You have just signed a contract on a unit or townhouse and the body corporate certificate has landed in your inbox. It lists levies, sinking fund balances, by-laws and contribution schedules, and it raises more questions than it answers.
Every lot in a community titles scheme in Queensland comes with automatic body corporate membership and a share of the ongoing costs. The Queensland Government sets out what each fund must cover, how levies are calculated and what by-laws can and cannot do, so there is a clear framework to understand before settlement day.
Brookwater Legal helps clients across Greater Springfield and Ipswich with buying and selling body corporate lots, reviewing disclosure documents and understanding what the certificate actually means for a purchase.
Here is how body corporate levies, by-laws and sinking funds generally work in Queensland, and what the rules mean for buyers and owners.
Key takeaways
- Buying a lot makes you a body corporate member automatically, with no opting out.
- Two funds are required: an administrative fund and a sinking fund.
- A by-law cannot prohibit keeping a pet or restrict its type, size or number.
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 is a body corporate and how does membership work in Queensland?
When a buyer settles on a lot in a community titles scheme in Queensland, they automatically become a member of the body corporate, according to the Queensland Government. There is no opting out and no application required.
The body corporate is the legal entity responsible for managing and controlling common property and body corporate assets on behalf of all lot owners. It is funded through levies that each owner pays, calculated according to the contribution schedule lot entitlements set out in the community management statement for the scheme.
The body corporate holds insurance over common property and some buildings. A copy of the insurance certificate comes with the body corporate certificate that a seller must give a buyer before the contract is signed, under Queensland's seller disclosure scheme, which commenced 1 August 2025.
What are the two body corporate funds in Queensland?
Two separate funds are required for most community titles schemes in Queensland, according to the Queensland Government. Money cannot move between them.
The administrative fund covers:
- › Regular maintenance of common property and shared facilities
- › Body corporate insurance premiums
- › Anything else that does not qualify as a sinking fund expense
The sinking fund pays for:
- › Large or one-off capital items such as painting or structural repairs to common property
- › Replacing major items such as fences, lifts or roofing
The sinking fund budget must plan for likely capital spending for at least nine years beyond the current financial year, according to the Queensland Government. A professional forecast is optional, not mandatory.
How are body corporate levies set and what happens if they go unpaid?
At each annual general meeting, the body corporate agrees the administrative and sinking fund budgets and sets what each lot pays, according to the Queensland Government. The amount each owner contributes is generally based on the contribution schedule lot entitlements recorded in the community management statement.
The Queensland Government sets out three important rules about levies:
- › Discounts: the body corporate may give a discount of no more than 20% for an instalment paid on time
- › Interest on late payment: simple interest of no more than 2.5% for each month overdue may be charged
- › Special contributions: a special levy must be collected for unexpected costs that were not budgeted for, or not budgeted sufficiently
Unpaid levies can be recovered through QCAT or the courts, with reasonable recovery costs added, according to the Queensland Government. A buyer should also be aware that unpaid levies of the seller may become the buyer's liability under Queensland's Body Corporate and Community Management Act, and late levies can attract interest of up to 30% a year plus costs.
"A buyer needs to look at both the current levy amount and the sinking fund balance before they commit. A scheme with a healthy sinking fund is planning ahead; one that is running low may face a special contribution in the near future."
Jade Kickbusch, Principal, Brookwater Legal
What can body corporate by-laws actually do in Queensland?
By-laws set the rules for how lots, common property and body corporate assets are used and enjoyed, according to Queensland's Body Corporate and Community Management Act. Understanding what they can and cannot do is one of the most common areas of confusion for buyers in Greater Springfield, Ipswich and across Queensland.
By-laws may cover:
- › The administration, management and control of common property and body corporate assets
- › The use and enjoyment of lots and common property, body corporate assets and services the body corporate supplies
By-laws cannot:
- › Restrict the type of residential use of a lot that may lawfully be used for residential purposes
- › Prevent or restrict a transfer, mortgage, lease or other dealing with a lot
- › Discriminate between types of occupiers, or be oppressive or unreasonable
A by-law that is inconsistent with the Act is invalid to that extent, according to Queensland's Body Corporate and Community Management Act.
What do the Queensland laws say about pets and by-laws?
This is the issue that most often surprises buyers. Under Queensland's Body Corporate and Community Management Act, a by-law must not prohibit keeping or bringing an animal onto a lot or common property, and must not restrict the number, type or size of animals.
A by-law may require an owner to seek the body corporate's written approval before keeping a pet. However, the body corporate must not unreasonably withhold that approval and may only attach reasonable conditions. Refusing on the ground that no pets are allowed is unreasonable under the Act.
