Two-lot Schemes Module
The Specified Two-lot Schemes Module aims to make the day-to-day management of community titles schemes with only 2 lots easier for owners.
A body corporate under the Two-lot Schemes Module is formed by the owners of the 2 lots.
Applying the Specified Two-lot Schemes Module
The Specified Two-lot Schemes Module applies if:
- there are only 2 lots in the scheme
- the community management statement for the scheme shows that the Specified Two-lot Schemes Module applies
- the lots are residential, or were when the community management statement was registered.
The Specified Two-lot Schemes Module does not apply if:
- there is a letting agent for the scheme
- the scheme is part of a layered arrangement of community titles schemes.
See how to change a regulation module to the Specified Two-Lot Schemes Module.
A residential lot is a lot that is used for residential purposes (people live there) including short or long term leases.
In some cases the Specified Two-lot Schemes Module can still apply even when the lots are not residential.
This could happen if:
- the first community management statement showed that the Specified Two-lot Schemes Module applied, and the lots were originally meant to be residential, but they were not used as residential lots
- the lots were previously residential lots, but no longer are, even though the first and later community management statements showed that the Specified Two-lot Schemes Module applied.
For example, a new building with 2 lots was registered under the Specified Two Lot Schemes Module with the intention of selling the lots for people to live in. The lots were bought by someone who set them up as shops.
The Specified Two Lot Schemes Module will still apply unless the body corporate changes the community management statement.
Lot owner agreements
Unlike other regulation modules where decisions are made either at committee or general meetings, a body corporate under the Specified Two-lot Schemes Module makes decisions by lot owner agreements.
Lot owner agreements must:
- be in writing
- show the date of the agreement
- detail what has been agreed to
- be signed by the owners of both lots.
If the agreement is made by electronic communication (e.g. email), the communication must show that each owner has agreed.
Electronic communication (e.g. emails) must be consistent with the Electronic Transactions (Queensland) Act 2001.
An agreement made by 1 co-owner of a lot applies to all co-owners of that lot.
For more information on committee and general meetings in other regulation modules see:
The owner of a lot can be represented by someone else.
The owner’s representative can be:
- a guardian, trustee, receiver or someone else authorised in writing to act on the owner's behalf
- someone acting under a power of attorney given by the owner. The original owner cannot act for an owner under a power of attorney unless it was given under sections 211 and 219 of the Body Corporate and Community Management Act 1997.
The owner’s representative must act according to the written document which appointed them.
The owner’s representative must give the other lot owner:
- a copy of the written document that allows them to act as the owner’s representative
- proof that they are acting on behalf of the lot owner
- their residential or business address (in writing).
An owner’s representative has the same powers as the owner. They can do anything the owner has to do under the Body Corporate and Community Management Act or the community management statement.
The owner’s representative can make a lot owner agreement.
Engaging a body corporate manager or service contractor
An engagement must be in writing and it must set out:
- when the term begins and ends (not more than 1 year)
- the term of any right or option of extension or renewal of the engagement
- the functions the body corporate manager or service contractor is required to do
- what the body corporate manager or service contractor will be paid.
The body corporate can (by a lot owner agreement) terminate the engagement of a body corporate manager or a service contractor.
Body corporate accounts
The body corporate can (by a lot owner agreement) decide to keep body corporate funds in 1 or more accounts with a financial institution (e.g. bank or building society).
However it is not required to do so by law.
For more information see:
Funds held under a previous regulation
If a scheme has changed from another regulation module (e.g. the Standard Module) to the Specified Two-lot Schemes Module, and the body corporate has funds that are held in a financial institution, the body corporate must:
- use money in the administrative and sinking funds to pay for agreed body corporate expenses, including body corporate insurance
- continue to use the administrative and sinking funds until the funds are spent.
Body corporate records
The body corporate must (by a lot owner agreement) appoint someone to keep body corporate records.
This person can be a lot owner; a representative of a lot owner, a body corporate manager or the owners of both lots.
Read more on body corporate records.