What is a community management statement in Queensland?
A community management statement, or CMS, is a registered document that sets out information about a Queensland community titles scheme. It explains how the scheme is structured, which regulation module applies, and how owners share costs, rights and responsibilities.
The Body Corporate and Community Management Act 1997 (BCCM Act) provides the legal framework for most Queensland community titles schemes. A scheme is established when a plan of subdivision identifying the scheme land is registered and the first CMS is recorded. The body corporate is created when the community titles scheme is established.
The CMS works with the survey plan, the BCCM Act and the regulation module that applies to the scheme. The survey plan identifies the boundaries between lots and common property. The CMS records scheme-specific information such as lot entitlements and by-laws.
A CMS can help you understand:
- the name and identifying details of the scheme
- the regulation module that applies
- how contributions and other calculations are allocated
- the by-laws for the scheme
- proposed staged development
- easements and service arrangements
- exclusive-use areas.
A community titles scheme is made up of 2 or more lots. It may be a duplex, townhouse complex, residential unit block, high-rise building, shopping complex or business park.
The registered CMS is binding on the body corporate, its members, lot owners and, in relevant circumstances, occupiers. It has no effect unless it is recorded.
What information does a CMS contain?
The exact content depends on the scheme and the requirements that apply to it. The CMS must identify the scheme, state the applicable regulation module, and include contribution and interest schedules. It may also include by-laws, information about progressive development, layered arrangements and easements.
Important scheme details may include:
- the identifying name of the scheme
- the body corporate name
- the scheme’s unique identifying number
- details of the original owner for the first CMS
- the lots included in the scheme
- title and plan references
- the applicable regulation module
- contribution and interest schedule lot entitlements.
The CMS can also contain information to help owners understand the scheme’s rules, costs and common-property arrangements. For example, it may explain proposed development, identify relevant by-laws and show how lot entitlements are used to calculate contributions.
For a scheme intended to be developed progressively, the CMS may explain the proposed development and include concept drawings. This information can help you understand the development proposed for the scheme, but it does not guarantee that future works will occur.
A layered scheme contains multiple community titles schemes within a broader arrangement. The CMS may explain the structure or proposed structure of that arrangement. In a layered arrangement, the CMS for the higher scheme can affect how the CMS for a subsidiary scheme operates.
You can also read our guide to what a body corporate does for more information about the body corporate’s role.
What do lot entitlements in Schedule A mean?
Schedule A contains the lot entitlement schedules. There are 2 types:
- the contribution schedule
- the interest schedule.
Each lot is given a whole-number entitlement in each schedule. The schedules are recorded in the CMS and are generally set by the original owner, usually the developer, when the scheme is established.
The contribution schedule helps determine each lot owner’s share of most body corporate costs. It can also affect the value of an owner’s vote if a poll is called for an ordinary resolution. Some costs, such as certain insurance costs, may be calculated differently under the legislation or regulation module.
The interest schedule helps determine each owner’s share of the common property and body corporate assets if the scheme ends. It is also used to calculate the value of the lot for some local government rates, charges and other government calculations.
Lot entitlements do not mean that every body corporate cost is divided in the same way. For example, separately measured utility services may be billed directly to the relevant lot rather than divided using lot entitlements.
When reviewing Schedule A before buying, look at both schedules and consider how they relate to:
- regular body corporate levies
- possible voting calculations
- common property interests
- government rates and charges
- the scheme’s financial arrangements.
Lot entitlements can affect voting or other financial calculations in some circumstances. They are only one part of understanding the financial position of a property, so it is also sensible to review the body corporate certificate and records.
What are the CMS schedules for development, by-laws and easements?
The remaining CMS schedules deal with different parts of the scheme’s operation.
Schedule B: development
Schedule B can describe proposed staged development of scheme land. It may include concept drawings, information about future stages and details of future allocations. A layered scheme may also be described here or elsewhere in the CMS.
Treat proposed development information as a description of what is intended. It is not a promise that all proposed buildings, facilities or landscaping will be delivered.
Schedule C: by-laws
Schedule C contains the scheme’s by-laws. By-laws regulate the use of lots and common property, body corporate assets, services and facilities. They may cover noise, pets, parking, improvements and the use of shared areas.
A by-law must be consistent with the BCCM Act and other legislation. It must not be unreasonable, discriminate between types of occupiers or impose a monetary liability except where permitted for an exclusive-use by-law. A recorded by-law generally applies unless and until an adjudicator decides it is invalid.
A by-law may require approval for an animal or an improvement affecting common property. For an improvement, check the by-law and any separate approval requirements before starting work.
A body corporate can enforce its by-laws, but the available process depends on the issue. You can read more in our guide to by-laws explained.
Schedule D: easements and other provisions
Schedule D may contain easements, services location diagrams, architectural codes and landscaping requirements. Easements can provide rights to access or use another lot or common property.
Services location diagrams can show the location of service easements affecting standard format lots or common property. An easement may relate to access, utilities, shared building elements or maintenance. The CMS should be read with the survey plan and any other documents that apply to the property.
Architectural codes and landscaping requirements may affect fencing, building appearance or plantings. They do not guarantee that proposed development or future works will occur, and they should not be treated as a substitute for planning or building approvals.
What is an exclusive-use area in Schedule E?
Schedule E records exclusive-use areas allocated to a particular lot. An exclusive-use by-law gives the owner of that lot exclusive use, or other special rights, over part of the common property or a body corporate asset.
An exclusive-use area may include a common-property car park, courtyard or another identified part of the scheme. The specific rights, conditions and maintenance responsibilities depend on the wording of the exclusive-use by-law.
The lot owner with exclusive use will usually be responsible for maintaining and paying the operating costs of the area unless the by-law says otherwise. There are exceptions for some structural elements and utility infrastructure, so the by-law should be checked carefully.
An exclusive-use by-law under the BCCM Act generally requires a resolution without dissent and the written agreement or personal vote of the owner whose lot benefits from it. The new CMS must be recorded before the by-law applies.
An exclusive-use area is not the same as part of the lot itself. It remains common property or a body corporate asset, subject to the rights and obligations created by the by-law.
How can you obtain and check the current CMS?
The registered CMS is the current version of the scheme’s registered provisions. An existing CMS cannot simply be amended. A new CMS is recorded in its place when the scheme is changed.
Contact Titles Queensland about obtaining a copy of the registered CMS. Check the current CMS alongside:
- the survey plan
- the body corporate certificate
- the seller disclosure information, where relevant
- meeting minutes and other body corporate records
- the current by-laws
- information about levies, insurance and planned work.
If by-laws are changed, the body corporate must record a new CMS with Titles Queensland within 3 months after the motion to change the by-laws is passed. The change starts when the registrar records the new CMS, unless the by-law provides a later date.
A new CMS may also be required when a plan of subdivision affecting the scheme is lodged. In other circumstances, the BCCM Act provides a process for recording a new statement in place of the existing one.
If you are considering buying into a community titles scheme, check the CMS before signing the contract and compare it with the body corporate records. Meeting records can help identify proposed changes that are not yet reflected in the registered CMS. You can read more about accessing body corporate records.
A CMS explains the registered structure, costs, rules and shared-property arrangements that affect your community titles scheme. If you need help understanding how it applies to your scheme, contact StrataCare at reception@stratacare.com.au.
