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Common property and lots – how a community titles scheme works

A body corporate is created when a community management statement is registered with the Titles Office. A body corporate is comprised of individual lots and common property. People can own those individual lots, but the common property itself is owned by the body corporate.

The body corporate, through the consent of lot owners, administers and maintains the common property and any assets owned by the body corporate. All lot owners have access to common property unless the CMS says that a lot owner has a exclusive use.

Otherwise, the common property must be managed for the benefit of all lot owners. Although a lot owner owns their own lot, it is ultimately subject to reasonable by-laws which must relate to the management of common property, though it may also affect the use of lots. For example, in order to prevent nuisance, a by-law may require minimised noise after 9pm.

To enable the common property to be managed, the body corporate must set a budget each year at an AGM. This budget is to cover the cost of administration and also further capital costs that may arise in the next 10 years. Each lot owner must then pay their proportion of the levies. These levies are used to pay for the maintenance and administration of the body corporate so everyone can benefit from the building being maintained.


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.


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