WHAT IS A PARTICIPATION QUOTA?

WHAT IS A PARTICIPATION QUOTA?

In a purely residential scheme, a Participation Quota (PQ) is worked out mathematically and is an expression of the size of a section in relation to the sum of the size of all of the sections. In a scheme registered under the current Act, this figure is expressed as a percentage to four decimal places. Under the earlier Act, the figure was expressed as a decimal fraction. As an example, a section of 120 m2 in a scheme in which the sum of all the sections is 1000m2 has a PQ of 12,0000% in a scheme registered under the 1986 Act or 0,120 under the 1971 Act.

In a combined commercial and residential scheme the PQs for the commercial sections are nominated by the developer, while those for the residential sections are calculated according to the size of a section as mentioned above. Participation Quotas are shown on the sectional plan of the scheme.

The Sectional Titles Act allows the developer of a sectional scheme to nominate values, which differ to the PQs. This right passes to the body corporate upon establishment and requires a special resolution from the members and the written consent of any owner adversely affected by the change. It must be emphasised that these nominated values do not replace the PQs shown on the sectional plan, but where such values exist, obligations to pay and voting rights will be calculated in accordance with these values and not the PQs.

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