MAINTENANCE ISSUES Body Corporate and Community Management Act 1997 Information sheet current as at March 2004. Changes may be made without notice. Contact the Commissioner s Office for confirmation of currency. This information brochure outlines the effect of the provisions of the Body Corporate and Community Management Act 1997 ( the Act ) and the Body Corporate and Community Management (Standard Module) Regulation 1997 ( the Standard Module ) relating to maintenance responsibilities in a community titles scheme. It is not an exhaustive guide to the maintenance provisions and the legislation should be consulted as the primary reference. As the type of plan registered for a community titles scheme can affect maintenance responsibilities, this sheet also outlines the characteristics of the two most common types of plans. The Commissioner for Body Corporate and Community Management provides an information service which endeavours to be helpful and responsive. However, the role of the information service under the Act does not extend to interpreting the legislation or providing legal advice. SURVEY PLANS The survey plan for a community titles scheme shows the boundaries of the common property and the lots in that scheme. There are various types of survey plans and boundary definitions may differ depending on the type of plan registered. The two common types of survey plans 1. Building format plan (previously a Building Units Plan) A building format plan is a form of subdivision that usually occurs within a building. The boundaries of lots are defined on the survey plan by references to the structural elements of a building including, for example, the floors, walls and ceilings. Where a lot is separated from another lot or common property by a floor, wall or ceiling, the boundary of the lot is the centre of the floor, wall or ceiling (Sections 48C and 49C(4) of the Land Title Act 1994). An example of a community titles scheme established as a building format plan is a multistorey block of residential units. 2. Standard Format plan (previously a Group Titles Plan) A standard format plan defines land horizontally with references to marks on the ground or a structural element (for example, survey pegs in the ground or the corner of a dwelling), and may be unlimited vertically (Section 48B of the Land Title Act 1994). The boundaries of lots are determined by measurements shown on the survey plan along with marks placed on the ground at the time of the survey. A community titles scheme established as a standard format plan may include a townhouse complex with a building and a garden on each lot. The legislative requirements for survey plans are contained in the Land Title Act 1994. In addition, the Registrar of Titles Directions for the Preparation of Plans details the plan requirements. A copy of the registered survey plan for your scheme can be purchased from Land Registry offices of the Department of Natural Resources, Mines and Energy. The State of Queensland (Department of Tourism, Fair Trading and Wine Industry Development) 2004.
QUESTIONS AND ANSWERS Question 1 - Committee limit and major spending The surface of the common property swimming pool has deteriorated and requires substantial rectification work. The committee proposes to engage Big Kev s Pool Services to perform this work at a cost of $2500. There are eight lots in the community titles scheme. Can the committee authorise this work? Section 103 of the Standard Module provides that the committee cannot authorise expenditure above an amount determined by multiplying the number of lots in the scheme by $125, unless for example, the work has been specifically authorised by ordinary resolution of the body corporate. As the estimated amount is above the committee s limit of $1000, an appropriate motion must be submitted to a general meeting to authorise the expenditure. In addition, section 104 of the Standard Module provides that owners must be given copies of at least two quotations for proposed work if the cost is more than the number of lots included in the scheme multiplied by $250 (referred to as the relevant limit for major spending). In this case, as the relevant limit for major spending is $2000. As the quote exceeds this amount, the committee must obtain at least two quotations for the proposed work on the pool. The committee must then submit each quotation with an appropriate motion with alternatives to a general meeting for consideration by the body corporate. Question 2 - Utility service and Utility infrastructure The secretary keeps referring to the terms utility service and utility infrastructure when discussing pipes and wires within the complex. Could you explain what these terms mean? The term utility service is defined in the Act to include water supply, gas supply, electricity supply, a telephone service, drainage or any other system or service designed to improve the amenity, or enhance the enjoyment of lots or common property. Utility infrastructure is defined in the Act to mean cables, wires, pipes, sewers, drains, ducts, and plant and equipment by which lots or common property are supplied with utility services. Question 3 - Leaking pipes Example 1 Leaking pipe in a boundary structure I am the owner of lot 5 in a building format plan. There is a leaking pipe in the concrete slab that forms the ceiling of lot 5 and the floor of lot 6. The plumber who inspected the problem found that this pipe only supplies water to lot 6. Who is responsible for the repairs to this pipe? To answer this question, the boundary between lots 5 and 6 must be identified. The Survey Plans segment on page 1 of this information sheet describes the basis for boundary determination in a building format plan. In this case, the boundary between lots 5 and 6 is the centre of the concrete slab as it forms the ceiling of lot 5 and also the floor of lot 6. Section 20 of the Act provides that an item of utility infrastructure located in a boundary structure (such as the water pipe) is common property even though it only services one lot. The concrete slab between lots 5 and 6 is a boundary structure. As the pipe is part of the common property, the body corporate is responsible for its maintenance under section 109(1) of the Standard Module, which provides that the body corporate must maintain common property in good condition. Example 2 - Leaking pipe in an internal wall There is a leaking pipe in the wall separating the bathroom and bedroom of my unit. A plumber has informed me that this pipe only supplies water to my shower. Who is responsible for the repairs to this pipe?
