Queensland lot owners have asked about lot entitlement rules and adjusting lot entitlements in QLD body corporate.
Table of Contents:
- QUESTION: In our 10 level, 60 lot building, all lots are similar, but unit entitlements are not. Levies increase per level even though we all have equal access to facilities. Can unit entitlements be reviewed and adjusted?
- QUESTION: Our building is about to embark on major works. Should the cost be shared equally?
- QUESTION: My Body Corporate fees are higher per sq metre than the other 17 units in our scheme. Is there anything that can be done about adjusting lot entitlements?
- QUESTION: We need extensive repairs to the car park. As we all own equal shares of this area ie one car space plus common property, why should we pay based on lot entitlement rules?
Question: In our 10 level, 60 lot building, all lots are similar, but unit entitlements are not. Levies increase per level even though we all have equal access to facilities. Can unit entitlements be reviewed and adjusted?
Our 60 lot scheme with lots distributed evenly over 10 levels is about 20 years old. It is administered under the BCCM legislation as an Accommodation Module. All lots are similar but their lot entitlements for the admin fund and sinking fund are not. Each level pays about 2.5% more than the one below.
This year, for example, the level 10 lots are paying about $2,500 or 24% extra. We all have equal rights of access to the same facilities, e.g. lifts, pool, gym, boat pontoon, etc. Can the lot entitlements be reviewed so that each lot pays its fair share?
Answer: This is in the ‘too hard’ basket for government, and it has been since 2011.
This would appear to be a very clunky way to attribute a proportionate share of the body corporate costs. As it sits right now, the only way to change it is really by a resolution without dissent, meaning the lower level owners would have to agree to pay more as the upper level owners paid less. As you would expect, these types of motion rarely pass. This one is really in the ‘too hard’ basket for government at the moment, and it has been since 2011.
Frank Higginson Hynes Legal E: frank.higginson@hyneslegal.com.au P: 07 3193 0500
This post appears in the March 2024 edition of The QLD Strata Magazine.
Question: Our building is about to embark on major works. Should the cost be shared equally?
Answer: Costs will be split as per unit entitlements or any other cost specification that may exist and apply on your title documents.
Costs will have to be split as per your unit entitlements or any other cost specification that may exist and apply on your title documents.
This split may be exactly equal in some buildings but not in others. You would need to check your CMS to do this. It should be possible to produce a table of costs detailing what the cost for all lots will be.
It’s worth noting that while the legislation here is pretty clear, this is a fairly common question. Depending on the situation, Committees and owners sometimes feel it would be more reasonable for costs to be split equally regardless of the entitlements. An example might be if the complex were looking at installing a new intercom system to a block of units. Because everyone will get one intercom, some people view it as fairer that everyone pays one equal share of that cost. A motion to approve this could be drafted, but it would require 100 per cent of owners to agree. The likelihood of that is usually slim as some owners would have to pay more than under the entitlements system if they agreed – typically they don’t but it does happen on occasion. If this is not possible, the default applies.
William Marquand Tower Body Corporate E: willmarquand@towerbodycorporate.com.au P: 07 5609 4924
This post appears in Strata News #581.
Question: My Body Corporate fees are higher (per sq metre) than the other 17 units in our scheme. Is there anything that can be done about adjusting lot entitlements?
My Body Corporate fees are higher (per sq metre) than the other 17 units in our scheme. The fees were allocated around 2000.
I understand the QLD law has closed on making old Body Corporate fees equitable. Is there anything that can be done about adjusting lot entitlements?
The Body Corporate Committee isn’t interested in changing everyone’s fees to make mine equitable. I’m finding it difficult to sell because my fees are so much higher. I feel the inability to adjust lot entitlements is unfair.
Answer: There is nothing you can do about it.
To be honest, I agree that it is potentially unfair too, but there is nothing you can do about it.
Contributions schedule lot entitlement adjusted are effectively closed unless the other lot owners agree – which means their levies will increase. So, as you acknowledge, that is unlikely to happen.
We wrote a summary here at the time: That’s it for contribution schedule lot entitlement adjustments.
Frank Higginson Hynes Legal E: frank.higginson@hyneslegal.com.au P: 07 3193 0500
This post appears in Strata News #482.
Question: We need extensive repairs to the car park. As we all own equal shares of this area ie one car space plus common property, why should we pay based on lot entitlement rules?
In our apartment block, we need extensive work doing to the walls of the car park. The car park area does not form part of the main building. All owners have one parking area and the rest is common property. The tennis court and pool areas are above the car park.
It would seem unfair to me that if we have to pay an extra levy, some owners would have to pay more than others under lot entitlement rules when we all own the same portion of this ie. a parking spot and the rest is common property.
Has there ever been a ruling on this type of problem?
Answer: This has been a highly contentious issue for several governments for many years in Queensland and will likely be into the future.
It seems from your query that you’re referring to contribution schedule lot entitlements. Suffice to say that this has been a highly contentious issue for several governments for many years in Queensland and will likely be into the future.
If you’re after a ‘ruling’, you can research this database, potentially, using keywords.
For a fulsome overview of the topic, you might like to read this article: QLD: That’s it for contribution schedule lot entitlement adjustments.
Ultimately if you’re wanting to go down the path of considering an adjustment, you’ll need to seek legal advice.
Chris Irons Hynes Legal E: chris.irons@hyneslegal.com.au P: 07 3193 0500
This post appears in Strata News #378.
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