A body corporate is an individual legal entity formed when land is divided among several owners. This property is registered to set-up a community titles scheme. A separate corporate existence is governed by specific legislation and abide by-laws. There are numerous kinds and structures of bodies permitted under the corporate act. The scheme allows residential unit block, duplex, high-rise complex, a residential suburb, shopping complex, or business park.
All the owners of the community titles scheme are often members of Melbourne body corporate Dandenong. A body corporate helps to manage all necessary issues and the owner’s mutual interests. The important factors of body corporate are-
- Physical Property Issues
- Problems Associated With People Living Together
The kind of physical property includes common building structures, gardens, and common assets, like playing grounds, recreation clubs, among others.
If you’re residing in a complex building, then the problem may be more clear for your understanding. When you’ve to stay with thousands of others, some common issues may include noise, behavior, and parking. It can be anything where some behaviors of an individual may impact other residents. Also, Melbourne body corporate Dandenongmust manages the common property and assets of all the owners, for the benefits involved in the scheme.
The common property maintenance is often expanded to the building manager or caretaker of the building. The community management statement includes five primary factors, and each one holding related content about the body corporate.
In addition, a body corporate is designed for limited purposes, which involves-
- The administration of common assets and property of all the owners to avoid general issues.
- To maintain the public property and assure it is structurally at working condition.
- To implement the community management statement (abide by-laws)
- To continue other legal procedures of the body corporate, like keeping track of its meetings, operations, and the checklist of owners.
Nevertheless, the body corporate isn’t allowed to do anything but only manages the mandatory responsibilities. To perform these responsibilities, the corporate entity can enter into contracts, hire employees, and deal with common assets and properties. However, these entities cannot run any businesses, like opening restaurants, tour operations, or lease any agency. Although it may get involved in any business activities required to conduct functions, like investing in funds.
How Does Body Corporate Make Decisions?
The important decisions of body corporate are taken by all the owners of the scheme in two ways-
- At General Meeting of All Owners
- At Committee Meeting for Body Corporate
In this property structure, nobody acting as an individual can make decisions for the common properties or assets.
How Does Body Corporate Get Finance?
In general, all the owners of the body corporate contributes to administer the common areas and community. The ratio and amount of the funding required to maintain the body corporate are decided in the annual general meeting. Also, all the necessary decisions regarding the scheme are taken by the owners of the body corporate.
There are two kinds of contributions established by the body corporate, which are as follows-
- Contribution to Sinking Fund: This separate fund is a collection for purchasing common assets and collecting future non-recurring maintenance costs.
- Contribution to Administration Fund: This fund is redeemed in regular recurring expenditures, like ongoing repairs, caretaker’s salary, service contractor’s payments, and maintenance of common properties.
In case you’re actively involved in the body corporate like indulged in the body corporate committee, you are allowed to raise your opinion for the maintenance of your property. Let us hope that you’ve understood the importance of this separate legal entity to administer common property or assets.