Body Corporate Combustible Cladding Requirements

Combustible cladding such as Aluminium Composite Panel (ACP) blasted into our collective awareness in 2017 following the tragic fire at Grenfell Tower in London where 72 people died. A malfunctioning refrigerator was the fire source and was quickly put out. Unfortunately, by the time the source was extinguished the flames had reached the exterior. A […]

16 Things Respectful Body Corporate Residents Do

There are two groups of people in a strata scheme: lot owners and body corporate residents. When I use the term “body corporate residents” I mean everyone who lives in the scheme, owners or tenants and their various visitors. How body corporate residents treat each other is a key measure of the success of a […]

Body Corporate Balconies: Common Property or Part of the Lot

Body corporate balconies cause a surprising amount of drama. This Melbourne waterproofing website reports: A recent insurance survey has shown that “Balcony Waterproofing” has the highest failure rate of all areas in the building envelope. As you’ll see below there are many common ways in which balconies fail. This article will explore the issues that […]

How & Why Strata Managers Terminate Strata Management Agreements

Strata managers terminate strata management agreements for a range of reasons, some to do with the business and some to do with the scheme. There are many reasons why a Strata Manager might decide to part ways with a client, including: The Committee members or lot owners are abusive, dismissive or otherwise disrespectful to the […]

How To Search Adjudicators Orders & When and Why You Should

There is no government body responsible for ensuring “fair play” in the body corporate world, something that often comes as a shock to owners. Instead there is a specialist body corporate court, administered by Office of the Commissioner Body Corporate. Orders made by an Adjudicator become part of the legal interpretation of the body corporate law. […]

Common Property Boundaries

Defining common property boundaries in a body corporate is essential in working out who is responsible for what. As a general rule of thumb: common property = body corporate responsibility, lot = lot owner responsibility. Bodies corporate are forbidden from spending joint funds on works that benefit a lot and for lot owners there is no […]

The Process for Capital Works in a Body Corporate

A sinking fund exists for one purpose: to fund capital works. Capital works in a body corporate have a specific process that’s followed from start to finish, with differing levels of professionalism and success unfortunately. I see this process over and over in the smallest to the largest building. For both buyers and existing owners its a daunting prospect. The […]

How To Check Your Body Corporate Sinking Fund Balance

The most common question buyers ask is What is the body corporate sinking fund balance? What does that really tell you though? A big figure is good, a small one bad? It’s too simple a measure without some context. A clearer question is how much do we have and how much do we need?  This article is about how […]

Body Corporate Fences: Who Is Responsible For Maintenance?

Body corporate fences: No one seems to be too clear on who is responsible for maintaining them. Is it the body corporate or the lot owner? As with most things body corporate the answer is it depends. Not very helpful I know but that’s why there’s a whole article on this subject. Do bear in […]

How A Body Corporate Budget is Set and Changed

I recently received the following excellent question from Frank: I’ve just bought a unit and am confused about the budget-setting that you mentioned. Who sets the proposed budget for the AGM? The committee? he treasurer? The body corporate manager? And what if the meeting wanted to increase the proposed budget by, say, 15% because of some […]

Body Corporate Voting Rights and Why You Should Use Them

Last week I was asked for a source of the Queensland legislation that says 100% of owners need to give permission before a scheme can be terminated. I don’t actually like the “show me the legislation” question, but in this case it’s contained within the BCCM Act itself (from section 77 if you’re interested) and […]

How Different is Queensland Body Corporate Legislation?

I write about Queensland body corporate legislation, which is not too hard to figure out since that’s where I live. Plus I rather give it away with the great big banner on my website saying “I write about QLD legislation”. That said, people from a lot more places than Queensland read this website. When you […]

The Problem With Body Corporate Maintenance

One of the most attractive things about living in a body corporate is the ability to have the body corporate maintenance undertaken by someone who isn’t you. Of course there’s always a trade-off and in this case it’s that you pay quite handsomely for the privilege. And that’s the fundamental problem with body corporate maintenance; […]

6 Indicators of a Body Corporate Levy Increase

One of the things I see often in body corporates looks something like this: Period Admin Budget Sinking Budget Total To Raise FY Ended 6/2014 $200,000 $50,000 $250,000 FY Ended 6/2015 $170,000 $100,000 $270,000 What this shows is that there has been a 50% increase in sinking fund budget from one financial year to the […]

Secret Votes Don’t Need To Be Secret or What I Learnt From My First Adjudicators Order

I’ve just been involved in Adjudication. A ruling I made as a returning officer was disputed by a lot owner who made an application to the Commissioners Office to overturn. That application has now been decided. Let me set the scene. I’d been appointed returning officer for Florentino Apartments, a 20 lot body corporate on […]

Why Is My Body Corporate Insurance Claim Taking So Long?

