Management of community schemes

Print friendly version [ PDF, 239.79 KB]

The Community Titles Bill 2018 (the Bill) will provide the regulatory framework for the management of community schemes. It also sets out the establishment, constitution, duties and powers, along with meeting and voting arrangements for community corporations and for the councils of the community titles schemes.

In line with the amendments to the Strata Titles Act 1985 there will be flexibility and the requirement for people who manage the schemes do so in an accountable and transparent way.

Scheme managers will be regulated and made more accountable, owners will have a say in the running of their schemes while scheme developers and members of the council of a community corporation will be more accountable.

How a community scheme will be managed

The community corporation

Each community titles scheme in a community scheme will have its own community corporation which is established when the scheme documents are registered. The community corporation is the body corporate that manages the scheme by-laws (rules), common property and finances of the community titles scheme.

A community scheme may have two or three tiers of community titles schemes and they will be managed as a hierarchy.

A community scheme may have two or three tiers of community titles schemes and they will be managed as a hierarchy.

Three Tier Community Scheme Management Structure

Figure 2 Three Tier Community Scheme Management Structure

Relationships between schemes

A community titles scheme is related to each community titles scheme to which it belongs or that belongs to it and the community corporations are related in the same way.

Members of the community corporation

The tier 1 corporation is comprised of:

  • the owners of the tier 1 lots
  • the community corporations of any tier 2 schemes.

The tier 2 community corporation is comprised of:

  • the owners of any tier 2 lots in the tier 2 scheme
  • the community corporations of any tier 3 schemes that belong to that tier 2 scheme.

A tier 3 community corporation is made up only of:

  • just the lot owners in the tier 3 scheme.

Voting in community titles schemes

The value of the vote is based on the unit entitlement of the lot or the tier parcel if the lot has been subdivided by a scheme. (See the section: Unit entitlement in a community scheme).

There will be only two types of resolutions in community schemes; ordinary and special. There is a third type which is only used when a scheme is terminated which is a unique situation.

Ordinary Resolution

An ordinary resolution is passed if the value of the votes by members present at the meeting in favour are more than the value of the votes against.  This is a simple majority based on unit entitlement.

Special Resolution

A special resolution is passed if the value of the votes in favour total more than 3/4 of total value of the unit entitlements of all the lots and tier parcels in the scheme. Where there are only two or three members of a community titles scheme then the value of the votes cast in favour is more than 2/3rd of the sum of the unit entitlements of all the lots and tier parcels in the scheme. Special resolutions will be required for specific actions within a community titles scheme such as amending the scheme by-laws.

Seal of the community corporation

Community corporations will not need to have a common seal.  A document can be executed by the community corporation if the common seal is applied under authority of an ordinary resolution and attested by the signatures of 2 members of the council or a document is signed by one or more persons authorised by an ordinary resolution of the community corporation.

Scheme by-laws

Every community titles scheme must have scheme by-laws

Scheme by-laws are required to be registered as part of the scheme documents for each community titles scheme within a community scheme. The scheme by-laws for each community titles scheme should be consistent with the scheme by-laws for the scheme that it belongs to. If there is any inconsistency, the scheme by-laws of the scheme it belongs to prevail.

All scheme by-laws of community title schemes must be consistent with the community development statement (CDS). If they are not, the CDS prevails.

Any disputes about consistency of scheme by-laws may be resolved by the State Administrative Tribunal (the Tribunal).

Scheme by-laws will be binding

The scheme by-laws for a community titles scheme will be binding on the members of that community titles scheme and members of any scheme belonging to that community titles scheme. This means it is binding on every owner, lessee, occupier, and mortgagee in possession of a lot in that scheme and in all schemes that belong to it.

