If you are an apartment owner or a unit, you must be familiar with the term Body Corporate. Body corporate is also known as the Owners Corporation. Moreover, if you consider buying an apartment or a unit, you would for sure come across this term.
However, many real estate wholesalers are not familiar with the term. Today, we will discuss everything that you should know about Body Corporate in Melbourne.
Body Corporate in Melbourne: Everything you need to know
Some of the things that you must know about Body Corporate in Melbourne are specified below.
What is it?
Body Corporate is a group of individuals that have a property that shares common facilities. It is a type of small community. The properties bought by these groups of individuals can be multi-unit apartments, commercial buildings, or single-unit apartments. In short, a Body Corporate is a group of individuals that have invested in the Strata Scheme.
According to the rule of Body Corporate, once you purchase a Lot that shares common grounds and facilities, you become part of a Body Corporate, otherwise known as Owners Corporation. All the corporate plans are made with the mutual agreement of all the individuals present in the Body Corporate.
What does it do?
Body Corporate Management is responsible for managing and taking care of all the common properties of fellow residents. Common property is a mutually shared property by the residents of an apartment, unit, etc. Some of the common properties include:
- Swimming pools
- And other recreational facilities
Body Corporate Management is responsible for keeping an eye on the common areas and inform the entity about when they must be repaired. The entity is also responsible for raising funds from the owners invested in the Strata Scheme to repair and maintain the common properties and facilities.
A Body Corporate Management is also responsible for every owner to pay equally if a common property requires any maintenance or repairs.
An Owners Corporation is also responsible for effectively managing and utilizing the financial resources to administer the common properties. The most crucial thing that a Body Corporate should make sure of is that it should comply with the Owners Corporations Act.
Non-compliance can cause serious problems, and that is not what the individuals in an Owners Corporation want.
Responsibilities of the individual members
As mentioned earlier, a Body Corporate consists of individuals. These individuals have a set of responsibilities. These responsibilities include:
- Attending the Annual General Meeting.
- Tell the other individuals in the entity if any maintenance or repair is needed on common property.
- Noting down the minutes of the meeting. It is done by only one person.
- Discussing any issue that might cause residents significant problems
- Discussing how you should raise funds if they are needed to be collected for operating or maintenance costs.
What is the fee?
There are three types of fees of Body Corporate Melbourne. They are specified below.
Annual fee or levy
The annual fee, also known as the Administration fee, is the amount that is needed for the daily maintenance and operation of common property. For example, cleaning the swimming pool, cleaning hallways, corridors, and common insurance.
Sinking fund levies
Body Corporate also consists of Sinking Fund Levies. Sinking Fund Levy is the fee required for utmost repair works needed to repair or maintain common property. Painting, plumbing, roof replacement, and other substantial repairs are enveloped through the Sinking Fund Levies. Repairs due to which a common property can’t be used properly are also covered through this levy.
The third type of fee that Body Corporate Melbourne charges are the Special Levy. Special Levy covers all the once-in-a-while repairs. Special Levies might be asked by Body Corporate Melbourne from the owners of the lot when the entity does not have enough operating or maintenance funds.
Generally, special levies cover all the utmost and expensive repair and maintenance costs needed to improve a common property.
You must pay the special levy when needed, as not paying the fee to Body Corporate Melbourne does not give you any right to vote. Moreover, you can also be penalized by an owner’s corp for violating the law.
Moreover, if we talk in figures, then the above-specified fees can be somewhere between AUD 30 – AUD 500 per week. And $1500-AUD 2000 every three months. You must know that the fees also depend on the location, property size, and the condition of common properties.
In addition to this, how the residents use common property also affects the structure of the fees of Body Corporate Melbourne. The infrastructure of the property also plays a vital role. With all of the considerations and factors mentioned, the levies can also range between $400 – AUD 10,000.
What does the fee cover?
Some of the factors that are covered by all the levies that the investors of the Strata Scheme pay to specified below.
- Insurance of the building.
- Covering the cost of all the damages.
- Other repair costs of a common property
What do the levies not cover?
Body Corporate is not responsible for these things:
- Paying an amount when the personal belongings of an owner get damaged or stolen.
- Insurance, maintaining and repairing your personal property
- Giving the funds of strata-titled owners to improve the condition of their personal property.
Final Remarks to consider:
The above-specified are all the things that you must know about Body Corporate in Melbourne. The laws of all body corporates are different and vary from region to region. A Body Corporate is responsible for maintaining and administrating your common property. You must fulfill your duties in a dedicated manner as a member of Body Corporate Melbourne.