Buying a body corporate property

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.

Other bodies corporate

A body corporate that does not have a CMS registered will fall under one of the following Acts instead:

• Building Units and Group Titles Act 1980 (the BUGT Act)
• Integrated Resort Development Act 1987 (the IRD Act)
• Mixed Use Development Act 1993 (the MUD Act)
• Sanctuary Cove Resort Act 1985 (the SCR Act)
• South Bank Corporation Act 1989 (the SBC Act)
• Registration of Plans (HSP (Nominees) Pty Limited) Enabling Act 1980 (ROPE1)
• Registration of Plans (Stage 2) (HSP (Nominees) Pty Limited) Enabling Act 1984 (ROPE2)

Learn more about why there are different Acts.

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.

Learning more about a property

If you are looking at buying a property with a body corporate, you may want to contact the body corporate secretary or manager and/or Titles Queensland to find out more about that particular property.

Body corporate secretary or manager

For a community titles scheme, you can find the contact information for the body corporate secretary or manager on the disclosure statement that must be supplied with your contract of sale.

For other bodies corporate, you can purchase this information along with other records; however, the seller (or their agent) should be able to give you some contact details initially.

Financial status of a lot

You can purchase a certificate to confirm any annual levies you need to pay and any outstanding amounts. You may become liable for any outstanding levies once you are the owner.

In a community titles scheme property, the information must be provided as an information certificate on BCCM Form 13. They will charge a fee to provide the information certificate.

For a different type of body corporate property, there is no specific form for providing the information. They will charge a fee to provide this information.

Access to body corporate records

You can also conduct a search or ask for copies of the body corporate’s records.

When asking for copies of records, you will need to be specific about what you want to see.

Searches of interest may include:

• contracts the body corporate is party to—you will have to contribute to these through your levies (e.g. caretaking, letting, body corporate management or lift maintenance)
• insurance policies, to make sure they're current and to find out what is covered
• financial records, to find out how healthy the funds are
• minutes of committee and general meetings, to find out what decisions have previously been made by the body corporate.

For community titles schemes, you may also wish to search the 'register of authorisations affecting the common property' (the improvements register), to find out if you are responsible to maintain or take out additional insurance for any improvements to the lot you are purchasing (e.g. balcony enclosure, air-conditioning unit).

Other bodies corporate will likely have similar information in their records; however, they are not required to keep an improvements register.

The body corporate is entitled to charge you a fee for any search or copies.

Titles Queensland

Properties with a body corporate are registered with Titles Queensland.

Purchasing copies of documents such as the CMS and survey plans will help you find out more about the property you are wanting to buy in.

You can do some searches online. Contact Titles Queensland for more information.

Survey plans

All bodies corporate will have survey plans registered with Titles Queensland.

Survey plans help you identify the boundaries of your lot and the common property.

They also help identify exclusive-use common property, which may be attached to your lot.

The survey plan should tell you if your property is registered under a building format plan or standard format plan.

Community management statement

Each community titles scheme has a CMS particular to the scheme. Bodies corporate that are not registered as community titles schemes do not have a CMS.

The CMS identifies, among other things:

• any proposed development of the scheme
• lot entitlement schedules (used to calculate your levies)
• relevant by-laws
• the regulation module that applies to the scheme.

How we can help

The Office of the Commissioner for Body Corporate and Community Management provides dispute resolution and information services for those involved with Queensland bodies corporate.

Information service

We provide a free information service for those who live, work or invest in Queensland body corporate properties.

We do not provide legal advice.

Contact us on 1800 060 119 or submit an online enquiry.

We have produced a range of online information on various topics, including by-laws, maintenance and insurance.

Dispute resolution service

We also provide a dispute resolution service to resolve most disputes that arise within bodies corporate that cannot be resolved internally.

You must own the lot before you can apply for dispute resolution with us.

Search of orders

You can search our records to see if any disputes have arisen in a particular body corporate that required an adjudicator or referee (a decision maker) to intervene in matters affecting owners, occupiers or the body corporate.

More information

• A quick guide to community living in Queensland (for community titles schemes)
• Role of the body corporate
• Committee's role