You have found a unit or townhouse you want to buy, and the contract is almost ready to sign. Before you do, the body corporate documents that come with that lot deserve close attention. A body corporate is a legal entity that owns and manages the common property of the scheme, and every lot owner is automatically a member when they buy in, according to the Queensland Government.
The documents the seller must give you before you sign, including the body corporate certificate and the community management statement, set out the levies, the by-laws, the state of the funds and any planned major work. Reading them carefully tells you what ongoing costs to expect, what restrictions apply to the lot, and whether the scheme's finances are healthy enough to avoid a large special contribution in the near future.
Our Springfield team helps clients across Greater Springfield and Ipswich with buying lots in community titles schemes, reviewing body corporate documents and understanding what those documents mean before a contract becomes binding.
Here is how body corporate due diligence generally works in Queensland, and what the key documents reveal.
Key takeaways
- Buying a lot makes a buyer an automatic member of the body corporate.
- Unpaid levies of the seller may become the buyer's liability.
- The sinking fund must plan for capital spending at least nine years ahead.
This article is general information only and is not legal advice. Every situation is different, and you should speak with a solicitor about your own circumstances.
What does a body corporate actually cover in Queensland?
A body corporate covers the common property of the scheme, including shared driveways, pools, gardens, lifts and lobbies, according to the Queensland Government. Every buyer of a lot in a community titles scheme automatically becomes a member of the body corporate and cannot opt out. The body corporate insures the common property and, in most schemes, the buildings themselves; individual owners insure their own contents.
Where the lot boundary sits depends on whether the scheme uses a building format plan or a standard format plan. Under Queensland's Land Title Act, where a lot on a building format plan is separated from another lot or common property by a floor, wall or ceiling, the boundary runs through the centre of that structure, not at its inside surface. That distinction matters when working out who is responsible for repairing a shared wall or floor.
The body corporate raises two separate funds each year. The administrative fund pays for regular maintenance of common property and insurance. The sinking fund reserves money for major or one-off capital items, such as painting, structural repairs and replacing major assets. Money cannot move between the two funds, according to the Queensland Government.
What documents does the seller give a buyer before signing?
From 1 August 2025, under Queensland's seller disclosure scheme, a seller of a lot in a community titles scheme must give the buyer a seller disclosure statement, the community management statement, and a body corporate certificate before the buyer signs the contract, according to the Queensland Government. If those documents are not provided, the buyer may be able to terminate the contract at any time up to settlement.
The body corporate certificate is an approved form that sets out key information about the scheme and the specific lot. According to the Queensland Government, it shows levies currently due, any levies outstanding from the current owner, the scheme's latest financial statement and the by-laws. It is accurate only on the day it is issued, so a buyer who receives one early in a long contract period should factor in that things may have changed by settlement.
The community management statement is registered with Titles Queensland as part of the scheme. It identifies the lot entitlement schedules used to calculate each owner's share of the levies, any exclusive use by-law giving one lot's owner exclusive use of part of the common property, and any proposed development of the scheme. For a lot in a layered scheme, such as a complex within a larger resort or estate development, it lists two scheme numbers, according to the Queensland Government.
What do the levies and finances reveal about a scheme's health?
Levies are set at each annual general meeting, based on the administrative and sinking fund budgets, according to the Queensland Government. A buyer reviewing the body corporate certificate should look at the level of levies currently due, whether any are outstanding from the current owner, and whether a special contribution has recently been struck for unexpected costs that the regular budget did not cover.
Unpaid levies of the selling owner may become the buyer's liability, according to the Queensland Government. Late levies can attract simple interest of up to 2.5 percent for each month overdue, and recovery costs may also be added. Those amounts appear on the body corporate certificate, and a solicitor can advise on whether they should be paid out of the seller's settlement funds.
The sinking fund budget must reserve for likely capital spending for at least nine years beyond the current financial year, according to the Queensland Government. A scheme with a thin sinking fund relative to its age and the condition of its buildings is a risk: if a major item fails and the fund cannot cover it, the body corporate strikes a special contribution, which every lot owner then owes. A professional forecast is optional but gives buyers a clearer picture of what is planned.
"A body corporate certificate is accurate only on the day it is issued. The financial picture can change between certificate date and settlement, so understanding the scheme's budget and any outstanding contributions is an important part of buying into a complex."
Jade Kickbusch, Principal, Brookwater Legal
What do the by-laws say, and what can they not do?
The body corporate's by-laws govern the administration and management of common property and body corporate assets, and the use and enjoyment of lots, common property and services, according to Queensland's Body Corporate and Community Management Act. A buyer should read the by-laws before committing to a scheme, because they set out rules that all owners and occupiers must follow.
However, the Act also limits what by-laws can do:
- › Residential use: a by-law cannot restrict the type of residential use of a lot that may lawfully be used for residential purposes.
- › Dealings: a by-law cannot prevent or restrict a transfer, mortgage, lease or other dealing with a lot.
- › Discrimination: a by-law must not discriminate between types of occupiers, or be oppressive or unreasonable.
- › Animals: a by-law cannot prohibit keeping or bringing an animal onto a lot or common property, and cannot restrict the number, type or size of animals. A by-law may require the body corporate's written approval first, but approval must not be unreasonably withheld.
