Body corporate properties are made up of individually owned lots or units and common property such townhouses, units, duplexes, or even freestanding houses on a common ground.

Owners of a lot in a Community Title Scheme become members of the body corporate and are required to make shared financial and lifestyle decisions. Their relationship with others and third-parties are governed by legislation designed to provide clear guidelines on their rights and obligations.

The body corporate makes decisions about different items of the Community Titles Scheme and some of these entail:

1. Maintaining and controlling the common property on behalf of owners
2. Establishing the amounts of levies to be paid by the owners to make sure the body corporate can operate
3. Taking out insurance on behalf of owners, such as public risk insurance over the common property and building insurance, so it is important you also take out content and landlord insurance and that you speak with your insurer to find out what other type of insurance you must take out to cover you/your tenants and anyone else who enters or resides in your property.
4. Managing and controlling body corporate assets.
5. Keeping records of all the meetings, owners, financial records, registers of assets, improvements to the common property itself and other agreements with other bodies such as caretakers.
6. Making rules, called by-laws, which tell owners and other people who live in the scheme what they can and cannot do and this blog will touch upon some of these changes that have been made.

This blog will talk about the changes to the five regulation models and Body Corporate and Community Management Act 1997 (BCCM Act) which came into effect from 1 May 2024.

What is impacted by the change in this law?

Without going into too much detail, we will touch lightly upon some of the changes impacted by the change in this legislation.

Termination of schemes

If there are economic reasons for a termination of a body corporate, it is possible to now do so with the support of only 75% of the Lot owners within that Community Management Scheme.

Smoking

It is now possible to consider smoking as being a hazard or nuisance when it causes a second-hand smoke to another person, therefore body corporate can make by-laws that prohibit or restrict smoking on common property or outdoor areas, whereas before this was not.

Animal by-laws & approvals of animals

Pets are no longer able to be banned by body corporate by-laws and if an application to request to keep an animal is made by an occupier of a Lot within a community title scheme, the body corporate must respond within 21 days of that application being made, otherwise the pet is deemed to be approved. Even if a body corporate tries to reject the keeping of an animal, the reasons for them to consider a refusal are more limited than before.

Towing of vehicles

The body corporate is no further required to seek the order of an adjudicator to tow away an occupier’s vehicle from common property, they can do so without this now, whilst still acting reasonably.

Alternative insurance arrangements

An adjudicator is now able to approve alternative insurance arrangements instead of the Commissioner for the Body Corporate and Community Management when a body corporate is unable to comply with its obligation to insure particular buildings for their full replacement value.

Those lots which have a common wall with a building on the lot adjoining them (which are created under a certain type of scheme) are now able to apply for separate finance. There is an application which can be accessed to complete this.  

How does this impact me?

If you live within a community management scheme, you may notice these changes come into effect and your lifestyle may change whether you are occupying the Lot or whether you are renting it out. It is important that you obtain legal advice before entering into a contract in case these changes may impact you.

Our team of experienced property lawyers can guide you through the purchasing process to achieve the dream of owning your own property. As you can see above, there are many issues to consider when signing a contract within a community management scheme, whether it is for an existing property or off the plan.

It is important you order the relevant searches to find out what the by-laws in your proposed purchase are.

Contact our team today to discuss your property options.