BY-LAWS & CMS
By-Laws and Community Management Statements
All schemes have an additional layer of regulation to the state-level legislative regime, being the by-laws, which act as a set of rules governing the use of lots and common property, and conduct of owners, occupiers and the body corporate, within the scheme.
In Queensland, the by-laws are found within the scheme’s community management statement (abbreviated to ‘CMS’), registered against the title to the common property. The CMS contains a number of schedules as follows:
- Schedule A – Schedule of Lot Entitlements
- Schedule B – Explanation of the Development of Scheme Land
- Schedule C – By-Laws
- Schedule D – Other Details Permitted to be Included
- Schedule E – Description of Lots Allocated Exclusive Use of Common Property
Not all schedules will be necessary depending on how the scheme is structured, and it is important that developers adopt provisions in the CMS which are appropriate for the type of scheme. Often this will not be the case, and owners can soon discover that the developer has left them with a CMS which is not fit for purpose and causes practical problems for the proper and effective functioning and management of the scheme.
It is also important to understand that different types of changes to a CMS and by-laws require different types of approvals from the body corporate – depending on the nature of the amendments. Some proposals require an ordinary resolution, others a special resolution, and some others a resolution without dissent. It is important to ensure that the appropriate level of approval is obtained, as a failure to do so may mean that any purported changes to the CMS or by-laws are ineffective.
At Small Myers Hughes, we regularly assist with the preparation of the first CMS implemented by the developer, as well as new CMS’ required to meet the needs and desires of the owners constituting the scheme from time to time. Whether a body corporate desires a full review and update to its by-laws, or has specific identifiable issues requiring attention, we provide expert advice and drafting tailored to the needs of the body corporate.
If the matter relates to an issue about the breach of by-laws, we can also assist with enforcing by-laws. See more about the types of services we offer in our sections on Dispute Resolution and Adjudication & Tribunal.
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Tel: +61 7 5552 6666
Fax: +61 7 5528 0955
Office: Level 2, 17 Welch Street, Southport Qld 4215
Postal: PO Box 1876, Southport QLD 4215
Open: 8:30am – 5:00pm Monday to Friday
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