The Bill provides for the following:

  • the form which scheme by-laws are to be in
  • the matters which may be in the scheme by-laws
  • scheme by-laws that are invalid.
  • the control and management of the common property within that community titles scheme
  • the control and management of utility services
  • any by-laws required by a public authority or local government.
  • the management, control, use or enjoyment of a lot or common property in the scheme
  • the governing of functions or procedures of the community corporation
  • managing the relationship between the community corporation and community corporations related to it and their members
  • the prohibition or regulation of the conduct of a person on the tier parcel
  • the requirement for members of the community corporation to take safety or security measures
  • the making of rules about providing services or amenities to owners or occupiers of lots, including the payment of fees and charges for those services or amenities
  • prohibiting or regulating alteration of lots or common property
  • providing for a different method of allocating contributions between members of the community corporation (which could be different from allocating those contributions in line with unit entitlement)
  • exclusive use by-laws.

Scheme by-laws may include matters relating to:

Scheme by-laws may deal with certain matters

Exclusive use by-laws

Exclusive use by-laws may be made that confer exclusive use and enjoyment of, or special privileges over, the common property or specified common property in the community titles scheme (special common property) on the occupiers of a specified lot or lots in the community scheme or on all lots in a specified community titles scheme in the community scheme (special lots). Exclusive use by-laws may only be made with the consent of the owner of each lot proposed to be a special lot, or, if the exclusive use is being given to all lots in a community titles scheme, with the written consent of the community corporation. Exclusive use by-laws may be repealed without such consent.

Scheme by-laws may be invalid

Scheme by-laws are invalid where they:

  • are made without power
  • are inconsistent with any legislation
  • inconsistent with the community development statement
  • are tier 2 by-laws that are inconsistent with tier 1 by-laws
  • are tier 3 by-laws that are inconsistent with by-laws for the tier 2 scheme or tier 1 scheme to which it belongs
  • deny or limit a member of a community corporation’s right to vote on a proposed resolution (except the prevention of a member from voting on an ordinary resolution if the member has outstanding contributions to the community corporation)
  • prohibit or restrict the devolution or other dealing with a lot
  • discharge or modify an easement or restrictive covenant
  • are unfairly prejudicial or unfairly discriminate against 1 or more owners of the lots or they are oppressive or unreasonable
  • affect the keeping of an assistance animal by a person with a disability who is an owner or occupier of a lot, or
  • affect the use (on a lot or on common property) of an assistance animal by a person with a disability.

Amending scheme by-laws

By-laws of a community titles scheme may be made, amended or repealed by special resolution, but an amendment has no effect until the by-laws containing the amendment are registered by the Registrar of Titles.  The Registrar of Titles cannot accept lodgment of amended scheme by-laws if more than three months has passed since the by-law was made, amended or repealed.

The Registrar of Titles may, but is not obliged to, check the scheme by-laws for compliance with the Act

The Bill will state that:

  • registration of the scheme by-laws does not mean they are valid or enforceable
  • the enforceability of scheme by-laws is not guaranteed by the State.

A Lessee must comply with the scheme by-laws

The Bill will specify that each lease of a lot within a community titles scheme is deemed to contain an agreement that the lessee will comply with the by-laws for the scheme. The owner or mortgagee in possession of a lot within a community titles scheme must also take reasonable steps to ensure that every occupier of that lot complies with the by-laws.

Enforcement of scheme by-laws

The breach of any by-law may result in the Tribunal ordering the person who breached the by-law to pay a penalty to the community corporation.

A community corporation can enforce by-laws by serving notice of the breach on any person or member community corporation bound by the by-laws. The notice must specify what by-law has been breached and request compliance. If the person or member community corporation breaches the by-law again after the notice has been served, the community corporation can apply to the Tribunal for a penalty to be imposed on the person who breached the by-law. The Tribunal can order the person or the member community corporation to stop breaching the by-law.

A community corporation can also apply to the Tribunal for an order to enforce the scheme by-laws if the contravention has had serious adverse consequences for a person other than the person alleged to have contravened the by-law or the person has contravened the by-law on at least 3 occasions.

