Lot Entitlements ± To Change or Not To Change, That is the Question«

In February 2010, redchip lawyers in this blog flagged proposed changes to bodycorporate contribution lot entitlements by Gold Coast MP, Mr Peter Lawlor.The ministerial release of February 24, 2010[1]stated,

The two views...

"... what this would mean is that an owner of a small one-bedroom place on alower floor at the back of a unit complex, for example, would not be required tocontribute as much towards common expenses as someone with a moreexpensive place, such as a four-bedroom, top floor apartment with views...Once passed in parliament, the new rules could be effective later on in 2010".

It remains our view that the price an owner initially pays for their lot accounts for suchdifferences. Once an owner is in possession of the residence or investment, the actualday to day body corporate running costs are identical between lots with only some slightdifferences. For example, if a lot has an additional balcony or balustrade length thatrequires painting. As a result the contributions should be equal unless specificcircumstances exist for them not to be.The proposal is ignoring this fact and instead focusing on merely seeking to regulatespeculative purchasers, named as 'astute buyers' who purchase with an intention to seeka change to the entitlements to increase the market value of a lot brought by lowerlevies.

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In a speech on June 10, 2010 Mr Lawlor MP still states the government's intention tomake the system more fair by having it

unequal.

"The government doesn't think the balance is right so we intend to makechanges in the BCCM Act later this year. Changes we believe will make the system more fair. For community titles schemes which have been subject tocontribution schedule lot entitlement adjustment orders, the Government will legislate for those schemes to be able to revert to their original method of dividing body corporate fees before the adjustments were made." [2]