A Guide to Body Corporate

A Guide to Body Corporate

Simply put, a “Body Corporate” is the organization that manages an apartment or unit building or townhouse complex, handling all common area maintenance, setting budgets, managing issues, and creating by-laws. It is a legal entity created when land is subdivided and registered.

What Happens When You Buy a Lot?

When you purchase a lot (unit/apartment & some townhouses) in a community titles scheme, you automatically become a member of the body corporate for that complex. Membership is not optional, which means you get to have a say in issues that arise within the complex.

What Determines Body Corporate Fees?

Body corporate fees can vary widely depending on numerous factors. You’ll need to factor in these fees on top of your mortgage payments. They are usually paid quarterly. You can find out the previous year’s fees by requesting the complex’s ‘strata report.’

Several factors influence body corporate fees. Is the property a basic low-set brick building with no added amenities, or a high-rise with pools, recreation areas, undercover parking, and lifts? Your fees are directly related to the cost of upkeep.

The total amount required to maintain the building each year is budgeted and divided among the owners. Maintenance needs can cause fees to vary from year to year. These decisions are made by the body corporate as a whole, often through voting. This makes it important to attend meetings and be involved.

The body corporate can hire professionals such as gardeners and pool cleaners for maintenance. In smaller schemes, members may volunteer their services. Beyond maintenance, insurance, and budgeting, the body corporate creates and enforces its own rules, known as ‘by-laws.’ These are the common rules all owners must follow.

Committees and Your Role

Body corporate committees are elected. Whether you are on the committee or not, as an owner, you have the right to voice your opinions about what happens in the complex and how money is spent.

Review the balance of both the sinking and administrative funds and understand the ongoing contributions you’ll need to make. Occasionally, there may be a “Special Levy” for unexpected repairs or expenses not covered by the Administrative or Sinking Fund.

Research the Body Corporate

You can purchase a strata report or ask the vendor for one. A well-managed body corporate will be on top of the complex’s operations, ensuring:

• The building is fully insured.
• The sinking fund is well-maintained and viable.
• There are few unaddressed building defects.
• Minutes are detailed, including complaints and how they have been addressed.
• Accounts are detailed and up to date.

Doing your research into the body corporate is a crucial part of your due diligence when planning to purchase a unit or apartment.

Welcome Home

At JKL, we’re here to support you through every step of your property journey. Our experienced team will help you understand the ins and outs of body corporates, ensuring you make informed and confident decisions.

Experience our JKL real estate family. We’ll put the welcome mat out for you!