A member of the community corporation or a mortgagee or occupier of a lot in the community titles scheme or, for exclusive use by-laws, the owner of a lot that is a special lot, or, if the special lots are all the lots in a community titles scheme, the community corporation for that scheme, can also apply to the Tribunal to enforce by-laws. An application can only be made by such persons if a person other than the community corporation is alleged to have contravened the by-law, notice has been given and the person has contravened the notice or the Tribunal finds that the breach of the by-law is serious or that the by-law has been breached by that person on 3 occasions.

Community Corporation Functions

The nature of the community corporation

Each community corporation:

  • is a body corporate
  • has perpetual succession, and may have a common seal
  • can sue and be sued
  • has all the powers of a natural person, subject to the Community Titles Bill
  • is comprised of:
    • - for a tier 1 community corporation:
      • the owners of tier 1 lots
      • the tier 2 community corporations for tier 2 parcels in the tier 1 scheme that were subdivided to create tier 2 schemes
    • - for a tier 2 community corporation:
      • the owners of each tier 2 lot in that tier 2 scheme and
      • the tier 3 community corporation for each tier 3 parcel in the tier 2 scheme that was subdivided to create a tier 3 scheme
    • - for a tier 3 community corporation:
      • the owners of each tier 3 lot within that tier 3 scheme

The Bill provides that in performing its functions a community corporation is to have the objective of implementing processes and achieving outcomes that are not unfairly prejudicial to or discriminatory against a person or oppressive or unreasonable. The Tribunal will be able to assess a community corporation’s performance of functions against these objectives.

Functions of community corporations

A summary of the functions (a duty, power, responsibility or authority) that will apply to community corporations are:

  • power to terminate certain service or amenities contracts after 5 years
  • duty to keep a scheme contacts register of scheme members and related community corporations
  • duty to keep information about the community titles scheme
  • duty to provide access to information and certificates and a power to provide copies of material
  • duty to keep personal property in good and serviceable repair, properly maintain and if necessary renew and replace personal property owned by the community corporation
  • power to recover records, keys and property of the community corporation
  • sufficient power to enter any part of the parcel (lots and common property) in certain circumstances
  • authority to make, vary or discharge a contract
  • power to enter into contracts with local government to enforce laws relating to roads and local laws
  • duty to cooperate with other community corporations in the community scheme to facilitate participation and decision making by all tiers of community titles schemes in the community scheme
  • duty to hold an annual general meeting once in each 12 months and no later than 15 months after its previous annual general meeting
  • duty to organise meetings of the community corporation so as to enable decisions to be taken on how the community corporation is to vote on a proposed resolution of a community corporation of which it is a member
  • function of complying with scheme by-laws and monitoring compliance with those by-laws by others to whom they apply.

Functions in respect of common property

A community corporation’s principal function is to:

  • control and manage the common property in the scheme for the benefit of the members and members of schemes that belong to the community titles scheme and
  • keep in good and serviceable repair, properly maintain and renew and replace common property.

A community corporation has a power to improve or alter common property and a power to use common property for any lawful purpose including a commercial purpose.

A community corporation may:

  • enter into a contract with a person under which the person owns and operates infrastructure on common property to which a statutory common property infrastructure easement applies if authorised by ordinary resolution in the case of sustainability or utility infrastructure and by special resolution in any other case
  • install and remove infrastructure on common property, operate infrastructure on common property, examine, maintain, repair, modify and replace infrastructure on common property and take other action as necessary to perform its function of controlling and managing common property
  • enter into specified transactions in respect of common property by special resolution, for example, transferring common property out of the scheme and acquiring land for the purposes of adding to common property
  • create temporary common property by accepting a lease pursuant to a special resolution and by special resolution surrender a lease of temporary common property.

Duties of owners and others

Owners, mortgagees in possession, lessees and occupiers of lots within a community titles scheme will have a duty not to:

  • damage the common property
  • use or enjoy the lot or common property in a way that interferes with another’s use or enjoyment of another lot or the common property
  • obstruct the lawful use of common property.

