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 […]
posted on March 7, 2017 by
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. […]
posted on January 10, 2017 by
The Risk of a Low Body Corporate Sinking Fund Balance
How much is in the body corporate sinking fund? This is the most common question when buying a unit. Unfortunately the balance is only half the story. The more telling part is how much should be in the body corporate sinking fund? This article is about how a body corporate sinking fund is accumulated, where […]
posted on June 17, 2015 by
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 […]
posted on May 27, 2015 by
14 More Red Flags in a Strata Search
I did a search recently where a special levy was issued. A special levy is one of many red flags in a strata search, an indication there may be bigger problems so, hey, you best investigate. On that occasion the small special levy turned out to be the tip of a complex situation that’s going […]
posted on May 20, 2015 by
Buying A Unit & Body Corporate Approvals
One of the most overlooked items when buying a unit is remembering to check that body corporate approval has been granted for any changes. Body corporate approvals are written documents from the Committee to a lot owner granting permission for whatever is being sought. It might be approval to keep a pet, to install a structure, […]
posted on April 29, 2015 by
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 […]
posted on April 22, 2015 by
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 […]
posted on April 15, 2015 by
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 […]
posted on April 1, 2015 by
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 […]
posted on March 25, 2015 by
15 Signs of a Healthy Body Corporate
A healthy body corporate is what every purchaser wants when they buy a unit. A pre purchase strata report is all about investigating the scheme to find that out. How exactly do we do that? I did a search where the client specifically requested that I look for evidence on the effectiveness of the Committee. Luckily […]
posted on March 11, 2015 by
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 […]
posted on March 4, 2015 by
5 Simple Tips For Stress Free Unit Ownership
I’m a strata searcher. Most people look at me blankly when I say that so now days I tell them it’s a fancy phrase that means I investigate body corporates. “Oh!” they reply and then proceed to tell me horror stories about their body corporate. Don’t get me wrong, I don’t mind. In fact, keep […]
posted on February 25, 2015 by
14 Examples of Corruption, Coercion & Bad Behaviour in Body Corporates
I know I spend a lot of time focussing on the negatives of body corporates, and clearly this article about corruption in body corporates is not going to be any different. I do have a purpose here though, I’m building a library of information to help people navigate occasionally murky body corporate waters. To be fair, […]
posted on February 11, 2015 by
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 […]
posted on January 21, 2015 by
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 […]
posted on January 7, 2015 by
How & When to Order a Pre Purchase Strata Report
This is it, you’ve found it! Your new unit. It’s everything you’ve been looking for and you think the price is pretty good. You’re going to take the plunge and make an offer. Wait! Read this first. When you buy a unit that’s part of a strata scheme you’re taking on a portion of the […]
posted on December 9, 2014 by
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 […]
posted on October 23, 2014 by
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 […]
posted on September 29, 2014 by
Why Get A Strata Report?
Why get a strata report? There are two key reasons to check out a body corporate or owners corporation before your commit financially and finalise your purchase: cancellation / renegotiation of the deal or peace of mind the building is sound. Buying into a body corporate is not the same as buying a house. A […]
posted on August 18, 2014 by
How To Decide If Body Corporate Problems Will Affect You
My role is to find body corporate problems. Find them and report them to the buyer or buyer’s Solicitor. But not all body corporate problems are actually, well, problems. A lot depends on their impact. This article is about weighing the pros and cons of body corporate problems to decide if they’re an issue for you, […]
posted on August 1, 2014 by
Why Buy A House In A Body Corporate Layered Scheme?
When we think of body corporates we tend to think of the towers that dominate our city skylines. In reality body corporates come in all shapes and sizes including an increasing number of single house blocks contained within a large body corporate layered schemes. These type of master planned communities work exactly the same as […]
posted on July 15, 2014 by
10 Questions To Ask Before Buying A Unit
If you’re thinking of buying a unit then, most likely, you will be buying into a Body Corporate or Owners Corporation. Strata titled properties are different from free standing houses in a number of different ways. Firstly along with ownership of your unit you’re taking on a share of the body corporate as well, with […]
posted on July 12, 2014 by
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 […]
posted on July 8, 2014 by
I’m Buying Off The Plan: Should I Still Get A Strata Search?
I say to everyone I meet who’s considering buying a unit “get a strata search!” There are simply far too many things that could go significantly wrong and end up costing you a fortune and / or make you miserable. Of course, I have ulterior motives because I am a strata searcher. It’s still good […]
posted on June 23, 2014 by
Can I Renovate A Unit?
