) have been made for a particular community titles scheme. This is often done when people are thinking about buying a body corporate property. There is a fee for a search of orders. Conciliation applications are not recorded as part of a search for adjudicator’s orders and cannot be searched separately. Search fees Fees for a search of orders are:
Body corporate fees/Fees for access to body corporate records
Body corporate records are not private or confidential. Section 205 of the Body Corporate and Community Management Act 1997 (PDF, 2.03MB) allows interested persons to see and get copies of body corporate records. Fees are charged as set by the Act. The body corporate cannot charge any other costs for giving you the information (e.g. a charge for the body corporate manager’s time). You must write to the body corporate and ask for documents or an inspection and pay the correct fee. Once you have done this, the body corporate has 7 days to give you copies of the document or allow you to see them. A committee member is entitled to ‘reasonable access’ to body corporate records without having to pay a fee. Fees These fees apply for bodies corporate registered under the:
Fees are current as at 1 July 2016. Inspect the records The cost to inspect the records if you:
Copies of records To get copies of body corporate records, the fee is $0.65 a page. You do not have to pay the inspection fee if you only want to get copies. So if you ask for copies of specific documents, you only pay a fee of $0.65 per page and not the inspection fee of either $16.10 or $30.95 as well. Information certificates You can also ask for a body corporate information certificate. The information certificate sets out how much money has to be paid by a particular lot to the body corporate in its current financial year. This includes any amounts due but not paid. The fee for an information certificate is $59.65. There is an extra fee of:
Specified Two-lot Schemes Under the Body Corporate and Community Management (Specified Two-lot Schemes Module) Regulation 2011 (PDF, 559KB) the fees for access to records are different to other schemes. To inspect the records The fees to inspect body corporate records if you are:
The fee is $0.65 a page for copies of body corporate records. You do not have to pay the inspection fee if you only want to get copies. So if you ask for copies of specific documents, you only pay a fee of $0.65 per page and not the inspection fee of either $16.10 or $30.95 as well. Information certificates The fee for an information certificate is $59.65. There is an extra fee of:
Body corporate fees/Building Units and Group Titles Act fees
Some of the fees that apply under the Building Units and Group Titles Act 1980(PDF, 833KB) (BUGTA) and the Building Units and Group Titles Regulation 2008(PDF, 410KB) are listed on this page. Referees feesThese fees are paid to the referee in the Office of the Commissioner for Body Corporate and Community Management:
Fee for summons If there is an appeal against the order of a referee, the tribunal hearing the appeal may summon a person to attend the hearing. The fee to issue a summons (under section 103(1) of the BUGTA) is $76.50. It must be paid directly to the tribunal. Fees paid to the body corporateFees for some information and records must be paid directly to your body corporate. These are:
Glossary of dispute resolution terms
This glossary explains common terms used in dispute resolution by the Office of the Commissioner for Body Corporate and Community Management (the Commissioner’s Office). Adjudication The process of determining an adjudication application. Adjudicators consider written material submitted by parties, and undertake further investigations if required. Adjudication does not involve a hearing. Adjudicator A professionally qualified, independent decision-maker who determines adjudication applications under the BCCM Act. In making decisions, adjudicators are not subject to direction (for example, by the Commissioner or Attorney-General). See also Specialist Adjudicator Administrator A person appointed by an adjudicator to undertake specified functions of a body corporate, committee or committee member, such as calling a general meeting of the body corporate. Affected person A person named by an applicant as being affected by the outcome sought in a conciliation or adjudication application. Appeal An application by a person aggrieved by an order to overturn the order. Adjudicator’s orders can be appealed to QCAT on a question of law and referee’s orders can be appealed to the Magistrates Court. The BCCM Office is not a party to an appeal and has no role in the appeal. Applicant A person who applies for conciliation or adjudication under the BCCM Act or for an order of a referee under the BUGT Act. Application A request, made in the required form and accompanied by the prescribed fee, for conciliation or for an order of an adjudicator or a referee. Amendment A request by an applicant to change or add to their application. Amendments require the approval of the commissioner, which may be subject to conditions if sought after parties have been invited to make submissions. BCCM Act Body Corporate and Community Management Act 1997. BCCM Office Office of the Commissioner for Body Corporate and Community Management. Body corporate The legal entity created when a community titles scheme is established. All lot owners are automatically members of the body corporate. The ‘body corporate’ is different from the ‘committee’ elected to administer it