RESORT NEWS TIPS SERIES
Tips for Body Corporate Committees
Bodies corporate: What you don’t know might hurt you By Trish Riley, Editor, Resort News
before pulling up the soapbox or seeing your lawyer.
Let’s face it – bodies corporate are typically boring, and more often than not, those living within a community title environment will tell you that they avoid being too involved.
So, what is a body corporate?
But this amorphous tier of government – and it is a form of government that collects levies or taxes for the building’s upkeep; they have elected representatives and they have by-laws that govern behaviour – wields a power, that like most governments, is either one of a benevolent and responsible nature or one that teeters on corruption and/ or downright dictatorship. Either way, as the concept of ‘knowledge is power’ keeps cropping up across this complex industry of strata and management rights, it’s better to have a solid understanding of what the rules actually are
The role of a body corporate in Queensland is to administer common property and body corporate assets for the benefit of all of the owners, and to undertake functions required under body corporate legislation.
of assets, improvements to common property by owners, engagements and authorisations. Bodies corporate make decisions about these and other things at general meetings and through the committee. So now there’s a committee as well?
And I’m sure you will be aware of this but just to be clear, community titles schemes allow you to privately own an area of land or part of a building, as well as share common property and facilities with other owners and occupiers.
Under the legislation, the body corporate is given powers to carry out its necessary duties including the maintenance, management and control of common property on behalf of owners. Bodies corporate make and enforce its own rules, called by-laws, which tell owners and other people who live in the scheme what they can and cannot do, and it decides the amounts to be paid by the owners to make sure the body corporate can operate.
A community titles scheme is made up of two or more lots, so it could be a duplex, residential unit block, townhouse complex, high rise accommodation building, shopping complex or business park. Queensland has more than 47,000 community titles schemes with a total of over 465,000 individual lots.
It also manages and controls body corporate assets, including insurance on behalf of owners, such as public risk insurance over the common property and building insurance, and keeps records for the body corporate, including minutes of meetings, roll of owners’ details, financial accounts, registers
A body corporate is a legal entity that is created when land is subdivided and registered under the Land Title Act 1994 to establish a community titles scheme. All of the owners in a community titles scheme are automatically members of the body corporate when they buy their lot.
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Usually, but not necessarily… for the purpose of this publication, the following information applies to schemes under the Standard Module and Accommodation Module. Where applicable, the committee is made up of lot owners or people who act for them, and they are elected at each annual general meeting. A committee must have at least three members but not more than seven, and if there are less than seven lots, the maximum is the same as the number of lots. And like the illusory layers of government, the committee is in charge of the administrative and day-to-day running of the body corporate, making decisions on behalf of the body corporate and putting the lawful decisions of the body corporate into place. RESORT NEWS - SEPTEMBER 2019