Body Corporate - A quick guide to community living in Queensland
As Queensland’s population continues to grow at a rapid pace, many people are embracing the opportunities offered by community living. Queensland has over 51,000 community titles schemes, with more than 523,000 individual lots. The community titles sector is a significant and growing contributor to Queensland’s economy.
Community living can be an affordable and convenient lifestyle choice. It can benefit singles or retirees looking to downsize yet continue independent living. People with common interests can meet socially or simply develop a closer relationship with their neighbours. Members can share facilities, such as pools and gardens that may be too costly or difficult for them to build or maintain on their own.
Along with its many benefits, community living does involve a whole new set of commitments which in many cases can be different to traditional house and land ownership. Bodies corporate, which comprise all lot owners, are a vital part of community living, given their role in making decisions on matters of shared responsibility for the community.
Many new owners and potential purchasers are unclear about their rights and responsibilities as body corporate members. That’s why the Queensland Government has produced this publication – Body Corporate: A quick guide to community living in Queensland.
It provides valuable guidance about community titles schemes, bodies corporate and the obligations and rights people have as owners and others involved in a body corporate.
This publication is a general guide to those who own a lot in a community titles scheme or are considering buying into a community titles scheme. It provides a broad overview of community living and the role of the body corporate. This guide is not intended as legal advice but aims to better inform consumers, particularly before signing a contract to buy into a community titles scheme.
If you require further information, the Queensland Government, through the Office of the Commissioner for Body Corporate and Community Management (the BCCM Office), provides an information service for those involved in community titles schemes. The BCCM Office also provides a dispute resolution service to resolve any disagreements which may arise within the body corporate and which cannot be resolved internally.
What is a community titles scheme?
A community titles scheme may include any duplex, residential unit block, high rise accommodation complex, shopping complex or business park. It can also include townhouses and free-standing houses which are part of a larger plan. Schemes are comprised of individually owned lots or units and common property.
Community titles schemes allow for flexible living arrangements where a person can privately own an area of land or part of a building as well as share common property areas with other owners.
If you are considering purchasing a unit or townhouse, you need to be aware you will be buying into a community titles scheme.
You will have certain rights and responsibilities for not only your own property, but also the common property shared with other owners within your complex.
Therefore, it is important for potential owners to understand what the common property is and what the costs will be for maintenance and general upkeep.
Examples of common property range from a shared driveway or letterbox area to communal lifts and stairways, swimming pools, tennis courts, roadways and golf courses.
What is a body corporate?
The body corporate for a community titles scheme is comprised of all the owners in the scheme. Every new owner automatically becomes a member of the body corporate.
The body corporate must comply with the Body Corporate and Community Management Act 1997 (the BCCM Act) and regulations.
The body corporate (owners or their representatives) makes decisions on matters with shared responsibility. These include:
• maintenance and management of common property, including equipment and services
• determining levies (financial contributions) which owners must pay to fund its operations
• public risk insurance, as well as insurance of any common property and assets
• any compulsory building insurance • establishing and enforcing by-laws (rules) relating to the management and control of lots and the common property.
When considering purchasing a unit in a community titles scheme, you should find out if there are any fees and charges still owing – as the new owner, you will be obligated to honour the payments.
The committee
The body corporate must elect a committee at each annual general meeting. The committee consists of executive members (a chairperson, secretary and treasurer) and any ordinary members. There are a number of factors that determine the 'required number' of committee members for a body corporate.
If not enough body corporate members are interested in forming a committee or at least one of the executive positions is not filled, regulations allow a body corporate to engage a body corporate manager to carry out the functions of a committee.
Maintaining common property
It is the responsibility of the body corporate to maintain common property. Common property may include (but is not limited to) lawns, access roadways, swimming pools, and common doors and windows. It is very important for the body corporate to know what type of plan the scheme is recorded as. A scheme recorded as a ‘building format plan’ will have a significantly different area of responsibility than one recorded as a ‘standard format plan’.
Copies of plans may be obtained from Titles Queensland on 07 3497 3479.
The body corporate can engage the services of professionals such as gardeners and pool cleaners to carry out maintenance. In some smaller schemes, body corporate members volunteer their own services. Naturally, professional services will involve some costs, and these and other financial matters must be considered by the body corporate at the annual general meeting.
The annual general meeting
By law, every body corporate must hold an annual general meeting (AGM) each year. At the AGM, owners consider the financial position and direction of the body corporate. There are 2 budgets that a body corporate must approve each year:
The administrative fund budget covers the day to day expenses such as:
• general maintenance of the common property
• insurance premiums paid by the body corporate
• other recurrent expenditure (for example, a weekly gardening service).
