When you purchase a property that is under the ‘strata title’, you will generally be obligated to pay corporate fees. These fees become eligible soon after purchase, and without them, your body corporate will not be able to manage and maintain the property to its optimum standard. So, if you are considering buying a property that is under strata management, it is essential to understand what is involved in terms of the fees you have to pay.
What Is a Body Corporate?
The body corporate is a legal entity that is formed when land is subdivided and registered. It includes apartments, townhouses, and other buildings. Thus, by buying one of the properties, you automatically become part of the body corporate, which entitles you to have a say on any issues that may arise. The body corporate is responsible for taking care of things such as insurance, maintenance, fixtures, etc.
Different Types of Body Corporate Fees
There are two main types of body corporate fees:
These cover administration of the building, insurance, general maintenance, and other communal costs.
These cover unforeseen costs, such as damage caused due to any natural disaster, or even legal costs that pertain to the building. This fee is only charged when the annual fee is not enough.
The exact charges and the types of fees can vary across different states. Therefore, it is better to confirm these details with the appropriate government authority in your area.
What Do Body Corporate Fees Cover?
The body corporate is responsible for covering the following:
The body corporate is responsible for the regular maintenance of buildings and areas that are for common use—for example, hiring a gardener to mow the lawn or hiring a cleaner to take care of the lounge and lifts.
It is responsible for all repairs and fixtures. For example, replacing a broken light or repainting a wall.
It provides insurance cover for buildings to protect them from structural damage and prevent financial loss.
What Determines the Body Corporate Fees?
- The fee is determined by many factors. If you purchase a building that is not equipped with a gym or a pool, the chances are that your body corporate fee will be lower.
- On the other hand, if you purchase a high-end property with all the bells and whistles such as a garage, pool, gym, etc., then your body corporate fees will probably be higher.
- The size and structure of the building also determine the fees. If the building is old and requires a lot of maintenance, then body corporate fees will also be high.
- The cost is also dependent on the amount the body corporate charges for its maintenance service. For example, the cost of services, such as plumbing and carpentry, are also covered in this fee.
The total cost required to maintain the buildings every year is calculated and divided among the owners of the building. The fees can vary each year and can be discussed in an annual meeting. The owners also present their opinions during the meeting. For more details, please visit our website or contact us here so that we can assist you.