Body corporate properties are made up of individually owned lots or units and common property.
A body corporate property could be a duplex, residential unit block, high-rise accommodation complex, shopping complex or business park. It could also be a larger plan that includes townhouses and freestanding houses.
The ‘body corporate’ is an entity made up of each person who owns a lot within the property. Learn more about the role of the body corporate.
If you are thinking about buying a property that has a body corporate, you may want to learn more about its particular situation.
Which legislation applies
There are different types of bodies corporate in Queensland with different pieces of legislation that may apply.
Every owner should know which legislation applies to their body corporate. You can find out which applies from Titles Queensland.
Community titles schemes
Most bodies corporate in Queensland are regulated by the Body Corporate and Community Management Act 1997 (the BCCM Act).
The BCCM Act sets out the rights and responsibilities of people involved with bodies corporate. A number of regulation modules accompany the BCCM Act and are designed to meet the needs of different types of community titles scheme.
A community titles scheme will have a community management statement (CMS) recorded with Titles Queensland that can tell you which regulation applies.
Owning a lot
Owning a lot in a property with a body corporate brings certain obligations beyond those of owning a detached house.
You should carefully consider whether living or investing in a property with a body corporate suits your lifestyle and financial needs.
When you buy a lot that is part of a body corporate property, you are automatically a member of the body corporate.
You cannot opt out of being a part of the body corporate.
Maintenance
The body corporate is responsible for maintaining the common property and, in some situations, certain elements of a building that are not common property.
The survey plan for a body corporate property establishes the boundaries between the lots and the common property.
Bodies corporate are usually registered under 2 different types of survey plan. They are either:
- building format plan, also known as a building units plan
- standard format plan, also known as a group titles plan.
Every owner should know what type of plan applies to their lot because it defines whether or not an area is common property and who is responsible for maintenance.
As a lot owner, you will have certain rights and responsibilities for your own property, as well as for the common property shared with other owners in your complex.
It is important to find out about the ongoing costs for maintenance and general upkeep of the common property, which you should be able to learn from the body corporate secretary or manager.
Common property can include:
- a shared driveway or letterbox
- elevators and stairways
- swimming pools
- tennis courts or golf courses
- roadways.
Levies
As an owner you will need to contribute financially to day-to-day running costs of the body corporate by paying regular levies.
Levy amounts vary between bodies corporate depending on the condition and age of the common property and shared facilities. Running costs are likely to increase over time.
Failing to pay levies on time may attract a high rate of interest (up to 30% per year) and additional costs.
When considering purchasing a unit in a property with a body corporate, you should find out if there are any levies and charges still owed by the current owner. As the new owner you may be liable to pay any outstanding amounts.
By-laws
By-laws are an additional set of rules particular to each body corporate that regulate the behaviour of owners, occupiers and their invitees on the common property and within their lots.
By-laws often cover a range of issues, such as noise, pets and parking.
You should find out the by-laws for the property you are considering buying into so you know what you can and can’t do, or what you would need to ask permission for once you become an owner.
Learn how to confirm what by-laws apply for a particular property.
Your role
Owners of lots in properties with a body corporate have duties and obligations. An owner:
- is responsible for keeping their lot in good condition
- may be responsible for maintaining an area of common property that they have the right to exclusive use of
- must follow the by-laws that apply to the property
- must not cause a nuisance or hazard
- must not interfere unreasonably with the use or enjoyment of
- another lot
- the common property by a person who is lawfully there.
Reference: https://www.qld.gov.au/law/housing-and-neighbours/body-corporate/legislation-and-bccm/buying-into
