Queensland: Body Corporate and Community Management Act 1997 (Qld)

Body Corporate and Community Management Act 1997 An Act providing for the establishment and administration of community titles schemes, and for other purposes Chapter 1 Preliminary Part 1 Introduction 1 Short title This Act may be cited as the Body Corporate and Community Management Act 1997. Part 2 Object and achievement of object 2 Primary object The primary object of this Act is to provide for flexible and contemporary communally based arrangements for the use of freehold land, having regard to the secondary objects. 3 How primary object is to be achieved For the achievement of its primary object, this Act provides for— (a) the establishment of community titles schemes; and (b) the operation and management of community titles schemes. 4 Secondary objects The following are the secondary objects of this Act— (a) to balance the rights of individuals with the responsibility for self management as an inherent aspect of community titles schemes; (b) to promote economic development by establishing sufficiently flexible administrative and management arrangements for community titles schemes; (c) to encourage the tourism potential of community titles schemes without diminishing the rights and responsibilities of owners, and intending buyers, of lots in community titles schemes; (d) to provide a legislative framework accommodating future trends in community titling; (e) to ensure that bodies corporate for community titles schemes have control of the common property and body corporate assets they are responsible for managing on behalf of owners of lots included in the schemes; (f) to provide bodies corporate with the flexibility they need in their operations and dealings to accommodate changing circumstances within community titles schemes; (g) to provide an appropriate level of consumer protection for owners and intending buyers of lots included in community titles schemes; (h) to ensure accessibility to information about community titles scheme issues; (i) to provide an efficient and effective dispute resolution process. Part 3 Interpretation 5 Dictionary The dictionary in schedule 6 defines particular words used in this Act. 6 Use of certain tags (1) In this Act, persons or things are sometimes given identifying tags, for example, a community titles scheme might be given the tag scheme A. (2) An identifying tag is generally used as a shorthand way of distinguishing one person or thing from another person or thing for a provision or series of provisions in the section or division in which the tag is established and used. (3) An identifying tag used for a provision or series of provisions may be used again, but refer to a different person or thing, in another provision or series of provisions. 7 Use of illustrations Schedule 1 contains examples of possible structures of community titles schemes and the accompanying text illustrates the use of various expressions used in this Act. 8 References In a provision of this Act about a community titles scheme, a reference to— (a) scheme land, is a reference to the scheme land for the scheme; and (b) the body corporate, is a reference to the body corporate for the scheme; and (c) common property, is a reference to common property for the scheme; and (d) body corporate assets, is a reference to body corporate assets for the scheme; and (e) the community management statement, is a reference to the community management statement for the scheme; and (f) the original owner, is a reference to the original owner for the scheme; and (g) by-laws, is a reference to the by-laws for the scheme; and (h) a body corporate manager, service contractor or letting agent is a reference to a body corporate manager, service contractor or letting agent for the scheme. Part 4 Key terms and concepts Division 1 Community titles scheme 9 Basic concept for Act—community titles scheme (1) A community titles scheme is the basic concept for this Act. (2) A community titles scheme can only be over freehold land. 10 Meaning of community titles scheme (1) A community titles scheme is— (a) a single community management statement recorded by the registrar identifying land (the scheme land); and (b) the scheme land. (2) Land may be identified as scheme land only if it consists of— (a) 2 or more lots; and (b) other land (the common property for the community titles scheme) that is not included in a lot mentioned in paragraph (a). Note— Common property for a community titles scheme is, effectively, freehold land forming part of the scheme land but not forming part of a lot included in the scheme. (3) Land can not be common property for more than 1 community titles scheme. (4) For each community titles scheme, there must be— (a) at least 2 lots; and (b) common property; and (c) a single body corporate; and (d) a single community management statement. (5) A community titles scheme is a basic scheme if all the lots mentioned in subsection (2)(a) are lots under the Land Title Act. (6) However, under this Act, a lot may be, for its inclusion in a community titles scheme other than a basic scheme, another community titles scheme. Note— Schedule 1 contains examples of possible structures of community titles schemes. 11 Meaning of body corporate assets (1) Body corporate assets, for a community titles scheme, are items of real or personal property acquired by the body corporate, other than property that is incorporated into and becomes part of the common property. Examples for subsection (1)— 1 an airconditioning unit might be bought by a body corporate as a body corporate asset, but become common property when it is installed as a fixture 2 a lot acquired by the body corporate under section 40 (2) Body corporate assets may consist of any property an individual is capable of acquiring. Examples for subsection (2)— freehold land, a lease, a licence to use land for a particular purpose, a billiard table, gardening equipment 12 Meaning of community management statement (1) A community management statement is basic to the identification of a community titles scheme. (2) A community management statement is a document that— (a) identifies land; and (b) otherwise complies with the requirements of this Act for a community management statement. 13 Meaning of original owner (1) The original owner for a community titles scheme means each person who, immediately before the establishment of the scheme, is a registered owner of a lot that, on establishment of the scheme, becomes scheme land. (2) If, immediately before the establishment of the scheme, land that becomes scheme land is in the possession of a person acting under the authority of a mortgage or an order of a court, the original owner includes the person acting under the authority. 14 Meaning of body corporate manager A person is a body corporate manager for a community titles scheme if the person is engaged by the body corporate (other than as an employee of the body corporate) to supply administrative services to the body corporate, whether or not the person is also engaged to carry out the functions of a committee, and the executive members of a committee, for a body corporate. 15 Meaning of service contractor A person is a service contractor for a community titles scheme if the person is 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. Examples of services that might be provided by a service contractor— 1 caretaking services 2 pool cleaning services 16 Meaning of letting agent and letting agent business (1) A person is a letting agent for a community titles scheme if the person is authorised by the body corporate to conduct a letting agent business for the scheme. (2) A person conducts a letting agent business for a community titles scheme if the person conducts, subject to the Property Occupations Act 2014, the business of acting as the agent of owners of lots included in the scheme who choose to use the person's services for securing, negotiating or enforcing (including collecting rents or tariffs for) leases or other occupancies of lots included in the scheme. (3) For subsection (2), a reference to a lot does not include a reference to a community titles scheme. (4) It is not relevant to the identification of a person as a letting agent under this section that the person also conducts an ancillary business or other activity. Examples of ancillary businesses or activities— 1 video hire 2 linen hire 3 agency for tour operator 17 Meaning of lease-back scheme and lease-back scheme operator A community titles scheme is a lease-back scheme if— (a) the scheme is a basic scheme; and (b) lots included in the scheme are the subject of registered or registrable leases to a person (the lease-back scheme operator); and (c) the lease-back scheme operator is the owner for each lot included in the scheme other than the lots mentioned in paragraph (b). Division 2 Concept of layered arrangement 18 Meaning of layered arrangement of community titles schemes (1) A layered arrangement of community titles schemes is a grouping of community titles schemes— (a) in which there is 1 community titles scheme (the principal scheme) that— (i) is not a lot included in another community titles scheme; and (ii) is made up of— (A) the scheme land for all other community titles schemes in the grouping; and (B) its own common property; and (C) each lot (if any) that is not a community titles scheme, but that is included in the scheme; and (b) in which there is at least 1 basic scheme; and (c) in which there may or may not be 1 or more community titles schemes located between the principal scheme and each basic scheme. Note— See schedule 1, parts 2 and 3 for examples of layered arrangements of community titles schemes. (2) Each community titles scheme, other than the principal scheme, in a layered arrangement of community titles schemes— (a) is a subsidiary scheme for the principal scheme; and (b) unless it is a lot included in the principal scheme—may also be a subsidiary scheme for another community titles scheme forming part of the layered arrangement. (3) A subsidiary scheme, for a community titles scheme (scheme A), is a community titles scheme the scheme land for which forms part of the scheme land for scheme A. (4) In this Act, the expression included in, if used in the context of the inclusion of a lot in a community titles scheme, establishes the relationship the lot has to the scheme and, in general terms, is used to establish that the lot is directly a part of the scheme, rather than only indirectly a part of the scheme. (5) The diagram and notes in schedule 1, part 3 illustrate more comprehensively how the expression 'included in' is used. 19 Provisions about lots that are community titles schemes If a community titles scheme (scheme A) includes a lot that is another community titles scheme (scheme B)— (a) a reference in this Act to the owner of the lot is a reference to the body corporate for scheme B; but (b) a reference in this Act to a lot included in scheme A does not include a reference to scheme B if the provision is about— (i) the subdivision of a lot; or (ii) the indefeasible title for a lot; or (iii) a lease or mortgage of a lot; or (iv) the occupier or registered proprietor of a lot. Division 3 Utility infrastructure 20 Utility infrastructure as common property (1) Common property for a community titles scheme includes all utility infrastructure forming part of scheme land, other than— (a) utility infrastructure that is— (i) a device for measuring the reticulation or supply of water for a community titles scheme established after 1 January 2008; and (ii) installed after 1 January 2008, under a permit issued under the Plumbing and Drainage Act 2018 or in relation to a compliance request made after 31 December 2007 under the repealed Plumbing and Drainage Act 2002, on infrastructure supplying water to a lot or land that is common property for the community titles scheme; or Note— Under the Water Supply (Safety and Reliability) Act 2008, section 35, the devices mentioned in subparagraph (i) are the property of the service provider supplying the water under that Act. (b) utility infrastructure, other than utility infrastructure mentioned in paragraph (a), that is— (i) solely related to supplying utility services to a lot; and (ii) within the boundaries of the lot (according to the way the boundaries of the lot are defined in the plan of subdivision under which the lot is created); and (iii) located other than within a boundary structure for the lot. (2) However, common property does not include utility infrastructure positioned within common property if— (a) its positioning is the subject of an agreement to which the original owner or the body corporate is a party; and (b) under the agreement, ownership of the utility infrastructure does not pass to the original owner or body corporate. Example of utility infrastructure for subsection (2)— cable television wires positioned in the service shaft of a multistorey building that is scheme land for a community titles scheme, if the wires remain in the ownership of a cable television provider (3) In this section— boundary structure, for a lot included in a community titles scheme, means a floor, wall or ceiling, other than a false ceiling, in which is located the boundary of the lot with another lot or common property. Division 4 Regulation modules 21 Meaning of regulation module (1) A regulation module is a regulation under this Act that states it is a regulation module for this Act. (2) A regulation module applies to a community titles scheme if the community management statement identifies the module as the regulation module applying to the scheme. (3) A regulation module does not apply to a community titles scheme (scheme A), despite anything in the community management statement, if— (a) the regulation module states circumstances that must exist for a community titles scheme if the regulation module is to apply to the scheme; and (b) the circumstances do not exist for scheme A. (4) A regulation module applies to a community titles scheme if— (a) the regulation module states that it is the regulation module that applies to a community titles scheme if no other regulation module applies to it; and (b) no other regulation module applies to the scheme including, for example, because the community management statement for the scheme— (i) fails to identify a regulation module as the regulation module applying to the scheme; or (ii) identifies as the regulation module applying to the scheme a regulation module that, under subsection (3), does not apply to the scheme. (5) A community titles scheme must have only 1 regulation module applying to it. (6) Different regulation modules may apply to different community titles schemes in a layered arrangement of community titles schemes. Chapter 2 Basic operation of community titles schemes Part 1 Establishment of community titles schemes 22 Names of community titles schemes The name of a community titles scheme is made up of— (a) an identifying name shown in the community management statement; and (b) the words 'community titles scheme'; and (c) the unique identifying number allocated under the Land Title Act, section 115E(2). Example of name of community titles scheme— Seaview community titles scheme 1234 23 Reservation of name A name may be reserved under the Land Title Act, section 115F, as the identifying name to be shown in the community management statement for a proposed community titles scheme. 