Understanding the Legal Framework for Body Corporates in Queensland

Nicole Wilde
May 1
3 min read

If you're living in Queensland and part of a community titles scheme, it's essential to understand the legal framework that governs body corporates. This guide will break down the basics in a way that's easy to grasp, even if you're new to the concept.

What is a Body Corporate in Queensland?

A body corporate is a legal entity created when land is subdivided to establish a community titles scheme (CTS). Think of it as a group responsible for managing the common areas and shared facilities in a complex, like an apartment building or a townhouse community.

Key Legislation

The main law that governs body corporates in Queensland is the Body Corporate and Community Management Act 1997 (Qld). This Act, along with its amendments, sets out the rules and regulations that body corporates must follow.

Regulation Modules

There are different regulation modules that apply to various types of community titles schemes. The two most common ones are:

Accommodation Module (AM): Typically used for schemes that are primarily residential.

Standard Module (SM): Used for a mix of residential and commercial schemes.

Commercial Module (CM): Used for commercial schemes.

Structure of a Body Corporate

When a community titles scheme is created, a body corporate is automatically formed. This body corporate is responsible for:

Managing Common Property: This includes areas like gardens, pools, and hallways that everyone in the scheme can use.
Raising money to pay for its expenses, and approving spending in accordance with regulatory procedures for democratic decision-making.
Enforcing By-laws: These are rules that everyone in the scheme must follow, like noise restrictions or pet policies.
Maintaining Records: Keeping track of important documents and decisions.
Insurance Requirements: A body corporate must have insurance to cover:
- Building Reinstatement: To rebuild or repair the building if it's damaged.
- Public Risk: To cover any injuries or damage that might happen in the common areas.

What Can a Body Corporate Do?

While a body corporate can't 'run a business', it can:

Invest Funds: For example, putting money into a savings account to cover future expenses.
Acquire and Dispose of Assets: Buying or selling items that are used by the community, like gym equipment or furniture for common areas.

Lot Owners and Occupiers

If you own a lot (like an apartment or townhouse or commercial unit) in a community titles scheme, you have certain responsibilities:

Maintenance: You need to keep your lot in good condition.
Contributions: You must pay your share of the costs to maintain the common property.
Compliance: You need to follow the community management statement (CMS), which includes the by-laws.
Occupiers (people who live in the lot but don't own it) also have to follow the CMS and by-laws.

Meetings and Decision-Making

Decisions in a body corporate are made through meetings or voting by the committee outside of committee meetings. There are different types of meetings:

Annual General Meetings (AGMs): Held once a year to discuss important issues and make decisions.
Extraordinary General Meetings (EGMs): Called when there's a need to make a decision that can't wait until the next AGM.
Committee Meetings: Smaller meetings where elected committee members make day-to-day decisions.
Voting outside of Committee Meetings: notification of the outcome of these decisions must be given to all owners.
Different types of resolutions (decisions) are required for different actions. For example, some decisions might need a simple majority vote, while others might need a special resolution or even a resolution without dissent (where no one votes against it).

Conclusion

Understanding the legal framework for body corporates in Queensland is crucial for anyone living in a community titles scheme. By knowing your rights and responsibilities, you can help ensure that your community runs smoothly and everyone enjoys their shared living spaces.

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