In a community titles scheme—commonly known as a body corporate in Queensland —the Community Management Statement is a foundational legal document. As the community evolves, lot owners may find the need to update the CMS to reflect the community’s changing needs or to correct outdated provisions. However, updating the CMS involves a formal and often complex process, governed by legislation such as the Body Corporate and Community Management Act 1997 (Qld).
Community Management Statement (CMS) in more detail
The CMS sets out the key rules and structure of a community titles scheme. It includes and governs:
- A schedule of lot entitlements (contribution and interest entitlements)
- The by-laws (rules) that govern the use of lots and common property
- Any exclusive use allocations
- The regulation module that the scheme operates under.
Because the CMS forms part of the legal structure of the body corporate, any changes must be properly authorised and registered.
Why Update the CMS?
Lot owners might seek to update the CMS for several reasons:
- To change the by-laws (e.g., pet policies, parking, noise restrictions)
- To alter lot entitlements (usually involving specialist reports and potentially contentious legal issues)
- To reassign or create exclusive use rights
- To adopt a different regulation module (e.g., switching from the Standard to the Accommodation Module)
Whatever the reason, the process must comply with legislative requirements.
The Approval Process
- Proposal and Drafting
Any proposed changes to the CMS must be clearly drafted, often with the help of a legal professional or body corporate manager. This ensures the new provisions are enforceable and compliant with relevant laws. - Notice of General Meeting
The proposal must be included as a motion in a general meeting of the body corporate. Typically, this will be an ordinary resolution, but in some cases—such as changes to lot entitlements—a special resolution or a resolution without dissent may be required. - Voting and Resolution
- Ordinary Resolution: Requires a simple majority of votes being cast
- Special Resolution: Requires no more than 25% of total votes cast to be against the motion, among other conditions.
- Resolution Without Dissent: Requires unanimous support; even one “no” vote defeats the motion.
- Lodgement with Titles Office
Once approved, the updated CMS must be lodged with the Titles Registry to take legal effect. The body corporate must file a Form 14 (General Request) along with the new CMS and pay the applicable fee. - Implementation
After registration, the updated CMS becomes the official record and governs the scheme. Lot owners and residents must comply with any new provisions.
Conclusion
Updating the CMS is a significant step for a body corporate and requires careful planning, consultation, and compliance with legal procedures. While it can be time-consuming, it is often necessary to ensure the scheme remains functional and fair for all lot owners. Seeking professional advice early in the process can help avoid disputes and ensure a smooth update. For assistance with updating CMS or if you have a general body corporate related enquiry, please contact the experienced team at Miller Sockhill Lawyers on 07 5444 4750.