24 Establishment of community titles scheme (1) A community titles scheme is established by— (a) firstly, the registration, under the Land Title Act, of a plan of subdivision for identifying the scheme land for the scheme; and (b) secondly, the recording by the registrar of the first community management statement for the scheme. (2) A community titles scheme is established when the first community management statement for the scheme is recorded. 25 Changing scheme by new community management statement (1) A community titles scheme may be changed by, or in conjunction with, the recording of a new community management statement. (2) The community titles scheme is changed when the new statement is recorded. 26 Changing structure of scheme (1) A layered arrangement of community titles schemes is established if a lot included in a basic scheme is subdivided to create a new community titles scheme. (2) A layered arrangement of community titles schemes may be changed by the progressive subdivision of lots to create subsidiary schemes. Note— Schedule 1, part 5 gives an example of progressive subdivision to create subsidiary schemes. 27 Establishing structures through combination (1) A new community titles scheme may be established if the new scheme includes, in addition to common property for the new scheme— (a) an already existing community titles scheme and 1 or more lots that are not community titles schemes; or (b) 2 or more already existing community titles schemes, whether or not lots that are not community titles schemes are also included. (2) For example, if 2 community titles schemes have already been established, a new community titles scheme could be established with the lots included in the new scheme constituted by the existing 2 schemes. (3) However, a community titles scheme may be established under this section only if— (a) the titling and subdivisional arrangements needed for the establishment are carried out under the Land Title Act; and (b) the new scheme that is established is— (i) consistent with the requirements of this Act for a community titles scheme; and (ii) a principal scheme. Note— Schedule 1, part 6 gives an example of the operation of this section. 28 Enlarging the number of lots through progressive subdivision The number of lots included in a community titles scheme could be increased (and the establishment or enhancement of a layered arrangement of community titles schemes avoided) through the progressive subdivision of lots under the Land Title Act, part 6A, to create further lots included in the scheme. Note— Schedule 1, part 4 gives an example of the operation of this section. 29 Notice about change of scheme being developed progressively (1) This section applies if— (a) a community titles scheme is intended to be developed progressively; and (b) the developer intends to change the scheme in a way that, if carried out— (i) would affect the nature of the development or 1 or more stages of the development; and (ii) would not be consistent with the current development approval for the scheme. (2) The developer must give written notice of the change as required under this section to— (a) the body corporate; and (b) each person who has entered into a contract with the developer to buy a proposed lot in the scheme. Maximum penalty for subsection (2)—300 penalty units. (3) The notice must be given at least 30 days before the developer applies for development approval for the changed scheme. Part 2 Bodies corporate 30 Creation of body corporate for community titles scheme When a community titles scheme is established, a body corporate is created, and is the body corporate for the scheme. 31 Membership of body corporate for community titles scheme The members of the body corporate for a community titles scheme are the owners of all lots included in the scheme. Notes— 1 If a lot included in the community titles scheme is itself a community titles scheme, the owner of the lot is the body corporate for the other scheme—see section 19. 2 Schedule 1, parts 7 and 8 illustrate body corporate memberships. 32Corporations Act does not apply to body corporate The Corporations Act does not apply to a body corporate. 33 Name of body corporate (1) The name of the body corporate for a community titles scheme is the words 'Body corporate for' plus the name of the scheme. Example of name— Body corporate for Seaview community titles scheme 1234 (2) The body corporate for a community titles scheme may sue and be sued in its corporate name. 34 [Repealed] Part 3 Common property Division 1 General provisions 35 Ownership of common property (1) Common property for a community titles scheme is owned by the owners of the lots included in the scheme, as tenants in common, in shares proportionate to the interest schedule lot entitlements of their respective lots. (2) Subsection (1) applies even though, under the Land Title Act, the registrar creates an indefeasible title for the common property for a community titles scheme. (3) An owner's interest in a lot is inseparable from the owner's interest in the common property. Examples— 1 A dealing affecting the lot affects, without express mention, the interest in the common property. 2 An owner can not separately deal with or dispose of the owner's interest in the common property. (4) If the occupier of a lot is not the lot's owner, a right the owner has under this Act to the occupation or use of common property is enjoyed by the occupier. (5) The way the body corporate for a community titles scheme (scheme A) may enjoy the occupation and use of the common property for a community titles scheme for which scheme A is a subsidiary scheme is subject to the community management statement for each scheme for which scheme A is a subsidiary scheme. (6) If a body corporate is authorised under this Act to enter into a transaction affecting common property, it may enter into the transaction, and execute documents related to the transaction, in its own name, as if it were the owner of an estate of fee simple in the common property. 