Powers relating to enforcement of statutory duties

Scheme managers (including volunteer scheme managers) , original subdivision owners and council members will owe certain statutory duties to a community corporation. A community corporation will have the power to enforce these statutory duties.

Limitations on exercise of community corporation powers

A community corporation must not

  • acquire or dispose of land except as authorised under the Act
  • mortgage common property
  • act as a guarantor
  • establish a corporation or subsidiary of a corporation
  • engage in an activity that a community corporation must not engage in under the regulations
  • exercise a function that the regulations allow to be exercised only as authorised by special resolution unless there is such resolution.

Community Corporation Voting

In a community titles scheme a vote on a proposed resolution is to be taken as follows:

  • 1 vote may be cast for each lot and tier parcel in the scheme
  • the value of the vote is the unit entitlement of the lot or tier parcel.

Who may vote?

The following are entitled to vote at a meeting of a community corporation:

  • the owners of lots in the community titles scheme
  • a representative from any member community corporation.

The vote attached to a lot –

  • is exercisable by the owner of the lot; and
  • if 2 or more persons own the lot, is exercisable only through the owners jointly appointing a proxy.

The vote attached to a tier parcel (i.e. a lot in a tier 1 scheme subdivided to create a tier 2 scheme or a tier 2 lot in a tier 2 scheme subdivided to create a tier 3 scheme).

  • Is exercisable by the community corporation for the community titles scheme that subdivides the tier parcel; and
  • is exercisable only if the vote of the community corporation is cast according to an ordinary resolution of the members of the community corporation
  • a decision about how a community corporation is to vote on a proposed resolution of a community corporation of which it is a member can be made by ordinary resolution whether or not the proposed resolution is required to be a special resolution.

Note: A different voting model will apply for termination of community titles schemes.

Community schemes will have representative voting

To explain the usual voting model in a community scheme in more detail, community schemes may have hundreds of lots in the community titles schemes that together comprise the community scheme. Running a meeting with several hundred lot owners present would be difficult and expensive.  As a result, community titles schemes will use the representative voting model, where each member community corporation will send one representative to vote at a meeting of the community corporation they belong to.

The owners in a scheme will instruct their representative how to vote

Each representative of a community corporation will be directed how to vote on an issue before the representative attends the meeting of the community corporation of which their community corporation is a member. Before the representative attends a general meeting on behalf of the member community corporation they represent, the member community corporation will hold their own general meeting and vote. If the member community corporation passes an ordinary resolution the representative must vote in line with this resolution. If the representative doesn’t vote as they were instructed by the member community corporation they are representing, the vote they make will be invalid.

Unfinancial lot owners and member community corporations

Scheme by-laws may prohibit a lot owner from casting a vote if they have not paid their contributions (or other amounts owing to the community corporation).

A member community corporation which owes contributions to a community corporation it belongs to can also be barred from voting based on being unfinancial via a scheme by-law of the community titles scheme.

Owners and community corporations that owe contributions are called “unfinancial” members.

Scheme by-laws cannot exclude a member of a community corporation from voting on a matter that requires a special resolution to be passed.

An original subdivision owner can’t vote on a motion relating to building defects

An original subdivision owner (usually the developer) and people who are associates of an original subdivision owner, cannot cast a vote at meetings where the motion relates to building defects for a period of 10 years after completion of a scheme building (in the case of a community titles (building scheme) or infrastructure on common property (in all community titles schemes).

Meetings of member community corporations

The community corporations in a community scheme have a duty to organise their meetings to enable decisions and resolutions to be made by the tiers.  Community corporations can be considering and voting on the same resolution during the same period.  Meetings can be held using modern technology.

Scheme by-laws can specify the use of modern technology to hold and vote in meetings. Voting may be conducted via electronic means, including email, skype and other forms of teleconferencing and minutes and notices can also be distributed electronically. The community corporation will then need to consider record keeping methods.

