Lot Entitlements – Do you think further changes are required?

The Queensland University of Technology (QUT) Commercial and Property Law Research Centre, on behalf of the Queensland Government, has examined body corporate lot entitlement issues as part of a broad property law review. Lot entitlements are used to determine each lot owner’s share of expenses incurred by their body corporate. These costs typically relate to management, repair, maintenance and improvement of common property.

QUT has recommended discontinuing the use of contribution schedule lot entitlements and suggests instead categorising expenses into the following three categories to facilitate a more direct allocation of costs between lot owners:

• Category 1 expenses that benefit all lots equally
• Category 2 expenses that benefit all lots, but differently
• Category 3 expenses that benefit some, but not all, lots

Before making any decisions about possible changes to the lot entitlements system, the Government is seeking your feedback on QUT’s findings and recommendations. The Government is particularly interested in whether you think the recommendations would provide a fair and practical way of dividing body corporate costs between lot owners. You may also wish to provide your views on the costs and benefits of the recommendations.

To access the QUT report click here. To download a summary of QUT’s recommendations click here.

How to make a submission about lot entitlements

Submissions can be made until close of business on 23 December 2016.

Email to:

QUTreviewBCCM@justice.qld.gov.au

Post to:

QUT Review-BCCM C/- Office of Regulatory Policy
Department of Justice and Attorney-General
GPO Box 3111
Brisbane QLD 4001.

This article was contributed by Grant Mifsud. Grant is a Partner at Archers and is responsible for overseeing some of Queensland’s largest schemes under Archers management along with other executive management duties.