Resources for lot owners
So, you own a lot in a strata community? And, perhaps you have just started to get information rom your body corporate. Don't panic! We're here to provide you with the basic information you need to get started.
Body Corporate Roles and Responsibilities
Many people have found themselves confused about what duties fall under the responsibility of the body corporate versus the body corporate manager.
Misconceptions about the duties of a body corporate manager
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The body corporate manager is not the body corporate.
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Body corporate levies are paid into the body corporate bank account and do not go to the body corporate manager.
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The body corporate manager has no authority to carry out the functions of the body corporate (unless there is no committee and the body corporate manager has been engaged to carry out all the functions of the body corporate under Chapter 5 of the Act).
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The body corporate manager cannot approve owners’ requests as these must be approved by the committee or by owners at a general meeting (depending on the nature of the request).
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Compliance items such as work health and safety, fire safety, insurance valuation, sinking fund forecasts and asbestos reports are imposed by various legislative requirements, they are not strata manager requirements.
Disclaimer: This information is general information only and does not constitute legal advice. These bullet points do not intend to cover all responsibilities of a body corporate manager or a body corporate. The contractual arrangement between a body corporate manager and a body corporate would normally disclose the duties of a body corporate manager. This may or may not include all of the following duties detailed here. The contract should be the primary reference to determine the responsibilities of a body corporate manager engaged by a body corporate.
The body corporate | The body corporate manager (BCM) |
|---|---|
Maintains, manages, and controls the common property for the benefit of all lot owners. | Carries out the duties contained within the administration agreement with the body corporate. |
Set the budgets, the amounts to be paid by the owners to make sure the body corporate has sufficient funds to meet expenses. | Prepares draft budgets and financial statements for the committee to consider, approve and submit to all owners for consideration at the annual general meeting. |
Makes decisions (committee or general meeting), enforces the by-laws (the rules that apply to owners and occupiers to help regulate the use of common property and lots at each scheme). | Has no decision-making power and can only act on the instruction of the committee (including, for example, by assisting the committee to prepare the required paperwork for the enforcement of by-laws). |
Insures the common property and buildings (and also insures against public risk) as required by the legislation. | Arranges the insurance and pays the premiums on behalf of and at the instruction of the body corporate. |
Manages and maintains body corporate assets and approves related expenditure from body corporate funds. | Maintains the body corporate records in accordance with the legislative requirements; conducts banking under the instructions of the committee. |
Keeps records for body corporate, including meeting minutes, roll of owners' details, financial accounts, registers of assets, improvements to common property by owners, and a contracts register. | Distributes correspondence, meeting agendas and minutes of meetings. |
Approves the agenda and meeting material before it is distributed (other than owner motions, which must be included without change). | Prepares meeting material and minutes of the meetings at the direction of the committee. Does not have authority to submit or amend a motion or to add an item to a meeting agenda. |
Chairperson chairs all meetings at which they are present; if not present, the persons present and entitled to vote decide who chairs the meeting (doesn't have to be the BCM or another committee member). | Cannot chair meeting if chairperson is present; if chairperson not present, the persons present and entitled to vote decide who chairs the meeting (does not have to be BCM or another committee member). |
Strata information brochure
A 16-page brochure outlining the roles and responsibilities of strata stakeholders, as well as the efforts of SCA (Qld) to change the industry to better serve the community.
Fact Sheet: Funding Strata Building Defects
The impact of building defects in strata properties in Australia is enormous. Apart from the money, there is time and energy expended by all parties and the emotional cost to owners.
Fact Sheet: Strata Insurance - Loss of Rent Policies
Where a unit suffers damage accepted as a
claim under a Strata policy, and is unable / unfit to be occupied for its intended purpose, a loss of rent claim is possible.
Choosing the right Body Corporate Manager
A leaflet explaining the benefits of hiring an SCA (Qld) management member to look after your most important asset.
Fact Sheet: Electricity Procurement Checklist
Smart procurement is knowing what type of customer you are and how to leverage your position for maximum savings. Electricity bills are based on how much you use.
Fact Sheet: Fire Safety in Strata Buildings
All residential apartment buildings that are Building Format Plans (Building Unit Plans) are Class 2 buildings* and will have annual fire obligations.
Body Corporate Committee Training
A half-day course designed specifically to suit owners' needs and aims to provide committee members with the appropriate knowledge to manage their scheme adequately and comply with legal requirements.
Fact Sheet: Body Corporate Meetings
Meetings are an important part of being a body corporate manager. Understanding what needs to be completed and organising a well-structured meeting is the key to a successful and purposeful gathering.