More and more people are becoming active members of owner’s corporations. This article explores the legality of it and provides analysis of what to keep in mind.
What is a Body Corporation?
When you purchase a home that is built on subdivided land, you are likely to be part of a body corporation. A body corporation manages aspects of home ownership such as upkeep of shared spaces including stairs and common driveways.
Common property may include a variety of spaces such as gardens, stairwells, drive ways and fences. The owners corporation must maintain and repair the common property.
It is important to note that if you were to purchase a stand-alone property, that is, one which is not built on subdivided land, you are likely to pay a majority of the same costs for the same things anyway. Therefore, the added cost to purchasing a property on subdivided land should not truly affect your decision, as you will end up paying most of the outgoings as well, standalone or not.
Owners corporations enrich a sense of a community. They allow owners to get to know their neighbours and have an input as to where they are living.
Loss of Control
When you purchase a standalone property, you have full control when it comes to your expenses. However, when buying a property that has an owners corporation as a necessary part of it, you will undoubtedly lose some control over where you are spending your money.
What to Look Out For
In order to avoid the cons and to ensure that you are making a smart decision, it is important to do several things.
- Before purchasing, ask the owners corporation for a record of their minutes. There, you can see whether they are active and pleasant, or if there will likely be disputes to encounter.
- Also enquire as to whether there is a sinking fund: if a big problem arises, will the owners have to take a loan, or have they gradually been saving money and keeping it for a rainy day?
Need Advice or Assistance with Buying into an Owners Corporation?
If you’re looking to buy into an owners corporation, speak to our experienced lawyers in Brisbane. As members of the Queensland Law Society, our lawyers will examine your individual circumstances and offer timely advice on the best pathway forward.
At Phoenix Law, we specialise in Family Law, Personal Injury Law, Migration Law, Commercial Law, Property Law, Litigation Dispute Resolution, Estate Planning, International Trade Law, Intellectual Property Law and Workplace Relations Law. We speak your language, with a team of multilingual lawyers ensuring our clients get the best possible understanding of Australian law. Call our law firm today on 07 3180 0908 or contact us online.