Is it possible for a unit complex to not have a body corporate?
Before we answer this question it is useful to know the different types of unit complexes.
We use the following terminology:
- Units - Apartments and town houses that each have their own title deed and share some common space, even if it is only a driveway.
- Flats – Apartments that are usually in the one building and share a title deed. For example, there may be 6 apartments in the one building which
everyone may call units but, because the one title deed covers all 6 apartments, we refer to them as flats.
- Units which share walls, and maybe a roof, with other units. They will have been set up with a body corporate.
- Houses in a gated community. These typically won’t have common walls with other houses, but some do. Once again they will have been set up with
a body corporate.
- Flats, which will never have a body corporate because the owner not only owns the apartments but also the driveway and yard.
So when someone says there is no body corporate, what they are really saying is "there is no operating body corporate". There will be a community management
statement which governs the body corporate but there won’t be any bank accounts or other documentation like minutes of meetings.
We are currently doing this at the moment for some of our clients. All it involves is obtaining a copy of the community management statement and doing minutes of meeting for the AGM. The minutes can be set up as a precedent so they can use them every year.
For further information please contact us.