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Body Corporate

Discussion in 'Investing Glossary' started by Glossary, 26th Sep, 2006.

  1. Glossary

    Glossary Active Member

    Joined:
    12th Sep, 2006
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    A Body Corporate is a legal entity created when land is subdivided into a form of community title scheme under land titles legislation. Although the details differ between the states, the common element is that every person who owns land in a community title scheme becomes a member of the body corporate.

    The body corporate's role is basically to look after the land/buildings which comprise the scheme and in particular to control the common property.

    The body corporate is responsible for:
    • maintenance, management and control of the common areas;
    • determining and collecting body corporate levies from owners;
    • insuring the common property and building and maintaining appropriate public liability and workers compensation insurance;
    • establishing rules for living in the property, such as whether pets are allowed; and
    • holding meetings to make decisions, keeping a roll of owners and financial records of decisions.

    Although the relevant community titles legislation empowers the body corporate to do all the above many owners find the administration involved a real hassle. As such it is far more common for the body corporate to outsource management to a body corporate manager for a fee than for owners to self-manage. The body corporate managers are usually affiliated with a real estate agency and have experience in meeting the requirements of the relevant community titles legislation.

    Also known as:
    • Owners Corporation
     
    Last edited by a moderator: 28th Sep, 2006