Distinguishing Strata Title from Body Corporate
Strata Title
Once you buy an apartment or a townhouse, you obtain a strata title. The meaning of this is that apart from owning your residential unit, you are also a co-owner of the common areas in the property. Together with other owners of the property, you are also a part-owner of the lifts, gyms, car parks, among other areas. It is due to this fact that it is also your responsibility to take care of the shared areas.
Body Corporate
Sometimes known as the owners’ corporation, the body corporate is formed by the property owners to manage and maintain the property on their behalf. The body is tasked with the responsibility of hiring a strata management service if the owners feel that they cannot do so themselves. Alternatively, one member can be appointed or volunteer to manage the property instead of hiring a strata management company.
The body ensures that the property is properly maintained, regular cleaning of common areas is done, and repairs are done promptly. Whenever an issue arises among lot owners or tenants, they present their grievances to the body corporate for mediation. The corporation also facilitates meetings among lot owners.
Responsibilities as a Lot Owner
When you become a lot owner, apart from adhering to the set rules, you have other responsibilities that include those in the list below.
- Obey the laws as stipulated by the body corporate
- Purchase insurance to cover your belongings as only the structural building is insured
- Attend and participate in any meeting convened. If you will be absent, you can appoint a replacement to attend the meeting and report the proceedings later to you. Alternatively, you can appoint a committee member to follow the proceedings on your behalf.
- Notify the property managers whenever a transfer of ownership to another party occurs.
- Pay all levies promptly. The managers use the levies to maintain, renovate and repair the property when necessary.
What is the Body Corporate Responsible for?
- Ensure that lot owners follow the rules and regulations in accord with the stipulations set by the state
- Manage finance administration matters, insurance, and other collective funds
- Keep records that include minutes, budget costs, and records on finances and maintain a lot of owners’ register.
- Address and resolve all disputes arising from lot owners
- Attend to repairs, renovations and hire someone to clean the common areas promptly. The body also ensures that residents have minimal inconveniences at all times.
- Avail all documents whenever prevailed upon by lot owners
Do your Research
Before you purchase an apartment under the management of a body corporate, review records of the properties that are held by them. In the documents, you will find minutes of previous meetings, financial accounts and responsibilities, and other correspondence that relate to the body corporate. By doing this, you will be well informed of the current issues that impact the property such as a noisy neighbours and a lift that frequently breaks down among other complaints. Also, get to know about administrative funds and other levies that you will make after purchasing the property.
In summary, a body corporate is a great outfit that manages properties on behalf of the owners. If you own a property, you can contact us and let us handle the lot owners on your behalf at an affordable fee.
