Buying an apartment means considering the property, the building and the wider body corporate community. You will share some responsibilities, decisions and costs with other owners and residents.
Before making an offer, research the scheme carefully and consider whether the apartment suits your lifestyle, budget and plans. Our guide to buying in strata can help you identify other questions to ask.
What should you consider when buying an apartment?
Start by understanding what you are buying. An apartment is an individually owned lot within a property that also includes common property, such as shared driveways, foyers, lifts, gardens, pools or other facilities.
In Queensland, most community titles schemes are regulated by the Body Corporate and Community Management Act 1997, commonly called the BCCM Act. The applicable regulation module and community management statement can affect how the scheme operates, including its levies, by-laws and maintenance responsibilities.
When you buy a lot in a body corporate property, you automatically become a member of the body corporate. You cannot opt out. Owners must follow the applicable by-laws, avoid causing a nuisance or hazard, and not unreasonably interfere with others using their lot or common property.
Body corporate information should therefore be part of your research. Ask questions about the building, costs, records and rules before deciding whether to proceed.
How much are body corporate levies and other buying costs?
Buying an apartment involves costs beyond the purchase price. Regular body corporate levies contribute to the scheme’s day-to-day running costs, along with other expenses set out in the body corporate budget.
Levy amounts vary between schemes. The condition and age of common property, shared facilities and the scheme’s running costs can all affect what owners pay. Running costs may also increase over time.
Ask for the current levy details and check:
- how much is payable
- how often instalments are due
- whether the scheme has administrative and sinking fund budgets
- whether special contributions have been raised or may be needed
- whether the current owner has outstanding levies.
Annual levies are decided at the body corporate’s annual general meeting. The body corporate also sets the number of instalments and their due dates. A special contribution may be collected for unexpected costs or costs that were not fully covered by the budget.
The community management statement includes the contribution schedule lot entitlements used to calculate contributions, unless an exception applies.
Do not rely on a general estimate of what levies should cost. Compare the actual scheme figures with your budget and leave room for future expenses. For more information, read our guide to understanding your body corporate levies.
Which body corporate records should you check before buying?
Queensland sellers generally need to give buyers key documents before a contract is signed. These include the body corporate certificate, seller disclosure statement and community management statement.
The body corporate certificate provides information about the lot and the body corporate. It can include levies due, the applicable regulation module, by-laws, contractual arrangements and improvements that a buyer may become responsible for.
Read the documents carefully and consider obtaining independent advice before signing. Check whether the seller disclosure statement includes the required community titles scheme information and whether the documents are current enough for your decision.
You can also ask to inspect or obtain body corporate records. Useful records may include:
- minutes from committee and general meetings
- financial information not included in the certificate
- contracts for caretaking, letting, body corporate management or lift maintenance
- information about planned works and previous decisions.
Requests to access records must be made in writing and a fee may apply.
Records can help you identify recurring issues, proposed projects, disputes, changes to levies and the general approach to building management. You can also search records for disputes where an adjudicator or referee has had to intervene in matters affecting the body corporate, owners or occupiers.
Do the apartment’s by-laws suit your lifestyle?
By-laws are rules about the common property, body corporate assets, services, facilities and use of lots. They may cover noise, pets, parking and other aspects of apartment living.
Read the by-laws before you make an offer. Consider whether they affect:
- keeping a pet
- parking or visitor parking
- renovations and other improvements
- noise, smoking or use of balconies
- leasing or using the apartment in the way you intend.
By-laws apply to owners, occupiers and their invitees. The by-laws recorded in the community management statement are generally the ones that apply to a community titles scheme. If the documents are unclear, ask the body corporate manager or seek independent advice.
A body corporate cannot simply change a by-law because a committee prefers a different rule. Usually, a proposed change must be agreed by special resolution at a general meeting, recorded in a new community management statement and registered with Titles Queensland.
For a plain-English overview, see our article on by-laws explained.
What should you check about maintenance, insurance and common property?
Find out what is included in your lot and what is common property. The registered survey plan identifies the boundaries between lots and common property, as well as some exclusive-use areas.
Maintenance responsibilities can depend on the type of survey plan and the regulation module applying to the scheme. Generally, owners maintain their lots, while the body corporate must maintain common property in good and structurally sound condition.
Ask for information about the building’s maintenance history, planned works and ongoing costs. Look for evidence of regular upkeep rather than focusing only on how the apartment appears during an inspection. Poor maintenance may result in more difficult and expensive issues later.
Check the insurance certificate supplied with the body corporate certificate. The body corporate is responsible for insuring common property and some buildings, but your lot may not be fully covered. You remain responsible for contents insurance and may need other cover depending on the property.
Also check the improvements register. If an owner has made an authorised improvement to common property for the benefit of their lot, they may be responsible for maintaining it.
How can you assess the apartment, building and location?
Inspect more than one apartment if possible. Multiple inspections can help you compare layouts, natural light, ventilation, storage, noise and the condition of common areas.
Create a list of non-negotiable features before you start comparing properties. This might include:
- storage capacity
- parking arrangements
- outdoor space
- access to lifts or stairs
- security measures
- accessibility
- space for working from home
- proximity to public transport, shops, schools or other facilities.
Check whether parking is part of your lot, an exclusive-use area or common property. Confirm what the title documents, survey plan and by-laws say before assuming a space can be used for storage, rented to someone else or used in a particular way.
Consider the wider living environment as well. Visit the building and nearby streets at different times if you can. Think about traffic, noise, facilities, access and whether the location will remain suitable for your daily routine.
Speak with your solicitor or conveyancer about the contract, disclosure documents and any conditions you may need before making an offer. A careful review of the apartment, scheme records, levies, by-laws and ongoing responsibilities can help you decide whether the property is right for you.
Researching the building and body corporate before you buy can help you understand the costs, rules and responsibilities that come with apartment ownership. If you need help understanding body corporate information, contact our team at reception@stratacare.com.au.
