A body corporate, also known as an owners corporation or strata corporation, is a legal entity created when a property is divided into multiple individual lots or units within a strata scheme. It is responsible for the management and administration of the common areas and shared facilities within the property.
The body corporate is formed by the owners of the individual lots or units, who become members of the corporation. Each owner holds a share in the body corporate proportionate to the size or value of their lot. The body corporate operates under a set of rules and regulations, known as by-laws, which govern the use and management of the common property.
What are the main responsibilities of body corporate?
The main functions and responsibilities of a body corporate include:
- Meetings and decision making: Body corporates hold regular meetings, including annual general meetings (AGMs), where decisions are made regarding financial matters, by-law amendments, and other important issues. Each owner has the right to attend, vote, and have a say in the decision-making process.
- Maintenance and repairs: The body corporate is responsible for the maintenance, repairs, and upkeep of the common areas, which may include shared facilities such as lobbies, staircases, gardens, swimming pools, and parking areas.
- Financial management: The body corporate manages the finances of the strata scheme. This involves collecting levies or fees from owners to fund ongoing maintenance, repairs, insurance, and administrative expenses. The body corporate prepares strata report budgets, maintains financial records, and ensures proper financial management.
- Dispute resolution: The body corporate facilitates dispute resolution between owners or between owners and the body corporate itself. This can include disputes related to by-law breaches, property damage, noise complaints, or use of common facilities.
- Insurance: The body corporate arranges and maintains insurance coverage for the strata scheme. This typically includes building insurance, public liability insurance, and other relevant policies to protect the common property and owners’ interests.
- Administration and governance: The body corporate manages administrative tasks such as holding annual general meetings, maintaining records, enforcing by-laws, and ensuring compliance with relevant legislation and regulations.
- By-laws and rule enforcement: The body corporate enforces the by-laws and rules that govern the use and behavior within the strata scheme. This includes addressing any breaches, imposing penalties or fines, and taking legal action if necessary.