A separate protection applies to guide dogs, hearing dogs and assistance dogs. A person with a disability who relies on one has the right to be accompanied by it and to keep it on their lot. A by-law cannot exclude or restrict that right, according to Queensland's Body Corporate and Community Management Act.
How does a solicitor help when buying a body corporate lot in Queensland?
Reviewing body corporate documents before a purchase is one of the most practical things a conveyancing solicitor does for a buyer in Queensland. Our conveyancing team reviews the certificate, the community management statement, the by-laws and the sinking fund balance and explains what each one means for the purchase.
Step 1: Talk to us
Get in touch and we will explain how the body corporate disclosure process generally works and what to look for before you sign.
Step 2: Review the disclosure documents
We review the seller disclosure statement, the body corporate certificate, the community management statement and the by-laws, checking levies, any outstanding amounts and the sinking fund position.
Step 3: Raise any issues before settlement
Where the certificate raises concerns, such as unpaid levies, a low sinking fund balance or by-laws that do not match what the agent described, we raise them with the seller's side before settlement.
Step 4: Complete the transfer
We handle the settlement process, including the levy adjustments, transfer of the title and the body corporate notification so the new owner is correctly recorded on the scheme's records.
| Get in touch Need help with buying a body corporate lot? We're an experienced team who keep you well informed at every stage of the process. Get in touch to discuss your needs. |
When does buying into a body corporate NOT apply to you?
Not every unit or townhouse purchase involves a body corporate. Understanding when the body corporate framework does not apply is as important as understanding when it does.
The body corporate and community management framework in Queensland applies to community titles schemes registered under that legislation. A duplex or small multi-unit development may be structured differently depending on how the titles were created and which legislation applies. A title search and a review of the survey plan reveal the structure before any contract is signed.
Older schemes may have been registered under the Building Units and Group Titles Act rather than the current legislation. The disclosure documents and the certificate form required differ between the two regimes. A solicitor reviewing the certificate can identify which framework applies and what that means for the purchase.
It is also worth noting that the Office of the Commissioner for Body Corporate and Community Management runs a free information service and dispute resolution process. That service is available to owners, not prospective buyers, so understanding the scheme's documents before signing is the buyer's window to raise questions.
Frequently Asked Questions
What does a body corporate certificate show in Queensland?
The Queensland Government says the certificate is an approved form with information about the body corporate and the lot, including levies due, levies outstanding from the current owner, the latest financial statement and the by-laws. It is accurate only on the day it is issued.
Can a body corporate by-law ban pets in Queensland?
No. Under Queensland's Body Corporate and Community Management Act, a by-law cannot prohibit keeping a pet or restrict its number, type or size. A by-law may require written approval first, but the body corporate cannot unreasonably refuse it.
What is a special contribution levy in a Queensland body corporate?
A special contribution is an extra levy collected for unexpected costs that were not budgeted for, or not budgeted enough, according to the Queensland Government. It is separate from the regular administrative and sinking fund levies and can arise at any time.
How is the lot boundary determined in a Queensland building format plan?
Under Queensland's Land Title Act, where a lot is separated from another lot or from common property by a floor, wall or ceiling, the boundary is the centre of that surface, not the inside face. This affects where maintenance responsibility sits between the lot owner and the body corporate.
How far ahead must the sinking fund budget plan in Queensland?
The Queensland Government requires the sinking fund budget to reserve for likely capital spending for at least nine years beyond the current financial year. A professional sinking fund forecast is optional, not compulsory.
Do you need a solicitor to review body corporate documents in Springfield or Ipswich QLD?
A solicitor reviewing the body corporate certificate, community management statement and by-laws before contract can identify outstanding levies, a low sinking fund or by-law issues that a buyer would otherwise inherit at settlement. Legal advice is available from our conveyancing team.
What documents must a seller give a body corporate lot buyer in Queensland?
Under Queensland's seller disclosure scheme, which commenced 1 August 2025, the seller must give the buyer a seller disclosure statement, the body corporate certificate, and the community management statement before the buyer signs the contract, according to the Queensland Government.
Your Next Steps
Body corporate levies, sinking funds and by-laws are central to what it costs to own and live in a Queensland unit or townhouse. Getting across the certificate and the community management statement before settlement, rather than after, is what protects a buyer from inheriting someone else's outstanding debts or a scheme that is underfunded for the repairs ahead. For buyers in Springfield, Ipswich and across Greater Springfield, these documents deserve the same attention as the contract itself.
If you're working through buying a body corporate lot, 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
- Queensland Government - Owner's contributions (body corporate fees)
- Queensland Government - Administrative fund
- Queensland Government - Body corporate sinking fund
- Queensland Government - Making by-laws
- Queensland Government - Buying into a body corporate
- Queensland Government - Selling a body corporate property
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.