The responsibility for the maintenance of the pipe is dependent on whether it is treated as common property or part of a lot. Section 20 of the Act provides that common property does not include utility infrastructure which: supplies a utility service to only one lot; and is within the boundaries of the lot; and is not within a boundary structure for the lot. A pipe located within an internal wall of a lot is common property if the pipe also supplies a service to, for example, another lot in the scheme. However, under the provisions of section 20 of the Act, this pipe is not common property as it services only one lot and is located in an internal wall within the lot. In summary, as the lot owner, you are responsible for maintenance of the pipe in accordance with section 120(4) of the Standard Module. Section 120(4) provides that the owner of a lot must maintain and replace utility infrastructure which is within the boundaries of the lot and not part of the common property. Question 4 - Doors in a building format plan I own lot 3 in a registered building format plan. Who is responsible for the maintenance of my front door? Section 109(2) of the Standard Module provides that, in a building format plan, the body corporate must maintain, doors and associated fittings situated in a boundary wall separating a lot from common property in good condition. Consequently, the maintenance of the front door is a body corporate responsibility if the door is in a boundary wall between your lot and common property. Section 120(2) of the Standard Module provides that owners must maintain lots in good condition. An owner s obligation under this section extends to responsibility for the maintenance of any doors within the lot. Question 5 - Roof repairs in a standard format plan I own a unit in a townhouse complex which is registered as a standard format plan of subdivision. Some of the owners believe that the body corporate is responsible for the maintenance of the roof of each unit. I believe that each owner is responsible for maintaining his or her own roof. Who is correct? To answer this question owners must be in a position to identify the boundaries of their lot. The Survey Plans segment on page 1 of this brochure describes the basis for determining a boundary in a standard format plan. As the roof is part of the lot, the owner is responsible for its maintenance. Section 120(2) of the Standard Module provides that an owner must maintain the lot in good condition. Question 6 - Painting in a standard format plan The committee is discussing the possibility of the body corporate paying for exterior painting of each unit in our townhouse complex. Is the body corporate responsible for organising the painting of each unit? Once again to answer this question owners must be in a position to identify the boundaries of their lot. The Survey Plans segment on page 1 describes the basis for boundary determination in a standard format plan. The exterior of a building on a lot is within the boundaries of that lot. Therefore, as a general rule the owner is responsible for the maintenance of the building in accordance with section 120(2) of the Standard Module which provides that an owner must maintain the lot in good condition. Owners should also be aware that section 119 of the Standard Module permits a body corporate to provide a service (such as painting a building on a lot) to an owner. The body corporate can only provide this type of service with the agreement of the lot owner. The cost is met by the owner, but only to the extent necessary to reimburse the body corporate for supplying the service.