36 Rights and responsibilities for common property (1) The body corporate for a community titles scheme may sue and be sued for rights and liabilities related to the common property as if the body corporate were the owner of the common property. Example— If a person, including the owner of a lot included in the community titles scheme, damages the common property, the body corporate may sue to recover the loss arising from the damage. (2) For common property other than common property for which an entity other than the body corporate is the occupier, the body corporate may sue and be sued as if the body corporate were the occupier. Example— If a person is injured while on the common property (other than common property for which an entity other than the body corporate is the occupier), an action claiming failure by the occupier to exercise a proper standard of care lies against the body corporate. (3) If, before a community titles scheme is established, a contract is entered into to have work carried out on land that becomes scheme land— (a) the body corporate is, on the establishment of the scheme, subrogated to the rights (if any) of the original owner under the contract to the extent that the contract applies to work affecting scheme land that is common property; and (b) a lot owner is, on the establishment of the scheme, subrogated to the rights (if any) of the original owner under the contract to the extent that the contract applies to work affecting scheme land that is the lot. 37 Creating common property (no new scheme) (1) If authorised by resolution without dissent, the body corporate for a community titles scheme may acquire, and incorporate with the common property for the scheme— (a) land in fee simple contiguous to scheme land; or (b) a lot included in the scheme. (2) Subsection (1) applies only if— (a) the titling and subdivisional arrangements needed for the acquisition are carried out under the Land Title Act; and (b) the scheme, as changed by the creation of the new common property, is consistent with the requirements of this Act for a community titles scheme. 38 Creating common property by subdivision (no new scheme) (1) This section applies if— (a) a lot included in a community titles scheme (scheme A) is subdivided by a plan of subdivision; and (b) the lots created under the plan of subdivision become lots in scheme A. (2) Land in the subdivided lot that does not become a lot in scheme A could become common property for scheme A. (3) However, if the community management statement for a community titles scheme for which scheme A is a subsidiary scheme provides that the land is to become common property for a scheme (the higher scheme) for which scheme A is a subsidiary scheme, the land could become common property for the higher scheme. 39 Creating common property from scheme land (new scheme) (1) This section applies if a lot included in a community titles scheme (scheme A) is subdivided and becomes a new community titles scheme. (2) Land in the subdivided lot that does not become scheme land for the new scheme could become common property for scheme A. (3) However, if the community management statement for a community titles scheme for which scheme A is a subsidiary scheme provides that the land is to become common property for a scheme (the higher scheme) for which scheme A is a subsidiary scheme, the land could become common property for the higher scheme. Division 2 Body corporate acquisition of, and dealing with, lot included in its own scheme 40 Acquisition for letting agent purposes (1) This section applies to the body corporate for a community titles scheme if the original owner control period for the scheme has ended. (2) The body corporate may acquire a lot included in the scheme if— (a) the lot is to become common property for use solely for— (i) a residence for a letting agent or service contractor (each a body corporate lessee) for the scheme; or (ii) a residence for the letting agent and an office for conducting the letting agent business; and (b) the body corporate, by resolution without dissent, authorises the acquisition for the use. 41 Lease If the body corporate acquires a lot under section 40, the body corporate must— (a) incorporate the lot with common property for the scheme; and (b) lease the part of the common property that is the incorporated lot (the lessee common property) to the body corporate lessee for a period not longer than the term of the person's authorisation as letting agent or engagement as a service contractor. 42 Prohibition on benefits (1) The body corporate must not receive, whether directly or indirectly, an amount or benefit by way of a premium for the lease. (2) If an amount or benefit is given to or accepted by the body corporate in contravention of subsection (1), the person who paid the amount or conferred the benefit may recover from the body corporate the amount, or the value of the benefit, as a debt. (3) Subsection (1) does not apply to an amount or benefit representing fair market value for an entitlement conferred by the body corporate under the lease. 43 Effect of ending of authorisation (1) If the body corporate lessee's authorisation as a letting agent or engagement as service contractor ends, whether by termination or otherwise— (a) the lease ends immediately; and (b) if the lessee common property is no longer to be used for a purpose mentioned in section 40(2)(a), the body corporate must convert the lessee common property to a lot in the scheme. (2) In incorporating a lot with common property under section 41(a), or in converting lessee common property to a lot under subsection (1)(b), the body corporate must ensure any necessary titling and subdivisional arrangements are carried out under the Land Title Act. 44 Body corporate interest in lot included in its own scheme The body corporate for a community titles scheme may have an interest in a lot included in the scheme if the interest is— (a) a registered easement for 1 or more basic utility services for the scheme; or (b) an interest acquired in a lot for section 37 or 40. Part 4 Body corporate assets 45 Ownership and enjoyment of body corporate assets (1) The body corporate for a community titles scheme holds the body corporate assets beneficially. (2) Property can not be a body corporate asset for more than 1 community titles scheme, although a body corporate asset may comprise a share as tenant in common in an item of property, including, for example, property in which the body corporate for another community titles scheme also has a share. (3) A body corporate may (in the way and to the extent this Act provides) acquire, and dispose of, a body corporate asset, but must not, except to the extent permitted under a regulation module, mortgage, or otherwise create a charge over, the asset. (4) The way the body corporate for a community titles scheme (scheme A) may use the body corporate assets for a community titles scheme for which scheme A is a subsidiary scheme is subject to the community management statement for each scheme for which scheme A is a subsidiary scheme. Part 5 Lot entitlements 46 Lot entitlements (1) A lot entitlement, for a lot included in a community titles scheme, means the number allocated to the lot in the contribution schedule or interest schedule in the community management statement. (2) The contribution schedule is the schedule in a community management statement containing each lot's contribution schedule lot entitlement. (3) The interest schedule is the schedule in a community management statement containing each lot's interest schedule lot entitlement. (4) The contribution schedule lot entitlement, for a lot, means the number allocated to the lot in the contribution schedule. (5) The interest schedule lot entitlement, for a lot, means the number allocated to the lot in the interest schedule. (6) A lot entitlement must be a whole number, but must not be 0. (7) For the contribution schedule for a community titles scheme established after the commencement of this subsection, the respective lot entitlements must be consistent with either— (a) the equality principle; or (b) the relativity principle. (8) For the interest schedule for a community titles scheme established after the commencement of this subsection, the respective lot entitlements must be consistent with the market value principle. (9) In deciding the contribution schedule lot entitlements for a community titles scheme under subsection (7)(a), or the interest schedule lot entitlements for a community titles scheme under subsection (8), regard must be had to— (a) how the scheme is structured; and (b) the nature, features and characteristics of the lots included in the scheme; and (c) the purposes for which the lots are used. (10) A change to a lot entitlement takes effect on the recording of a new community management statement incorporating the change. 