Queensland’s Two Lot Regulation Module
The government has made it easier for people owning units in Bodies Corporate comprising two lots (often known as duplexes). The new regulation module eliminates the red tape which must currently be followed.
Who can use it?
Queensland residential Duplexes only (2 lots).
How can we start using it?
AN AGM/EGM must first pass a motion (resolution without dissent) to be governed by the Two Lot Module. A new Community Management Statement must then be submitted within 3 months to the Titles Office.
How much does it cost?
Lodgement of a self prepared new Community Management Statement will cost ~ $100 when submitted by post.
When would we start being regulated under the new module?
On the day that the Titles Office advises that your new CMS has been recorded.
How does this new regulation module differ?
Your Body Corporate is currently subject to either the Small Lot Module which is designed for 2-6 units or the Standard Module which supports any number of units. This table shows
the principle differences.
| Feature | TWO LOT REGULATION | SMALL or STANDARD REGULATION |
|---|---|---|
| Are AGMs or EGMs required? | No. | Yes. |
| Is there a committee? | No. | Yes. |
| Are budgets or financial statements required? | No. | Yes. |
| Are records and rolls required to be kept? | Yes. | Yes. |
| How are decisions made? | Lot Owner Agreements. | Committee and AGM/EGM motions. |
| Can our decisions be made by email? | Yes, as long as there is evidence of a date the agreement was made and acceptance by both parties. | Not generally. |
| Is Insurance required to be taken by the Body Corporate? | Yes. | Yes. |
| How are disputes managed? | BCCM Dispute Resolution Service. | BCCM Dispute Resolution Service. |
| How are bylaws decided? | The CMS records the bylaws (or if not recorded then Schedule 4 of the Act). | The CMS records the bylaws (or if not recorded then Schedule 4 of the Act). |
| Is a Body Corporate Bank Account required? | Not mandated. | Yes. |
| Are there administration funds and sinking funds? | No. | Yes. |
| How are funds raised to pay for Body Corporate Expenses? | Contribution instalments for agreed expenses can be raised ad hoc by either lot owner or through an agreed instalment plan. Existing admin and sinking funds can be run down until new contributions are required. | Through contribution instalments that are set each year at an AGM. |
| How and when can a lot owner be made to pay overdue instalments? | Proceedings by the Body Corporate or a lot owner can immediately be commenced to recover amounts outstanding including the cost of the proceedings. | The Body Corporate must take action after 2 years of an outstanding debt. Action can be commenced earlier, but Bodies Corporate need to be careful that they apply a reasonable approach. |
| Must an Income tax return by submitted? | The answer is not dependent upon the choice of module. | The answer is not dependent upon the choice of module. |
Reasons for not changing
- The other lot owner never attends AGMs so my motions are always successful anyway.
- You like the requirement that money must be set aside to meet future sinking fund expenses.
- You like the requirement to review the financial accounts formally every year.
Reasons in favour of changing
- A Body Corporate Manager should not be needed.
- The other lot owner is always in arrears. Two years is too long to wait to commence proceedings.
- The other lot owner never agrees with anything so a dispute can be more immediately initiated.
- The burden of the red tape is overwhelming and makes the Body Corporate fees higher.
Tracsafe can help
Tracsafe has an option to complete the conversion to the two lot regulation for you. Review all of our Duplex Body Corporate services.