QLD: Community Management Statement (CMS) – What is it?

This article about community management statements has been provided by William Marquand, Tower Body Corporate.

This information in this article is relevant to all schemes in Queensland registered under the Body Corporate and Community Management Act 1997 (BCCMA) and any of the 5 regulation modules.

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The BCCMA provides for the establishment and administration of community titles schemes, for which there must be a single Community Management Statement (CMS) which is basic to the identification of a community titles scheme.

When a community titles scheme is established, a body corporate is created, and all owners of lots within the scheme are members of the body corporate. The CMS provides important details about the particular community titles scheme and when lodged in the Queensland Titles Registry, the form used bears the following notation:

This statement incorporates and must include the following:

• Schedule A – Schedule of lot entitlements.
• Schedule B – Explanation of development of the scheme land.
• Schedule C – By-laws.
• Schedule D – Any other details.
• Schedule E – Allocation of exclusive use areas.

This article, however, is less about why and how CMS’s are created but explains why this document is so important to all lot owners in body corporate facilities. The CMS sets out the name of the community titles scheme; the regulation module; other descriptive title information; and the 5 schedules mentioned above – information about which is set out below. These Schedules are particularly important to lot owners as they effectively determine who owns what, the rules by which all owners and residents are bound, and areas beyond each lot which are set aside for the exclusive use of the respective owner/resident.

Schedule A

Schedule A is a schedule of lot entitlements. There are 2 schedules of lot entitlements, the ‘contribution schedule’ and the ‘interest schedule’.

• The contribution schedule lot entitlements are used to calculate:
  
  • each owner’s share of most body corporate costs (some costs, like building insurance premiums, may be divided in a different way)
  • the value of an owner’s vote if a ‘poll’ is called for when voting on an ordinary resolution.

• The interest schedule lot entitlements are used to calculate:
  
  • each owner’s share of the common property and body corporate assets if the scheme ends (e.g. a scheme could be terminated if all lot owners agreed to dispose of the scheme because they wanted to redevelop)
  • the value of the lot for calculating local government rates and charges, and other costs.

The schedule of lot entitlements is set out in three columns as below:

Schedule A: Schedule of Lot Entitlements

Lot on Plan	Contribution	Interest
Lot 1031 on SP 17538	20	9
Lot 1091 on SP 17538	40	38
Lot 1092 on SP 17538	40	36
Lot 1093 on SP 17538	40	36

Lot entitlements are determined by the original owner (the developer) when preparing the first community management statement (CMS) for the scheme.

This page provides more information about ‘contribution schedules’ and the ‘interest schedules’: About lot entitlements.

Schedule BM

Schedule B sets out the development of the scheme land (where applicable) in accordance with s. 66(1)(f) and (g) of the BCCMA – which requires an explanation of the proposed development or future stages of the development.

Schedule C

Schedule C sets out the Body Corporate by-laws, effectively the rules by which owners and their tenants are bound. The by-laws detail such things as:

• restraints on noise;
• vehicle parking requirements;
• the permitted use of lots and facilities;
• the behaviour of owners/residents and their visitors on common property;
• the keeping of animals;
• the appearance of lots;
• damage to common property;
• repairs and alterations to lots and common property;
• the recovery of monies; signage and security etc.

Owners should be aware of what the by-laws provide for so that they do not inadvertently breach the by-laws. Owners should ensure that in the case of rented properties, tenants are provided with a copy of the by-laws.

Schedule D

Schedule D may set out the services location diagrams for the scheme, such as phone, electricity and sewerage lie within the common property or may include (for example) a statement such as follows:

Schedule D: Other Details Required/Permitted to be Included

Any Other Required or Permitted Details (if applicable)

Other Matters Required by Section 66 of the Body Corporate and Community Management Act 1997

Statutory Easements

Lot on Plan	Statutory Easement	Service Location Diagram
Common Property and all Lots in the Scheme	Easement for lateral or subjacent support under Section 115N of the Land Title Act 1994;	Not Applicable
Common Property and all Lots in the Scheme	Easement for utility servioces and utility infrastructure in accordance with Section 1150 of the Land Title Act 1994;	Not Applicable

Schedule E

Schedule E sets out ‘exclusive use areas’ such as car parking and storage spaces (as below) and where such allocations have been made, a plan.

Schedule E: Description of Lots Allocated Exclusive Use Areas of Common Property

Exclusive Use Carparking Areas (By-Law 53)

Lot No	Exclusive Use Area
Lot 103 on SP 17538	Car space area marked 28 on Plan A attached
Lot 103 on SP 17538	Car space area marked 28 on Plan A attached
Lot 103 on SP 17538	Car space area marked 28 on Plan A attached
Lot 103 on SP 17538	Car space area marked 28 on Plan A attached

Exclusive Use Storage Areas (By-Law 54)

Lot No	Exclusive Use Storage Space Area
Lot 2110 on SP 18629	Storage space area marked S2 on Plan G attached
Lot 2200 on SP 18629	Storage space area marked S1 on Plan D attached
Lot 2200 on SP 18629	Storage space area marked S2 on Plan G attached

Copies of the CMS for each community titles scheme may be held on the body corporate portal and if not should be held by the Body Corporate Manager or Body Corporate Committee Secretary.

The CMS will also available from the Queensland Titles Registry Office which can be contacted on P: 13 74 68.

Alternatively, you can create an account with CITEC Confirm and conduct your own searches and download any documents from over 40 government and commercial databases – P: 1800 773 773.

William Marquand
Tower Body Corporate
E: willmarquand@towerbodycorporate.com.au
P: 07 5609 4924

This post appears in Strata News #437.

Have a question about community management statements or something to add to the article? Leave a comment below.

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This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.

Read next:

• QLD: Approving Community Management Statements
• QLD: Records Management and Improvements to Common Property by Lot Owners
• QLD: Building Management Statements – what are they?

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