Body corporates have rules, and quite a lot of them. Most body corporate by-laws will include a rule about marketing a lot, or more specifically, whether or not you can put up a for sale sign.
In some cases the answer will be a definitive NO!
Others will be a definite yes, go ahead.
In most cases though permission will need to be sought from the committee. A request, in writing will be necessary (email is fine).
- Check the by-laws for your body corporate. The by-laws are contained within the Community Management Statement.
- If you do need permission email the Secretary of your body corporate via the body corporate manager. Be precise. Outline the size and shape of the sign and where you would like to position it.
- When permission is granted do follow the guidelines as set out in the approval. If you do not the committee will most likely order you to take the sign down.
Can I Have An Auction?
To hold an auction on the common property of a building you will need the permission of the committee, if the by-laws do not expressly prohibit.
Contact the body corporate manager for advice and if you do need to submit a request in writing, again be as precise as you can.
How About An Open House?
You can open you home to whomever you please, however, crossing the common property and touring the facilities is governed by the body corporate, and there will be more rules. Again, refer to the by-laws and contact your body corporate manager or committee if you are unsure. Also:
- If there is some form of security door or gate its unlikely you will be allowed to open that security and allow free access. Entry to the body corporate should be individually monitored. You will likely require at least two people, one person at the entrance and another on the lot.
- Any person allowed into the property will become visitor or invitee of the lot owner and, as such, the lot owner will be responsible for any damage or nuisance the invitee causes on the common property.
- Try to avoid large groups of people who may get in the way of the residents of the body corporate. Nothing annoys people quicker than problems using their home.
Most committees and body corporate managers will sincerely want to help you with your plan to sell. To avoid problems during the process remember to be respectful of others rights and abide by the rules and you should have a fuss free sale.
Unless stated otherwise all the information on this website relates to Queensland legislation.
Our property has a By-law which says that (shortened version)
(a) an owner or occupier cannot put up signs
(b) the manager is permitted to put up signs
Recently this has been questioned as not being fair or reasonable under law by giving one party greater powers/priviledges than any other person within the complex. What is your opinion on this?
Hi Janice
This is interesting and I’m in two minds about it.
The Caretaker does have a special privilege granted by way of the Letting Authorisation. Essentially they are granted the right to run a letting business onsite. The owners do not need to use the onsite manager, as the body corporate cannot make resolutions about owners private business, but it can control what business, if any, is run on common property. The Letting Authorisation makes it clear only the holder of the agreement is able to do that.
That said, I agree it could be unreasonable to limit owners erecting for sale signs. If the by-laws prevent the putting up of signs then, I feel, it should prevent it for all owners, equally. The Caretaker is just another owner. From this Adjudicators Order
But, also in the same order, the Adjudicator noted it is acceptable for the Caretaker to have a larger sign as they act for several owners. Its also applicable for the body corporate to limit signage around the scheme to preserve appearance.
Both good arguments, and hence two minds.
Having made the objection now it will be interesting to see how the committee reacts. I’d also suspect that it will depend on size and location of suggested signs. Also terms of the Letting Agreement and by-laws. It does sound like a case, that the exclusion is unreasonable, could be made. How it would come out would depend on the Adjudicator and facts of the case.
Thanks Lisa
So as the on-site manager has the letting Agreement he is the only one allowed to advertise apartments for let – is that correct? His agreement says that he is not to interfere with the rights of owners that let their own apartments.
The property is holiday letting only and approximately 27% of owners let their properties themselves or through other agencies.
One of these owners wanted to put a small plaque next to their door which had the name of their apartment on it and a photo of a bird. This was a guide to guests more than anything else as all doors look exactly the same.
They were told to take it down by the committee after a complaint by the on-site manager.
The committee consists of all letting pool owners and are all very much in the manager’s favour.
In the case of an apartment being for sale the on-site manager has to approve the open inspection signs, being placed on common property which I also think is unfair restraint.
Your opinion would be appreciated.
Hi Janice
You need to refer to your by-laws and the terms of Caretaking Agreement. It is possible that the restriction on signage has been agreed to by the body corporate. Conditions of contracts should not be breached by owners.
Certainly the bird sign would not be allowed. Almost all by-laws include a restriction on changing the external appearance of the scheme.
Hi Lisa,
I have a client that has developed 12 units on a single block with 7 units owned by a Super Fund entity and the remaining 5 owned by a Unit Trust.
I have the following issues and require your assistance:
1. Is it best for the client to Register a Body Corporate entity with its’s own ABN, etc?
2. If the client were to sell one of these properties, how would that affect the Body Corporate?
3. How does ownership by two different entities impact on the Body Corporate entity?
4. What are the issues if the client doesn’t want to register a Body Corporate entity?
5. Any other issues that the client needs to be aware off?
Appreciate your assistance in this matter.
Thanks again for your time.
Hi Fereti
This is a difficult situation. If there are 7 units owned by one entity and 5 owned by the other then the scheme must have already been strata titled. That means the body corporate has already been created. Otherwise there would not be individual titles. Check for a Community Management Statement.
Further, there can only be one Original Owner. That would mean that some of the lots have been transferred already. This is pertinent because once 50% of the ownership has changed hands the body corporate is required to hold it’s first AGM.
Whilst there is “one” owner there is not going to be much issue with running the body corporate. Once another owner is added, if a lot is sold, it will have significant effect. Particularly if that means the 50% threshold has been reached.
You cannot not register a body corporate. If the lots are strata titled it already exists. If it remains one owner, or in this case two, controlled by the same entity, then you can get away with not doing much of anything. The building and surrounds will need to be maintained. Keep invoices as records for the scheme.
Its a good idea to set up a savings fund or sinking fund. A block of 12 units is going to generate a surprising amount of maintenance costs in a pretty quick frame of time. Plus, as the building is new there will be defect issues to address.
Bodies corporate work best when the lots are sold and the body corporate works per legislation. One of the downsides of having majority owners who control things is the lack of agency for other owners, lack of process and that records are not available. It makes the scheme much less attractive for other owners and the lots harder to sell. A lack of sinking fund balance will become more and more of a reason not to buy as the building ages.
I suggest your client go all in and sell all the but 1 or 2 units or keep the entire holdings themselves. It will make dealing with the body corporate much easier. If they sell a manager and committee can be appointed and the weight is take from them. If they don’t they control everything and there is no one else to complain.
Hi Lisa. To keep this short we have a real estate agent on the Sunshine Coast erect a for sale sign out the front of our high rise apartment that is 2.4m by 1.08m in size and a total of 2.7m in height off the ground. We have BC rules that state a much smaller sign is to be used and they must seek approval before erection. No approval was asked. They have been asked to remove it and follow the BC rules but they said they are not going too and don’t care less about our rules and because it is on council land we have no say. Please advise. Thank you
Hi Gary
They are correct if its on Council land then the body corporate has no say. Report it to the Council. They may take as dim a view of it as the body corporate.