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Body Corporate fees and
Owners Corporation fees

Important facts

The primary purpose of the fees is to pay for the costs of maintaining, operating, and safeguarding the shared or common property areas. 

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Body Corporate fees and Owners Corporation fees

 

Body Corporate fees, Owners Corporation fees and Strata levies are common terms that you might hear in different regions. These are fees or levies that property owners pay who are part of a shared or joint property agreement, like:

 

  • Townhouses and apartments

  • Industrial warehouses

  • Office buildings

  • Community title land subdivisions.

 

The primary purpose of the fees is to pay for the costs of maintaining, operating, and safeguarding the shared or common property areas. 

 

Body Corporate fees are collected throughout Australia, although the terminology used differs in each State. In Victoria they are called Owners Corporation fees, but the concept remains the same in all cases.

 

 

What are Body Corporate fees and Owners Corporation fees used for?

 

The Body Corporate or Owners Corporation has the responsibility to manage and maintain various common areas, such as:

  • Gardens

  • Driveways

  • Building structures, including: roofs

  • Foyers, lifts and hallways

  • Swimming pools

  • Any other shared facilities.

 

It is essential to recognise that common property and private lot property classification can vary based on the property. For instance, while the rooftop of one building may be deemed common property, it may not be the case for another.

 

Maintaining and managing these facilities requires funds from the Body Corporate and Owners Corporation fees. Individual property owners who pay these fees will pool their funds together to cover the expenses associated with the management and maintenance of the common areas.

 

The owners might have to bear different costs, such as utility bills, insurance, administrative fees, cleaning, repairs, and much more. Different factors come into play when determining the amount of Body Corporate or Owners Corporation fees individual property owners would need to pay.

 

The property size and the type, along with the overall budget and expenditure of the Body Corporate or Owners Corporation, are just a few things that are considered to determine the charges. Furthermore, these charges have to be paid regularly (usually on a quarterly basis).

 

They’re also calculated according to the lot liability assigned to every property within the shared property arrangement. Property owners need to understand their duties and obligations towards the Body Corporate or Owners Corporation fees.

 

Not only that, but they also have to know about the particular rules and regulations that govern the shared property arrangement. It can include participating in discussions, being part of decision-making processes, and following the rules or laws set by the Body Corporate or Owners Corporation.

 

If you are unable to pay Body Corporate or Owners Corporation fees, it can also lead to penalty interest, additional fees and legal action. Therefore, property owners need to keep this expenditure in their mind and pay the fees on time.

 

 

Last updated 1/5/2023.

For more information, contact:

Luke Woollard

Managing Director
PILOT®
(03) 5976 1273 
mail@pilotrealestate.com.au

 

About PILOT®

Pilot’s business purpose is to ‘make a positive difference to the lives of people’. Therefore, this purpose is exactly what you can expect from us. When we say we will do, we will do. We do Body Corporate management through our unique ‘Discover Simplexity’ approach, which is delivered through our three specialist offerings including: strategic, administration and network solutions. Our offering is extended to ambitious developers, investors and live-in owners and delivers best to their goals with longer term partnerships.

All care is taken in the preparation of the information and published materials. PILOT Body Corporate does not make any representations or give any warranties about its accuracy, reliability, completeness, or suitability for any particular purpose. To the extent permissible by law, PILOT Body Corporate will not be liable for any expenses, losses, damages (including indirect or consequential damages) or costs which might be incurred as a result of the information being inaccurate or incomplete in any way and for any reason. If you have any concerns regarding this content, please contact PILOT Body Corporate at mail@pilotrealestate.com.au.

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