Lot owners and member schemes will not be required to use electronic means if they choose not to.

Council members

Number of council members and process for representation

It is intended that scheme by-laws will set out how the council of a community corporation is constituted. In the absence of scheme by-laws there is a default provision. The default provision is that each community corporation of another community titles scheme that belongs to the scheme and for each lot in the scheme, a person who is the owner of the lot, or if the owner is a body corporate or there are joint owners of a lot, their nominee constitutes the council.

Certain persons will not be eligible to be council members, for example, a scheme manager of a community corporation, or a person whose affairs are under insolvency laws. For any period that a member of a community corporation is unfinancial, the member or nominee cannot vote on any matter as a council member.

Duties of council members

Council members will have a statutory duty to:

  • act honestly and in good faith in the performance of their functions as a member of the council
  • exercise due care and diligence in the performance of their functions as a member of the council
  • not improperly use their position to gain, directly or indirectly, an advantage for themselves or for any other person or to cause detriment to the community corporation or a member of the community corporation
  • disclose any conflict of interest in any matter considered by the council.

Council members can be removed from the council, by order of the Tribunal, if they breach any of these duties.

An officer of the community corporation must be a council member.

Council members and officers have no power to delegate their functions.

Contributions

Reserve and administrative funds will be required

Community corporations will have to set up:

  • an administrative fund (to pay for items like the control and management of the common property and insurance of that common property)
  • a reserve fund (to pay for items which are not annual maintenance in nature and are generally expensive, such as replacing an old elevator).

A community corporation must have a 10 year plan for the reserve fund and ensure that the plan is revised at least once every 5 years.

The amount to be put into administrative and reserve funds may be decided at a general meeting of the community corporation by ordinary resolution.

The money for these funds must be apportioned by contributions from member lots and member community corporations in proportion to their unit entitlement unless the scheme by-laws provide for a different method of apportionment.

Budget

A community corporation must prepare a budget for the scheme for each financial year and submit it for approval to its annual general meeting. The budget must be prepared taking into account the 10 year plan and any requirements set out in the regulations and scheme by-laws.

The budget may be approved by ordinary resolution and varied by ordinary resolution.

If a budget provides for expenditure on infrastructure on common property (other than sustainability infrastructure) exceeding an amount determined under the regulations, the community corporation must provide information to the members and the budget must be approved by special resolution.

There are limitations on the expenditure a community corporation may incur that is not authorised by an approved budget.

Unit entitlement in a community titles scheme

Unit entitlement (UE) is a measure of the value of a lot or tier parcel in a community titles scheme in relation to the aggregate value of the lots and tier parcels in the community titles scheme.  The UE of a lot in a community titles scheme will determine the contributions a lot owner must pay (subject to scheme by-laws) their voting rights in meetings, and their share in the ownership of the common property.

The UE of a tier parcel in a community titles scheme determines the tier 2 or tier 3 corporation’s voting rights in the tier 1 or tier 2 corporation of the scheme in which the tier parcel belongs and the contributions that the tier 2 or tier 3 corporation must make to the tier 1 or tier 2 corporation of the scheme to which the tier parcel belongs.

Creating unit entitlement

The type of valuation used to determine the UE depends on the type of community titles scheme involved; for a community titles (land) scheme the valuation is based on the site value (SV) of the lot or tier parcel, for a community titles (building) scheme it's based on the capital value (CV) of the lot or tier parcel. Site value and capital value have their meanings under the Valuation of Land Act 1978.

Regulations may prescribe matters relating to the determination of the value of a lot or tier parcel and the number allocated to a lot or tier parcel in the schedule of unit entitlements (the schedule of unit entitlements being one of the scheme documents registered for a community titles scheme). If the site value of a lot or tier parcel in a community titles (land) scheme is 20% of the site value of all the land included in a community titles (land) scheme, then the UE of the lot or tier parcel will reflect this. It's the decision of a licensed valuer to allocate the UE of each lot or tier parcel in the community titles scheme on the schedule of unit entitlements for the scheme and they should base this decision on maintaining simplicity in the calculations that will be used.

