A body corporate is a legal entity created when land is subdivided and registered under the Land Title Act 1994 to establish a community titles scheme. The scheme can be a duplex, a residential unit block, townhouse complex, a high-rise accommodation building, a shopping complex or a business park. Every owner of a lot in a community titles scheme is automatically a member of the body corporate. Owners do not have a choice as to whether or not they will be a body corporate member’ as described in the government fact sheet.

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‘The common property for a community title scheme includes all parts of a complex that are not in a lot. Common property can include lawns, access roadways, stairs and infrastructure such as pipes and wiring. The survey plan for a community titles scheme establishes the boundaries of the lots and the common property. Every owner should be aware of the type of plan that applies to their scheme as this is important in determining whether or not the area is common property. The common categories of the plans used for community titles schemes are the Building Format Plan (previously Building Units Plan) and the Standard Format Plan (previously Group Title Plan)’ as described in the government fact sheet.

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There must be a committee for the body corporate. A committee is chosen by the owners to handle the day to day administration of the body corporate. The committee has certain powers under the legislation. For example, a committee may:

• organise the maintenance of common property
• convene the annual general meeting
• ensure that notices, such as meeting notices and levy notices, are sent to owners
• respond to enquiries from owners and other persons (including prospective purchasers)

The BODY CORPORATE MANAGER is a non-voting member of committee who provides support to committee in carrying out their functions.He brings expertise in regard to legislation and a broad knowledge of the industry.

The legislation restricts the issues that can be determined by the committee. For example:

• there is a prescribed monetary limit on expenditure that can be authorised by the committee
• The committee cannot fix or change the contribution to be levied on owners.

More information on the role of committee can be found on these government fact sheets.

Forming a body corporate committee (PDF File, 143.2 KB) and
The role of the committee (PDF File, 149.2 KB)

The Office of the Commissioner for Body Corporate and Community Management (BCCM Office) offers a full range of FREE publications to assist owners, interested parties, the body corporate and committees with the administration of a body corporate and with accessing Body Corporate information.

click here to access the full range of latest publications.

The BCCM Office provides an information service and can be contacted at:
Address: Level 4, Brisbane Magistrate’s Court, 363 George Street, Brisbane QLD 4000
Postal address: GPO Box 1049, Brisbane QLD 4001
Phone: 1800 060 119
Fax: +61 7 3227 8023
Email: BCCM@justice.qld.gov.au
Website: www.justice.qld.gov.au/bccm

Contact our team to learn more about how you can appoint Noosa District Body Corporate Management to manage your scheme.

If you have a dispute with the body corporate, the committee or another owner or occupier you must try to resolve it with the other party first.

This is known by the Office of the Commissioner for Body Corporate and Community Management (the BCCM Office) as self resolution or internal dispute resolution. It is any reasonable steps taken by you to resolve the issue within the body corporate before making a formal dispute resolution application.

It can involve you :

• communicating with the other person (preferably in writing, as this may be needed as evidence of self resolutionlater on)
• presenting a motion to the committee
• presenting a motion to a general meeting.

You may need to try all of these, depending on who your dispute is with, what it is about and how hard it is to resolve.

Get the committee involved

If the committee can make a decision on your issue the first step may be to write to them outlining the matter and your request (this is called a motion).

Sometimes the committee may not be able to make a decision— for example where an owner wants to make an improvement to the common property for the benefit of his or her lot and the work is valued at more than $3,000.

You may have to submit a motion to the next general meeting if the committee cannot make a decision.

Whenever you contact the committee (or the body corporate manager) you should do so in writing.

Benefits of self resolution

If you can resolve a dispute among yourselves it will:

• stop the issue from getting more serious
• be faster and cheaper
• lead to better relationships
• stop further disputes (or make them easier to resolve).

Read more about dispute resolution here https://www.qld.gov.au/law/housing-and-neighbours/body-corporate/body-corporate-disputes/types-of-dispute-resolution/self-resolution-for-disputes/

A body corporate must have insurance for:

• common property
• body corporate assets
• public risk
• every building which contains a lot.

Public risk insurance

The body corporate must have public risk insurance for:

• the common property
• body corporate assets for which it is practical to have public risk insurance (a body corporate asset might include gym equipment or pool furniture).

The body corporate does not have to take out public risk insurance for any other property that is not owned by the body corporate.

Public risk insurance must cover amounts the body corporate could be liable to pay for:

• compensation for death, illness and injury
• damage to property.

The policy must be for at least $10 million for a single event, and at least $10 million for the length of time the insurance policy covers.

The body corporate can take out more insurance than it has to under the regulation module that applies to the scheme. For example, it can get cover for committee members —known as office bearers’ liability.

Insuring common property and assets

The body corporate must insure the common property and the body corporate assets for their full replacement value.

The insurance policy must cover:

• damage
• extra costs to reinstate or replace the insured buildings (e.g. professional fees, or removing debris)
• returning the property to new condition.

Read more about building insurance.

In order to raise a matter at a meeting you must first write to the Secretary and ask for a matter to be placed on the meeting Agenda. This needs to be done well before the date of the meeting. A late matter may still be discussed by the Committee under ‘Other Business’, amongst committee members or via email etc. Then, should a decision be required, the committee have the ability to come to a proper decision outside the formal committee meeting and ratify via a postal poll.

A motion from an owner should reach the body corporate secretary prior to the end of the body corporate financial year to be included on the agenda of the Annual General Meeting. If received after this time, the motion will be held over and then placed on the agenda of the next General Meeting following the AGM – unless the owner which submitted the motion request for it to be withdrawn.

Body Corporate manager can offer assistance with the correct wording of motions – incorrectly worded motions, or a motion in contravention of the legislation, may be ruled out of order at the meeting by the Chairperson and not put to the meeting.

Once the budget is accepted at the AGM, body corporate levies are raised in order to manage common property on behalf of all lot owners.

The Administrative Fund levy goes to the day-to-day running of the Body Corporate and can include costs such as body corporate management fees, onsite manager fees, cleaning, gardening, pool services, electricity and insurance coverage.

The Sinking Fund levy goes to capital expenditure for maintenance of a long-term nature, and upgrading of the body corporate. This levy is typically based on the sinking fund forecast for costs such as road refurbishment, external building repainting, elevator refurbishment, waterproofing and gutter replacement.

For any internal alterations that may affect any structural walls, you are required to inform the body corporate of your intentions before commencing works. In addition, all other legislative practices and council and bylaw requirements mush be adhered to.

For any external alterations, you are required to seek BC approval, in accordance with the bylaws for the scheme and the associated BCCM Act, before commencing works.

Please see Form https://www.qld.gov.au/law/housing-and-neighbours/body-corporate/maintenance-and-improvements/improving-common-property-and-lots

All lot owners are encouraged to attend the AGM (Annual General Meeting) and any EGMs (Extraordinary General Meetings) called during the year. This can be in person, by proxy, or by voting paper.

All Committee members are required to attend all meetings and must not be absent for any more than two meetings in a year.