First CMS Reverted
Recently the First Community Management Statement (CMS) to be reverted back to old entitlements was registered at the Titles Office.
The Titles Office was caught off-guard when the amendments to the Body Corporate and Community Management Act 1997 took effect on 14 April this year and consequently, all of the new CMS’s that had been lodged for the purpose of effecting a reversion, were requisitioned – initially on the basis that “Schedule A” in the CMS did not record the applicable principles for deciding the contribution and interest schedule lot entitlements.
The Titles Office now accepts that there is no requirement for a lot entitlement principle to be adopted, when a reversion takes effect. Of course, when a Body Corporate reverts back to its original entitlements, it has no ability to make any adjustments other than the limited exceptions in Sections 381 – 384 of the Body Corporate and Community Management Act 1997. In practical terms the Body Corporate is being forced to adopt the entitlements that existed originally. So it would be impractical for the body corporate to adopt a deciding principle, without having any knowledge about the basis upon which the original entitlements were decided and even more impractical if the Body Corporate adopted a deciding principle, which was inconsistent with the original entitlements which it was being forced to adopt.
SSKB were directly involved in the First CMS reversion and have the expertise and knowledge to make this process simple.
Contact our team on (07) 5504 2015 or firstname.lastname@example.org for any advice and assistance in relation to entitlements and compliance with the Body Corporate and Community Management Act 1997 or visit: