Role of the body corporate under other Acts

The role of a body corporate in Queensland is to:

• administer common property and body corporate assets for the benefit of all its owners
• undertake functions required under body corporate legislation.

This information only applies to bodies corporate under the Building Units and Group Titles Act 1980 (BUGT Act) or one of the following specified Acts:

• Mixed Use Development Act 1993 (MUD Act)
• Integrated Resort Development Act 1987 (IRD Act)
• Sanctuary Cove Resort Act 1985 (SCR Act).

If your body corporate falls under another Act, read about the role of bodies corporate in that case.

If you’re not sure, contact Titles Queensland to find out which Act your body corporate is registered under.

Learn more about the Acts affecting some bodies corporate.

What is a body corporate under other Acts

A body corporate ‘under other Acts’ means it is created under the BUGT Act or one of the specified Acts.

The body corporate is a legal entity and is created:

• when land is split up (or subdivided) and registered as a community or precinct body corporate under the MUD Act
• when land is subdivided and registered as a primary thoroughfare or principal body corporate under the IRD Act or SCR Act

and

• when land is subdivided again and registered as a group title or building units plan under the Land Title Act 1994.

All owners are automatically members of the body corporate when they buy their lot.

Typically, these bodies corporate are part of mixed use and resort developments.

Layered developments

A development under the BUGT Act or a specified Act is usually in a layered arrangement of several bodies corporate. This is called a layered development.

Higher-level bodies corporate

Layered developments usually include an overarching higher-level body corporate.

Depending on which specified Act the higher-level body corporate is under, it can be either a:

• community body corporate (under the MUD Act)
• primary thoroughfare body corporate (under the SCR Act or IRD Act).

These bodies corporate are the highest (or first) layer.

Lots within the higher-level body corporate can then be subdivided into either:

• precinct bodies corporate (under the MUD Act)
• principal bodies corporate (under the SCR Act or IRD Act).

These bodies corporate make the second layer.

The lot owners of a higher-level body corporate are automatically members of the relevant higher-level body corporate. These lot owners can be an individual, company or body corporate.

Subsidiary bodies corporate

Lots in either the first or second layer can also be subdivided again into group title plans (GTP) or building units plans (BUP). These lower-level bodies corporate are usually called subsidiary bodies corporate. They can be part of the second layer or make a third layer.

All lot owners within a lot that has been subdivided by GTP or BUP are automatically members of the subsidiary body corporate.

Which Act applies

In most cases:

• the community or primary thoroughfare body corporate operates under the development’s specified Act and some parts of the BUGT Act
• the precinct or principal body corporate also operates under the development’s specified Act and some parts of the BUGT Act
• a GTP or BUP subsidiary body corporate within the development operates under the BUGT Act, but parts of the specified Act can apply to it (e.g. higher-level body corporate by-laws).

What a body corporate does

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

The body corporate:

• maintains, manages and controls the common property on behalf of owners
• decides the amounts to be paid by the owners to make sure the body corporate can operate
• makes and enforces its own rules, called by-laws, which tell owners and other people who live in the scheme what they can and cannot do
• takes out insurance on behalf of owners, such as public risk insurance over the common property and, sometimes, building insurance
• manages and controls body corporate assets
• keeps records for the body corporate, including minutes of meetings, financial accounts, registers of assets and roll of owners' details.

The role of owners can include details about prescribed arrangements, such as who has been engaged as a body corporate manager or letting agent. Section 7 of the BUGT Act defines ‘prescribed arrangement’.

The body corporate makes decisions about these and other things at general meetings and through the committee.