The sinking fund budget is based on future/major capital expenditure for the next 10 years for items such as:
• painting the building (if the body corporate is responsible)
• pool refurbishment
• the purchase or replacement of major assets (for example, ride-on mowers or pool furniture). Other items required to be on the AGM agenda are:
• election of committee members for the next year
• fees and levies for the year (based on the two budgets mentioned above)
• details of insurance
• any motions submitted by owners. Special general meetings (known as extraordinary general meetings) can be held during the year when there are items to be decided upon as a matter of urgency.
What costs are involved as a body corporate member?
Based on the budgets, the body corporate must determine the contributions (levies) each owner will have to make and when they will be due. The levies are calculated in accordance with the lot entitlement schedules.
There are two lot entitlements schedules (the contribution schedule and the interest schedule), and expenses for maintenance of common property are divided amongst the owners in the same proportion as the contribution schedule lot entitlements.
While expenses for common property maintenance are calculated using the contribution schedule lot entitlements, insurance is an expense that is treated differently and will depend on the plan of subdivision applying to the scheme ('building format plan' or 'standard format plan'). For more information on insurance, visit the website of the BCCM Office at: www.qld.gov.au/bodycorporate.
Lot entitlements are determined by the original owner (the developer) when preparing the first community management statement (CMS) for the scheme. Copies of the CMS for each community titles scheme can be purchased from Titles Queensland on 07 3497 3479.
All individual lot owners are legally obliged to maintain their own property in good condition. If the lot is not maintained as required, the body corporate may have the right to proceed with any repairs or maintenance at the owner's cost.
What by-laws apply?
The by-laws are a set of rules for a community titles scheme that regulate various matters including the keeping of animals, noise, and parking on common property. The BCCM Act allows a body corporate to adopt standard by-laws set out in the BCCM Act or to make by-laws that best suit its individual circumstances.
Owners are encouraged to obtain copies of the by-laws to ensure they are familiar with their rights and responsibilities. By-laws are contained in the CMS for a community titles scheme. Copies of the CMS for each community titles scheme can be purchased from Titles Queensland on 07 3497 3479.
Further information about which by-laws apply can be found on the website of the BCCM Office at: www.qld.gov.au/bodycorporate.
Buying to invest
As an investor, your rights and responsibilities are exactly the same as if you were an owner/occupier. Your individual property must be maintained in good condition and levies and additional costs will still be calculated as if you were living there.
If you are letting a unit, you are obligated under the Residential Tenancies and Rooming Accommodation Act 2008 to provide your tenant with a copy of the body corporate by-laws.
All owners must provide an Australian residential or business address to the body corporate. When letting your unit for 6 months or more, you must advise the body corporate of the name and residential or business address of your tenant.
For more information on letting or renting a unit, contact the Residential Tenancies Authority on 1300 366 311 or visit www.rta.qld.gov.au.
Get the foundations right
As well as conveyancing searches, potential buyers should try and find out information about the body corporate. Searches are available through the following areas:
1. Titles Queensland: obtain a copy of the CMS and the survey plans. The CMS provides important details about the particular community titles scheme, including details of any proposed future development of the scheme, the lot entitlements, by-laws, and the regulation module applying to the scheme. The survey plans show the lot boundaries and the plan of subdivision the applies to the scheme. Further information is available from Titles Queensland by phoning 07 3497 3479 or visiting www.titlesqld.gov.au.
2. The BCCM Office, Department of Justice and AttorneyGeneral: conduct a search for any adjudicators' orders made concerning the scheme. General information is also provided about body corporate legislation. For more information, phone 1800 060 119 or visit www.qld.gov.au/bodycorporate.
3. The body corporate itself: a request for an information certificate (BCCM Form 13) from the body corporate may provide you with important information such as whether or not the lot you are purchasing owes a body corporate debt, for which you may become liable. The certificate also sets out the levies currently set by the body corporate for the current financial year. A search of the body corporate records can provide other important information, including whether any improvements to the lot you are purchasing (balcony enclosures, air conditioning, etc.) were approved, whether any conditions apply, and who is responsible for their maintenance and insurance. Also, check for any agreements the body corporate may have entered into, for example - caretaking, letting, body corporate management, or lift maintenance.
Source: BCCM Quick Guide Booklet Updated 2023 - QLD GOV
