Effective Body Corporate Management (Strata) consultants can assist in achieving higher sales and reduced costs for developers whilst taking the mystery out of establishing a Community Titles Scheme and Body Corporate.
As part of our service we review and provide input on the below aspects, pre and post construction. These are generally drawn by your solicitor, however we are able to provide assistance with the following:
- Statement of future development
- Building management statements
- Community management statements and by-laws
- Allocation of exclusive use areas
- Onsite management agreements
- Onsite management space needs
- Deeds, easements and covenants
- Waste disposal arrangements
- Community facility layouts
- Utility services
- Body corporate assets (i.e. gym equipment, furniture, chattels)
- Budget for the principal and each subsidiary body corporate
- Statement of contributions showing the body corporate financial requirements for each lot
- Body corporate administration agreement
- Interest schedule lot entitlement
- Contribution schedule lot entitlement
- Defects schedule
- Work health and safety, Insurance valuations, Sinking fund and other compliance reports
We are also available to brief your sales team on the body corporate functions and layout.
WHAT IS THE BODY CORPORATE AND COMMUNITY MANAGEMENT ACT?
The Body Corporate and Community Management Act 1997 is Queensland legislation regulating bodies corporate, owners and others (such as tenants). It balances the interests of owners, bodies corporate and persons engaged by a body corporate.
When a community titles plan is registered it becomes a legal person much like a company. This legal person takes on the role of a management company of the apartment complex, and is referred to in the Act as a “body corporate”. The body corporate is charged with administering the common property for the benefit of the lot owners. It obtains the funds it needs to discharge this function by imposing levies (or contributions) on the lot owners.
WHO DO YOU NEED?
A developer’s first point of contact for advice and assistance in establishing and managing the process of bodies corporate and community titles should be a qualified body corporate management company such as TCMStrata. There are distinct advantages in appointing a body corporate management firm early as their knowledge and advice can often save developers time and money.
WHAT ARE THE ISSUES?
Establishing body corporates in larger developments or projects which are somewhat complex or innovative usually have critical issues which need to be planned for and addressed when planning and establishing the body corporate.
These issues can include:
- Titling structure i.e. how the subdivisions are done
- Multiple community title schemes and what the arrangement of the schemes is to be
- how different uses in the completed development are to be catered for
- Liability issues for developers.
Once the optimum arrangement and titling structure for your development has been established the body corporate management company will advise on the optimum arrangement providing the best possible outcomes and best options available as the project progresses.
If poor structuring arrangements are chosen it can have both a negative impact on sales and lasting adverse effects for the owners in the development.
WHO DOES WHAT?
There are many steps and documentary requirements of the Body Corporate and Community Titles Act 1997 which your body corporate management company will manage and organize on your behalf. The body corporate management company will organize and liaise with sub-consultants such as Quantity Surveyors, Solicitors and Surveyors for specialist reports and services required to establish the body corporate.
FREQUENTLY ASKED QUESTIONS ABOUT NEW BODY CORPORATES
As answered by Kelly Roberts of TCMStrata, Cairns leading body corporate management firm:
HOW LONG DOES IT TAKE TO COMPLETE ALL DOCUMENTS FOR ESTABLISHMENT?
After we’ve got the information we need it will generally take us only a couple of days to produce the contribution and interest lot entitlement schedules, the first year budgets, and resulting levies.
WHEN IS THE BODY CORPORATE FORMED?
The body corporate is formed automatically when the titles and Community Management Statement (CMS) are registered by the Department of Natural Resources. This occurs after practical completion of construction and the registered plans have been certified by Council.
WHAT HAS TO HAPPEN BEFORE WE CAN SETTLE CONTRACTS?
As soon as titles and the Community Management Statement are registered, and the body corporate insurances are in place, we can draft the First Extraordinary General Meeting (EGM) minutes and get those approved by your solicitor and then establish the body corporate up in our computer systems. We are then are in a position to issue body corporate certificates and other documents for individual lots and the sales settlements can begin.
WHEN IS THE BODY CORPORATE MANAGER APPOINTED?
The Body Corporate Manager is appointed as part of the First EGM agenda mentioned above. One of the motions on that EGM is for the body corporate to enter into a management agreement (for up to 3 years) with the Body Corporate Manager.
WHEN ARE CONTRACTUAL MAINTENANCE AGREEMENTS ENTERED INTO?
Common agreements such contractual maintenance agreements for lifts or fire systems, may have already been entered into by the developer and be novated to, and binding on the body corporate. Alternatively they are sometimes entered into at the time of the First EGM when the developer is the sole owner of all lots. Generally the preferred timing, and the more usual arrangement, is that such agreements wait until at least the first AGM when the body corporate is represented by the individual owners which ensures they are provide the opportunity to decide what long term agreements the body corporate gets locked into.
WHAT SORT OF INSURANCE POLICY IS REQUIRED FOR THE BODY CORPORATE?
Strata Schemes need a specialized strata policy and these are available from most of the leading insurance underwriters. These policies typically bundle different components into the one package For example, a strata insurance policy will normally include cover for:
- Buildings and common assets
- Public liability of at least $10Million (legally required)
- Loss of rent
- Personal accident
- Fidelity guarantee
- Directors and office bearers
- Additionally it might also include ‘Machinery Breakdown’ and would normally be included if there is significant machinery onsite e.g. lifts, treatment plants and pumps
Would you like to further discuss your requirements? Please contact Kelly Roberts or Lucy Ewens for a no obligation chat.