Leaderbuild Qld Pty Ltd as Trustee v Body Corporate for LBQ Community Titles Scheme CTS 36771
[2014] QCAT 408
| CITATION: | Leaderbuild Qld Pty Ltd as Trustee v Body Corporate for LBQ Community Titles Scheme CTS 36771 [2014] QCAT 408 |
| PARTIES: | Leaderbuild Qld Pty Ltd as Trustee (Applicant) |
| v | |
| Body Corporate for LBQ Community Titles Scheme CTS 36771 (Respondent) |
| APPLICATION NUMBER: | OCL039-14 |
| MATTER TYPE: | Other civil dispute matters |
| HEARING DATE: | On the papers |
| HEARD AT: | Brisbane |
| DECISION OF: | Member Deane |
| DELIVERED ON: | 19 August 2014 |
| DELIVERED AT: | Brisbane |
| ORDERS MADE: | 1. There be an adjustment of the interest schedule for the scheme so that the respective interest schedule lot entitlements recorded in the community management statement for the scheme reflect the market value principle and are in accordance with the schedule to this order. 2. The body corporate, within 30 days of this order, lodge a new community management statement incorporating changes to the interest schedule lot entitlements for the lots included in the scheme in accordance with these orders. |
| CATCHWORDS: | BODY CORPORATE – interest schedule adjustment – market value principle Body Corporate and Community Management Act 1997 (Qld), s 46, s 46B, s 47(3), s48 |
APPEARANCES and REPRESENTATION (if any):
This matter was heard and determined on the papers pursuant to s 32 of the Queensland Civil and Administrative Tribunal Act 2009 (Qld) (QCAT Act).
REASONS FOR DECISION
This is an application under the Body Corporate and Community Management Act 1997 (Qld) (‘BCCM Act’) for adjustment of the interest schedule lot entitlement (ISLE).
Leaderbuild Qld owns all 5 lots and seeks to adjust the ISLE based upon the market value principle.
The ISLE is the basis for calculating the lot owner’s share of common property, interest on termination of the scheme and the value of the lot for the purpose of local government rates and charges imposed on the basis of value.[1]
[1]BCCM Act s 47(3).
The BCCM Act[2] sets out that in a CTS established after the commencement of s 46(7) and s 46(8) of the BCCM Act[3] ISLE must be consistent with the market value principle.
[2]BCCM Act s 46.
[3]14 April 2011.
The CTS was established before the commencement of s 46(7) and s 46(8) of the BCCM Act.[4]
[4]Community Management Statement executed14 August 2009.
The market value principle[5] is the principle that lot entitlements must reflect the respective market values of the lots except to the extent to which it is just and equitable for them not to reflect respective market values.
[5]BCCM Act s 46B(1).
Buildings and improvements on a lot are to be disregarded when establishing the market value created under a standard format plan of subdivision or volumetric format plan.[6]
[6]BCCM Act s 46B(2).
It is necessary to consider the adjustment provisions.
Section 48 of the BCCM Act provides that an owner of a lot may apply for an adjustment of an interest schedule and that the order must be consistent with the market value principle.
Some independent market value evidence has been provided by Jim Webster of Propell National Valuers Pty Ltd.[7]
[7]Dated 22 April 2014.
This evidence is that in current market conditions that the market value is as follows:
a) Lot 1 – $1,850,000;
b) Lot 2 and 4 – $900,000;
c) Lot 3 – $965,000;
d) Lot 5 – $270,000.
In the absence of contrary evidence I accept this evidence of market value.
The ISLE is not currently consistent with the market value principle as the ISLE is currently equal for each of the 5 lots.[8]
[8]Community Management Statement executed 14 August 2009.
There are no matters brought to the Tribunal’s attention as to why it would be just and equitable for the ISLE not to reflect the respective market values of the lots.
I find that the ISLE ought to be adjusted to reflect the market value principle in accordance with s 48 of the BCCM Act in accordance with the schedule set out below.
Schedule of Lot Entitlements
Lot on Plan
Interest
Lot 1
1850
Lot 2
900
Lot 3
965
Lot 4
900
Lot 5
270
Total
4885
0
0
0