From very big hotels to small residential blocks and industrial complexes, each different property type has different wants and needs from its owners.
Body corporate legislation in Queensland has tried to create a framework that all manner of strata schemes can operate – called ‘regulation modules’
Each type of strata scheme is subject to differing rules depending on the regulation module it’s registered under.
What are the regulation modules?
There are five different types of regulation modules including:
- Standard Module – Highly regulated, suitable for predominantly resident owners
- Accommodation Module – Less regulated, suitable for predominately investment owners who let their lots
- Commercial Module – Some regulation, suitable for business premises
- Small Schemes Module – Little regulation, available to schemes of six lots or less
- Two Lot Module – Little regulation, available to schemes of two lots
Standard Module
As its name implies this module is the ‘default’ module for strata schemes in Queensland. It is highly regulated and suitable for all schemes but is especially suited for scheme’s where most owners live in their own lots.
Standard module schemes are the most highly regulated because, it’s thought, these are the people who own and live in the schemes.
Some Key Differences
- allows certain committee decisions to be “vetoed” by owners if more than half of the lots dispute the decision within 7 days so that any committee decision can only be implemented after those 7 days has passed.
- has limits on proxy use at general meetings.
- allows management rights contracts of up to 10 years.
- allows leases up to 3 years with a special resolution
Accommodation Module
This module is less regulated than the standard module and is suitable for schemes where most owners let (rent out) their lots, particularly for holiday accommodation.
Accommodation module schemes are intended for investors who are more commercially minded and therefore more capable of taking care of their own rights.
Some Key Differences
- has limits on proxy use at general meetings.
- has less restrictions on borrowing funds.
- allows management rights contracts of up to 25 years
- allows leases up to 10 years with a special resolution
Commercial Module
This module is suitable for commercial premises. Commercial lots are lots that are used for commercial, retail or industrial purposes.
Some Key Differences
- does not have a committee spending limit.
- has less restrictions on borrowing funds.
- allows management rights contracts of up to 25 years
- allows leases up to 10 years with a special resolution
Small Schemes Module
Suitable for schemes with 6 lots or less.
This module is designed with little regulation as it is assumed that most schemes smaller than 6 lots will be uncomplicated to run and needs less oversight.
Some Key Differences
- does not require voting papers to be sent for general meetings.
- Requires less committee members
Two Lot Module
Requires the scheme to have 2 lots in the scheme and no letting agent.
Duplexes and other two lot modules need very little in the way of regulation. Most will only share a driveway so this module is more a framework for when things go wrong.
Some Key Differences
- Is not required to elect a committee
- does not hold meetings.
Unsuitable Modules
There are many buildings in Queensland which are registered under Accommodation module when the owners are predominantly resident, or vice versa where a predominantly investor building is with standard module registration.
Furthermore, there are many duplexes that are registered under a standard module, creating far more restrictions and responsibilities than is necessary for this type of scheme.
Can you change from one regulation module to another?
Yes. However, to change from one regulation module to another, the body corporate must:
- Meet the qualifying criteria; and
- Pass a special resolution at general meeting and record a new Community Management Statement (CMS) reflecting the change.
How Modules Are Set
Only 1 regulation module applies to a body corporate at any time.
The regulation module for the scheme is set by the developer (original owner) of the scheme, unless the body corporate changed it later.
Once a scheme is built, the developer has to register it by recording the plan of subdivision and a community management statement with the Lands Titles Registry.
A community management statement has details about the scheme, including which regulation module applies.
If you have any questions about regulation modules do not hesitate to reach out to one of our friendly managers.