- › Assistance animals: a person with a disability who relies on a guide, hearing or assistance dog has the right to be accompanied by it and to keep it on their lot. A by-law cannot exclude or restrict that right.
How does a solicitor assist with body corporate due diligence in Queensland?
A solicitor reviews the body corporate documents before the contract becomes binding, explains what the levies and financial statements show, and flags any by-law or community management statement terms that could affect how the buyer uses the lot. Our conveyancing team is experienced in reviewing body corporate certificates, community management statements and seller disclosure documents for buyers across Queensland.
Step 1: Talk to us
Get in touch and we will explain how the body corporate review fits into the conveyancing process and what the next steps look like.
Step 2: Review the documents
We obtain and review the seller disclosure statement, the body corporate certificate, the community management statement and the scheme's financial statements, checking levies, outstanding amounts, fund balances and any special contributions.
Step 3: Advise on the contract
We advise on any issues the documents reveal, including outstanding levies to be resolved at settlement, by-law terms that may affect the lot's use, and whether the sinking fund appears adequate for the scheme's age and infrastructure.
Step 4: Proceed to settlement
We manage the settlement process, including ensuring any outstanding levies are addressed from the seller's funds and that the transfer and duty obligations are met so the title registers in the buyer's name.
| Get in touch Need help with buying into a body corporate scheme? We're an experienced team who keep you well informed at every stage of the process. Get in touch to discuss your needs. |
What does the scheme's insurance cover, and what does it not?
The body corporate insures the common property and, in most building format plan schemes, the buildings themselves. The insurance certificate comes with the body corporate certificate, according to the Queensland Government. Individual owners are responsible for insuring their own contents, including furniture and personal belongings inside the lot.
A buyer should check the insurance certificate to understand the coverage level and whether the insured amount appears adequate for the scheme's buildings. If the scheme is underinsured and a major event damages the buildings, the gap between the insured amount and the repair cost may fall on lot owners through a special contribution.
When does this process not apply to a buyer's situation?
Body corporate due diligence in the form described above applies to lots in registered community titles schemes, such as units, apartments and townhouses that share common property. It does not apply to a freestanding house on its own title with no shared common property, even if that house is in an estate with shared facilities managed by a residents' association rather than a registered body corporate.
Some older schemes in Queensland were registered under the Building Units and Group Titles Act rather than the Body Corporate and Community Management Act. Those schemes use different forms, including a BUGTA body corporate certificate rather than the standard form, according to the Queensland Government. The seller disclosure rules still apply, but the specific certificate form differs.
A layered scheme, where one body corporate sits within the umbrella of another, adds another layer of documents to review. The Queensland Government notes that where by-laws in a layered scheme contradict each other, the principal scheme's by-law prevails. A buyer in a layered scheme generally pays contributions to both the subsidiary and the principal scheme.
Frequently Asked Questions
Is a buyer automatically a member of the body corporate in Queensland?
Yes. Buying a lot in a community titles scheme automatically makes the buyer a member of the body corporate, according to the Queensland Government. There is no opting out of membership or the levy obligations that come with it.
What is the difference between the administrative fund and the sinking fund in Queensland?
The administrative fund covers regular maintenance and insurance, while the sinking fund reserves money for major capital items such as painting or replacing infrastructure, according to the Queensland Government. Money cannot move between the two funds.
Can a Queensland body corporate by-law ban pets in a complex?
No. Under Queensland's Body Corporate and Community Management Act, a by-law cannot prohibit keeping animals on a lot or common property, and cannot restrict their number, type or size. A by-law may require prior written approval from the body corporate, but approval must not be unreasonably withheld.
What is a special contribution in a Queensland body corporate scheme?
A special contribution is struck by the body corporate for unexpected costs that were not included, or not sufficiently budgeted for, in the regular administrative or sinking fund budgets, according to the Queensland Government. Every lot owner owes their share once it is levied.
Where does a lot boundary sit in a Queensland unit or apartment?
Under Queensland's Land Title Act, where a lot on a building format plan is separated from another lot or common property by a wall, floor or ceiling, the boundary runs through the centre of that structure. It is not at the inside surface of the wall.
Do you need a solicitor to review body corporate documents in Springfield or Ipswich QLD?
A solicitor can review the body corporate certificate, the community management statement and the seller disclosure documents, explain what the levies and financials mean, and flag any by-law terms that affect how the lot can be used. That review happens before the contract becomes binding, which is the point where issues can still be addressed.
What happens if the seller does not provide the body corporate documents before a buyer signs in Queensland?
From 1 August 2025, under Queensland's seller disclosure scheme, the seller of a lot in a community titles scheme must give the buyer the required documents before the buyer signs. If those documents were not provided, the buyer may generally be able to terminate the contract at any time up to settlement, according to the Queensland Government.
Your Next Steps
Buying into a body corporate scheme in Queensland involves more documents and more ongoing financial commitments than buying a freestanding house. Understanding the levies, the fund balances, the insurance position and the by-laws before signing protects buyers in Greater Springfield and across Queensland from surprises that emerge after settlement, when options for resolving them are much more limited.
If you're working through a body corporate purchase, the right advice early makes the process simpler. Contact the Brookwater Legal team or call (07) 3437 8555 to talk through where you stand.
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External Resources
Brookwater Legal · This article contains general information only and does not constitute legal advice. It does not take into account your individual circumstances. You should obtain legal advice about your own situation before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.
