Why would we need to have a body corporate? Is it a legal requirement? I’m asking this question as I am 72 years old now and don’t want any legal problems arising should I sell in the future or leave to my children for their inheritance. – Krystyna, QLD

Q: I live in a house which is called Lot of Group Titles Plan 3611. It is a battle-axe block. The house a the front is a rental home, then my house and another one next to me. I have lived here for 22 years and have not had a Body Corporate as nothing was mentioned stated when we built our house. During this time, myself and the owners of the other two properties share the payment once a year of insurance for the common property which we share, ie a driveway.

The maintenance down the driveway of trees, being cut back etc is usually done by my family and there is no charge to the other parties. We all pay our own rates, water and electricity.

Why would we need to have a body corporate? Is it a legal requirement? I’m asking this question as I am 72 years old now and don’t want any legal problems arising should I sell in the future or leave to my children for their inheritance. My husband passed away 6 months ago and I am sifting my way through paperwork. Your advice would be appreciated.

 

A: A body corporate is required as it allows owners in a community title scheme to keep common areas maintained, make rules (known as by-laws) that govern what can and cannot be done, and that there are adequate funds to maintain and repair the common property and that an appropriate insurance policy is active should things go wrong, etc.

Although a body corporate is required, a body corporate manager is not. From the way you’ve described, it sounds like your scheme is self-managed which is perfectly fine as well. If the property has been properly maintained and there are no major issues such as building defects, levies in arrears or any outstanding payments there shouldn’t be too much issue when it comes to selling in future or inheritance.