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The community management statement explained

July 31, 2023

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All body corporates in Queensland that are regulated by the BCCM Act must have a Community Management Statement (CMS). The CMS is the document that establishes a body corporate once it has been registered and contains all the essential information for the body corporate. 

This document is recorded with the Queensland Land Title registry and can be updated if the body corporate decides to make any changes. 

How is the community management statement created? 

The CMS is created after the development has been completed. It is submitted to council with final survey plans for sealing. The notarised CMS is then submitted to the Titles Office, together with the survey plans for the titles to be relinquished and identified as separate lots. 

What does the community management statement contain? 

The body corporate’s legal name 
The regulation module of the body corporate 
The schedule of lot entitlements  – Schedule A
Explanation of the development of scheme land – Schedule B
The body corporate by-laws  – Schedule C
Any scheme details required to be included – Schedule D
Any exclusive use areas allocated to the lots  – Schedule E

The schedule of lot entitlements - Schedule A

Schedule A includes two schedules of lot entitlements: the contribution schedule lot entitlements (CSLE) and the interest schedule lot entitlements (ISLE).

The contribution schedule

The contribution schedule determines each owner’s share of most body corporate costs. When the body corporate is initially created, the contributions are determined by either two principles: equality or relativity.

Equality Principle – The equality principle requires lot entitlements to be equal, unless it is not equitable for them to be so. For instance, if a lot owner uses more water or engages in a higher-risk activity, it maybe be reasonable for them to have a higher contribution schedule lot entitlement than the other lot owners.

Relativity Principle–The relativity principle considers several factors when determining lot entitlements. These factors include the nature, features and characteristics of each lot, how the scheme is structured, the use of each lot, how each lot affects the cost of maintaining the common property, and the market value of each lot.

The interest schedule

The relativity principle considers several factors when determining lot entitlements. These factors include the nature, features and characteristics of each lot, how the scheme is structured, the use of each lot, how each lot affects the cost of maintaining the common property, and the market value of each lot.

Explanation of the development of scheme land - Schedule B

Schedule B outlines the development of future stages of the scheme land.

The body corporate bylaws - Schedule C

Schedule C contains the Body Corporate by-laws, which outline the rules that owners and tenants must follow. These by-laws cover a range of topics, including noise restraints, parking requirements, permitted use of lots and facilities, behaviour on common property, animal keeping, lot appearance, damage to common property, repairs and alterations, money recovery, signage and security.

Owners should review the body corporate by-laws to avoid inadvertently breaching them.

Any scheme details required to be included - Schedule D

Schedule D may include service easements, location diagrams for phone, electricity and sewerage lines within common property.

Any exclusive use areas allocated to the lots - Schedule E

Schedule E outlines the exclusive use areas, such as car parking, courtyards and storage space, and identifies the allocations made for such areas.

Obtaining the community management statement

To obtain the latest copy of the CMS for a body corporate, individuals can contact Titles Queensland or their body corporate manager.

Whenever the body corporate makes a decision that affects the CMS, such as changes to the schemes by-laws, a new CMS must be lodged with Titles Queensland within three months. This ensures the most current information is available for those interested in purchasing a copy. It’s important to note that a CMS has no legal impact until it is registered with Titles Queensland.

If you are considering purchasing within a community titles scheme, it may be helpful to search the body corporate records, including minutes of previous general meetings, to confirm that the CMS you received is up-to-date or if changes are imminent.

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