What is a Building Management Statement (BMS)?
A Building Management Statement (BMS) is a legally binding document registered on the property title in Queensland. It is used in complex mixed-use developments to manage the relationship, shared facilities, and cost-sharing arrangements between two or more different lots that form part of the same building structure.
You will typically encounter a BMS in developments that have been subdivided using volumetric titles (3D airspace lots). For example, a single high-rise tower might have a retail precinct on the ground floor (Lot 1), commercial offices on the middle floors (Lot 2), and a residential body corporate on the top floors (Lot 3).
Why Are Building Management Statements Necessary?
When different types of owners share a single building structure, a standard Body Corporate (Community Titles Scheme) is often not suitable because the needs and usage of a commercial retailer are vastly different from a residential apartment owner.
A BMS provides the framework for these separate entities to coexist and manage shared infrastructure. It covers:
- Shared Facilities: Lifts, lobbies, basements, car parks, loading docks, and plant rooms.
- Cost Apportionment: How the costs for maintaining, repairing, and insuring the shared facilities are divided between the different lot owners.
- Dispute Resolution: Procedures for resolving disagreements between the retail, commercial, and residential entities.
- Rules of Access: Who can use which areas of the building and when.
How a BMS Affects Property Buyers and Investors
If you are buying a commercial lot or an apartment within a building governed by a BMS, the terms of the BMS will directly impact your ongoing costs and rights. The BMS is an encumbrance registered on the title, meaning it runs with the land and binds all future owners.
If the cost apportionment in the BMS heavily favours the commercial lots over the residential lots, residential owners (or their body corporate) could face unexpectedly high levies to maintain shared infrastructure like basement pumps or external facades.
What Will a Title Search Reveal?
A Current Title Search ($74.50 AUD) will clearly list the Building Management Statement under the "Encumbrances" section if one applies to the property.
However, the Title Search only tells you that the BMS exists. To read the actual rules, cost-sharing formulas, and operational guidelines, you must order a copy of the registered document itself.
How to Obtain a Copy of the BMS
Because a BMS is a registered dealing, you can order a copy directly through TitleFinder. You will need the Dealing Number, which is found on your Current Title Search.
- Current Title Search: $74.50 AUD (To check for a BMS and get the Dealing Number)
- Image of Dealing Instrument: $91.80 AUD (To get the full BMS document)
- Image of Survey Plan: $85.90 AUD (To understand the boundaries of the shared facilities)
A Building Management Statement is often a massive, highly complex legal document. Never buy into a mixed-use development without securing a copy of the BMS for your conveyancer or property lawyer to review during your due diligence period.