Bodies corporate have long struggled with the complex issue of lot entitlements. Given their importance in allocating expenses, liabilities, and voting rights to lot owners, it is critical that they are appropriately set.
But doing that is far from easy, as all those in the body corporate industry know. Over the years there have been many attempts to work out the best way to set and adjust lot entitlements.
A brief summary of the complex history is set out below:
Understandably, the number of changes made to lot entitlement requirements has resulted in significant financial and social issues for community titles schemes. Particularly, the 2011 and 2013 amendments which respectively allowed individual owners to overturn an adjustment order, and then reverse that reversion, have been met with intense criticism.
At the time of the 2013 Amendment, the Attorney-General noted that it was limited in focus and a review was needed to get the balance right.
An Issue Paper has been released which is the first step in that review.
The paper provides a summary of the complex history of lot entitlements, provides an insight into the issues surrounding lot entitlements, and also provides 60 questions for public comment.
Submissions close on the 14th March 2014, with a report from QUT professors due to the government by mid year.
You can read the Issues Paper in full here http://www.justice.qld.gov.au/__data/assets/pdf_file/0010/224875/property-law-review-ip2-lot-entitlements-bccm.pdf