Buying a Townhouse or Unit

Body Corporate Disclosure

When you are purchasing a residential unit or apartment in a building complex (or more particularly, a lot in a community titles scheme), the Seller must provide a disclosure statement to the Buyer (before the Buyer enters into the contract of sale) which contains certain information required to be disclosed by the Seller under section 206 of the Body Corporate and Community Management Act 1997 (Qld) (‘BCCM Act’).

The standard contract usually used for these transactions is known as the ‘REIQ Contract for Residential Lots in a Community Titles Scheme (10th Ed)’ (‘Contract of Sale’). The purpose of the disclosure statement is to give the Buyer some material information about the responsibilities and liabilities that the Buyer will be required to assume as a member of the body corporate once the Buyer becomes the owner of the residential lot in the community titles scheme.

In essence, the disclosure statement is required to contain the following information in accordance with section 206 of the BCCM Act:

  • state the name, address and contact telephone number for:
  • the following:
    • if the scheme is a specified two-lot scheme (for example, a duplex), each person who is responsible for keeping body corporate records under the specified two-lot schemes module;
    • otherwise, the secretary of the body corporate;
  • if it is the duty of a body corporate manager to act for the body corporate for issuing body corporate information certificates, then, the body corporate manager (and it is not unusual for a body corporate manager to be engaged by a body corporate to assist it with various administrative duties);
  • state the amount of annual contributions currently fixed by the body corporate as payable by the owner of the lot;
  • identify improvement on common property for which the owner is responsible;
  • list the following:
    • if the scheme is a specified two-lot scheme – the body corporate assets of more than $1,000 in value;
    • otherwise, the body corporate assets required to be recorded on a register the body corporate keeps;
  • state whether there is a committee for the body corporate or a body corporate manager is engaged to perform the functions of a committee; and
  • include other information prescribed under the regulation module applying to the scheme (and there are currently five (5) regulation modules in Queensland, including the Standard Module, Accommodation Module, Commercial Module, Small Schemes Module and the Specified Two-lot Scheme Module).

Additionally, the disclosure statement must also be signed by the Seller and be substantially complete at the time it is given to the Buyer. The information contained in the disclosure statement can be technical and difficult to interpret at times, but having a proper understanding of the disclosure statement is essential for a Buyer concerned to know about the extent of some of his or her responsibilities under the community titles scheme (for example, understanding the extent of the Buyer’s liabilities for annual contributions towards the administrative and sinking funds maintained by the body corporate, or about any specific improvements to the common property for which the Buyer may be responsible).

Seeking the assistance of a conveyancing lawyer in understanding the disclosure statement is advisable, especially if the Buyer has concerns about the accuracy or completeness of the disclosure statement, in which case the Buyer may be entitled to certain termination rights provided the Buyer exercises said rights in accordance with any applicable requirements and time frames imposed by the BCCM Act (or as the case may be).

This commentary is of a general nature only, containing nothing more than some general information for the reader. It is not intended to be legal advice, nor cannot it be relied upon as legal advice. To this end, please read our Website Terms including the disclaimer contained therein carefully. Laws, rules and principles may be subject to sudden and unexpected changes and you should always consult a lawyer about your specific circumstances.

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Celia McQueen
Celia McQueen
10:38 17 May 21
Alice helped us with the purchase of our first home, and we greatly appreciated her attention to detail and clear... communication throughout the process. We would gladly work with her again or recommend her to others. Thanks Alice!read more
Natalie Dugec
Natalie Dugec
10:55 12 Apr 21
I am extremely grateful for the help I received from ADVIILAW. I required their services for a defamation case and... their services exceeded my expectations. At any time I needed them they were always available to help promptly and did so with a high level of professionalism. Zoran Gelic is great to work with. He explained every step in detail so that I could clearly comprehend and make informed decisions to support my case. This assisted with the positive outcome. If you need a lawyer. I highly recommend ADVIILAWread more
Michael Zarafa
Michael Zarafa
21:56 01 Apr 21
I highly recommend Zoran Gelic as a defamation lawyer. He has a proactive approach and explains everything in detail. I... ended up with a positive outcome and the experience I had with him was fantastic. Keep up the great work Zoran.read more
Rodney McEwan
Rodney McEwan
08:26 31 Mar 21
I can highly recommend Zoran Gelic from Adviilaw who attended to a defamation matter on our behalf. Zoran was extremely... knowledgeable, helpful and professional in resolving this matter. I can highly recommend Zoran Gelic to anyone in need of a lawyer, specifically in relation to defamation law matters.read more
Rin Kim
Rin Kim
06:41 01 Mar 21
Excellent services. I highly recommend AdviiLaw for any commercial legal help.
Carly McClintock
Carly McClintock
10:24 21 Dec 20
Alice was very professional, efficient and knowledgeable with her work, while helping us understand the process in... buying our first home. I highly recommend AdviiLaw for all your conveyancing needs.read more
Bill Vo
Bill Vo
22:03 01 Dec 20
Thank you Alice for your dedication and attention to detail towards our first home loan! Alice came highly recommended... by our broker and from day 1 Alice was very professional and courteous.Alice literally went above and beyond throughout the entire process to ensure the outcome would be in our best interest.I highly recommend to contact AdviiLaw, not just for conveyancing but for other solicitor services too!Thank you again Alice!read more
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