Understanding Building Management Statements in Queensland: Why Legal Review Matters

As a property owner or investor in Queensland, you’re going to come across a wide variety of legal documents that govern both your own affairs and the relationships to people with whom you deal.

One such document, often overlooked but critically important, is the Building Management Statement (BMS). If you’re involved in a mixed-use property (such as residential apartments above retail shops, or office spaces sharing facilities with a hotel) you might already have a BMS in play without fully grasping its implications.

In this article, I’ll break down what a BMS is, how it functions under Queensland law, and why engaging a law firm to review it isn’t just a good idea - it’s a strategic necessity. 

What is a Building Management Statement? 

In Queensland, a BMS is a registered legal document under the Land Title Act 1994.

It’s designed to regulate the relationship between two or more parties, typically lot owners or bodies corporate, that share common infrastructure or facilities within a development.

Picture, for example, a high-rise where the ground floor is a commercial hub, the mid-levels are offices, and the top floors are residential units. The car park, lifts, utilities, and even external landscaping might be shared across these uses. The BMS is the legal framework that defines who can use what, who maintains it, and, crucially, who pays for it. 

Unlike a Community Management Statement (CMS) that you might have come across with other bodies corporate, a BMS is a contractual agreement with much less statutory oversight. It’s not bound by the same rigid framework, meaning its terms are bespoke to the development.

This flexibility can be a strength, but it also introduces complexity and potential risk if not carefully crafted or understood. 

Key Elements of a BMS 

A BMS typically covers: 

- Shared Property: Identifies the facilities or areas (e.g., parking, stairwells, utilities) that all parties can access. 

- Rights and Responsibilities: Spells out who can use these areas and who’s responsible for their upkeep. 

- Cost Allocation: Details how maintenance, repairs, and operational costs are split - by percentage, usage, or another formula. 

- Management Structure: May establish a committee or process for decision-making about shared spaces. 

- Dispute Resolution: Outlines how conflicts are handled (more on this later). 

Because it’s registered on the title of each affected lot, a BMS binds not just the current owners but all future owners too. It’s a long-term commitment, which is why getting it right matters so much.  While it can be amended, doing so is tedious, and as much as possible you want to ensure that you’ve thought it through properly before it’s registered.

Why We Need to Review It 

At The Real Estate Lawyer, we tell our clients that a BMS isn’t just a formality - it’s a roadmap for how your property interacts with others in the development. Without properly understanding the BMS and its implications, there will be disputes, cost implications, tension among lot owners, and ultimately a more chaotic environment for everyone involved.

Here are a few reasons we need to dive into the details: 

1. Clarity on Rights and Obligations

The BMS dictates what you can do with shared facilities and what you’re on the hook to maintain. Is your access to the car park unrestricted, or are there limits? Are you responsible for a portion of the lift maintenance even if you rarely use it? We review the fine print to ensure these terms are clear, equitable, and match your expectations. Ambiguity here can lead to frustration, or worse, legal battles, down the track. 

2. Protecting Your Wallet

Cost-sharing is a big deal in a BMS. It might say you’re liable for 20% of the building’s electrical upgrades, even if your lot is a small residential unit while the commercial tenant downstairs guzzles power.

We’ll scrutinize the allocation method to confirm it’s fair and proportionate. Without this check, you could be hit with unexpected levies that strain your budget or diminish your property’s value. 

3. Spotting Legal Risks 

While a BMS isn’t as tightly regulated as a CMS, it still needs to comply with the Land Title Act 1994 and avoid conflicting with other laws.

Poorly drafted clauses that are vague or difficult to understand can create headaches.

We’ve seen cases where a BMS fails to specify who pays for emergency repairs, leaving owners in limbo during a crisis. Our review flags these risks so they can be addressed before they happen. 

4. Dispute Resolution Realities 

Unlike body corporate disputes, which can go to early formal mediation processes, BMS disputes usually head straight to court unless the document says otherwise.

Court battles are costly and time-consuming. We’ll assess the dispute resolution clause to ensure it’s practical, cost-effective, and likely to actually help you achieve a positive outcome.

5. Future-Proofing Your Investment 

Planning to renovate, lease, or sell your property?

The BMS might restrict your options. Some prohibit changes to lot usage without unanimous consent from all parties, while others lock in cost contributions that deter buyers or potentially reduce the value of the lot.

We’ll advise on how flexible the BMS is and whether amendments are feasible, giving you room to adapt as your needs evolve. 

A Real-World Example 

Imagine you own a residential unit in a mixed-use tower.

The BMS states that all lot owners split the cost of maintaining the shared loading dock, but it’s primarily used by the ground-floor retailer.

Without a review, you might not realize you’re subsidizing their business operations.

Or perhaps the BMS is silent on electric vehicle charging stations (a growing desire of residential tenants) leaving you vulnerable to disputes as tenants push for upgrades or additions to the facility.

These are the kinds of issues we catch and address. 

Why It’s Worth the Effort 

Reviewing a BMS might feel like an extra step and additional cost, but it’s an investment in peace of mind.

In Queensland’s dynamic property market, where mixed-use developments are increasingly common, understanding your legal footing critical for your peace of mind.

A BMS isn’t just about today - it’s about ensuring your property remains viable and valuable for years to come. 

We can help you translate the legalese, highlight the risks, and, where needed, negotiate changes that protect your interests. Whether you’re buying into a development, managing an existing lot, or planning for the future, a thorough BMS review is a small price to pay for the confidence it delivers. 

Get in touch today if you need us to help review your Building Management Statement.