- Broderick Wyatt
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According to the Australian Bureau of Statistics, strata-titled houses will overtake single-family homes in the next 25 years. Meaning most Australian property owners will join a body corporate.
If you now own or intend to acquire an apartment or townhouse in the near future, you should know what a body corporate is and what its duties are. These are the fundamentals of property ownership, which are often overlooked.
What does it mean to be a member of a body corporate?
Legally, a body corporate is also called an owner’s company or an owner’s corporation. Landowners, typically the developer, create a body corporate when a plot is split up into flats or townhomes.
A body corporate member is someone who owns a lot under a Community Title Scheme, such as an apartment or townhouse, in Australia. The body corporate is in charge of managing and maintaining the common spaces, such as the entrances, corridors, elevators, and swimming pools that are utilized by all residents. The body corporate is in charge of overseeing not only the physical structures of the development but also the quality of life for those who reside there. Noisy management, parking, and other human behaviour that affects strata-titled property occupants are examples of this.
Strata management Ballarat rules differ from one state or territory to the next in Australia. Body corporate and community management act of 1997 is a major piece of law in the state.
What is the management style of the Body Corporate?
A committee is required for every corporation, and it is often chosen at the annual general meeting. The committee’s job is to oversee the day-day-to-day operations of the body corporate and to formulate and implement decisions related to its obligations.
Unless otherwise specified, all lot owners are notified in advance of committee meetings and are provided with a meeting agenda. As a member of the committee, you have the opportunity to actively engage. There is a right for you to propose motions to the committee (for example, to offer a maintenance solution), which must be placed on or before the next meeting.
Comparing new characteristics to existing ones
It’s crucial to keep in mind that your contributions may go up if large capital works are required, based on the sinking fund’s worth. The replacement of an apartment building’s roof, for example, will come under this category (which is not as uncommon for older buildings as you might think).
New strata-titled property usually requires less investment in terms of capital expenditure. New flats often require less upkeep, reducing your investment’s risk. In other words, when capital expenditures rise, so do body corporate dues.
It’s easy to see that body corporate isn’t a danger as one may believe at first glance. Body corporate fees support two distinct funds that work together to keep a building in top condition. It will also be more desirable to tenants and buyers if the home is well-maintained.
The last thing to keep in mind is that you have the right to participate in body corporate committee meetings as an owner with a strata title.