Question: Our four lot complex is self-managed. Do standard body corporate laws apply differently to a small 4-lot scheme?
Answer: Even though you are a small scheme, the Small Schemes Module does not automatically apply.
Each scheme is governed by its Regulation Module, and there are several of those, tailored to suit different types of schemes. There is a Regulation Module for small schemes, which yours would be (as it’s under 6 lots), and it has slightly more relaxed provisions than for much larger schemes.
The issue is that even though you are a small scheme, the Small Schemes Module does not automatically apply. Whatever Regulation Module is recorded with the Titles Office is the Module which applies to you, until such time as it is changed. That requires a General Meeting and we know from experience that not all owners are always happy to change Regulation Modules.
With that in mind, we suggest:
- clarify your current Regulation Module (and go to the Titles Office to do that, if you are not sure what applies to you at present);
- if you want to then consider changing to a different Module, have a look at this excellent information provided by the Commissioner’s Office about what’s involved and what the key differences are; and then
- make sure you have a chat with your fellow owners about it all to make sure they understand what is at stake.
This is general information only and not legal advice.
Chris Irons Strata Solve E: chris@stratasolve.com.au P: 0419 805 898