The lot entitlements of a body corporate are split between the contribution and interest schedules. The contribution schedule determines the proportion that a lot owner will need to contribute to the body corporate’s budget and the interest schedule determines the share that each lot owner has in the common property of the body corporate. These are set when the body corporate is created by registering the community management statement with the Titles office. However, they can be changed, but they still must consistent with the principles set out in the BCCM Act.
The contribution schedule can be changed by a resolution without dissent at a general meeting of the body corporate. The meeting notice must state the proposed changes and the reasons why the changes are proposed.
The contribution schedule can be adjusted by a specialist adjudicator or by QCAT if a material change has occurred in the body corporate and a lot owner believes an adjustment is necessary.
The interest schedule can be adjusted by a specialist adjudicator or by QCAT if a lot owner makes an application. The interest schedule could be changed based on the market principle.
Either the contribution or interest schedules can be changed if two lot owners agree in writing to change the lot entitlements (with the consent of any mortgagee or lessee). However, this can only be done if the total interests do not change and do not affect anyone else. For example, if two lots had 2 and 4 interest schedule lot entitlements, they may agree to 3 and 3 instead. Once agreed to and notice is given to the body corporate, the body corporate must as quickly as practicable lodge a request to record a new CMS reflecting those changes.
This article is intended as general information only and should not be relied upon as legal advice. For specific legal advice please contact us here.