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If you are buying a unit, townhouse, or any property in a community titles scheme in Queensland, the body corporate is part of what you are buying into, not just the property itself. This guide covers what a body corporate is, what records are worth reviewing, and the common warning signs buyers should not overlook.
What a Body Corporate Is
In Queensland, community titles schemes are governed by the Body Corporate and Community Management Act 1997 (BCCM Act). The body corporate is the legal entity made up of all lot owners in the scheme, responsible for managing common property, shared assets, and the scheme’s finances. Each scheme has a registered Community Management Statement (CMS) that sets out lot entitlements, by-laws, and how the scheme operates. A body corporate is created automatically once land is subdivided into two or more lots under this system, which means it can apply to something as small as a duplex, not only larger unit or townhouse complexes.
Records Worth Reviewing
Before committing to a unit or townhouse, it is worth reviewing the body corporate’s recent financial statements and budgets, committee and general meeting minutes, current and past levy notices, the by-laws registered under the CMS, the building’s insurance certificate of currency, and any correspondence about planned or required works. These records give you a much fuller picture than the property listing or a single inspection ever can.
Administrative Fund vs Sinking Fund
A body corporate must maintain both an administrative fund and a sinking fund, with a budget adopted each year for both. The administrative fund covers day-to-day costs such as maintaining common property, insuring the building, and running the body corporate. The sinking fund is a savings account for future capital expenses, and body corporate budgeting is expected to anticipate capital expenditure over at least the following nine years. Each owner’s contribution to both funds is set according to their lot’s contribution schedule entitlements in the CMS.
Regular Levies and Special Levies
Regular levies are the ongoing contributions owners pay into the administrative and sinking funds. A special levy is a one-off, additional charge raised outside the normal budget, usually because an unbudgeted or larger-than-expected expense has come up, such as major building works. A history of special levies, or minutes discussing an upcoming one, is worth understanding before you buy, since it may become a cost you inherit shortly after settlement.
By-Laws and Restrictions
By-laws registered under the CMS can affect day-to-day living in ways that matter to different buyers differently, including rules on pets, renovations and alterations, parking, noise, and whether short-term letting is permitted. Reading the by-laws before you commit avoids discovering a restriction that affects how you intended to use the property only after you have signed.
Insurance Responsibilities
In a community titles scheme, the body corporate is generally responsible for insuring the building and common property, while individual owners are typically responsible for their own contents and certain improvements not covered by the body corporate’s policy. Confirming exactly what the body corporate’s insurance covers, and what it does not, helps you understand whether you need additional cover. Our guide to home and contents insurance in Queensland covers general policy structures and terms.
Maintenance Responsibilities
Responsibility for maintenance is generally split between common property, which the body corporate maintains, and each individual lot, which the owner maintains. Exactly where that line falls can vary between schemes and is set out in the by-laws and scheme records, so it is worth confirming rather than assuming, particularly for things like balconies, exclusive use areas, and fixtures that sit between the two.
Committee and Dispute History
Meeting minutes can reveal whether the committee is functioning smoothly or dealing with ongoing conflict. Queensland body corporate disputes that cannot be resolved internally can proceed to the Office of the Commissioner for Body Corporate and Community Management for conciliation or adjudication, or to the Queensland Civil and Administrative Tribunal (QCAT) in some cases. A pattern of unresolved disputes or repeated committee turnover in the minutes is worth understanding before you buy in.
Signs of Major Upcoming Expenditure
Watch for minutes discussing building condition reports, deferred maintenance, or upcoming works such as roof, waterproofing, lift, or facade repairs. A sinking fund balance that looks low relative to the scale of the building, or relative to work flagged in recent minutes, can be an early indicator that a special levy may follow.
Building Defects and Rectification Risks
For newer buildings in particular, check whether the minutes mention known defects, rectification works, or disputes with the builder or developer. Defect rectification can be a significant, sometimes lengthy process, and understanding where it stands before you buy is far better than discovering it afterward.
Why Low Levies Are Not Automatically a Positive
A unit with unusually low levies compared to similar buildings is not necessarily a bargain. It can sometimes mean the sinking fund is underfunded relative to the building’s future needs, which increases the likelihood of a special levy down the track. Understanding how the levies compare to the fund balances and the building’s condition is more useful than looking at the levy amount alone.
What Seller Disclosure Alone Tells You
Queensland’s seller disclosure scheme requires the Form 2 statement to note whether a property is in a community titles scheme, and a community management or body corporate certificate is one of the prescribed certificates a seller must provide. This confirms the scheme exists and provides some baseline information, but it is not a substitute for reviewing the fuller set of body corporate records described above. See our guide to Queensland seller disclosure for what the scheme does and does not cover.
What to Ask Your Solicitor or Conveyancer
Ask your conveyancer or solicitor to help you obtain and review the body corporate records as part of your due diligence, including recent minutes, financials, and any notice of a special levy or defect claim. This is a standard part of buying into a community titles scheme in Queensland. See our guide to choosing a conveyancer or solicitor, and pair this with your own physical inspection using our guide to building and pest inspections, since neither the body corporate records nor a building inspection alone tells the full story.
Where This Fits Into Your Wider Research
Body corporate checks are one part of a broader pre-offer research process. See our guide on what to check before making an offer and our free Queensland Property Research Checklist for the wider picture. If you are specifically looking at a high-rise tower on the Gold Coast, our guide to body corporate considerations in Gold Coast high-rise buildings covers the additional checks that apply to larger towers.
Where Narevella Can Help
If you have a specific unit or townhouse in mind, our Property Review can help with an independent research pass alongside your own body corporate and building checks.
Disclaimer
This guide provides general research information only. Narevella does not perform body corporate record searches, strata management, legal, financial, insurance, or engineering services, and this article is not legal, financial or professional advice. Always obtain and review the body corporate records through your conveyancer or solicitor, and seek advice from appropriately licensed or qualified professionals before proceeding with a purchase.
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