Body Corporate lot contributions – angry owners, shots fired, back to the old rules…
In February 2009 an angry lot owner fired a bullet at a Gold Coast penthouse amid a bitter body corporate fee feud that is dividing bodies corporate across Queensland. As a result, the State Government presented a discussion paper of the controversial legislation.
The Current Law
Under the provisions of section 48(6) of the Body Corporate and Community Management Act 1997 when an application for adjustment of lot contributions is made, the Queensland Civil and Administrative Tribunal (QCAT) is required to adjust the respective lot entitlements of a body corporate so that all lots equally contribute to the costs of the Body Corporate unless it is just and equitable for the entitlements not to be equal.
The Supreme Court of Queensland in Fischer v Body Corporate for Centrepoint CTS 7779[1] has given consideration to the statutory requirement for equality of lot entitlements. In that case Chesterman J noted that the preferable view is that a contribution schedule should provide for equal contributions by lot owners except insofar as some lots can be shown to give rise to particular costs to the Body Corporate which other lots do not. For example, evidence of the cost of maintenance or painting on the exterior structure.
Whether a schedule should be adjusted is to be answered with regard to the demand made on the services and amenities provided by a Body Corporate to the respective lots or to their contribution to the costs incurred by the Body Corporate. When the starting point is equality, any departure from that position is allowable only where it is just and equitable to recognise inequality.
Robin Hood Arrives…
While some say that the legislation enables millionaire penthouse owners to slash their body corporate levies at the expense of other unit owners, others say they are paying 10 times more in body corporate fees than lower-floor residents to use the same facilities.
Gold Coast MP Peter Lawlor who has been driving the reversion to the previous situation, made a media statement on Friday 19 February 2010, stating,
“The present law means that in setting or adjusting body corporate contribution lot entitlements all lot entitlements should be equal, except to the extent that is just and equitable in the circumstances for them not to be equal. We’re putting a stop to this and changing the law so it’s fairer for everyone all round…The Queensland Government will allow those buildings and complexes which had lot entitlement adjustments made, to revert to their original method of dividing body corporate fees when the plan was registered.”[2]
What you need to do…
As lawyers knowledgeable in body corporate law and experienced in levy collection, we are able to provide comprehensive advice in relation to these matters. Whether you should seek an adjustment now, or wait upon the proposed changes depends upon your individual circumstances and we urge you to seek expert advice sooner rather than later.
For more information…
Contact Stuart Harrigan at redchip lawyers on 07 3852 5055 or stuarth@redchip.com.au .
[1] [2004] QCA214.
[2] http://statements.cabinet.qld.gov.au/MMS/StatementDisplaySingle.aspx?id=68549
