Body Corporate

A body corporate is automatically created when a unit title development is established. Every unit owner is a member. The body corporate is responsible for maintaining and managing common property (shared areas like lobbies, driveways, gardens, roofs, and structural elements).

The body corporate must hold an annual general meeting, maintain financial records, establish a long-term maintenance plan, and build up a long-term maintenance fund. Day-to-day management is handled by the body corporate committee (elected unit owners) or a professional body corporate manager.

Body corporate rules govern how units and common areas can be used. These rules cover things like noise, pets, renovations, parking, and short-term letting.

The health of the body corporate directly affects your investment. A well-managed body corporate with adequate funds means the building is maintained and you're unlikely to face surprise special levies. A poorly managed one can mean deferred maintenance, disputes, and unexpected costs.

Review the financial statements, long-term maintenance plan, fund balance, and minutes from recent AGMs. Check for any pending litigation or major upcoming works.

Request the pre-contract disclosure statement (the seller must provide this under the Unit Titles Act 2010). You can also request an additional disclosure statement for more detail. Review the long-term maintenance plan, financial statements, and body corporate rules.

Your lawyer should review all body corporate documents. Consider engaging a specialist body corporate advisor for large or complex developments.