GENERAL INFORMATION

This section of the report provides information of particular use or interest to a purchaser. It is gathered from a range of the body corporate’s records during the course of the inspection.
Number of lots and units
The first part of this question refers to the total number of Lots in the scheme. Remember that the number of lots in the scheme is not always the same as the number of units. This is because in some schemes garages or parking spaces may be separate lots. The answer to the second question will highlight any difference. If a “unit” comprises more than one lot, then the levy notice for that unit will set out the lots to which it relates and take into account the different contribution schedule lot entitlements.

Although it is common to refer to multiple lots that relate to one unit a single “unit”, for levy and voting purposes the distinction between the various lots must always be made. The same distinction is made in relation to land titles, because the Titles Office will create separate titles for each lot.

Lot entitlement of the subject lot(s)
In Queensland there are two types of lot entitlements that apply to every scheme:
• A contribution schedule lot entitlement
• An interest schedule lot entitlement.

The contribution schedule lot entitlements for all lots must be equal unless it is just and equitable for them not to be equal. In general terms, the question of what is just and equitable will be determined by the extent to which the respective lots draw upon the financial resources of the body corporate. The interest schedule lot entitlements are based on the respective values of the lots. If either entitlements fail to reflect those principles, then an application can be made to have them adjusted accordingly.

The contribution schedule lot entitlements (as the name implies) are used to determine the maintenance contributions (i.e. levies) that are payable in respect of the lots, as well as the voting rights of the lot owner. However, this does not include the insurance premium for the building, which is paid in proportion to the interest schedule lot entitlements. The interest schedule lot entitlements also determine the lot owner’s proportional interest in the common property.

A lot entitlement is usually expressed as a relationship to the aggregate of all lot entitlements. Therefore, if the figure shown is “20/1,000” this means that the lot entitlement is “20 out of a total of 1,000” or “twenty thousandths”.

It follows that these allocations are very important in the operation aspects of the scheme and should be noted by the purchaser.

In February 2010 the Queensland Government announced its intention to change the law relating to the allocation of lot entitlements. Amendments to the legislation are expected sometime in 2010 and the amendments may affect the entitlements of the scheme into which you are purchasing. The Ministerial Press Release announcing the changes can be viewed at

 http://statements.cabinet.qld.gov.au/MMS/StatementDisplaySingle.aspx?id=68549
 

Is there a letting operation?
This refers to a rental program or rental pool operating within the scheme. These involve an on-site manager being authorized to conduct a holiday letting or other rental program within the building. This is useful information for a purchaser because the presence of a holiday letting operation in the building can prove disruptive to owners who wish to permanently reside in the building. It can also have an impact on the wear and tear on the common property and therefore the cost of upkeep of the common property.

If there is no letting operation, the inspector will endeavour to provide an estimate of the number of tenanted units in the building. This number depends to a large extent on the completeness of the body corporate’s Roll. As many Rolls are incomplete as regards tenancies, the number may not always be reliable.

State of harmony within the community
Some schemes run very smoothly and people are generally happy living within them. However, there are some schemes where disharmony prevails and living conditions may be adversely impacted. A purchaser intending to live within the scheme will benefit from having some idea how harmonious the scheme appears to be. That is the intention behind this question. However, purchasers should remember that this is simply what the records suggest is the situation. The reality may be different in some cases. Purchasers should also refer to the section of the report dealing with “History of Disputes” for a further indication of the state of harmony within the building.

Any current application for extinguishment of the plan
Extinguishments of plans are very rare. But nobody would want to purchase a unit in a scheme where there is an imminent prospect of its plan being extinguished. The inspector will therefore be concerned to ensure that this is not the case.

When was the common property last painted
Common property often requires re-painting at regular intervals (often 5-7 years depending upon conditions and the nature of the building). Painting costs can be very substantial, particularly where scaffolding is involved. The answer to this question will give the purchaser an idea as to when this expense is likely to arise again.

Timing of general meetings
A purchaser can often be affected by a general meeting passing significant resolutions that may result in dealings being registered at the Titles Office after they become the lot owner and before they find out about the resolution. The inspector will be looking out for any such resolutions and will report the timing of the meeting and draw attention to any business of which the purchaser needs to be aware.

Legislation:
Body Corporate and Community Management Act, sec. 46-51, inclusive.