For example, in a scheme where a single lot is valued as being 20% of the aggregate value of lots and tier parcels for the scheme the aggregate may be set to 100, making that lot's UE 20.  However, if there are 6 other lots in the scheme, all the same size as each other, using a total of 100 would mean that each of those lots has a UE of 13⅓. UE measures must be in whole numbers for simplicity, so the valuer would create a total UE for the scheme of 300 which enables the largest lot to have a UE of 60 and each of the remaining 6 lots to have a UE of 40.  This calculation applies regardless of whether the relative value is based on site value or capital value.

Common property in a community scheme

Common property will be optional

Common property, within a community titles scheme, will be optional and each member scheme may have its own common property.

There may be three levels of common property:

  • tier 1 common property
  • tier 2 common property
  • tier 3 common property

Common property is co-owned by every lot owner

Every lot owner in a community titles scheme will own a share of the common property in their scheme as tenants in common, in shares defined by the relative unit entitlements. All owners and occupiers of land in a community titles scheme have a right to use common property, unless restricted by exclusive use by-laws.

Lot owners’ ownership of common property in the overall community scheme

A lot owner in a tier 2 or tier 3 scheme will also own a share of the common property in any community titles schemes that its scheme belongs to.

The owner of a lot in a tier 2 or tier 3 scheme will own both a share of the common property in that tier 2 or tier 3 scheme and a share of the common property of the schemes to which it belongs.

For example, an owner in a tier 3 community titles scheme which is part of a three-tier community scheme will own:

  • a share in the common property in their tier 3 scheme
  • a share in the common property of the tier 2 scheme to which their tier 3 scheme belongs
  • a share in the common property in the tier 1 scheme to which the tier 2 scheme belongs.

All owners and occupiers of land in the tier 3 scheme have a right to use the common property in the schemes to which they belong, subject to restrictions in scheme by-laws.

Common property ownership will be based on unit entitlement

Unit entitlement (UE) determines a lot owner’s share of the common property in the community titles scheme. Because a community scheme has layers, a lot owner’s share in common property in the community scheme will depend on what tier they are in.

  • The owner of a tier 1 lot has a share in the tier 1 common property of the same proportion as the relative (UE) of their lot. They won’t own a share of common property in any tier 2 or tier 3 schemes.
  • A tier 2 lot owner has
    • a share in the tier 2 common property of their tier 2 scheme based on the relative UE of their tier 2 lot
    • a share in the tier 1 common property calculated by multiplying the relative UE of their tier 2 lot and the relative UE of their tier 2 parcel in the tier 1 scheme
  • A tier 3 lot owner has
    • a share in the tier 3 common property of their tier 3 scheme based on the relative UE of their tier 3 lot
    • a share in the tier 2 common property of the tier 2 scheme to which the tier 3 scheme belongs calculated by multiplying the relative UE of the tier 3 lot and the relative UE of the tier 3 parcel in the tier 2 scheme
    • a share in the tier 1 common property of the tier 1 scheme to which the tier 2 and tier 3 schemes belong calculated by multiplying the relative UE of the tier 3 lot and the relative UE of the tier 3 parcel in the tier 2 scheme to which the tier 3 scheme belongs and the relative UE of the tier 2 parcel in the tier 1 scheme.

Use of any common property will depend on ownership interest

Tier 1 common property may be used by all owners and occupiers in the community scheme while common property in a tier 2 scheme may only be used by lot owners and occupiers in that scheme and lot owners and occupiers within any tier 3 scheme which belongs to it.

Common property in a tier 3 community titles scheme can only be used by lot owners and occupiers in that scheme.

Note that an exclusive use by-law can provide the occupiers of any specified lot within a community scheme or occupiers of all the lots in a community titles scheme that belongs to the community scheme with exclusive use or other special privileges in relation to that common property or any part of the common property.