I’m a lot owner in a scheme in Brisbane. Our townhouse (and many other in the complex) was damaged by the storm on 31/1/2015.  All damaged caused by branches falling off large gum tree in body corporate common area. It’s been more than 3 months, nothing has been fixed (including other lots in the complex). […]

Question: Has My Vote Been Unfairly Invalidated?

To My BodyCorpReport.com.au I believe my (& 11 other) votes were incorrectly disqualified at a Body Corp. EGM and would appreciate your opinion in the following scenario: EGM was held at 11am on 1 Dec 2014 The Chairperson “noted twelve (12) Lots had submitted invalid voting papers due to a debt owing to the Body […]

How to Get Building and Construction Defects Rectified

I had this email recently: Altered slightly to preserve anonymity. Our building is 8 years old.  From day 1 we have pretty well had problems with a leaking roof.  Each time we called the builder to rectify they have come and done a patch up job. With the heavy rains, this has been an ongoing […]

Case Study: The Consequences of Apathy in Bodies Corporate

Apathy in a body corporate is cause for alarm. It’s also a problem that is rife. Many people buy a unit with nothing but a rudimentary understanding bodies corporate and how they work and then proceed to ignore and complain about the body corporate as if it’s of no relevance to them at all. Unfortunately for a […]

What Are Pre Issue Body Corporate Levies

Pre-issue body corporate levies, or interim levies as they’re sometimes called, are a response to the peculiarities of the end of financial year process for strata schemes. Body corporate end of financial year systems are different from the majority of the rest of Australia. The end of financial year can be any month in the […]

Case Study: Can My Body Corporate Force Me To Install A Water Meter On My Lot?

I had an email not long ago from a lot owner who prefers to remain anonymous about the body corporate wanting to install water meters. In fact the scheme had passed a motion at the AGM to install the water meters at the individual lot owner’s costs. The question was, can the body corporate actually […]

Show me the body corporate legislation that says that!

People ask me questions, all the time, which I answer, not all the time but quite often. Please don’t think I think I have all the answers, because really, really don’t. But I can, and do, have an insight to offer which I’m happy to share. One the things I find the most frustrating though […]

What Happens When Body Corporate Budgets Are Not Adopted

The biggest complaint about strata schemes is that the levies are too high! Particularly since levies have a tendency to increase, usually by a small amount year in year out. When they vote at general meetings most owners (if they vote) will vote yes to the legislative motions which include things like confirming the financials and insurance […]

Body Corporate Levies: Why Are They So Expensive?

One of the first questions people ask when they’re buying a unit is “how much are the levies?” It’s a smart question because it does no one any favours to buy a property they can’t afford to hold. The body corporate levies are a large part of those holding costs. Savvy buyers take the current […]

3 Common Disputes with Building Managers

One of the questions under the “Contracts” section in our Pre Purchase Strata Report is: Are there any disputes with the Building Manager? The question is there because disputes with Building Managers do come up, and they have the potential to be both very expensive and very damaging to the sense of community within the […]

Unexpected Body Corporate Fees

A key consideration when you buy any property is going to be whether or not you can afford the holding costs. And for units that means body corporate fees. It’s such an important issue, for both owners and body corporates, that legislation requires the current levies payable be disclosed to lot owners at time of […]

3 Common Body Corporate Committee Issues That Will Affect All Lot Owners

It’s a common myth that the body corporate manager is in charge of a body corporate, so much so that it often comes as a surprise for those new to strata schemes that it’s actually a Committee who have the power and responsibility; well the Committee along with all the lot owners. One of the […]

