Last month, we took over a scheme that was being administered by a well known Brisbane Body Corporate Manager who shall remain nameless. Four of the lots in the scheme were needing major renovation of a lintel that was rusted. The estimated contract works was ~ $70-80,000. The Body Corporate Manager was expecting to raise a special levy on all seven lots in the scheme to pay for the remediation. This would have been correct if the scheme was a ‘Building Format Plan’ scheme. However, this was not the case. The scheme was a ‘Standard Format Plan’ scheme. Consequently, the responsibility is the lot owner of each of the four impacted lots. Each lot owner needs to maintain their lot in good condition. There is a role for the Body Corporate if all four lots agree to a voluntary opt-in proposal. Under this arrangement, there is a single contract of works with the Body Corporate. Each lot is charged with the appropriate proportion of the contracted works (this will usually be the cheapest approach). If a lot owner does not ‘opt-in’, the Body Corporate can step in and have the work completed in order that the lot is maintained in good condition. Failure to act, may cause loss of insurance for the scheme (the buildings were cojoined so insurance by the Body Corporate was required).