If an owner in a community scheme has no share in the common property of another community titles scheme in the same community scheme, the owner will not have usage rights to that common property unless granted in some other way (eg by easement, exclusive use by-law, lease or licence).

Other aspects of a community scheme

Insurance for community schemes

  • A community corporation must insure, for replacement value or to replacement value up to a specified amount, against fire, storm, and tempest (excluding damage by sea, flood or erosion), lightning, explosion and earthquake, the insurable assets of the community titles scheme. Insurable assets means the common property of the scheme (including the fixtures and improvements on the common property), the parts of a scheme building (in the case of a community titles (building) scheme) that comprise the lots in the scheme building and anything included in the meaning of insurable assets in the regulations.  Insurable assets does not include fixtures or improvements on the common property that are not themselves common property, or carpet and temporary wall, floor and ceiling coverings in a scheme building or fixtures removable by a lessee on expiry of a tenancy or anything excluded from the meaning in the regulations.
  • Owners of lots in a community titles (land) scheme plan may insure for buildings and public risk on their lots as the community corporation is not responsible. Owners of lots may insure for public liability in respect of their lots.
  • A community corporation must maintain public liability insurance for which the community corporation could become liable against damage to property, death, bodily injury or illness for not less than the amount specified in the regulations.
  • There are to be no exceptions to the above requirements except where the Tribunal makes an order.
  • A community corporation may take out other insurances as required (for example workers’ compensation insurance and directors and officers insurance).
  • The Bill will permit a community corporation to recover (from a lot owner) an amount which fairly reflects the portion of the premium attributable to the risk associated with something within that lot owner’s control.

Valuations in a community scheme

The unimproved value of land subdivided by a community titles (land) scheme is determined by the Valuer-General carrying out a separate valuation of each lot as a separate parcel of land owned by the owner of the lot.  In determining the unimproved value of land subdivided by a community titles (building) scheme the Valuer-General must value the tier parcel as if it were a separate parcel of land owned by the community corporation.

Where a tier 1 lot or a tier 2 lot is subdivided by a community titles (building) scheme then the unimproved value of each lot within the building will be calculated as the unimproved value of the tier parcel multiplied by the unit entitlement of the lot.

In determining gross rental value of land subdivided by a community scheme the Valuer-General may determine a valuation of a number of lots together as if they were 1 lot if the lots are in a community titles (building) scheme owned by the same person and occupied by the same person but must otherwise carry out a separate valuation of each lot.

In determining the value of land for rating and taxing purposes the Valuer-General must consider the benefits and disadvantages applying to the lot as part of the community scheme.

Objections to a valuation are dealt with under the Valuation of Land Act 1978 and the objection must be made by the owner of the lot. When the objection is regarding a tier parcel then the community corporation is regarded as a person liable to pay a rate or tax assessed in respect of the tier parcel.

Rating and taxing

The owner of a lot is liable for the rate or tax as if the lot were a separate parcel of land. The community corporation will not pay rates or taxes.

Roads and access ways

Roads and access ways in a community scheme, subject to the relevant approvals, may have the status of:

  • privately owned by the members of the community corporation of the tier in which they are common property
  • dedicated (transferred) to the relevant authority (e.g. a local government)
  • a mix of privately owned and dedicated to the relevant authority.


Back to top of page


V1.0


Disclaimer

This information has been prepared for the purposes of informing stakeholders and the community on the nature and scope of the proposed reforms to the legislation relating to strata title. Every effort has been made to ensure the information presented is accurate at the time of publication. Because this information avoids the use of legal language, information about the law may have been summarised or expressed in general statements. This information should not be relied upon as a substitute for professional legal advice or reference to the actual or proposed legislation. The contents should not be relied on as a guide for current or future legislation relating to strata title or community title in Western Australia or in relation to current or future subdivision or development proposals, commercial transactions or dealings in strata title.

This page was last updated on: 20 Jul 2018