austlii:qld/QBCCMCmr/2025/397
General information, not legal advice.
QBCCMCmr
2025-11-07
Original judgment source is linked above.
Murray Laurence Wills and Tracey-Skye Wills (applicants)
Body Corporate for 4 Princess (second respondent)
Body Corporate and Community Management Act 1997 (Qld), sections 227(1) and 229(3)(a)
Body Corporate and Community Management (Specified Two-Lot Scheme Module Module) Regulation 2020
SPECIFIED TWO-LOT SCHEME - LOT OWNER AGREEMENT - REASONABLENESS - The scheme comprises two lots. Under the Specified Two-Lot Scheme Module, body corporate decisions must be made by a lot owner agreement. The applicants, as owner of one lot, require the agreement of the other lot owner to install a shed on their exclusive use area, which has been declined. The Act provides that an order may be made giving effect to the LOA if agreement was unreasonably withheld.
The questions are (a) whether the other lot owner, acting reasonably, may act with self-interest or must also consider the interests of the proposing or owner, and in light of that test (b) whether the refusal to agree to the proposal was unreasonable.
Body Corporate and Community Management Act 1997 (Qld): ss 94(2); 276(1); Sched 5, item 17; Sched 5, item 26
Body Corporate and Community Management (Specified Two-Lot Scheme Module Module) Regulation 2020: ss 45; 111E; 111H
(1) A lot owner agreement for a specified two-lot scheme is an agreement between the owners of the lots included in the scheme about a matter -
(a) related to the carrying out of the functions given to the body corporate under this Act and the community management statement; and
(b) for which the body corporate is required or permitted to make a decision under this Act or the community management statement.
(2) A lot owner agreement for a specified two-lot scheme is a decision of the body corporate.
(1) The owner of a lot included in a specified two-lot scheme may ask the owner of the other lot included in the scheme to enter into a lot owner agreement about a proposed decision.
(a) be made in the way prescribed under the specified two-lot schemes module; and
(b) state a reasonable period for the owner of the lot to whom the request is made to enter into a lot owner agreement about the proposed decision.
(3) If the owner of the lot to whom the request is made does not enter into a lot owner agreement about the proposed decision within the period stated, the body corporate is taken to have decided against making the proposed decision contained in the request.
(4) Subsection (3) applies despite section 111G (2) .
(a) about a matter related to the carrying out of the functions given to the body corporate under this Act and the community management statement; and
(b) that the body corporate is required or permitted to make under this Act or the community management statement.
(1) An adjudicator to whom the application is referred may make an order that is just and equitable in the circumstances (including a declaratory order) to resolve a dispute, in the context of a community titles scheme, about -
(a) a claimed or anticipated contravention of this Act or the community management statement; or
(b) the exercise of rights or powers, or the performance of duties, under this Act or the community management statement; or
(3) Without limiting subsections (1) and (2) , the adjudicator may make an order mentioned in schedule 5.
8A An order declaring that a decision purportedly made by a lot owner agreement was at all times void.
9A An order declaring that a decision purportedly made by a lot owner agreement is a valid decision of the body corporate.
(a) declaring that the decision was at all times void; or
(b) giving effect to a variation of the lot owner agreement.
(a) giving effect to the decision proposed by the owner of the other lot; or
(b) giving effect to a variation of the decision proposed by the owner of the other lot.
(1) The body corporate for a community titles scheme must -
(a) administer the common property and body corporate assets for the benefit of the owners of the lots included in the scheme; and
(b) enforce the community management statement (including enforcing any by-laws for the scheme in the way provided under this Act); and
(c) carry out the other functions given to the body corporate under this Act and the community management statement.
(2) The body corporate must act reasonably in anything it does under subsection (1) including making, or not making, a decision for the subsection.
Examples for subsection (2) of a body corporate making a decision -
• passing a motion by resolution at a general meeting or a committee meeting
• not passing a motion after a vote at a general meeting or a committee meeting
• owners of lots included in a specified two-lot scheme entering into a lot owner agreement for the scheme (see section 111E (2) )
• owners of lots included in a specified two-lot scheme failing to enter into a lot owner agreement following a request made by one of the owners (see section 111H (3))
If satisfied a motion ... considered by a general meeting of the body corporate and requiring a resolution without dissent was not passed because of opposition that in the circumstances is unreasonable - an order giving effect to the motion as proposed, or a variation of the motion as proposed.
In my view, the relevant legal obligation is whether the Body Corporate acted reasonably (pursuant to section 94(2)) in deciding not to approve the proposal. Schedule 5, items 10, 11, 17, 22, 24 and 25 (and potentially other example orders) all contemplate different circumstances where a body corporate decision may not have been reasonable. There is not, in my opinion, a different legal obligation depending on which Schedule 5 order has been contemplated by an applicant.
Reconciling Ainsworth, item 17, item 26, and ss 276(1) and 94(2)
The most enduring of the canons of construction that have been applied throughout the history of this Court is that which enjoins the decision-maker, faced with apparent statutory intersection, to endeavour, to the fullest extent permitted by the language, to read the two statutes so that each, within its own sphere, can continue to operate, such that no part of either is taken to be repealed or inoperative, for Parliament has not said so.
therefore the correct approach is as found in Ainsworth, adjusting for these circumstances, ie:
[63] Going to the next step, I also consider that section 94(2) and item 26 are not incompatible in a practical sense, for the following reasons.
