Queensland body corporate terms can be confusing, particularly when other states use different strata language. This guide explains common terms you may come across as a lot owner, occupier or body corporate member.
What are the most common Queensland strata and body corporate terms?
Queensland generally uses terms such as body corporate, community titles scheme, lot owner and body corporate manager. Terms such as strata scheme, strata title, proprietor and strata manager may be used informally, but they should not automatically be treated as Queensland legal terms.
A lot owner is a person or company that owns a lot in the scheme. An occupier is someone who lives in or uses a lot. A property manager manages an individual lot for its owner, including matters such as tenants, rent and repairs. A body corporate manager assists with the administration of the whole scheme.
You may also see these terms:
- Levies or contributions – amounts owners pay to fund the body corporate.
- Common property – areas and facilities not included in an individual lot.
- By-laws – rules that apply to the scheme.
- Committee – a group that helps make decisions and manage the body corporate.
- General meeting – a meeting where owners vote on body corporate matters.
- Minutes – the written record of what was discussed and decided at a meeting.
- Proxy – a person appointed to represent a voter at a general meeting.
- Resolution – a decision made through the required voting process.
You can read more in our guide to what a body corporate is.
What is a body corporate, community titles scheme and lot?
A body corporate is a legal entity created when land is subdivided and registered under the Land Title Act 1994 to establish a community titles scheme. All owners in the scheme automatically become members of the body corporate when they buy their lot.
A community titles scheme allows people to privately own an area of land or part of a building while sharing common property and facilities with other owners and occupiers. A scheme can include apartments, townhouses, houses, commercial spaces, shopping complexes and business parks. It is made up of 2 or more lots.
A lot is the area owned privately within the scheme. It may be an apartment, townhouse, house or commercial space. The registered survey plan shows the boundaries between each lot and the common property.
The body corporate administers common property and body corporate assets for the benefit of all owners. It also makes decisions about insurance, records, by-laws and the amounts owners must pay.
A body corporate manager is appointed to assist the body corporate with administration, financial management and compliance matters. The manager may also be authorised to carry out some or all of the committee’s powers. A property manager deals with an individual lot for its owner.
A contribution schedule lot entitlement helps determine the amount each owner contributes to body corporate expenses. These entitlements are recorded in the community management statement, subject to the requirements of the legislation.
What are common property, by-laws and the community management statement?
Common property is land and building areas that are not included in an individual lot. It may include shared entrances, driveways, stairways, gardens, lifts, roofs, external walls and other shared facilities. The body corporate is responsible for managing common property, although maintenance responsibilities can depend on the registered plan and the regulation module.
The body corporate must maintain common property in a good and structurally sound condition. Lot owners are responsible for maintaining their own lots in good condition. The registered survey plan and the community management statement can help you work out where a boundary lies and who is responsible for particular work.
By-laws are the rules for a community titles scheme. They explain what owners and other people living in the scheme can and cannot do. By-laws may regulate the use of lots and common property, including noise, parking, pets and exclusive-use areas.
The current by-laws for a community titles scheme are generally found in its registered community management statement. If a body corporate changes its by-laws, it must register a new community management statement with Titles Queensland. Older schemes may have more complicated arrangements for identifying which by-laws apply.
A community management statement, or CMS, is a registered document that contains information about the scheme. It can include the scheme’s by-laws and identifies the regulation module that applies. That module affects how matters such as meetings, voting, maintenance and finances are dealt with.
Owners should obtain and read the current by-laws for their scheme because the rules can differ between properties. If you are unsure which by-laws apply, check the CMS and the body corporate records.
What do body corporate committees, meetings, resolutions and proxies mean?
The committee represents owners and helps make decisions for the body corporate. It is responsible for the administrative and day-to-day running of the body corporate, making decisions on its behalf and putting lawful body corporate decisions into place.
For most community titles schemes, the body corporate elects a committee at each annual general meeting. Committee structures vary between regulation modules and scheme types. A committee will usually include a chairperson, secretary and treasurer, known as the executive positions, as well as ordinary members where applicable.
