A body corporate is created when land is subdivided and titled appropriately for the development of apartments, townhouses and some industrial, retail and commercial complexes.
Most Developers will prefer to create off the plan sales contracts. Accordingly, the majority of consultancy work required to create the associated disclosure material is completed before the first turn of soil.
Our Development Managers will work alongside your key consultants to organise all Body Corporate documentation required to be disclosed to perspective purchasers within the sales contracts. To meet your statutory obligations, an accurate disclosure statement must be attached to contracts of sale.
Disclosure Statements comprise of:
- All plans including Survey, Exclusive Use and Service Location Diagrams;
- Proposed Administration and Sinking Fund Budgets – amount of annual contributions expected to be payable;
- Proposed Community Management Statement (CMS) including Entitlements for each lot;
- All management and service agreements required to be entered into by the body corporate including but not limited to;
- Body Corporate Manager, Management Rights (Caretaking and Letting), Embedded Networks (bulk electricity, hot water and gas), waste removal, storm water maintenance etc.
- Details of all body corporate assets.
In order to setup a Body Corporate the below general process is usually followed:
- Initial project feasibility and strata titling;
- Council development approval process – DA is sought and granted;
- Engagement of Development Consulting Team – Developer / Project Manager, Solicitor, Surveyor and Body Corporate Development Consultant;
- Preparation of all required document for off the plan sales contracts;
- Building works commence;
- Arranging of critical reports and documentation;
- Practical Completion is achieved;
- Body Corporate consultant seeks proposals for the schemes insurance policy on developers behalf and places cover – Please note, the Developer is responsible for paying for the first year’s insurance;
- The Community Management Statement (CMS) is registered at Titles Office;
- The Body Corporate holds the First Extraordinary General Meeting – as the Developer holds ownership of all lots at this meeting, they are able to approve all documentation as disclosed to perspective purchasers in the Disclosure Statements;
- Body Corporate consultant finalises scheme load on and generates levies and certificates for settlements;
- Settlement of sales contracts occurs;
- Appointed Body Corporate Managers commences daily management of the scheme;
- Body Corporate calls the First Annual General Meeting (AGM) within two months of one of the following – more than 50% of lots have settled or 6 months after the registration of the scheme; and
- Developer documentation hand over – by the first AGM the developer is required to provide the body corporate with a number of key documents, reports and records such as all building plans, certifications, warranties, common property keys, maintenance and instruction manuals, compliance reports (sinking fund forecast, insurance valuation and fire), common seal etc.
The time it takes to complete the above list can be anywhere from 18 months to 3 years depending on the size of the project.
Once our office has been engaged as the Body Corporate Consultants we immediately get started on working with you to get a full understanding of the scheme. The more we understand the scheme the easier it is for our office to put together a practical and accurate budget. It is important that the budgets set are not only marketable for you during the sales process but are also realistic for the eventual lot owners.