Body Corporate Explained

A body corporate refers to a piece of land that is subdivided to make flats, units or apartments. Body corporates are made up of the proprietors of the dwellings, and are primarily responsible for the control, management and maintenance of the common areas.

Under the Body Corporate and Community Management Act 1997 (the Act), tenants are classed as occupiers and have rights and responsibilities under the Act, and as a tenant you are bound to comply with the body corporate rules.

Leasing an Body Corporate Property

Lease agreements are no different for body corporate properties than for other forms of residential real estate.

The lease is a binding contract between the tenant and lessor. As part of the lease the lessor grants the tenant the right to occupy the lot, and in the case of a body corporate, some of the rights that come along with that lot. Those rights will include the use of the common areas stairways, parking, pool and so on.

If the lessor does not have the right to use an area, then neither will the tenant.

This is an important distinction because there are contractual relationships that exist here.

The tenant and the owner have a relationship.

The lot owner and the body corporate have a relationship.

The tenants and the body corporate do not have a relationship, notwithstanding the tenant must obey the by-laws of the body corporate the same as every other resident or visitor.

Just as body corporates have certain responsibilities to the unit owners in the community titles scheme, owners and residents also must abide by certain rules and laws. These relate to by-laws/rules introduced by the body corporate and to state-based laws contained in body corporate legislations.

By-Laws/Rules

Although there are no mandatory by-laws/rules, some model by-laws are set out in legislation, others are set by the original developer of the corporation. By-laws can be made or changed to meet the needs of all owners and to assist with the running of the corporation.

Responsibilities of residents

Residents living in a body corporate are members of a community. To get the best out of strata living they need to:

–      Co-operate with their fellow residents and be considerate of their neighbours

–      Follow the owner’s corporation by-laws

–      Ensure they do not damage common property

–      Pay their levies

For further information on your body corporate by-laws/rules, please check your records or contact your body corporate manager.

Responsibilities of the body corporate:

The body corporate is given powers under the legislation to carry out its necessary duties. The body corporate is responsible for:

• Maintaining, managing and controlling the common property on behalf of the owners
• Deciding amounts to be paid by the owners to ensure the body corporate can operate
• Making and enforcing its own rules, known as by-laws
• Taking out insurance on behalf of owners such as public risk insurance and building insurance.

Breach of by-laws:

If a body corporate believes that the owner or tenant is breaching the by-laws, the body corporate can speak to the owner or occupier informally to try and fix the issue.

If that fails, the first formal step under the Body Corporate and Community Management Act 1997 is for the body corporate to issue a by-law contravention notice to the party it believes is breaching the by-laws.

Maintenance and Repairs:

Responsibility for repairs is fairly straightforward – the body corporate must repair common property and owners must repair anything within their lot. Although it might not always be clear what is common property or what is the individual lot.

The basic rule is, everything that is inside the airspace of the unit, is usually the lot and therefore the responsibility of the lot owner.

Everything outside that airspace, is usually common property and therefore the responsibility of the body corporate.

If you are looking for a more detailed explanation of body corporate relationships, by-laws or legislation, Hicks Real Estate will be able to provide a range of information and services for those who live, invest or work in a community title schemes in Queensland.

For more information please call us today on: 07 3355 6845.