Frequently Asked Questions
What is a Body Corporate?
A body corporate comprises all the owners of a unit-titled property. It isn't something you can opt out of. If you own a unit or apartment in a unit-titled property, you are a member of the body corporate.
The body corporate has two main duties: to organise and maintain insurance for all buildings and other improvements to keep the common property in a good state of repair.
What does unit entitlement mean?
Each unit has assigned to it a "unit entitlement". This is a figure fixed by the Valuer-General or a registered valuer calculated on the basis of the relative value of the unit in relation to the other units on the plan.
How does the unit entitlement affect my share of the body corporate levies?
The amount of the entitlement is very important as it determines:
- the unit owner’s share in the common property
- the unit owner’s voting rights
- the unit owner’s obligations to contribute to the fund of the "body corporate"
Proprietors are levied in proportion to their unit entitlement which creates a fund that the body corporate uses to ensure that the body corporate is adequately maintained, creditors are paid and the property is properly insured.
What are body corporate rules?
A body corporate has rules, which govern the unit owners’ relationships with each other and with third parties. The UNIT TITLES ACT 1972 sets out rules in its Second and Third Schedules; these will apply to any unit title development unless they are varied by the body corporate.
The rules in these Schedules include the powers and duties of the body corporate, and also the responsibilities of unit owners. The Second Schedule of the Act sets out a number of rules that automatically apply unless they are varied by a unanimous resolution of the body corporate. The Third Schedule sets out rules relating to unit owners that can be amended by a majority resolution of the body corporate:
Who owns the common property and how is it split up?
The unit owners own the common property as "tenants in common". This means that, when a unit owner dies, the share of that owner passes to his or her estate and therefore according to his or her will. This is in contrast with ownership as "joint tenants", whereby an owner’s share passes to the other owners if he or she dies. Each owner’s share in the common property is proportional to their "unit entitlement".
Can I insure my unit separately instead of having insurance through the body corporate?
The Unit Titles Act states that the body corporate is responsible for maintaining a full replacement insurance policy for all the improvements on the site. Individual owners cannot take over this responsibility.
Do I insure my contents separately from the body corporate? Yes. Contents insurance is the responsibility of the unit owner, not the body corporate. However some body corporate policies do include a specified amount of “landlord’s cover” which is intended to cover fixtures and fittings (fitted carpets and drapes) belonging to the owner of a rented unit.
Where am I permitted to park my vehicle?
You may only park your vehicle in your unit’s designated parking space, usually an accessory unit recorded on your title. However some bodies corporate do have an area of the common property set aside for parking. Parking on the common areas (other than in an area designated for your vehicle) or in someone else’s accessory unit without permission is always a violation of the body corporate rules.
Can I use my car park for storage?
This depends on whether there are body corporate rules controlling the parking space. Some body corporate rules may forbid uses other than car parking.
Can I sell my car park or buy another one?
Yes, provided the car park is an accessory unit, and can be attached to a principal unit. You cannot sell an accessory unit to a person who does not own a principal unit in the body corporate. Occasionally car parks are principal units in their own right and can be bought and sold on the open market.
Because I own a share of the common area, can I use it for parking, gardening or for storing my belongings?
You have no individual rights to use the common areas other than to pass over. The exceptions are areas of the common property that are designated for a particular use such as tennis courts, swimming pools and gyms.
Can I make additions to my unit or change the exterior appearance?
Most body corporate rules state that all alterations and additions will require the consent of the body corporate, usually excluding redecoration. Unanimous consent is required to add decks and other extensions if they encroach beyond the unit’s boundary. This may also require a redevelopment plan as per Section 44 of the Act.
What is a Section 36 certificate?
The Unit Titles Act 1972 requires under section 36 ‘a certificate of a proprietor’s liability’ to be supplied whenever a unit is sold. Details of any levies or monies that are owed to the body corporate are recorded on this certificate. It also details other liabilities that a new owner might be liable for. The body corporate secretary issues it at the expense of the person requesting.
If I am unable to attend a general meeting, can I appoint someone else to go in my place?
You can appoint anyone of your choice to attend on your behalf; this person is called a proxy. To appoint a proxy, the body corporate must be given written notice signed by the owners of the unit.
APM attaches a proxy form to every notice of meeting sent and recommends owners appoint a proxy if they can’t attend as lack of voting attendance means the meeting must be abandoned as no decision can be ratified. You can send your signed proxy by e-mail, fax or post or the proxy holder can bring it to the meeting.
Can I vote at an AGM or EGM if my levy payments are not up to date?
If your levy payments are not up to date, you can attend the meeting and speak if you wish, but you may not vote, except in special circumstances specifically allowed for in the Body Corporate Rules.
What can I do if I have a complaint about other occupants making excessive noise?
Firstly speak directly to them and ask them to reduce the noise. If that fails, call the Council’s noise control office to lay a complaint.
Do tenants have to abide by the body corporate rules?
Any people occupying a unit are bound by the rules. As the tenant’s tenancy agreement is with the owner of the unit and not the body corporate, it is the responsibility of the unit owner to deal with any issues regarding their tenant.
APM recommend that a copy of the Body Corporate rules be included within the tenancy agreement so the tenant has a clear understanding of the body corporate rules from the beginning.