Community Management Statements (CMS)
John Gallagher of Sunshine Coast law firm Argon Law discusses Community Management Statements (CMS).
The CMS is a vitally important document for all owners, tenants and developers of complexes such as community title schemes.
Anyone considering investing or living in a community title scheme should become familiar with the contents and relevance of the CMS.
More and more people are choosing to live or invest in property which is part of community titles scheme. Owners of such property are automatically members of the associated bodies corporate. That includes owners of separate units in any kind of multiple unit complex, from multi-level residential blocks, to townhouse developments, to commercial schemes and even simple duplexes.
From a legal perspective, a vitally important document to all such owners and their tenants and to the developers of those complexes is the community management statement or CMS.
It’s very important that a buyer understands the contents of community management statements which are registered at the land titles office in respect of every scheme in Queensland.
Each CMS identifies, by reference to a registered plan or plans, the lots and common property which make up the scheme and then sets out 5 separate schedules.
The first schedule or schedule A includes a table which determines the proportion of the total running costs of the scheme which each lot owner must contribute through the payment of body corporate levies.
Schedule B is only relevant when the scheme is to be developed in stages as it sets out information about each of the undeveloped stages.
Schedule C contains the by-laws for the scheme. By-laws are a set of rules regulating the use and enjoyment of the lots in the scheme as well as the common property and providing for the administration and management of that common property. These rules are legally binding on both owners and their tenants.
Among other things, schedule D contains what is called a services location diagram, setting out the location of vital infrastructure on the common property.
Schedule E specifies, usually by reference to a plan, those parts of the common property allocated for the exclusive use of particular lot owners and their tenants. This is often used to designate car parks, storage and courtyard areas.
Anyone who is thinking about investing in or living in a community titles scheme should become familiar with the contents of the relevant CMS and if they have any queries then consult their legal advisor or give us a call.
If you require any further information on body corporate law please contact us on 07 5443 9988 or [email protected].
Argon Law is a Sunshine Coast law firm based in Maroochydore. We are commercial lawyers and property and body corporate lawyers and are eager to assist you in any way we can.
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