46A Principles for deciding contribution schedule lot entitlements (1) The equality principle for deciding contribution schedule lot entitlements for the lots included in a community titles scheme is the principle that the lot entitlements must be equal, except to the extent to which it is just and equitable in the circumstances for them not to be equal. Examples of circumstances in which it may be just and equitable for lot entitlements not to be equal— • a layered arrangement of community titles schemes, the lots of which have different uses (including, for example, car parking, commercial, hotel and residential uses) and different requirements for public access or maintenance • a commercial community titles scheme in which the owner of 1 lot uses a larger volume of water or conducts a more dangerous or higher risk activity than the owners of the other lots (2) The relativity principle for deciding contribution schedule lot entitlements for the lots included in a community titles scheme is the principle that the lot entitlements must clearly demonstrate the relationship between the lots by reference to 1 or more particular relevant factors. (3) A relevant factor for subsection (2) may, and may only, be any of the following— (a) how the community titles scheme is structured; (b) the nature, features and characteristics of the lots; (c) the purposes for which the lots are used; (d) the impact the lots may have on the costs of maintaining the common property; (e) the market values of the lots. 46B Principle for deciding interest schedule lot entitlements (1) The market value principle for deciding interest schedule lot entitlements for the lots included in a community titles scheme is the principle that the lot entitlements must reflect the respective market values of the lots, except to the extent to which it is just and equitable in the circumstances for the individual lot entitlements not to reflect the respective market values of the lots. (2) The following apply for working out the market values of lots included in a community titles scheme— (a) if a lot included in the scheme is a subsidiary scheme, the market value of the lot is the market value of the scheme land for the subsidiary scheme; (b) for establishing the market value of a lot created under a standard format plan of subdivision or volumetric format plan of subdivision, buildings and improvements on the lot are to be disregarded. 47 Application of lot entitlements (1) This section states the general principles for the application of lot entitlements to a community titles scheme, but has effect subject to provisions of this Act providing more specifically for the application of lot entitlements. (2) The contribution schedule lot entitlement for a lot is the basis for calculating— (a) the lot owner's share of amounts levied by the body corporate, unless the extent of the lot owner's obligation to contribute to a levy for a particular purpose is specifically otherwise provided for in this Act; and Note— The regulation module applying to a community titles scheme might provide that a lot owner's contribution to some or all of the insurance required to be put in place by the body corporate is to be calculated on the basis of the lot's interest schedule lot entitlement. (b) other than for the owner of a lot included in a specified two-lot scheme, the value of the lot owner's vote for voting on an ordinary resolution if a poll is conducted for voting on the resolution. (3) The interest schedule lot entitlement for a lot is the basis for calculating— (a) the lot owner's share of common property; and (b) if the scheme is terminated under chapter 2, part 9, division 2 or 3—the lot owner's interest on termination of the scheme, including the lot owner's share in body corporate assets on termination of the scheme; and (c) the value of the lot, for the purpose of a charge, levy, rate or tax that is payable directly to a local government, the Commissioner of State Revenue appointed under the Taxation Administration Act 2001 or other authority and that is calculated and imposed on the basis of value. (4) Neither the contribution schedule lot entitlement nor the interest schedule lot entitlement for a lot is used for the calculation of the liability of the owner or occupier of the lot for the supply of a utility service to the lot if the amount of the utility service supplied to each lot is capable of separate measurement, and the owner or occupier is billed directly. 47A Adjustment of contribution schedule by resolution without dissent (1) The body corporate for a community titles scheme, by resolution without dissent, may change the contribution schedule lot entitlements for the lots included in the scheme. (2) The notice of the meeting at which the resolution is proposed to be passed must state, or be accompanied by a written notice stating— (a) the proposed changes to the contribution schedule lot entitlements; and (b) the reasons for the proposed changes to the contribution schedule lot entitlements. (3) The changed contribution schedule lot entitlements must be consistent with either— (a) the deciding principle for the existing contribution schedule lot entitlements; or (b) another principle, if it is a contribution schedule principle. (4) For subsection (3), if the deciding principle for the existing contribution schedule lot entitlements is the relativity principle based on 1 or more particular relevant factors (the original factors), the changed contribution schedule lot entitlements may— (a) under subsection (3)(a), be consistent with the relativity principle based on the same particular relevant factors; or (b) under subsection (3)(b), be consistent with— (i) the relativity principle based on 1 or more particular relevant factors that, when considered as a whole, are different to the original factors considered as a whole; or (ii) another contribution schedule principle. (5) The body corporate must, as quickly as practicable, lodge a request to record a new community management statement incorporating the change. Maximum penalty—100 penalty units. Note— Under section 46(10), a change to a lot entitlement takes effect on the recording of the new community management statement incorporating the change. (6) The new community management statement must be prepared and recorded at the expense of the body corporate. 