What is a Body Corporate and why do some buyers need to pay fees to such groups?
The Body Corporate, or Owner’s Corporation is the body that manages common ownership aspects of a property, usually in an apartment building or a group of townhouses.
This can include communal facilities, such as pools, as well as structural aspects of the apartment building, such as roofing.
The Body Corporate will pay for repairs and maintenance of these things, but buyers need to pay a fee to keep the Body Corporate afloat. All owners in a complex pay a portion of the upkeep of the common property via the Body Corporate fees.
It is a mandatory annual fee that will be set out in the contract of sale. Make sure you budget for this fee and have a lawyer read through the contract as well.
“If you’re getting a pool, tennis court and a spa, you’re obviously going to pay a bit more. Some of the smaller Body Corporates just exist to have a building and painting fund.”
The more services you’re getting the more expensive it’s going to be.
Ask the real estate agent that you are dealing with when you are looking at purchasing for further information on Strata Fees, Levies, Minutes of Meetings and any issues noted.