Body Corporate Regulation Module: What Is It & Why You Should Be Wary Of Change

Body corporate regulation modules were created under the BCCM Act 1997 to define how a building is managed. There are five body corporate regulation modules at present: standard, accommodation, commercial, small schemes and two lot. This article is about what regulation modules are and why you should be wary if your body corporate wants to […]

5 Signs Of Poor Body Corporate Management

There’s nothing quite like that sinking feeling when you realise things have gone pear shaped when you weren’t looking. It’s particularly pertinent for strata schemes where most lot owners’ only brush with their body corporate management is paying levies and voting at annual meetings. Although there is “help” available when disputes arise there is no oversight to body corporate management […]

Body Corporate Repairs and Maintenance

One of the coolest things about body corporates is their ability to stay neat and tidy without you having to personally  clean and tidy. Of course there’s no such thing as a magical self-caring property so someone is obviously taking care of the place. Who is responsible for body corporate repairs and maintenance? More importantly is […]

What Is A Body Corporate Sinking Fund Forecast?

Whenever I prepare a strata report one of the few documents I always include is a copy of the Sinking Fund Forecast. I do that for a very specific reason; they’ve a valuable source of a lot of information about the strata scheme, the Sinking Fund and management. What Is A Sinking Fund Forecast? A […]

Case Study: An Ineffective Response To A Body Corporate Dispute

I did a search the other day that contained this item regarding a body corporate dispute: Tabled correspondence from the Caretaker complaining of by-law breaches by unit x (The Secretary)… There have been altercations between The Secretary and the Caretaker including physical and verbal violence. The committee discussed the matter (The Secretary was absent) and […]

What is Proxy Farming?

Proxy farming is a charming phrase to describe a practice that polarises body corporates. It’s all about the balance of power, who has it, who wants it and what they want to do with it. Sadly that can quite often be “get up to no good” or the ever popular “arrange things to suit ME”. […]

What is a Body Corporate?

Ask most people “what is a body corporate?” and, well, you’ll probably get a lot of different answers, the most common being a general wave toward the nearest visible highrise. But that’s an assumption, and also a clear indication that the person you’re speaking with doesn’t really have much of an idea of what a […]

How To Make Your Body Corporate Secret Ballot Count

I often act as returning officer for body corporates. A returning officer is an impartial third party who acts as referee in validating and opening body corporate secret ballots. Usually those matters relate to Management Rights or election of committee. I did a job the other day where the outcome of the vote hinged on […]

What is Common Property and Why is it Important?

Buying a unit is different from buying a house. The key difference is the ownership structure. With a house, your lot is your lot and that’s it. With a unit the lot itself is only a part of the overall value of the unit. As important is the common property of the body corporate within […]

What is a Body Corporate Returning Officer?

In a lot of ways body corporates act like small democratic countries; they’re heavily legislated, led by an elected governing body, the majority rules and the citizens are (should be at least) watching what happens with an eagle eye ready to cry foul at a moments notice. And just like for a country, voting in […]

Pets and Body Corporates

Pets and body corporates account for the most common by-law breaches. Pets making noise, pets creating a nuisance, pets damaging common property and the ever popular pets without permission. The issues of animals in strata schemes is polarising and the subject of much debate. This article is a brief overview of the rules and regulations […]

Tenants and Body Corporates

My daughter has just inked her very first lease on her very first home away from home. Unfortunately for her, her new home is in a body corporate, a subject I know quite a lot about, and am moved to share at the slightest provocation. I’m fairly confident she ignored ever word I said, but […]

Costs in a Body Corporate Layered Scheme

Searching a lot in a Resident Body Corporate (RBC) that is part of a body corporate layered scheme is always a frustrating experience for me because it only tells half of the story. The other half is what’s happening in the Principal Body Corporate (PBC). What happens in the PBC contains the probability of impacting […]

“There Is No Body Corporate” and Other Myths About Duplexes

Out of a total of 42,948 different body corporates in Queensland 30,211 have fewer than six lots. That’s 70% of all strata schemes in Queensland. And the vast majority of that 70% will be made up of duplexes, the humble two-lot dwellings that dominate our suburbs. By now you may have already spotted the most […]

Who Pays Special Levies: The Buyer of The Seller?

