What is a Body Corporate? A Plain-English Guide for Gold Coast Property Owners
What is a Body Corporate?
A body corporate is the legal entity that is automatically created when a Community Title Scheme (CTS) is registered with the Department of Natural Resources. You do not join it by choice. The moment you purchase a lot within a registered scheme, you become a member automatically.
Every Community Title Scheme is described in a Community Management Statement (CMS), which sets out the number of lots, the lot entitlements for each owner, the by-laws of the scheme, any exclusive use arrangements, and other important details.
What is the body corporate responsible for?
The body corporate exists to manage and maintain the common property of the scheme on behalf of all lot owners. This includes things like driveways, gardens, pools, lifts, lobbies, and building exteriors depending on the scheme type.
Beyond maintaining common property, the body corporate is also responsible for taking out and maintaining building insurance, managing the scheme’s finances through the Administration Fund and Sinking Fund, enforcing by-laws, and making decisions that affect the scheme as a whole through general meetings.
Are there different types of schemes?
Yes. Most bodies corporate are for simple, basic Community Title Schemes. However, some schemes are part of a layered arrangement, with a Principal Body Corporate sitting above a number of subsidiary bodies corporate. This is more common in large mixed-use developments.
The two most common plan types in Queensland are the Building Format Plan (BFP) and the Standard Format Plan (SFP).
A Building Format Plan is typically used for apartment buildings. Lot boundaries are defined by the floors, walls, and ceilings of each unit, and common property includes all structural elements and shared areas outside those boundaries.
A Standard Format Plan is more commonly used for townhouses and villas. Lot boundaries generally follow the land boundaries, and lot owners are typically responsible for more of the maintenance within their own lot.
What is common property?
Common property is any part of the land and buildings within the scheme that is not part of an individual lot. It is owned collectively by all lot owners in proportion to their lot entitlements, and the body corporate is responsible for its care and maintenance.
Understanding what is and is not common property is one of the most common sources of confusion for owners. If you are unsure whether a maintenance issue is your responsibility or the body corporate’s, speaking to your strata manager is the fastest way to get clarity.
Need help with your Gold Coast scheme?
Holmac Strata provides boutique body corporate management across the Gold Coast, including Surfers Paradise, Broadbeach, Southport, Robina, and Palm Beach. Get in touch to find out how we can help.