[73] Lauren Raynor's contemporaneous text message of 15 September 2023 generally confirms those concerns:
Hi Geoff, I have spoken to both my parents and they have advised that they would like to know legally what the rules are regarding this, and also what approval is necessary. Both have concerns regarding the size of the shed and it being so close to the boundary fence, as well as any additional traffic that may be associated with it. At this stage we can't say yes to this being built. My dad has also expressed concerns that the building is due to take place tomorrow according to Murray. This is not adequate time for any decision to be made. Thanks Lauren
The Body Corporate acknowledge and agree to support an application by the owner of lot 2, to undertake all or any of the following works:
1. Construct a shed 10 metres long and 7 metres wide not closer than 1.5 metres to the boundary of the exclusive use area of common property allocated to lot 2, as shown on the plan attached and to then have that area augmented to lot 2 on completion.
2. Constructed an inground or above ground pool on the common property allocated to lot 2, as shown on the plan attached and to then have that area augmented to lot 2 on completion (if applicable); and
3. Create additional parking area on the common property allocated to lot 2, as shown on the plan attached and to then have that area augmented to lot 2 on completion (if applicable).
(a) Building design and approval by certifier or Council
(d) the surveyor for preparation of a new Survey Plan and revised Exclusive Use plan,
(e) registration fees for the survey plan and New Community Management Statement once the works are completed and the survey plan drawn; and
(f) anything otherwise reasonably necessary to achieve the result of adding the Works to the title of lot 2.
We purchased a 5 BR home on a half acre block for enough space to have a home, a garage and a shed. Currently our belongings are in storage at Robina which is not ideal. It is very costly and inconvenient. All we are proposing is the permission to build a shed next to the house to move our belongings to. Your daughter Lauren asked why we can't build this shed on the other end of our house. We park our vehicles there. If we put our shed there, which there is not enough room for anyway, it would then force us to be parking our cars at the other end of our home and we do not want to be driving across the lawn to park cars.
[2] See generally Ch 3, Part 1, Div 5 of the Act.
[4] Viridian Noosa Residences [2013] QBCCMCmr 351 (Viridian) at [59]
[5] Re Body Corporate for Viridian; Kjerulf Ainsworth & Ors v Martin Albrecht & Anor [2014] QCATA 294
[6] Albrecht v Ainsworth & Ors [2015] QCA 220
[7] By implication, pursuant to section 276(1)(a), because it deals with contraventions of the Act.
[8] Ainsworth at [10], [47] per French CJ, Bell, Keane and Gordon JJ (joint reasons)
[9] Ainsworth at [27] per joint reasons, [71] per Nettle J
[10] Ainsworth at [27] per joint reasons, [71] per Nettle J
[11] Ainsworth at [71] per Nettle J
[12] Ainsworth at [47]-[50] per joint reasons
[13] Ainsworth at [27] per joint reasons, [71] per Nettle J
[14] Ainsworth at [60] per joint reasons
[15] Ainsworth at [56], [[63] per joint reasons
[17] Ainsworth at [51] per joint reasons. The court's reference to Waters v Public Transport Corporation relates to the finding in that case that a decision maker, acting reasonably, is required to strike a reasonable balance by weighing all the relevant factors.18
[19] Ainsworth at [45] per joint reasons
[20] Ainsworth at [55] per joint reasons
[21] Ainsworth at [63] per joint reasons
[22] Ainsworth at [85] per Nettle J
[23] Ainsworth at [101] per Nettle J
[24] Noting that a LOA is only made in a STLS.
[25] That principle is sometimes expressed as the maxim 'generalia specialibus non derogant'. See for eg Ferdinands v Commissioner for Public Employment [2006] HCA 5 at [106]- [107]
[26] Ferdinands v Commissioner for Public Employment [2006] HCA 5 at [108]
[27] [2017] QCATA 53 (Trojan) at [24], following Ainsworth at [48]-[51] per joint reasons
[28] [2016] QCATA 177 (Beaches) per Carmody J at [100]
[29] Provided they otherwise act lawfully.
[31] A committee member in schemes regulated by other regulation modules must not vote on a motion about which they have a direct or indirect conflicting interest in it: see for eg s 66(2) Body Corporate and Community Management (Standard Module) Regulation 2020.
[33] Ainsworth creates an exception for a motion requiring a resolution without dissent. Section 100(1) of the Act deems a committee decision to be a body corporate decision.
[34] For eg: Ainsworth at [60], [63] per joint reasons; [71], [101] per Nettle J; Body Corporate for the Reserve CTS 31561 v Trojan Resorts Pty Ltd [2017] QCATA 53 (Trojan) at [24]; Beaches at [42], [97]
[35] See Katsikalis v Body Corporate for "The Centre" [2009] QCA 77 at [25]- [32]
[36] Ainsworth at [63] per joint reasons
[37] Ainsworth for eg at [89], [97] per Nettle J