To put it simply, the body corporate is the organisation that is in charge of running an apartment building and managing all relevant issues.
They have a range of tasks that they carry out including:
- Maintaining any shared common areas such as lifts, gardens, and entrances
- Managing and controlling any assets owned by the body corporate
- Keeping records of financial information, owner’s details, and meeting minutes
- Applying for and managing any relevant insurances including public liability insurance
- Setting out body corporate fee structures to be paid by individual building owners
- Writing and enforcing by-laws for building owners
Where does the body corporate spend its funds?
Fees received by body corporates are primarily used for the tasks listed above. Body corporates are liable for ensuring full reinstatement and public liability insurances are in place for any buildings they manage. They hold responsibility for the upkeep of any services that are linked to the building including gas, water, etc. They are also required to maintain the upkeep of areas used by residents and guests including common shared areas and the exterior of the building.
What does the Body Corporate Manager do?
The body corporate manager has a variety of daily tasks, but their main job is to organise matters that relate to lot owners. They are also tasked with ensuring that the building meets standards for legislation and insurance purposes. Issues can arise when there is not a skilled professional manager in charge of these affairs. Additional tasks can include running body corporate meetings, organising valuations for insurance purposes, keeping records of levies, and conflict mitigation.
Information for Your Buyer
Potential buyers will always want detailed information regarding Body Corporate costs or fees and any additional information to complex By-Laws.
Below is a list of some of the Disclosure Statement information you should source from your Body Corporate Manager prior to launching to the market:
- CMS (Community Management Statement), including the By-Laws for the complex.
- Details of the Lot entitlements and contributions for your property.
- Diagrams of any exclusive use areas within or connected to your Lot.
- Quarterly (and annual) fees that apply to your apartment.
- Insurance details, including a copy of the Certificate of Currency.
- Latest AGM minutes (including the Financials and Budget for the complex).
- Balance of the Sinking Fund.