Community Management Statement

communityThe Community Management Statement (CMS) is a document that sets out the rules for living in a body corporate, the development of the body corporate, any common property allocated to individual lots and of course the all important who pays what towards upkeep.

The CMS sets out the name of the body corporate, the regulation module that applies and the real property address of the lots that are contained within that body corporate as well as five schedules – A through E.

SCHEDULE A – is the schedule of lot entitlements.

SCHEDULE B  – sets out the development of the scheme land. This only really applies if a body corporate is a standard format plan since with an apartment building its unlikely that new lots will be added.

SCHEDULE C – sets out the by-laws.

SCHEDULE D – sets out the services location diagrams for the scheme, which is a nice neat diagram that shows where the services such as phone, electricity and sewerage lie within the common property.

SCHEDULE E – sets out exclusive use allocations.

Does The Community Management Statement Change?

A CMS is actually designed to make the process of changing details about the body corporate easier and simpler to keep track of.

CMS’s change for a number of different reasons, the most common being the owners vote to do so at a general meeting, usually changing the by-laws. A change of by-laws requires a special resolution and a change of lot entitlements or exclusive use requires a resolution without dissent.

But CMS’s can be recorded for other reasons as well. New lots may be added to the body corporate, and that requires a new CMS. Land may be resumed by the Government who then record a new CMS to record the change. A change can also be ordered by the Adjudicator or the Court.

Do All Body Corporate’s Have A Community Management Statement

Some body corporates are registered under different Acts and they are governed by the Building Unit and Group Titles Act (BUGT Act). The Community Management Statement is a requirement under the BCCM Act 1997 so some body corporates will not have a CMS.

Body corporate’s that were registered prior to 1997 were registered without a CMS. In those days every body corporate was registered with the by-laws set out in the BUGT Act and if they wanted to change them they needed to register a Notification of Change of By-Laws. Amendments to those by-laws were registered in another Notification.

With the passing of the BCCM Act 1997 those older buildings were given a period of time to register a new CMS. Any building without a CMS was generated a standard CMS on 15/7/2000. The by-laws are taken to be those in force on 13/7/2000.

THE BASICS OF BODY CORPORATES

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Comments

  1. Sue Barnes says:

    Originally l was told that l didn’t need a Body Corp. set up as Exclusive areas were created.Is this so?

    • Hi Sue

      That’s not enough information for me to answer your question. What are we talking about?

      A body corporate is created as part of strata titling, a form of subdivision. If you’re strata titling you create the body corporate by registering a Community Management Statement. The body corporate is what allows the lots to be sold individually.

      Exclusive use areas are created when parts of the common property, the property held in trust by the body corporate, is allocated to one lot or another for their exclusive use. If you’re talking about a duplex it’s more effective to allocate the surrounds as part of the lot in a standard format plan than using exclusive use.

  2. I need to get a copy of our Community Management Statement so that I can get a Body Corporate Manager. Do you know how I can get one myself? Also, the previous Body Corporate members have lost the form 8 for 2 of the units, are these recorded anywhere or is there an alternative document I can request?

    • Hi Tanya

      If you’ve lost the CMS and need a new one you will need to buy a copy for the Titles Office. There are several places online you can access at different prices or alternatively I can order a copy for you at a cost of $77.00 (paid upfront).

      Copies of the form 8’s are much harder to obtain. Do you have the details of the current owners? If you do then copies might not be too much of a problem. Alternatively you can ask the owners who their Conveyancer was and contact them to see if they have a copy.

      If you don’t have the form 8’s and the owner has changed you will need to do a title search of the lot to find the new owners name and contact them by mail.

      • Hi – Does the CMS that is lodged with the Titles Office need to include all relevant schedules and by laws established by the Body Corporate? Also what happens if a Body Corporate or developer never prepared a CMA in the first place? Thanks for your help.

        • Hi Sean

          From 1997 on a developer could not create a body corporate without registering a Community Management Statement. Older schemes were registered without a CMS and you can read more about them here.

          The registered CMS is the scheme’s relevant schedules (A – E) including by-laws (schedule C). A scheme may have additional rules in the form of “house rules” but if they conflict with registered by-laws then the by-laws are what is enforced. Its the same as the legislation trumps registered by-laws, meaning just because a scheme registers a by-law doesn’t mean those by-laws are enforceable.

          If the scheme is older it gets a bit more complicated. Have a read of the article and if you have more questions please let me know.

  3. If I want to swap my exclusive use carpark with another lot owner I understand we can sign a re-allocation agreement and give notice of that to the Body Corporate. Does the CMS then have the be changed? If so, who pays for that and do all the owner have to vote at a general meeting to allow it?

    • Hi Brooke

      To swap exclusive use you fill in the re-allocation agreement with the other owner and give to the BC. There is provision in the legislation for that to be binding without needing a motion at general meeting.

      Yes the re-allocation will need to be registered in a new CMS. The cost should be borne by the owners who require the change to be registered. In practice I think a lot of people wait until the CMS has to be changed for something else and then do a whole lot at once. Its not strictly lawful but cheaper for everyone. Discuss with your BCM to see how they choose to handle things.

    • Hello , where do I find the re-allocation agreement and also do you know if the CMS changes need to be done through a lawyer or can the body corporate make the changes and Lodge it themselves.
      Thanks Ray

      • Hi Ray

        There is no proforma re-allocation agreement that I’m aware of. The ones I’ve seen are as simple as a letter.

        The CMS can be done by the body corporate and lodged themselves. There is no requirement for it to be done by a Solicitor. The problem is going to be getting someone to do it. Most body corporate managers wouldn’t touch the idea as it will open them up to legal risk.

Trackbacks

  1. […] schedule of lot entitlements is set out in Schedule A of the Community Management Statement and is the basis for calculating who pays what within a body corporate. Its also the basis for a […]

  2. […] a body corporate is registered the schedule of  lot entitlements are set out in the CMS. But who sets those lot […]

  3. […] most cases there will be a by-law contained in the CMS that governs the allocation of exclusive use and sets out rules for its use and care. Schedule E […]

  4. Section 206 Disclosure Requirements Changed says:

    […] The most important change is that body corporate disclosure statements no longer need to include a copy of the  Community Management Statement (CMS). […]

  5. […] Check the by-laws for your body corporate. The by-laws are contained within the Community Management Statement. […]

  6. […] most important of course is the Community Management Statement, which holds such vital information as by-laws and contribution lot […]

  7. […] corporate names are shown in the Community Management Statement or survey plan for each […]

  8. […] the resolution is passed the scheme has three months to prepare and register a new Community Management Statement to enact the […]

  9. […] use allocations must be recorded, either on the title itself or within the Community Management Statement. Once recorded that area becomes an extension of the lot it’s allocated too. Other lot owners […]

  10. […] of the previous three separate sets of entitlements. The body corporate will need to lodge a new Community Management Statement (CMS) to record the removal of a net two lots from the CMS as well as the new entitlements for that […]

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