From 1st August 2025 body corporate certificates will replace section 206 disclosure statements.

The change is more extensive than just the change of disclosure types with contracts for sale of property in Queensland soon needing to be accompanied by a form 2 seller disclosure statement which will include the body corporate certificate. This applies to all property sales with some exceptions.

Where do I get a body corporate certificate?

The provision of a body corporate certificate is a responsibility of the body corporate and it must be purchased directly from the body corporate or its agent.

This differs significantly from section 206 disclosure statements which was the responsibility of the lot owner to produce. The lot owner was then able to appoint an agent to prepare that disclosure on their behalf and that is the authority under which we, as a search agent, currently work.

Now the body corporate is responsible for preparing the body corporate certificate, or more precisely given body corporate legislation, the committee.

The only one authorized to produce body corporate certificates, without the owners passing a motion otherwise, will be the strata manager appointed. That’s because the strata managers already have a written contract where they are appointed to exercise the powers of the committee.

In future that may change if bodies corporate pass motions authorizing other agents to be appointed to produce body corporate certificates.

There is no restriction on who can purchase body corporate certificates.

How much is a body corporate certificate?

The body corporate certificate is a prescribed form with three types: a form 18, or a form 33 or a form 34.

Form 18 is the certificate for lots registered under BUGT Act 1980.

Form 33 is the certificate for lots registered under BCCM Act 1997 and will be the most common type.

Form 34 is a body corporate certificate for schemes registered under a BCCM Act 1997 two-lot regulation module, essentially, for a duplex. Important distinction here, just because a body corporate is a duplex doesn’t mean its a two-lot module scheme. Refer to the CMS if you are unsure.

There is a prescribed fee for body corporate certificate forms 18 / 33 and for this year that is $84.10. The body corporate may not charge any more than this.

Costs for a body corporate certificate form 34 will vary depending on whether there is a strata manager appointed and who is completing the document.

The government mandated fee is GST free however it’s been an ongoing argument in the body corporate industry for years whether the GST registered strata manager should charge GST on top with arguments on both sides. Sometimes GST may be charged.

Turnaround time for production of the body corporate certificate is also mandated by the legislation and is five (5) days.

There is an option to pay an additional $30.00 for 24-hour turnaround, however it is noted that if this timeframe is not adhered to the body corporate must refund the money. Just because the option is available does not mean it’s doable.

If the same person requests another body corporate certificate within three months of the first certificate being issued the cost will be $71.50.

Why would I need a second certificate within three months?

There are a couple of reasons why you might need more than one certificate for a lot being sold: 1) the information contained within expires and 2) confirmation of levies owing is required.

1. Information contained within expires

Like a section 206 disclosure statement a body corporate certificate expires when the information within that certificate becomes obsolete.

That will mean the levy information included in the certificate may change during the course of the marketing campaign, depending on things like when the AGM is held or whether additional levies are issued.

If the information within the certificate is updated, a new certificate will be required.

• Confirmation of levies owing is required

The body corporate certificate is essentially rolling what was a section 206 disclosure statement (disclosure prior to contract) and a section 205 information certificate (guarantee of amounts payable) into the same document.

Section 205 information certificates are routinely obtained immediately prior to settlement to ensure that any outstanding amounts owed by the seller are paid at settlement. The certificate is a guarantee that this is the amount owing at this date which a buyer may rely upon at settlement. This is particularly important if the lot is in arrears.

The body corporate certificate will show this information for the date the certificate was prepared but settlement may be considerably later.

Section 223 Implied Warranties

It is crucial to note that section 223 of the BCCM Act, relating to implied warranties in the common property, remains unchanged.

Section 223 statements “…The seller warrants that there are no latent or patent defects in common property or body corporate assets other than defects arising from fire wear and tear or those disclosed in the contract…”.

That means if the seller is aware of defects in common property they must be disclosed in the contract or the seller has the right to cancel the contract should they find out about it later.

If the seller is aware of defects they should be disclosed to the buyer in the contract.

Transitioning periods for body corporate certificates

You may not realise it but we have already been through most of the transition period from passing of legislation to commencement of requirements of form 2 seller disclosure including body corporate certificates.

That transition period ends 31/07/2025.

Any contract entered on or after 1/08/2025 must be accompanied by a Form 2 seller disclosure, and if that lot is a body corporate, it must include a body corporate certificate.

Mybodycorpreport.com.au and disclosure requirements

This company has been providing section 206 disclosure statements for sellers and their agents since inception in 2013. For me, this is the end of an era. In my career I have completed literally thousands of these disclosures and am considered an expert in the field.

The new Seller Disclosure regime including body corporate certificate is far more challenging and I have to say I’m looking forward to getting my teeth into. My next article will be about how Mybodycorpreport.com.au is evolving with the new requirements.