What is a Body Corporate ?

Body Corporate Legislation

A body corporate is a separate legal entity, comprised of
all the lot owners within the complex. A body corporate is governed by specific legislation and by it's own by-laws. There are a variety of structures and types of bodies corporate permitted under the Act. For your information, the Corporations Law does not apply to a body corporate.

Common property

The common property for a body corporate is owned by
all the owners of lots included in the scheme as tenants
in common. The share of ownership is proportionate to
the interest lot entitlements. An owner's interest in a lot is inseparable from the owner's interest in the common property.

Common property includes: land within the scheme
not forming part of a lot; utility infrastructure within the
scheme; and body corporate assets.

The body corporate must administer the common property and body corporate assets for the benefit of the owners of the lots included in the scheme. The maintenance and upkeep of common property is usually contracted out to a caretaker or building manager.

Community Management Statement

This is a document which is specific for every body corporate in Queensland and is recorded in the Titles Office to the Department of Natural Resources and Mines.

Each Community Management Statement (CMS) is comprised of five schedules, each one holding relevant information about the body corporate.

  Schedule A

• Two lot entitlements schedules

          (a) Contribution schedule determines the amount of levies; and the voting power of lot                 owners.                
          (b) Interest schedule determines the amount of rates/taxes; insurance premiums and                 the share of ownership of common property by each lot owner.

  Schedule B

• If the body corporate is being constructed in stages, this schedule outlines the details of the progressive development until all areas are completed.

  Schedule C

• This schedule contains body corporate by-laws. The by-laws are the rules governing the body corporate which are binding on all members of the body corporate and occupiers of the lots. The by-laws specify such things as:- the permitted use of lots and facilities; the behaviour of owners and their visitors on common property; the keeping of animals; the appearance of lots; damage to common property; repairs and alterations to a lot and common property; and the recovery of monies, among other things.

  Schedule D 

• Provides for any architectural or landscape codes to form a covenant on lots within the body corporate.

  Schedule E

• Lists details of any exclusive use provision granted to lot owners.
  

Body Corporate Levies

Body corporate levies are issued by the body corporate to pay for such items as:- the building manager's salary; the body corporate manager; other service contractors, and the ongoing maintenance and upkeep of the common property, plus insurance and electricity.

The levies are divided into two (2) separate funds:

     (i) Administrative Fund

The administrative fund is for regular recurring expenditure and includes payments to service contractors, ongoing maintenance and repairs and the upkeep of common property.

     (ii) Sinking Fund

The sinking fund is a separate fund where money is put aside for future non-recurring maintenance (eg: painting of exterior surfaces) and the purchase of new body corporate assets.

See Questions and Answers "Why do I pay body corporate levies?"

General Meetings

A general meeting is a meeting of all members of the body corporate.

At a general meeting, resolutions are passed among other things:- to confirm the annual accounts; set budgets and levies; determine if an audit is required; and any other issue that requires a general meeting resolution. The last item of the agenda at every annual general meeting is the election of the committee.

The legislation prescribes the format of general meetings; the types of resolutions required; and who is eligible to vote.

Committee Meetings

Committee meetings are meetings of the committee members, and are held at regular intervals throughout the year.

The committee is comprised of the elected representatives of the owners and operates in a similar way to a board of directors to a company. The committee is made up of the following members:

(i) Chairperson
(ii) Secretary
(iii) Treasurer
(iv) Ordinary members of Committee.

For details regarding these positions, please refer to the Questions and Answers "The Role of the Body Corporate Committee"