Special levies happen in body corporates more often than you might think, and, for some lot owners it’s “the final straw” and the reason they decide to sell. Does that mean any new owner automatically becomes responsible for paying those special levies? As with most things in the body corporate industry, it’s depends. It will […]

What Is A Building Management Statement?

A Building Management Statement (BMS) is a document that governs how shared facilities are accessed, maintained and funded. That’s a fairly simplistic definition of something that is very complex. A BMS must be registered over at least two lots, at least one of which must be a volumetric lot. What is a volumetric lot? Our […]

Body Corporates & Building Defects

In the June issue of Strata Voice there’s an interesting article “Is Strata Title Keeping Up With Higher Density” presenting research by City Futures Research Centre at the University of New South Wales. The research reveals 72% of those surveyed had experienced one or more building defect. That figure becomes 85% for buildings built since […]

Body Corporate By Laws and Older Buildings

Body corporate by laws and older buildings can be complicated. Records get lost and house rules are adopted but never recorded making a murky environment for purchasers. If a portion of the common property has been set aside as exclusive use for a particular lot this allocation is recorded in the by laws. It’s particularly […]

Body Corporate Levies and Prompt Payment Discounts

Body corporate levies are different from other sorts of accounts; they attach to the lot rather than the lot owner. This is because a body corporate isn’t offering a service like a Strata Manager, or selling a product like Telstra. A body corporate is managing the affairs of a building for, and by, a group […]

A Quick Guide To Levies In Arrears

In any group of people required to contribute financially on a regular basis there is inevitably going to be someone who defaults. In body corporate lexicon a levy issue that has been defaulted on, ie an invoice that has not been paid by the due date, is considered “Levies in Arrears”. It’s a good idea […]

Body Corporate Water and Rates

UPDATE: 13/4/2015 – see the end of the article. As with many things body corporate water rates are complicated. Whether your water bill comes from the Council or the body corporate will be determined by whether or not a water meter is installed. By contrast, your rates bill will definitely come from your local Council, […]

10 Simple Steps To Avoid Body Corporate Disputes

Body corporate disputes are the worst. It’s bad enough fighting with your neighbours but when they live across the hall it adds and extra little dimension of hell that makes life really uncomfortable. It’s impossible to avoid disputes entirely but there are some simple things each lot owner can do that will go a long way […]

What’s So Great About Body Corporate Records?

Body corporates have a lot of pluses and for me the greatest are the body corporate records. Buying any property is all about speculation. There is a reason the current owners are selling and sometimes that reason is because the property in question is a great big old lemon. If you’re buying a house you […]

Body Corporate Meetings: How To Keep In Touch

Something that comes up again and again in body corporate records is owners complaining about levies. Usually special levies, one off, or even multiple levies, issued to owners for a specific project. Inevitably someone complains “I knew nothing about it. How can you do this without letting us know?” Of course a body corporate can’t […]

Beware Strata Levies That Are Too Low!

The other day I was asked: I am interested in buying a unit but strata levies are $900 per annum on old medium size block of 12 units. When I enquired with unit next door they pay $400 strata levies per annum. Is this possible to have two strata neighbours so different? This is 50 […]

Body Corporate Disputes: Who Are These People?

One of the key strengths of body corporates is the ability to build a community, a place where people feel safe, connected and involved. Communities are all about people. And therein lies the problem. We all know people we like, and those we don’t, people we respect and people who just flat out make us […]

Who Pays For What? Building Format Plan v Standard Format Plan

Something that comes up time and again in body corporates is who pays for what? The body corporate is responsible for common property. The lot owner is responsible for the lot. Issues arise in determining what is common property and what is the lot, since boundaries will differ between plans. There are two types of […]

5 Persistent Myths About Body Corporates

I read a lot of body corporate records. Those records comprise everything from official documents to professional reports, minutes and of course correspondence. I can safely say, after all this reading, people have some really strange ideas about body corporates.  Mostly those ideas are pretty benign, sometimes hilariously funny and in the end don’t make […]