47AA Dispute about resolution under s 47A (1) This section applies if a body corporate for a community titles scheme (the scheme) considers a motion under section 47A to change the contribution schedule lot entitlements for the lots included in the scheme. (2) If the body corporate passes the motion by resolution without dissent (the resolution) under section 47A, an owner of a lot included in the scheme may apply under subsection (3) if the owner— (a) was the owner of a lot included in the scheme when the body corporate passed the resolution; and (b) believes that the contribution schedule lot entitlements as changed by the resolution (the changed entitlements) are not consistent with whichever of the principles (the relevant principle) mentioned in section 47A(3)(a) or (b) was used as the basis for the change. (3) The owner may apply— (a) under chapter 6 for an order of a specialist adjudicator that the changed entitlements are not consistent with the relevant principle; or (b) as provided under the QCAT Act, for an order of QCAT, exercising the tribunal's original jurisdiction, that the changed entitlements are not consistent with the relevant principle. (4) Except as provided in subsection (3) and section 47AC— (a) an owner of a lot included in the scheme may not make any application under chapter 6, or to QCAT, in relation to a dispute about the changed entitlements; and (b) QCAT, or a department adjudicator or specialist adjudicator under chapter 6, has no jurisdiction to hear and determine a dispute about the changed entitlements. (5) Without limiting subsection (4), a department adjudicator or a specialist adjudicator under chapter 6 has no jurisdiction to determine a dispute about whether or not a body corporate acted reasonably under section 94(2) in deciding to pass, or not to pass, a resolution under section 47A. 47AB Procedural matters for application under s 47AA (1) This section applies if an owner of a lot included in a community titles scheme makes an application under section 47AA(3). (2) Despite any other law or statutory instrument, the respondent to the application is the body corporate. Note— The body corporate must be given notice of the application under— (a) for an application to a specialist adjudicator under chapter 6—section 243; or (b) for an application to QCAT as provided under the QCAT Act—the QCAT Act, section 37. (3) If the owner applies under section 47AA(3)(a) for an order of a specialist adjudicator under chapter 6— (a) at the election of another owner of a lot in the scheme, the other owner may be joined as a respondent to the application; and (b) each party to the application is responsible for the party's own costs of the application. (4) An owner of a lot included in the scheme who elects, under subsection (3)(a), to become a respondent to the application must give written notice of the election to the body corporate. 47AC Order of specialist adjudicator or QCAT on application under s 47AA (1) This section applies if, on an application under section 47AA(3), the specialist adjudicator or QCAT makes an order that the changed entitlements are not consistent with the relevant principle. (2) The body corporate must not lodge a request under section 47A(5). (3) Subsection (4) applies if the body corporate lodged a request (the original request) under section 47A(5) before the specialist adjudicator or QCAT made the order. (4) The body corporate must, as quickly as practicable after the specialist adjudicator or QCAT makes the order, lodge a request to record a new community management statement for the scheme that incorporates the contribution schedule lot entitlements that applied to the lots included in the scheme immediately before the body corporate passed the resolution under section 47A. Maximum penalty—100 penalty units. (5) However, the body corporate need not lodge a request under subsection (4) if— (a) the community management statement mentioned in the original request has not been recorded when the specialist adjudicator or QCAT makes the order; and (b) after the specialist adjudicator or QCAT makes the order, the body corporate is able to withdraw the original request; and (c) as a result of the body corporate withdrawing the original request, the community management statement mentioned in the original request is not recorded. 47B Adjustment of contribution schedule for particular schemes by order of specialist adjudicator or QCAT (1) This section applies if— (a) a community titles scheme is affected by a material change that has happened since the last time the contribution schedule lot entitlements for the lots included in the scheme were decided; and (b) the owner of a lot included in the scheme believes an adjustment of the contribution schedule for the scheme is necessary because of the material change. (2) This section also applies if— (a) a community titles scheme is established after the commencement of this section; and (b) there has been no change to the contribution schedule lot entitlements for the lots included in the scheme arising from— (i) a resolution passed under section 47A; or (ii) an order of a specialist adjudicator or QCAT mentioned in section 47AC; or (iii) a decision in relation to an appeal from an order of a specialist adjudicator or QCAT mentioned in section 47AC; and (c) the owner of a lot included in the scheme believes the contribution schedule lot entitlements for the lots included in the scheme are not consistent with the deciding principle for the lot entitlements. (2A) In addition, this section applies if— (a) a new community management statement is recorded for a community titles scheme to reflect a formal acquisition affecting the scheme; and (b) there has been a change to the contribution schedule lot entitlements for the lots included in the scheme because of the formal acquisition; and (c) the owner of a lot included in the scheme believes that, because of the change, the contribution schedule lot entitlements for the lots included in the scheme— (i) are not consistent with the deciding principle for the lot entitlements, or are not just and equitable to the extent the deciding principle allows; or (ii) if there is no apparent deciding principle for the lot entitlements, are not just and equitable. (3) The owner of the lot may apply— (a) under chapter 6, for an order of a specialist adjudicator for an adjustment of the contribution schedule for the community titles scheme; or (b) as provided under the QCAT Act, for an order of QCAT, exercising the tribunal's original jurisdiction, for an adjustment of the contribution schedule for the scheme. (4) Despite any other law or statutory instrument, the respondent to an application mentioned in subsection (3) is the body corporate. Note— The body corporate must be given notice of the application under— (a) for an application to a specialist adjudicator under chapter 6—section 243; or (b) for an application to QCAT as provided under the QCAT Act—the QCAT Act, section 37. (5) If the owner applies under chapter 6 for an order of a specialist adjudicator— (a) at the election of another owner of a lot in the community titles scheme, the other owner may be joined as a respondent to the application; and (b) each party to the application is responsible for the party's own costs of the application. (6) An owner of a lot in the community titles scheme who elects, under subsection (5)(a), to become a respondent to the application must give written notice of the election to the body corporate. (7) If the specialist adjudicator or QCAT orders an adjustment of the contribution schedule, the adjusted contribution schedule lot entitlements for the lots included in the community titles scheme must— (a) be consistent with the deciding principle for the existing contribution schedule lot entitlements, and be just and equitable to the extent the deciding principle allows; or (b) if there is no apparent deciding principle for the existing contribution schedule lot entitlements, be just and equitable. (8) If the specialist adjudicator or QCAT orders an adjustment of the contribution schedule, the body corporate must, as quickly as practicable, lodge a request to record a new community management statement incorporating the adjustment ordered. Maximum penalty—100 penalty units. Note— Under section 46(10), a change to a lot entitlement takes effect on the recording of the new community management statement incorporating the change. (9) To remove any doubt, it is declared that, if there is a deciding principle for the existing contribution schedule lot entitlements, the specialist adjudicator or QCAT can not change the deciding principle for the lot entitlements. 