Question 7 Improvement to common property The body corporate has approved my request to install an awning on the common property over my bedroom window. Who will be responsible for the maintenance of the awning? The installation of the awning is an improvement to the common property. The body corporate may authorise an owner to make an improvement to common property in accordance with section 114 of the Standard Module. This authorisation may be given on conditions the body corporate considers appropriate. Section 114(3) of the Standard Module provides that the owner must comply with the conditions of the authority and, unless excused by the body corporate, must maintain the improvement in good condition. Question 8 - Hot-water system I am a body corporate secretary. The owner of lot 8 has told me that his hot water system is faulty, and that the body corporate should replace it. The hot water system is on common property and only services lot 8. Is the body corporate responsible for the cost of replacing the hot water system? The BCCM Act defines utility infrastructure to include a hot water system. Section 109(3) of the Standard Module provides that the lot owner is responsible for maintaining utility infrastructure in good order and condition where it is of a domestic nature and where it supplies a utility service exclusively to that particular lot. As the hot water system is utility infrastructure of the type provided for in section 109(3) and only supplies a utility service to lot 8, the owner is responsible for its maintenance, even though it is situated on common property. Question 9 - Exclusive use As the owner of lot 2, I have exclusive use of a common property courtyard. Who is responsible for the maintenance of the lawn and gardens which are within the courtyard? The first step is to check the wording of the exclusive use by-law, as it may clarify who is responsible for the maintenance of the exclusive use area. Section 123(2) of the Standard Module applies where the by-law does not specifically allocate maintenance responsibilities. The effect of that section is that the owner of the lot to whom exclusive use is given is responsible for the maintenance of the exclusive use area, unless the by-law states otherwise. DISPUTE RESOLUTION The Commissioner s office can assist parties to resolve disputes about maintenance. Disputes may be resolved either by mediation, conciliation or adjudication. For further information on dispute resolution, refer to the publications under the heading Dispute resolution on the last page of this brochure.
FURTHER ASSISTANCE Further assistance is available from the Information Service: Freecall telephone: Location: 1800 060 119 Level 11, 259 Queen St Brisbane Postal address Facsimile: Email address GPO Box 1049, Brisbane Qld 4001 (07) 3227 8023 bccm@dtftwid.qld.gov.au Access the Commissioner s website www.dtftwid.qld.gov.au/disputeres/bccm/ to obtain information on the legislation and the functions of the Commissioner s Office, and to access forms and information brochures. PUBLICATIONS Mandatory approved forms: Notice to body corporate of contravention of a body corporate by-law Notice of authorised signatories on body corporate financial institution account Proxy form for general meetings Proxy form for committee meetings Body corporate information certificate Contract warning Other forms: Notice of annual general meeting Notice of extraordinary general meeting Information for body corporate roll Information required by body corporate Information brochures: Amendments to the Body Corporate and Community Management Act 1997 (commencement 4 March 2003) Amendments to the Regulation Modules (commencement 1 December 2003) The Body Corporate An Introduction General Meetings Application to resolve a dispute Guidelines for engaging a body corporate manager to perform the functions of a committee Explanation of the effect of a change in the regulation module applying to a scheme Guidelines for amending a service contract or letting authorisation to include an extension or renewal Notice of continuing contravention of a bylaw Notice regarding likely future contravention of a by-law Requiring information from a body corporate Insurance Lot Entitlements Committee Maintenance Issues Financial Management By-Laws Information about dispute resolution in the Commissioner s office: Dispute Resolution Information Sheet; and Guide to Completing an Application to Resolve a Dispute. Multi lingual brochure: A brochure titled Community Living in Queensland is available in Chinese, German, Greek, Italian, Spanish and Vietnamese for the use of non-english speaking persons. GOPRINT (GOVERNMENT PRINTING OFFICE) Copies of the Body Corporate and Community Management Act 1997, the regulation modules, and any amendments can be purchased from GOPRINT which has outlets at 371 Vulture Street, Woolloongabba, Brisbane; and Ground Floor, Mineral House, 41 George Street, Brisbane. GOPRINT Customer Service can be contacted on telephone: (07) 3246 3399 or Toll Free: 1800 679 778