It’s well known that buying into an apartment or unit complex brings with it an extra level of complexity stemming from the strict and confusing Body Corporate legislation that applies. With freestanding housing becoming more rare and more expensive as housing density increases, multi-dwelling residences are becoming the norm.
A duplex however is a type of multi-dwelling property that escapes the extra-burden of having to have a Body Corporate in place. Changes to property law in Queensland mean that it is no longer a requirement for duplex owners to appoint a Body Corporate manager for the management of their properties, or to have any type of formal Body Corporate meetings and voting.
The Body Corporate and Community Management (Specified Two-Lot Scheme Module) Regulation 2011 allows for owners of a duplex to enter into a “Lot Owners Agreement”, which allows for the management of the property to be handled by the owners themselves.
In Queensland there are currently about 13,000 duplexes to which this Lot Owners Agreement can apply to, however many owners are still unaware of this change to the law, which could be costing them money. The Lot Owners Agreement means that there is no cost associated with hiring a Body Corporate manager and paying their ongoing fees, while it also allows for a much greater degree of flexibility in the management of the property by the owners.
A Lot Owners Agreement will apply:
- Where there are only two residential lots on the property (a duplex); and
- The Community Management Statement identifies that the Two-Lot Module applies. This requirement may mean that the Community Management Statement of the property be amended.
A Lot Owners Agreement is required to be in writing, be dated and be signed by the owner of each unit in the duplex and contain all matters that are agreed upon by the owners.
These matters typically include insurance, the maintenance and improvement of common property, and the payment of premiums for this insurance and maintenance.
Where a Lot Owners Agreement is not currently in place, it may be requested by one owner of the property.