48 Adjustment of interest schedule (1) The owner of a lot in a community titles scheme may apply— (a) under chapter 6, for an order of a specialist adjudicator for the adjustment of an interest schedule; or (b) as provided under the QCAT Act, for an order of QCAT exercising the tribunal's original jurisdiction for the adjustment of an interest schedule. (2) Despite any other law or statutory instrument, the respondent to an application mentioned in subsection (1) is the body corporate. Note— The body corporate must be given notice of the application under— (a) for an application to a specialist adjudicator under chapter 6—section 243; or (b) for an application to QCAT as provided under the QCAT Act—the QCAT Act, section 37. (3) If the owner applies under chapter 6 for an order of a specialist adjudicator— (a) at the election of another owner of a lot in the scheme, the other owner may be joined as a respondent to the application; and (b) each party to the application is responsible for the party's own costs of the application. (4) An owner who elects, under subsection (3)(a), to become a respondent to the application must give written notice of the election to the body corporate. (5) The order of the specialist adjudicator or QCAT must be consistent with the market value principle, as applied in relation to the respective market values of the lots included in the scheme when the order is made. (6) If the specialist adjudicator or QCAT orders an adjustment of the interest schedule, the body corporate must, as quickly as practicable, lodge a request to record a new community management statement incorporating the adjustment ordered. Maximum penalty for subsection (6)—100 penalty units. Note— Under section 46(10), a change to a lot entitlement takes effect on the recording of the new community management statement incorporating the change. 48A Criteria for deciding whether contribution schedule lot entitlements consistent with deciding principle (1) This section applies if an application is made under section 47B(3) for an order of a specialist adjudicator or QCAT for an adjustment of the contribution schedule for a community titles scheme. (2) This section sets out the only matters to which the specialist adjudicator or QCAT may have regard for deciding whether the contribution schedule lot entitlements are consistent with the deciding principle for the lot entitlements. (3) The specialist adjudicator or QCAT may have regard to only— (a) the deciding principle for the contribution schedule lot entitlements; and (b) the information about the application of the deciding principle to the lots included in the scheme that is included in the community management statement; and (c) if the contribution schedule lot entitlements were decided on the equality principle, the matters to which the specialist adjudicator or QCAT may have regard under section 49; and (d) the matters raised by the applicant to support the assertion that the contribution schedule lot entitlements are not consistent with the deciding principle for the lot entitlements; and (e) the matters (if any) raised by each respondent to support the assertion that the contribution schedule lot entitlements are consistent with the deciding principle for the lot entitlements. 49 Criteria for deciding just and equitable circumstances (1) This section applies if an application is made for an order of a specialist adjudicator or QCAT for the adjustment of a lot entitlement schedule, decided on the equality principle or market value principle. (2) This section sets out matters to which the specialist adjudicator or QCAT may, and may not, have regard for deciding— (a) for a contribution schedule—if it is just and equitable in the circumstances for the respective lot entitlements not to be equal; and (b) for an interest schedule—if it is just and equitable in the circumstances for the individual lot entitlements not to reflect the respective market values of the lots. (3) However, the matters the specialist adjudicator or QCAT may have regard to for deciding a matter mentioned in subsection (2) are not limited to the matters stated in this section. (4) The specialist adjudicator or QCAT may have regard to— (a) how the community titles scheme is structured; and (b) the nature, features and characteristics of the lots included in the scheme; and (c) the purposes for which the lots are used. (5) The specialist adjudicator or QCAT may not have regard to any knowledge or understanding the applicant had, or any lack of knowledge or misunderstanding on the part of the applicant, at the relevant time, about— (a) the lot entitlement for the subject lot or other lots included in the community titles scheme; or (b) the purpose for which a lot entitlement is used. (6) In this section— relevant time means the time the applicant entered into a contract to buy the subject lot. subject lot means the lot owned by the applicant. 50 Limited adjustment of lot entitlement schedule—with agreement of owners of 2 or more lots (1) This section applies if the owners of 2 or more lots included in a community titles scheme— (a) agree in writing to change the lot entitlements of the lots; and (b) under the agreed change (the change), the total lot entitlements of the lots subject to the change (the changing lots) is not affected; and (c) the registered mortgagee and lessee (if any) of each of the changing lots has consented to the change; and (d) the owners of the changing lots have advised the body corporate in writing of the change. (2) The body corporate must, as quickly as practicable, lodge a request to record a new community management statement reflecting the adjustment agreed to. Maximum penalty—100 penalty units. (3) The new statement must be prepared and recorded at the expense of the owners of the changing lots. 51 Limited adjustment of lot entitlement schedule—after formal acquisition of part of scheme land (1) This section applies if a constructing authority— (a) by written notice, advises the body corporate for a community titles scheme, other than a specified two-lot scheme, that 4 months after the notice is given the authority proposes to lodge— (i) a new plan of subdivision for the scheme as required under the Acquisition of Land Act 1967, section 12A; and (ii) a request to record a new community management statement for the scheme as required under section 56(1) and the Land Title Act, section 115J; and (b) with the notice mentioned in paragraph (a), gives to the body corporate— (i) a copy of the proposed new