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Lesson 1 of 7
What a body corporate is
Who it is, who is in it, and the document that runs it.
When you buy a unit or townhouse in Queensland, you buy a lot in a community titles scheme. You also become a member of the body corporate. Every owner is a member automatically. You cannot opt out.
The body corporate is the group of all owners acting together. It owns and looks after the shared parts of the property, holds the insurance, sets the levies and makes the rules.
The community management statement
Every scheme has a community management statement, usually called the CMS. It sets out:
- The lot entitlements, which decide each owner's share of the levies and their voting weight on some decisions
- The by-laws, which are the rules of the building such as pets, parking and noise
- The regulation module, which sets how the scheme is run
The law behind all of this is the Body Corporate and Community Management Act 1997.
- Buying a lot makes you a member of the body corporate
- The body corporate is all the owners acting together
- The CMS holds the entitlements, by-laws and regulation module
How Clearview does itYour scheme's CMS, by-laws and key records sit in the Clearview Portal, so any owner can look them up at any time.
Lesson 2 of 7
Your lot and common property
What you own, what everyone shares, and who fixes what.
The property is split into two parts.
Your lot is the part you own outright, such as your unit or townhouse.
Common property is everything outside the lots that all owners share. Driveways, gardens, stairwells, lifts, pools and the roof are common examples.
Who fixes what
As a general rule, the body corporate maintains common property and owners maintain their own lots. Where the line sits depends on the type of survey plan your scheme has.
- Building format plan: lot boundaries usually follow the walls, floors and ceilings, so structural items are often common property
- Standard format plan: lot boundaries are usually marked on the ground, so the owner owns more of the structure, though the body corporate still has some maintenance duties
When something breaks, the first question is always whose responsibility it is. Check the plan type and the by-laws before you call a tradesperson.
- Lots are owned by individual owners
- Common property is shared by all owners
- The survey plan type decides where the line sits
How Clearview does itEvery owner in a Clearview scheme gets a clear list of what the owner looks after and what the body corporate looks after.
Lesson 3 of 7
The committee
The owners elected to run the scheme day to day.
Owners do not vote on every small decision. Instead they elect a committee at each annual general meeting to run the scheme between meetings.
Most schemes have a chairperson, a secretary and a treasurer, plus ordinary members. Under the standard rules a committee usually has up to seven voting members.
What the committee does
- Approves day to day spending and routine maintenance
- Deals with owner requests and by-law issues
- Instructs the body corporate manager
- Prepares for general meetings
What the committee cannot do
The committee has limits. Spending above a set amount, changing by-laws, setting levies and appointing a body corporate manager all need a vote of owners at a general meeting.
- The committee is elected at every AGM
- Usually up to seven voting members
- Bigger decisions go to a general meeting of all owners
How Clearview does itClearview never decides on spending. We recommend, and the committee votes through the portal in a few clicks. In an emergency we send a contractor straight away and email the whole committee at once.
Lesson 4 of 7
Meetings and voting
The AGM, notice periods, and the three kinds of vote.
The annual general meeting, or AGM, is the main event of the year. Under the standard rules it must be held within three months after the end of the scheme's financial year.
At the AGM owners usually:
- Elect the committee
- Adopt the budgets for the administrative fund and sinking fund
- Set the levies
- Review the insurance
- Vote on any motions owners have put forward
Owners must get written notice of a general meeting at least 21 days beforehand, with the agenda and voting papers.
The three kinds of vote
- Ordinary resolution: more votes for than against
- Special resolution: a strong majority in favour with only limited opposition
- Resolution without dissent: no votes against at all
The bigger the decision, the higher the bar.
- The AGM is held within three months after the financial year ends
- At least 21 days notice for a general meeting
- Ordinary, special and without dissent are the three kinds of vote
How Clearview does itClearview prepares every notice, agenda and set of minutes. David visits once, for the Condition Visit. Every other meeting, including the AGM, is held online.
Lesson 5 of 7
Levies and the two funds
Where your money goes and why there are two accounts.
Levies are what owners pay to run the scheme. Each owner's share is set by the lot entitlements in the CMS. Levies are set each year at the AGM, based on the budgets owners adopt.
The administrative fund
This covers the day to day running costs, such as insurance, cleaning, gardening, common area power and water, and management fees.
The sinking fund
This saves for big costs down the track, such as painting the building, replacing the roof or fixing the lift. Its budget has to look ahead over roughly the next ten years so the money is there when the work is due.
A sinking fund that is too low means a large special levy later. A sinking fund that is too high ties up owners' money for no reason. Getting it right matters.
Paying late
The body corporate can charge penalty interest on late levies and can recover unpaid levies as a debt.
- Levy shares come from the lot entitlements
- Administrative fund for running costs
- Sinking fund saves for major work over about ten years
How Clearview does itWith Clearview, levies are paid straight into your scheme's own bank accounts. Scheme money never passes through Clearview's accounts, and the committee sees a monthly report in the portal.
Lesson 6 of 7
Insurance
What the body corporate must insure and what owners cover.
The body corporate must insure the building and common property. Under the standard rules this includes:
- Building cover for the full replacement value, so the building can be rebuilt if it is destroyed
- Public liability cover of at least $20 million, in case someone is injured on common property
The building must be valued at least every five years so the cover keeps up with building costs.
What owners cover themselves
The body corporate policy does not cover your contents, your carpets in many cases, or your own liability inside your lot. Owners should hold their own contents or landlord insurance.
Commissions
Many managers receive a commission from the insurer when they arrange the building policy. Owners pay for it through the premium, and it is often not obvious on the budget.
- Building cover for full replacement value
- Public liability of at least $20 million
- Valuation at least every five years
How Clearview does itClearview keeps no commissions. Any insurance referral commission goes into your scheme's sinking fund, not to us.
Lesson 7 of 7
The body corporate manager
What a manager does, how they are hired, and what to check.
Most schemes hire a body corporate manager to handle the administration. A manager usually:
- Keeps the records and the roll of owners
- Issues levy notices and follows up late payments
- Pays the bills and keeps the accounts
- Prepares meeting notices, agendas and minutes
- Arranges insurance and contractors
- Answers owner and committee questions
How a manager is appointed
A body corporate manager is appointed by a vote of owners at a general meeting. The committee alone cannot appoint one. Changing managers works the same way: owners vote at a general meeting.
The steps are set out in Chapter 23: How do we change our body corporate manager?
What to check on your current manager
- The real cost. Ask for the full yearly cost, not just the base fee, so the committee can see the total the scheme will pay.
- Commissions. Ask whether the manager keeps a commission on the insurance.
- Where the money sits. Ask whose name the bank accounts are in.
- Response times. Ask how quickly owners get a reply.
- A manager is appointed by owners at a general meeting
- Look past the base fee to the disbursements
- Ask about commissions and where the money sits
How Clearview does itClearview charges one fixed fee that covers everything. No disbursements, no commissions, and your money stays in your scheme's own accounts. Owners, committee members and tenants all use the Clearview Portal.