Unit Title Schemes in the NT: Rules for Small Schemes

A unit title scheme is formed when a plan of subdivision and the first scheme statement are registered (Unit Title Schemes Act 2009, s 4). Each unit owner is a member of the body corporate (s 24). Each scheme has two schedules of unit entitlements: a contribution schedule for each owner's share of contributions, and an interest schedule for the share of the land and assets (s 39). Contribution entitlements must be equal, and interest entitlements must follow market value, as far as that is just and equitable.

An older units plan under the Unit Titles Act 1975 has a body corporate named "The Proprietors" and the units plan number (1975 Act s 27), and may convert to a scheme by lodging a scheme statement (2009 Act s 111). Disputes go to the NT Civil and Administrative Tribunal (NTCAT).

• The body corporate may delegate any function in writing to a body corporate manager, the committee, a committee member or a unit owner (s 30), and may engage a person to help it. A manager is optional.
• A small scheme is a basic scheme with fewer than 4 unit owners. It uses management module 3. A standard scheme uses module 2 unless its scheme statement chooses module 1 (Management Modules Regulations reg 3, reg 5).
• If the number of owners changes so that a different module applies, the old module keeps applying until the next 1 July (reg 6).
• A committee is required for a scheme with at least 4 unit owners. A small scheme has one only if it decides by resolution without dissent (s 74). Without one, it elects a chairperson and a secretary at a general meeting (module 3 cl 29).
• In module 3, anyone with a vote may call a general meeting (cl 23), voting is by show of hands (cl 32), and motions pass by ordinary resolution unless the module says otherwise (cl 2).

• AGM at least once every calendar year and within 15 months after the last one (module 2 cl 29; module 3 cl 22).
• Notice: at least 14 working days, with the date, time, place and agenda (module 3 cl 24; module 2 cl 32). In module 2, 21 working days for a resolution without dissent or a unanimous resolution.
• Quorum: voters holding at least 50% of the total interest entitlements. Without a quorum, resolutions are interim and take effect only if confirmed at the next meeting with a quorum (module 3 cl 25, cl 26).
• A voter may take part by teleconference and is taken to be present (module 2 cl 35; module 3 cl 27).
• One vote for each unit (s 79). A unanimous resolution needs votes for equal to the total number of units; a resolution without dissent needs no vote against; a majority resolution needs votes for above 50% of all units; an ordinary resolution needs more votes for than against.
• A special resolution needs at least two-thirds of votes cast in favour, and the contribution entitlements of those against no more than 25% of the total (s 79(8)).
• An owner behind on contributions cannot vote while the amount is owing, except on a unanimous resolution or a resolution without dissent (s 79(9), (10)).

The body corporate decides the annual contributions, and each owner's share follows the contribution schedule (module 3 cl 39). Contributions pay for administration, maintenance and repair of common property, the required insurance and other reasonable costs (cl 40). A levy for a single item of spending needs a special resolution (module 3 cl 41; module 2 cl 50).

Interest on late payment may be charged at a rate the body corporate decides, up to the rate fixed for section 85 of the Supreme Court Act 1979, and it can be waived. An amount owing is a debt due to the body corporate (module 3 cl 43, cl 44). In module 2, accounting records and the annual financial statement are kept at least 7 years and an audit is optional (cl 55, cl 56).

The body corporate must have a policy for the common property (s 52) that covers reinstating damaged common property, including a scheme building that is common property, to "substantially the same condition as existed immediately before it was damaged" (s 53). Public liability cover must be at least $10,000,000 (s 54). The policy must give each mortgagee notice before it is cancelled (s 55).

Records such as minutes, resolutions, voting results, notices, insurance policies and contracts are kept at least 7 years (module 2 cl 57; module 3 cl 46). An owner, a mortgagee or a person intending to buy a unit can ask for access, and the body corporate must allow inspection or give a copy within 10 working days (s 81). The access fee is $30 in module 2, which may be waived; module 3 states no fee.

For an older units plan under the Unit Titles Act 1975, a proprietor or a person with the proprietor's written consent can ask for a certificate of unpaid contributions within 14 days, for a fee no more than its cost (1975 Act s 37).

If the scheme statement sets no by-laws, Schedule 2 of the Act applies (s 95). A by-law is changed by special resolution, but the change has no effect until the schemes supervisor certifies it and it is lodged with the Registrar-General (s 95A). The supervisor must decide within 20 working days of receiving the change and the fee, and the body corporate must lodge a certified change within 20 working days (s 95B, s 95C).

NTCAT hears disputes about a claimed breach of the Act, a body corporate or committee decision said to be unreasonable, oppressive or unjust, a failure to perform a function, and disputes between owners about a unit or the common property (s 84). It can order a payment or an action, change a decision or a by-law, or order the body corporate to perform a function (s 86).