I’ve been searching body corporate records for nearly eight years and I’ve seen some truly heart breaking stories.
- There was the special levy of $95,000. For one unit. Can you image trying to find $95,000 in your budget?
- There was a building cracked so badly an entire exterior wall needed to be replaced.
- I’ve seen high-rises needing to replace all exterior windows at very significant costs. Like millions of dollars significant.
- A building where levy arrears were so high the building was one due date away from having power disconnected because of lack of funds. It’s hard to catch the lift if there’s no power.
- I once saw a new building that was so badly built that the cost to complete correctly was over a million dollars. For eight lots. The general consensus was it is better to walk away than try and fix it.
They Are Unusual Cases
Statistically these extreme cases are rare; for the most part body corporate’s are solid buildings, well maintained to a high standard and foster a great sense of community. They can be a fantastic investment and a wonderful place to live.
That said, most body corporate’s do have ongoing issues, from problems with the mix of residents, to levy arrears, through building defects and just about any range of issue that might affect any property.
And that’s the thing; most properties, houses, apartments, rural acreage properties or commercial buildings, they all have some sort of issue. It’s the nature of property.
Body corporates are unique in that built into their legislative management process is the opportunity to find out about the buildings issues.
Body Corporate Records Are Unique
The rules regarding management of body corporate’s have evolved to ensure lot owners meet their responsibilities and protect their rights. Part of the mechanism used is the requirement for specific processes to be undertaken along with extensive reporting requirements.
Further, though body corporate records are private information, interested parties can obtain access to those records. And there’s a lot you can learn about a body corporate by peeking in their records.
You can find out:
- current, past and to some degree, future levels of levies
- financial position of the body corporate
- details of any ongoing disputes
- a history of major works undertaken
- who makes what complaints
- whether the body corporate is compliant with legislation
It’s like checking out the service record of a car; except in this case it’s the service record of a building. A building that you are about to become a part owner of.
What’s In The Report
MyBodyCorpReport.com.au body corporate records search contains all generic information about the body corporate such as lot details, plan details, current levies and insurance. In addition there are four main areas that MyBodyCorpReport.com.au body corporate records search is focusing on:
Financial Position
Body corporates’ do not trade. They have one source of money and that is from the combined lot owners in the form of levies. Just like people and companies body corporates can, and do, run into financial difficulties, and as a lot owner, you may find yourself in a position of having to contribute to cover previous financial disasters.
Building Defects
All buildings have some form of defect, though usually those defects are minor and cosmetic. Some buildings though have major, structural defects that both impact the ability to enjoy the property and become a major financial drain. It’s vital to be aware of any already discovered defects on the common property.
Disputes
Body corporates often have disputes, between fellow lot owners, with the committee, with the management and contractors and other parties. Mostly these disputes are minor. Sometimes they become devastating for the entire body corporate and lead to heartbreak and major financial losses.
Compliance With Legislation
Legislation surrounding body corporates is complex and far reaching. The BCCM Act 1997 governs the way the property is managed however there are numerous other legislations that affect the body corporates. Non-compliance can lead to significant problems and losses.
Management Issues
The management of a body corporate is a complex interchange between many groups of people and that can lead to breakdowns in communication and leadership issues. Infighting is not uncommon, and neither is lack of any leadership at all. Poor management leads to inability to resolve other issues so is an issue of particular importance.
You can view a full body corporate pre-purchase sample report here or click the link for a short form sample report. If you’re not sure which type of report you need click here.
Unless stated otherwise all the information on this website relates to Queensland legislation.