The chairperson chairs the general and committee meetings they attend. The chairperson does not have more authority than other committee members.
The secretary has functions including sending meeting notices, receiving nominations and handling voting papers and proxy forms. The secretary often takes minutes, although the legislation does not require them to do so.
The treasurer has limited duties under the legislation. A treasurer may prepare budgets, manage funds and prepare levy notices, but these are not mandatory treasurer duties where the legislation does not require them to be.
A body corporate manager may be a non-voting member of the committee if the body corporate has engaged one. The body corporate may authorise the manager to carry out some or all of the committee’s powers, but this does not make the manager an owner or a voting committee member.
An annual general meeting, or AGM, is a meeting held for owners once each year. The body corporate uses the AGM to deal with matters such as budgets, contributions and committee elections.
A general meeting allows owners to vote on matters listed in the notice and voting papers. Each lot generally gets 1 vote on each motion, subject to the applicable legislation and voting restrictions.
A committee meeting is a formally convened meeting where committee members consider body corporate business. A quorum is the minimum attendance required before a meeting can validly make decisions. Quorum requirements vary according to the meeting type, regulation module and circumstances, so the figures from another scheme may not apply to yours.
A resolution is a decision made through the voting process required for the particular motion. Not every decision has the same voting requirement. Some matters must be decided by owners at a general meeting, while the committee can deal with other matters within its authority.
A proxy is a person who represents a voter at a general meeting. The appointment must be made using the required proxy form and given to the secretary before the meeting, unless an earlier time is set by the body corporate. Proxy eligibility, limits and restrictions depend on the regulation module.
What do levies, contributions, budgets and sinking funds mean?
Levies and contributions are amounts owners pay to fund the body corporate’s expenses. The body corporate budgets for its expected expenses and then levies each owner for their share.
The administrative fund pays for the body corporate’s day-to-day expenses. These may include routine maintenance, insurance, management costs, utilities and other operating expenses.
The sinking fund pays for longer-term capital expenditure and major common-property work. Examples may include painting common property or replacing shared building items. The body corporate keeps separate administrative and sinking fund budgets for these purposes.
A budget is an estimate of the body corporate’s expected expenses for the financial year. The body corporate agrees on its administrative and sinking fund budgets and works out how much each lot must contribute. It also decides the number of instalments and when they are due.
Annual levies are decided at the AGM. The payment frequency is not universal, because the body corporate decides the number of instalments and the due dates for the relevant financial year.
A special contribution, often called a special levy, may be raised when unexpected costs arise during the financial year, or when the budget does not contain enough money for an expense. For example, additional money may be needed if common-property painting costs more than the amount allowed for in the sinking fund budget.
Contribution amounts are generally based on the contribution schedule lot entitlements recorded in the CMS, unless the legislation provides otherwise. Owners must receive written notice of the contributions they owe, including the amount and due date.
What are building format plans, standard format plans and utility infrastructure?
A building format plan defines land using structural elements of a building, such as floors, walls and ceilings. This type of plan commonly applies to multi-storey unit complexes and may also apply to some townhouse developments.
A standard format plan defines land horizontally using survey marks or structural references. This may include survey pegs or the corner of a dwelling.
The type of plan registered for your scheme affects where lot and common-property boundaries sit. It can also affect who is responsible for maintenance. You can obtain a copy of the registered survey plan and CMS from Titles Queensland.
Utility infrastructure includes the pipes, cables, drains, ducts, meters, plant and equipment used to supply lots or common property with utility services. Utility services may include water, gas, electricity, telecommunications, television, sewerage, drainage and waste removal.
The plan, CMS and applicable regulation module should be checked before deciding who is responsible for repairing or maintaining utility infrastructure. A boundary or service that appears to belong to one lot may have a different responsibility under the scheme’s documents.
Knowing the difference between a lot, common property, the body corporate and your individual property manager makes body corporate decisions easier to follow. If you need help understanding how these terms apply to your scheme, contact our team at reception@stratacare.com.au.
