Guide to un­der­stand­ing body cor­po­rate

Whitsunday Times - - DOMAIN -

WHILE more and more first home buy­ers are look­ing to the unit and town­house mar­ket as a way of get­ting their foot in the door of property own­er­ship, many do not fully un­der­stand what it means to own a home within a com­mu­nity ti­tles scheme.

Real Es­tate In­sti­tute of Queens­land (REIQ) man­ag­ing di­rec­tor Dan Molloy said a com­mu­nity ti­tles scheme could in­clude any du­plex, res­i­den­tial unit block, high rise ac­com­mo­da­tion com­plex, shop­ping com­plex or busi­ness park and com­prised in­di­vid­u­ally owned lots or units as well as com­mon property.

“If you buy a unit or town­house in Queens­land, you will have cer­tain rights and re­spon­si­bil­i­ties for your own property as well as the com­mon property,” Mr Molloy said.

The body cor­po­rate for a com­mu­nity ti­tles scheme is com­posed of all the own­ers in the scheme.

Ev­ery new owner au­to­mat­i­cally be­comes a mem­ber of the body cor­po­rate.

The Body Cor­po­rate and Com­mu­nity Man­age­ment Act 1997 is the Queens­land leg­is­la­tion reg­u­lat­ing bod­ies cor­po­rate.

“The leg­is­la­tion sets out the rights and re­spon­si­bil­i­ties of cer­tain per­sons as­so­ci­ated with bod­ies cor­po­rate, par­tic­u­larly lot own­ers and ten­ants,” Mr Molloy said.

In the Queens­land Govern­ment’s pub­li­ca­tion,

the de­ci­sions of the body cor­po­rate on shared re­spon­si­bil­ity mat­ters is dis­cussed.

These can in­clude main­te­nance and man­age­ment of com­mon property in­clud­ing equip­ment and ser­vices, de­ter­min­ing levies (fi­nan­cial con­tri­bu­tions) which own­ers must pay to fund its oper­a­tion, pub­lic risk in­sur­ance and any com­pul­sory build­ing in­sur­ance.

It also in­cludes es­tab­lish­ing and en­forc­ing by-laws (rules) re­lat­ing to the man­age­ment and con­trol of lots and the com­mon property.

“Also, if you’re think­ing about buy­ing a unit or town­house in a com­mu­nity ti­tles scheme, you should in­ves­ti­gate whether there are any out­stand­ing fees and charges ow­ing - as the new owner you will be re­quired to pay these,” Mr Molloy said.

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