Many people buy property planning to renovate and, ideally, add substantial value. But what if the lot in question is a lot in a strata scheme? Can you still renovate a unit? And just how much do you need to involve the body corporate in the process? As with most things body corporate the answer […]
posted on June 18, 2014 by
“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 […]
posted on June 16, 2014 by
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 […]
posted on May 16, 2014 by
The Most Common Body Corporate Problems (in no particular order)
Although every building is uniquely individual there are a number of body corporate problems that come up over and over. This article is about some of those recurring issues. Be aware these are in no particular order and they have different levels of severity. Some of them are annoying, some are just painful and others […]
posted on May 13, 2014 by
15 “Red Flags” In A Strata Search
I spend my days reading reports and trying to decipher what they mean, usually so I can report that information to others in a strata search. As a Strata Searcher you learn pretty early on that it’s best to be thorough in reporting. If you don’t you’ll end up going back to answer questions, or […]
posted on May 1, 2014 by
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, […]
posted on April 2, 2014 by
How Do You Do A Strata Search And Can I Do It Myself?
Strata searching is not rocket science. Actually it’s not any sort of science. Doing a strata search is about reading, and anyone can do it. When I learnt strata searching a very knowledgeable lady took me out into the field and walked me through the process. She then spent the next month sitting in the […]
posted on March 29, 2014 by
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 […]
posted on March 24, 2014 by
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 […]
posted on March 19, 2014 by
Who Gets A Strata Search?
Strata searches, or body corporate roll searches as they’re called here in Queensland, are, well, my reason for being in business. I believe that buying into a body corporate without actually finding out what’s going on is just nuts! There is lot that can go wrong, and not just financially either. Sometimes, often actually, the […]
posted on March 17, 2014 by
What To Look For In Your Pre-purchase Strata Search
There’s that special moment when you sign a contract when you’re not sure whether you’re suffused with excitement or sheer terror. What have I just done? It’s normal. It even has a name; Buyer’s Remorse. As a purchaser what you’re really looking for in these moments is peace of mind that you’re not buying into […]
posted on March 4, 2014 by
Case Study: Insufficient Sinking Funds, Why It Happens And What It Means
Someone told me a story the other day about an apartment sale that fell through when the purchaser found out the building needed lift replacements. At an estimated cost of $1,000,000. To be shared by 60 owners. My first reaction was, wow, great example of the benefit of a strata search. My second reaction was, […]
posted on February 25, 2014 by
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 […]
posted on February 19, 2014 by
The Hazards of a Poor Body Corporate Committee
For the vast majority of lot owners paying levies, observing by-laws and voting at general meetings will be the sum of their involvement with the body corporate. To a chosen few falls the task of leading and decision making. Management of a body corporate is a simple enough premise: all the lot owners combined vote […]
posted on February 6, 2014 by
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 […]
posted on January 30, 2014 by
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 […]
posted on December 20, 2013 by
Should I Order A Full Or Short Body Corporate Records Search?
MyBodyCorpReport.com.au offers two types of pre-purchase body corporate records search; a short form purchaser search and full purchaser search. But which one is right for you? The two reports are designed to meet differing needs. Short Form Body Corporate Records Search As a search agent I have no idea what issues are going to be […]
posted on December 3, 2013 by
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 […]
posted on November 12, 2013 by
The Dangers Of A Majority Lot Owner In A Body Corporate
This week in Purchase or Pass a two bedroom, one bathroom, clean and tidy lot in a good location with pleasing aspect was the subject of discussion. The catch: One lot owner has a 75% majority holding within the building. The panel of experts unanimously agreed they would pass on this opportunity, despite each believing the […]
posted on August 5, 2013 by
Section 206 Disclosure Statement Requirements Changed
Effective 1st of August, 2013 the Body Corporate & Community Management Amendment Act 2012 (second Amendment Act) changes re section 206 disclosure statements came into force. The most important change is that section 206 disclosure statements no longer need to include a copy of the Community Management Statement (CMS). This will come as something of a relief […]
posted on August 1, 2013 by
How To Find Who Manages The Body Corporate Records?
Its very common in body corporates that there is NO representative of the body corporate available onsite. Which means, if you do need to speak to someone with the power to act on behalf of the scheme, finding out who that person is can turn into a drawn out treasure hunt. Whomever manages the body […]
posted on June 26, 2013 by
What To Disclose When Selling A Unit
If there’s been a grisly murder or a suicide in an apartment, do you need to disclose that to potential purchasers? David Airey wrote on this subject in the Property Observer today talking about stigmatised history of a property. It’s kind of disturbing that this happens so often that there’s actually a name for it. […]
posted on May 15, 2013 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 […]
posted on April 16, 2013 by
How Property Developers Choices Impact Body Corporates
Property developers are a powerful force in the way out cities and towns are presented. Quite literally to develop a community is to give it physical form. Where I live I see the marks of the developer everywhere; in the size of the blocks, the layout of the streets and the lack of footpaths. All […]
posted on April 8, 2013 by
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. […]
posted on April 3, 2013 by
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 […]
posted on April 2, 2013 by
Has There Been A Contribution Lot Entitlement Change?
When a body corporate is registered the schedule of interest and contribution lot entitlements are set out in the CMS. But who sets those lot entitlements? The first lot entitlements for any body corporate are set by the developer. Now days contribution lot entitlements are required to be equal, unless being equal would then result in […]
posted on March 31, 2013 by
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 […]
Unless stated otherwise all the information on this website relates to Queensland legislation.
