Body Corporate

Plain-English definition. A body corporate is the legal entity automatically formed by all the lot owners in a strata-titled building. It manages the common property — lifts, gardens, roof, pool, hallways — and enforces the by-laws.

How it works in Australia. Each state has its own legislation: NSW uses the Strata Schemes Management Act 2015 and calls it the "owners corporation"; Queensland uses the Body Corporate and Community Management Act 1997; Victoria refers to "owners corporations" under the Owners Corporations Act 2006. The body corporate levies quarterly fees split into an administrative fund (day-to-day costs) and a sinking/capital works fund (long-term repairs). Decisions are made at AGMs by ordinary, special, or unanimous resolution.

Concrete example. A 2-bedroom Sydney apartment in a 40-lot building with a pool and lift might attract body corporate fees of $1,400 per quarter — say $900 to the admin fund and $500 to the capital works fund. If the building needs $400,000 in remedial waterproofing, owners can be hit with a special levy proportional to their unit entitlement. An owner with 25/1,000 unit entitlements would owe $10,000.

Common confusion. Buyers assume body corporate fees are negotiable or optional — they're not. They are a statutory obligation that runs with the lot. Always order a strata search report before exchanging contracts: it reveals upcoming special levies, defect disputes and the sinking fund balance, which a low quarterly fee can hide.