Qld Community Title Schemes - Two Lot Schemes - Admin and Sinking Funds

Discussion in 'Property Management' started by ray63, 3rd Jun, 2016.

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  1. ray63

    ray63 Member

    Joined:
    16th Mar, 2016
    Posts:
    20
    Location:
    NSW
    For a non-lawyer, reading legislation is not an enjoyable process (specifically Body Corporate and Community Management Act and Body Corporate and Community Management (Specified Two-lot Schemes Module) Regulation 2011.)

    I want to redevelop a site into three townhouses, one small lot home, and the other two on a community title/strata scheme. This is to reduce the extra costs of subdivision due to the need to provide separate utility services to each town house.

    Have I understood the 'Specified Two-lot schemes' correctly, in that this type of redevelopment could fall under this part of the legislation?

    Is does seem clear that a Body Corp Committee, and Body Corp meetings are not required for a Specified Two-lot scheme (s111D), but does a Specified Two-lot scheme require admin and sinking funds to be established (as they are for larger strata plans)? Since I want to retain all townhouses, I don't want to have to contribute to a sinking fund as this would lock up my funds.

    Is a formal body corporate manager required (even if it is an owner of one of the lots)? It seems not...

    How much does it cost to set up the documentation and register a two lot scheme?
     
    ray63, 3rd Jun, 2016
    #1
  2. Matthew Savage

    Matthew Savage Well-Known Member

    Joined:
    10th Nov, 2015
    Posts:
    86
    Location:
    Brisbane, QLD

    Hi Ray,

    I'm a body corporate manager in QLD and the company I work for sets up schemes.

    On your description the specified two-lot module sounds appropriate, as long as the small lot house doesn't need to be part of the scheme.

    There is no requirement for a joint fund at all - all bills are handled by a notice from one party to the other, so there are still disclosure requirements, but no levies. This format is relatively new and I look after some, but they are really designed to operate by owner agreement only, and not with a body corporate manager. The ones that we operate - we do collect levies so that there is not constant invoicing from one owner to the other - that's why they have a manager to avoid that work.

    Happy to discuss further if you PM me, and I can put you in touch with our team who sets them up.

    Matt
     
    Matthew Savage, 4th Jul, 2016
    #2