New Owners

Lot entitlements are numbers assigned to each lot in a scheme that determine two critical things: **Contribution entitlements** — determine how much of the levies you pay. A lot with a higher contribution entitlement pays a larger share. **Interest entitlements** — determine your voting weight at general meetings. A lot with higher interest entitlement has more votes. In many schemes both types of entitlement are the same number, but they can differ. Entitlements are set when the scheme is registered and recorded in the community management statement. They can only be changed by a resolution without dissent of all lot owners — making them very difficult to alter in practice. Before buying, check the entitlements of the lot you are purchasing relative to other lots in the scheme. A lot with high entitlements pays more in levies but also has more voting power. This article is general information only and not legal advice.

Before settling on a lot in a body corporate scheme, you should obtain and review: - **Community management statement (CMS)** — by-laws, lot entitlements, exclusive use arrangements - **Most recent AGM minutes** — current budget, levy amounts, any decisions affecting the scheme - **Financial statements** — balance of the administrative and sinking funds - **Sinking fund forecast** — planned major expenditure over the next 10 years - **Body corporate search** — current levies, outstanding levies on the lot, any disputes or legal proceedings - **Seller's disclosure statement** — legally required information about the scheme's current state Review these documents carefully — ideally with your solicitor — before you are committed to purchase. They reveal the financial health of the scheme and any issues that will become your responsibility from settlement day. This article is general information only and not legal advice.

Yes. When you buy a lot in a body corporate scheme you take it subject to all existing by-laws, resolutions, contracts, and financial obligations of the body corporate. This includes: - All by-laws currently in force - Any approved special levies not yet collected - Ongoing contracts entered into by the committee - Any known maintenance issues or legal proceedings - Any exclusive use arrangements affecting common property near your lot You cannot refuse to be bound by decisions made before you purchased. This is why reviewing the AGM minutes, financial statements, body corporate search, and disclosure statement before settlement is so important — these documents reveal what you are taking on. An undisclosed pending special levy or unresolved legal dispute can become a significant unexpected cost. This article is general information only and not legal advice.

There are several ways to find out the current levy amounts for a lot you are considering buying: **Seller's disclosure statement:** The seller is legally required to disclose current levies before you sign the contract. **Body corporate search:** A specialist search agent compiles a report from the body corporate manager's records, showing current quarterly levies, any approved special levies, and the fund balances. This is the most comprehensive and reliable source. **Real estate agent:** Can usually provide the current levy schedule, though always verify against the formal search. **Direct contact with the body corporate manager:** If you have the manager's details, you can request a levy certificate. Factor the levies into your total ownership costs before purchasing — levies vary enormously between schemes and can be a significant ongoing expense. This article is general information only and not legal advice.

Under Queensland property law, a seller of a lot in a community titles scheme must provide the buyer with a body corporate information certificate (commonly called a disclosure statement) before the contract is signed. The disclosure statement must include: - Current levy amounts - Any special levies that have been approved - The financial position of the administrative and sinking funds - Any known defects or material facts about the scheme - Details of any current legal proceedings involving the body corporate If the disclosure statement is inaccurate and the buyer suffers loss as a result, the buyer may have a right to claim compensation or rescind the contract, depending on the nature and significance of the inaccuracy. Always have your solicitor review the disclosure statement carefully before you sign the contract. This article is general information only and not legal advice.

The community management statement (CMS) is the foundational document of a body corporate scheme. It is lodged with the Titles Registry and is a public document. The CMS sets out: - The by-laws governing the use of lots and common property - The lot entitlements (contribution and interest) for each lot - Any exclusive use arrangements - The management module that applies to the scheme - Details of any layered schemes or shared facilities The CMS is amended whenever by-laws are changed or exclusive use arrangements are created or modified. Each amendment is a new lodgement — the current version is the most recently registered one. As a new owner, obtain a current copy from the Titles Registry or your solicitor before settlement. You will be bound by its contents from the day you become an owner. This article is general information only and not legal advice.

A pre-purchase body corporate search is a report compiled by a specialist search agent before you buy a lot. It is one of the most important due diligence steps when buying into a strata scheme. A comprehensive search typically includes: - Current and historical levy amounts - Balance of the administrative and sinking funds - Outstanding levies on the specific lot - The 10-year sinking fund forecast - Recent AGM and committee meeting minutes - Insurance details and policy number - Any current or proposed special levies - Any known disputes or legal proceedings - Details of any orders or notices affecting the scheme The cost is usually a few hundred dollars. It is money well spent — identifying a poorly managed scheme, a depleted sinking fund, or an undisclosed upcoming special levy before you are legally committed can save you tens of thousands. This article is general information only and not legal advice.