FAQ

A.

Unit owners in a unit title development own a defined part of the building, such as an apartment, and share ownership in common areas such as lifts, lobbies, and driveways. Unit titles are created where a property is divided into 2 or more units which can be owned separately – these are typically apartment blocks, townhouses, office blocks and industrial and retail complexes. The owners of a Unit Title Development form a Body Corporate.

A.

Our answer is “Yes, definitely!”

A Professional Body Corporate Manager:

• Does a job that most owners are not able to spend valuable time doing themselves.
• Is unbiased and independent and can work to resolve any issues that may arise.
• Provides expertise in relation to asset management, insurance, maintenance, building compliance, health and safety and statutory obligations;
• Retains accounting, billing and all other records for the Body Corporate in a professional manner. Copies of records are available on request.

A.

A committee is required if there are more than 9 units in a development. A committee of Owners is elected at the AGM. The Committee governs the Body Corporate in accordance with the Act and liaises with the Body Corporate Manager on behalf of owners.

A.

Each Multi Unit development is valued by a professional Valuer who allocates a share of the Ownership Interests for the development to each Unit. Those Ownership Interests (previously Unit Entitlements) for the Units determine the proportion of that Unit’s contribution to the overall running cots of the Body Corporate Development.

An Accessory Unit is a unit attached to one or more principal units, for example a car park, storage locker or access way.

A.

The Unit Titles Act 2010 provides a Default set of Operational Rules. These are brief in detail and can be viewed here. Most Bodies Corporate have their own more robust rules which must be registered. Otherwise the Default Rules provided in the Unit Tiles Act 2010 and amendments – apply.

A.

Common Property is defined as an area owned collectively by the owners and is shown on the Unit Plan. The Common Property is the responsibility of the Body Corporate.

FINANCIAL MATTERS

Body Corporate Levies, Budgets, and Long Term Maintenance Funds and Plans

Budget: This is an estimate of costs that will be incurred over the period of a financial year, and is set by the Body Corporate Manager. The Budget is approved at the AGM of the Body Corporate and becomes the basis of Levies that will be paid. The total levy incurred for each unit is based on the Ownership Interest.

Levy: This is the annual contribution each owner is required to pay to the Body Corporate based on the approved Budget.  A Body Corporate may raise a Special Levy to complete a project that falls outside of the agreed budget.

Disclosure Statements

Under the new Act, sellers are required to provide a lot more information to prospective purchasers. The information contained in the disclosure statement is intended to help provider buyers with information that can assist in their purchase decision. The Act provides for three types of disclosure:

1. Pre-Contract Settlement Disclosure  which the Body Corporate Manager provides before an agreement for sale and purchase can be entered into.
2. Pre-Settlement Disclosure is provided by the Body Corporate Manager after the seller enters into a Sale and Purchase Agreement but before settlement of the sale.
   There is a reasonable cost to sellers (owners) payable to the Body Corporate Manager for providing these statements.
3. Additional Disclosure which the Body Corporate Manager provides for the seller at the request of the purchaser. The purchaser must pay all reasonable costs associated with providing this.

The first two disclosures are mandatory and cannot be contracted out of.