on a day-to-day basis or a ‘body corporate manager’ engaged to assist with administrative duties. Distinct from a ‘body corporate manager’. Body corporate manager A manager (individual or a company) may be appointed by a body corporate to provide administrative services (for example, sending out levy and meeting notices). Distinct from a ‘body corporate’. BUGT Act Building Units and Group Titles Act 1980. Case management The assessment of an application to determine if it meets the requirements of the body corporate legislation, and the management of applications through to their referral to conciliation or adjudication. Commissioner Manages the dispute resolution and information services provided by the BCCM Office. The Commissioner makes decisions about the case management of applications under the BCCM Act, but does not consider the merit of an application, make orders, or review orders. Complex dispute A dispute which can only be determined by QCAT or a specialist adjudicator. Includes certain disputes about contractual matters and lot entitlement issues. Conciliation A process in which the parties to a dispute meet with a conciliator to try and reach agreement on how to resolve the dispute. Conciliator An impartial dispute resolution professional who assists parties to resolve their dispute. The conciliator does not decide the merits of a dispute or how to resolve it. Conciliation agreement The written document signed by the parties to a conciliation application, detailing the things they have agreed on. It is a good will agreement and is not legally enforceable. Consent order An order made in the terms agreed to by the parties. A consent order can be enforced but cannot be appealed. Declaratory order An application for an order about an operational matter where there is no dispute and no respondent (e.g., requests to change the financial year end date). A declaratory order is not appropriate where there is a dispute over an issue or an applicant is seeking an interpretation of or a ruling on a legal issue. Dispute resolution recommendation A decision of the commissioner or delegate as to how an application should be resolved (e.g. conciliation or adjudication). Dismissal A decision of the commissioner or an adjudicator not to decide an application that is within the jurisdiction, on the basis that it would be better determined in a court or tribunal of competent jurisdiction. Emergency application An application that can be referred to an adjudicator to determine without the usual submissions process, usually if there is no dispute (eg. if a body corporate seeks urgent authorisation of spending). Expeditable application An application for final orders that may be progressed more quickly, either because there is no dispute or because of the urgency of the circumstances. Extension Extra time which may be allowed on the due date to provide information, make a submission, or reply to submissions. Interim order A temporary order which puts an action on hold or keeps things as they are until a final order can be made about the dispute. Interim orders are distinct from expeditable applications. Jurisdiction The legislative power of a conciliator to conciliate an application; or an adjudicator or referee to decide an application. Order The written decision of an adjudicator or referee to determine an application, accompanied by a statement of reasons. An order may grant or dismiss the orders sought, or made alternative orders. An order is legally binding and enforceable. It is an offence to contravene an order. See also Interim order, Declaratory order and Consent order Parties to a dispute Those named in an application as being involved in a dispute – the applicant, respondent and affected persons. QCAT Queensland Civil and Administrative Tribunal. QCAT determines appeals of adjudicators’ orders and complex disputes, as well as disputes about debts owed by owners to a body corporate. Referee A professionally qualified, independent decision-maker who determines applications for orders under the BUGT Act. Regulation module Each community titles scheme is registered under one of five regulations (subordinate legislation) made under the BCCM Act which helps determine the procedures applicable to that scheme. Rejection A decision of the commissioner to end an application, for example because it is not within jurisdiction, or the applicant has not attempted self-resolution or conciliation, or the applicant has not supplied requested information. Reply to submissions A written response made by an applicant to the submissions made about their application. Respondent A person named by an applicant as the person against whom the outcome in an application is sought. Self resolution Attempts to resolve a dispute before lodging an application. Self-resolution is compulsory for all applications. Specialist adjudicator A professionally qualified, independent decision-maker who determines adjudication applications, particularly complex disputes, under the BCCM Act. Appointed by the commissioner at the request and with the agreement of the parties to the dispute. Submission Written comments on an application made by a person invited to make a submission. Submissions cannot be confidential. Withdrawal A request by an applicant not to proceed with an application. An application must be withdrawn in writing. e-Learning topics last updated 30 May 2016 and adapted with modifications from the BCCM Commissioner's Office Website under licence.
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