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Ph (03) 9600 1111
Fax (03) 9278 8830
Level 9, 365 Queen St
Melbourne, Vic 3000
Australia
Southbank Central
Inspect at
191 CityRoad Southbank
Melway: 1D M6
Mon - Sat, 10am to 5pm
Sundays 12 to 5pm |
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News & Editorials
Every week Central Equity writes a number
of news editorials which appear in Melbourne newspapers. This weeks article is posted below.
Click here
to access our archive of news editorials
16/12/00
THE
LANGUAGE OF REAL ESTATE
(Part 2)
BODY
CORPORATE:
There are some areas in subdivision, which are not exclusively owned
by anyone. This is particularly so in the case of apartments.
For example, a lift and lift wells, or the corridor and staircases,
the garden, or facilities like a tennis court, swimming pool or gymnasium.
These are all identified as common propertyš. That is, property owned
by all the apartment owners or all the lot owners. Where there is
common property, a plan of subdivision will state that a body corporate
will apply and be formed upon registration of the plan. Common property
must be managed and shared between the lot owners.
A body corporate is constituted by the individual owners of the apartments
or the lots on the plan of subdivision.
The body corporate is the owner of the common property and is responsible
for its management, control and upkeep for the benefit of the members.
BODY CORPORATE ENTITLEMENT:
Each apartment owner has a share of the body corporate assets. Usually
the share is in proportion to the cost of the unit compared to the
cost of all other units in the development.
Whilst everyone is entitled to use the common property, the body corporate
entitlement regulates the number of votes which each member has when
making decisions about its management.
BODY CORPORATE LIABILITY:
This determines what share of liability or expenses each person is
responsible for. The expenses are usually shared between the members
in proportion to the cost of their unit compared to all the other
units on the lots.
Body Corporate Committee of Management: In a development where there
may be 50 or 100 apartments it would be rather complicated to conduct
body corporate affairs in open meeting between such a large number
of people. Accordingly the members of apartment owners would elect
a "committee of management" to carry out the wishes of the members.
The committee of management consists of a small group of owners. It
is like a board of directors of a company. The members of the body
corporate or the apartment owners at a general meeting, which is conducted
each year, elect the committee. The committee also reports to those
members at least once a year at the annual general meeting. The committee
consists of not less than three people and no more than twelve.
BODY CORPORATE MANAGER:
In addition to a committee of management a body corporate manager
is appointed.
The body corporate manager is responsible for the day to day management
of the body corporate affairs. The manager determines what fees need
to be charged to each body corporate member to pay the expenses from
each year to year, such as, gardening of common areas, maintenance
or carpark, security, etc.
A yearly fee is usually set and each body corporate member or apartment
owner contributes to that body corporate.
It is most important that the body corporate manager is experienced
in the management task and usually is either a qualified real estate
agent or some other form of professional property manager.
Some real estate agents that have expertise in areas such as valuations,
selling or leasing may not necessarily have experience in body corporate
management, as this is a specific area of expertise and one, which
requires detail and focused service.
Some companies like Melbourne Inner City Management, a subsidiary
of Central Equity Limited specialises in these areas and has established
procedures, computer programs and dedicated personnel. This is a vital
function, as it will have an impact not only on the smooth conduct
of the body corporate but also the value of your property in years
to come.
Click
here
for the archive of Central Equity editorials
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9/12/00
25/11/00
18/11/00
11/11/00
4/11/00
28/10/00
13/10/00
13/10/00
6/10/00
7/07/00
23/06/00
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 for other articles please visit our archive.
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