How To Find Units With Low Body Corporate Fees

Average body corporate fees in south east Queensland run around $5,000 – $6,000 per annum. That’s $96 – $115 per week. Many are a lot higher. The highest levy I’ve ever seen was around $25,000 p.a. or $480 per week. And of course many levies are much lower than that average. The lowest levy I’ve […]

4 KPI’s To Tell If A Body Corporate Is Financially Sound

A body corporate is a mechanism for managing common property. A mechanism funded by lot owners. Body corporates can and do run into difficulties stemming from many different issues. And if they get into difficulty they’re most likely going to finance any extra funds needed by way of levies on the lot owners. If its important to you […]

Body Corporate Problems: The 5 Areas Where Things Go Wrong

For the most part body corporates are well managed, fiscally sound, have a great mix of residents and make for good investments. Sometimes though, they’re not any of those things and the results can be incredibly costly and stressful. Body corporate problems come up in all sorts of areas, some easily dealt with, some not so […]

What’s On The Agenda At The Annual General Meeting

Every body corporate must hold an Annual General Meeting (AGM) within three (3) months of the end of financial year. But what if you don’t actually have any business going on at present? There are plenty of body corporate’s out there which are well managed and maintained and have few issues requiring works or owners […]

The Process Of Holding An Annual General Meeting

Every year each body corporate is required to hold an Annual General Meeting (AGM) within three (3) months of the end of financial year. Of course a lot of body corporates do go over that three month limit due to all sorts of reasons. In that case the committee are expected to apply to the […]

Body Corporate Managers: What Do They Really Do?

Body corporates are run by a committee elected by all lot owners voting at the Annual General Meeting. This can cause some problems since body corporates are heavily regulated and the buildings involved can be both innovative and complex whilst most committee members are volunteers with little to no experience of the property industry. Clearly […]

What Are Management Rights?

Say you live in a body corporate, an apartment building like the one pictured here. Who do you think vacuums the carpet? Who cleans the pool? Who changes the light bulbs? There are hundreds of small tasks involved in maintaining the common property of a building and all those tasks are the responsibility of the […]

Asbestos Register: What Is It And How Does It Affect Body Corporates?

61.4% of New South Wales do-it-yourself renovators reported being exposed to asbestos whilst undertaking renovations of their properties. 39.3% also reported their partner had also been exposed and a further 22.8% that their children had been exposed. I don’t know about you but that idea just terrifies me. Asbestos is such a silent killer. Once exposed it can […]

Body Corporate Spending Limits

Once the committee has been elected at the Annual General Meeting they then are solely responsible for making decisions on behalf of the body corporate. But that doesn’t mean that they can go off and do whatever they please, upgrade this, maintain that and basically spend money willy nilly. Quite the opposite in fact. In fact […]

Body Corporate Management: Who’s In Charge?

Most lot owners experience of their body corporate management is levy notices, agendas and minutes in the mail. For others there may be some interaction with the onsite building manager. But who actually is in charge? It helps to think of a body corporate as a country, and a democratic one at that, ruled by […]

Substantial Levies In Arrears

Levies in arrears are always an issue for body corporates, but especially so when those arrears become substantial. I have defined substantial levies in arrears as over 20 – 25% of total funds held – calculated by dividing levies in arrears by current total funds held. This is the point where liquidity will start to […]

Body Corporate Records Are Private Information

Under the various states legislation strata schemes are required to keep extensive records of their expenditure and decision making. However, just because body corporate records are kept doesn’t mean anyone can access them. In fact body corporate records are private information. You wouldn’t ask to view your neighbours financial records just because you’re interested and the same applies to […]

How To Calculate Body Corporate Levies

Mention the word body corporate and most people immediately think of levies. I’m convinced it’s the one thing that everyone knows about body corporate’s that’s actually correct. Every body corporate does issue levies. What amount those levies are is vastly different from building to building. I’ve seen levies per lot as low as $55 per year and […]

Deficit In Body Corporate Funds

A deficit in the body corporate funds is a definite red flag as often it’s an indicator of a more serious issue financial issues. A body corporate is a legal entity, just a like a company or individual, and just like companies or individuals body corporates can run into financial problems, incur debt and be made bankrupt. […]

