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FAQ Body Corporate

FAQ: What is a Body Corporate/Owners Corporation?

    Some properties share community space with other homeowners. Townhouse and unit developments, for example, may share gardens, walls, driveways, letterboxes, or fences. When this happens the Body Corporate (also called an “Owners Corporation”) manages these community spaces (also called “common property”).

    What is a body corporate?

    A body corporate is a legal entity formed to manage and govern the shared or common property of a community. It is also referred to as an "Owners Corporation." When you own a property that has common property, you automatically become a member of the body corporate.

    How can I determine if my property is affected by a body corporate?

    When you purchase a property that includes common property, all the details regarding the body corporate will be included in your contract of sale. Your conveyancer should confirm these details with you during the purchasing process.

    How is the management of common property typically handled?

    In most cases, a body corporate will appoint an independent body corporate manager. This ensures that a specialized team professionally manages day-to-day issues concerning the common property. The body corporate manager handles repairs and maintenance and addresses any queries related to neighbours or community issues. As a member of the body corporate, you have a say in decision-making processes, including selecting the body corporate manager.

    What are contributions in relation to a body corporate?

    As a member of the body corporate, you are responsible for paying membership fees, known as contributions. These fees cover the management and maintenance of all common property areas. Several factors determine the amount of your membership fees, but typically, all members pay the same amount.

    What does the insurance for a body corporate cover?

    An owners corporation (body corporate) must have insurance coverage for all common property areas. Additionally, some corporate fees may include building insurance for each property, although this is not always the case. It is important for each member to check with their owners' corporation to understand the specific insurance coverage. It is also recommended to discuss this with the body corporate manager, as there may be potential savings on individual property insurance premiums.

    Does owners corporation insurance cover the contents of individual properties?

    No, owners corporation insurance does not cover the contents of individual owners' properties. Each member is responsible for ensuring they have appropriate contents insurance in place for their individual units or properties.

    Remember, being part of a body corporate or owners corporation means sharing responsibility for the management and maintenance of common property. Understanding your rights and obligations as a member is essential, and it’s always a good idea to consult with your body corporate manager for any specific questions or concerns related to your property and the community.

    Further information
    Model rules for owners corporations
    consumer.vic.gov.au
    land.vic.gov.au

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