plan of subdivision; and (ii) independent professional advice (the lot entitlement adjustment advice) from an appropriate person about any changes, subject to subsection (3), required to the lot entitlement schedules for the scheme to take account of the boundary change shown in the proposed new plan of subdivision; and Examples of an appropriate person— • lawyer • registered valuer (iii) a copy of the proposed new community management statement prepared by the constructing authority to reflect the formal acquisition for which the proposed new plan of subdivision is to be lodged. Note— For the adjustment of the lot entitlement schedules for a specified two-lot scheme in similar circumstances, see section 51A. (2) Within 3 months after receiving the notice under subsection (1) and before consenting to the new community management statement, the body corporate must call and hold a general meeting of its members to decide any changes to the proposed new community management statement to take account of the boundary change. (3) Any required changes set out in the lot entitlement adjustment advice must— (a) be consistent with the deciding principle for the lot entitlements, and be just and equitable to the extent the deciding principle allows; or (b) if there is no apparent deciding principle for the lot entitlements— (i) for contribution schedule lot entitlements—be just and equitable; or (ii) for interest schedule lot entitlements—be consistent with the market value principle. (4) The notice of the meeting must state or be accompanied by a copy of the lot entitlement adjustment advice. (5) Within 4 months after receiving the notice under subsection (1), the body corporate must— (a) do both of the following— (i) endorse the body corporate's consent on the new community management statement; (ii) give the constructing authority the endorsed new community management statement; or (b) give the constructing authority a written notice stating— (i) that the body corporate will consent to the new community management statement if changes are made to the statement; and (ii) the changes that the body corporate wants made to the statement; or (c) give the constructing authority written notice that the body corporate does not consent to the new community management statement. (6) If the body corporate gives the constructing authority an endorsed new community management statement under subsection (5)(a), the constructing authority may lodge a request to record the endorsed new statement. (7) If subsection (6) does not apply and 4 months have passed since the constructing authority gave the body corporate the notice under subsection (1), the constructing authority may lodge a request to record a new community management statement that— (a) if the body corporate has given the constructing authority a written notice under subsection (5)(b)—includes the changes requested by the body corporate, and is different to the proposed new community management statement mentioned in subsection (1)(b)(iii) only to the extent it includes those changes and changes of no substance (if any); or (b) if paragraph (a) does not apply—is the same as the proposed new community management statement mentioned in subsection (1)(b)(iii), or is different only to the extent that it includes changes of no substance. (8) Before lodging a request to record a new community management statement under subsection (7), the constructing authority must sign and date the new statement. (9) The registrar may record a new community management statement mentioned in subsection (7) despite section 54(2) and the Land Title Act, section 115K(1)(d). (10) The constructing authority is responsible for the costs of— (a) obtaining advice for the purposes of this section, including lot entitlement adjustment advice; and (b) preparing and recording the new community management statement under this section. (11) For applying the Acquisition of Land Act 1967, section 20, the economic losses and costs incurred by a body corporate or lot owner as a direct and natural consequence of the formal acquisition may include the economic losses and costs incurred for any of the following— (a) obtaining independent professional advice from an appropriate person about any changes, subject to subsection (3), required to the lot entitlement schedules for the scheme to reflect the formal acquisition; Examples of an appropriate person— • lawyer • registered valuer (b) holding or attending the meeting in response to the notice given by the constructing authority under subsection (1) for the proposed new plan of subdivision required to reflect the formal acquisition; (c) obtaining under section 47B or 48 an order of a specialist adjudicator or QCAT to change the contribution schedule lot entitlements, or interest schedule lot entitlements, for the lots included in the scheme following the recording of the new community management statement under this section to reflect the formal acquisition. 51A Limited adjustment of lot entitlement schedule for specified two-lot scheme—after formal acquisition of part of scheme land (1) This section applies if a constructing authority— (a) by written notice, advises the body corporate for a specified two-lot scheme, that 4 months after the notice is given the authority proposes to lodge— (i) a new plan of subdivision for the scheme as required under the Acquisition of Land Act 1967, section 12A; and (ii) a request to record a new community management statement for the scheme as required under section 56(1) and the Land Title Act, section 115J; and (b) with the notice mentioned in paragraph (a), gives to the body corporate— (i) a copy of the proposed new plan of subdivision; and (ii) independent professional advice (the lot entitlement adjustment advice) from an appropriate person about any changes, subject to subsection (3), required to the lot entitlement schedules for the scheme to take account of the boundary change shown in the proposed new plan of subdivision; and Examples of an appropriate person— • lawyer • registered valuer (iii) a copy of the proposed new community management statement prepared by the constructing authority to reflect the formal acquisition for which the proposed new plan of subdivision is to be lodged. (2) Within 3 months after receiving the notice under subsection (1) and before consenting to the new community management statement, the body corporate must decide by a lot owner agreement to either— (a) change the proposed new community management statement to take account of the boundary change; or (b) not change the proposed new community management statement. (3) Any required changes set out in the lot entitlement adjustment advice must— (a) be consistent with the deciding principle for the lot entitlements, and be just and equitable to the extent the deciding principle allows; or (b) if there is no apparent deciding principle for the lot entitlements— (i) for contribution schedule lot entitlements—be just and equitable; or (ii) for interest schedule lot entitlements—be consistent with the market value principle. (4) Within 4 months after receiving the notice under subsection (1), the body corporate must— (a) do both of the following— (i) endorse the body corporate's consent on the new community management statement; (ii) give the constructing authority the endorsed new community management statement; or (b) give the constructing authority a written notice