Body Corporate Insurance Valuations

Body corporate insurance valuations are a vital tool in ensuring (pun intended) lot owners are fully indemnified should anything happen to the body corporate. The Body Corporate & Community Management Act 1997 says The body corporate must take out the following building insurance: – building format plan (BFP) — insurance for the full replacement value of […]

Body Corporate Pool Safety Certificate

The Department of Housing and Public Works webiste notes that: If residents of 2 or more dwellings can use a pool, such as a body corporate pool, it is a shared pool. The website further notes Shared pool owners, such as bodies corporate, can take advantage of a 2 year phase-in period from 1 December […]

You and Body Corporate Membership

Sometimes people complain that they don’t need to pay their levies, or observe the by-laws of a body corporate because they’re not actually a member of the body corporate. They never joined, they don’t want to and frankly none of that stuff has got anything to do with them. And while we’re on that subject […]

Body Corporates and Marina Berths

The Body Corporate & Community Management Act 1997 (BCCM Act) states a body corporate can only be registered on freehold land. This is why some body corporates are registered under different acts and are governed by the provisions of that respective act as well as the Building Unit & Group Titles Act (BUGTA). A marina […]

Exclusive Use Allocations

Sometimes parts of the body corporate common property are allocated to specific lot owners as exclusive use. If exclusive use allocations are made they must be recorded and then the allocation becomes, well, for the exclusive use of that lot owner. Basically an exclusive use area becomes an extension of the lot and the lot […]

My Body Corporate Doesn’t Have A Name

When you’re dealing with body corporates in Queensland one of the first thing that most people in the industry will ask is “What’s the name of your building or complex?”. That’s because, in Queensland, body corporate names are how schemes are indexed. But wait you say, my body corporate doesn’t have a name. Actually in Queensland all […]

Body Corporate Levies & Expired Current Levy Year Issued

Body corporate levies are set on a year to year basis, three months after the start of the new financial year. For reporting this creates issues. Sometimes a disclosure statement or records search will quote levies for a period that has expired. For instance, say the levies are quoted to 31/7/2012 and yet the date of […]

The Importance of “Levies Paid To” Date

When I bought my first house I found the whole process very stressful; exciting but stressful. So stressful in fact that when all was finally organised and executed and we moved in I realised I’d forgotten to get the power turned on. Luckily there was still power at the house so, score! The next day […]

Body Corporate Levies

One of the most common misconceptions about body corporates is that they are overcharging for levies or somehow making money off the lot owners. I’m never really sure what nefarious purpose people think is going on, but it’s not at all what’s happening. Body corporates are heavily regulated in almost every aspect and levies more […]

Schedule of Lot Entitlements

Who pays for what when ownership is shared? For all their complexity body corporates are simply mechanisms for managing common property. That common property is owned by the collective lot owners who are responsible for paying for the upkeep of said property by way of levies. How to actually calculate who pays and owns what […]

Community Management Statement

The Community Management Statement (CMS) is a document that sets out the rules for living in a body corporate, the development of the body corporate, any common property allocated to individual lots and of course the all important who pays what towards upkeep. The CMS sets out the name of the body corporate, the regulation […]

Certificate of Classification

Section 103 of the Building Act 1975 requires that buildings be issued with a Certificate of Classification. All buildings built after 1st April, 1976 are required to be issued with a certificate. The Certificate of Classification sets out the use of the building and any restrictions on that use, as well as ongoing maintenance and […]

Is My Lot Part of A Body Corporate Layered Scheme?

A body corporate layered scheme is, well, exactly what it says; there are layers of body corporates, one contained within the other. They’re precincts of several different body corporates all with joint infrastructure. The over riding principal of all body corporate legislations is fairness; fairness with cost allocations and fairness with use of common property. Layered […]

Common Property

The body corporate is responsible for managing the common property. In fact that’s a nice simple definition of what a body corporate really is. Common property is the area that is not contained within the lot. That’s not really clear so lets look at some examples. Two Types Of Body Corporates There are two types […]

What Is A Body Corporate?

The complicated answer to the question “What is a Body Corporate?” is, it’s a mechanism for holding and managing common property. To make things a little clearer lets look at a simple illustration. A Simple Land Subdivision The process of developing land is relatively simple to understand. A developer wants to subdivide lot 1 on […]

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