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26 February 2009

"Community Style Living" at a Glance from the knowledge store of Redchip Lawyers

With interest rates dropping and stamp duty exemptions and concessions on offer, property buyers are lookng for affordability and lifestyle when buying a property. Living in a unit or townhouse complex, sometimes referred to as "Community Style Living", offers that to buyers.

Community style living offers owner's access to pool, tennis courts and gymnasiums however, it is not uncommon for property owners to be unaware of what their obligations as an owner in these complexes. However this lifestyle comes at a cost.

Once you have bought into a complex, you must comply with the body corporate by-laws which include amongst other things, the obligation to maintian your propety in a good condition.
In additon to that, you as an owner of a unit or townhouse are obligated to pay body corporate levies.

These levies are broken down into 2 groups:

The Administrative Fund Levies- This covers the day to day expenses including but not limited to the general maintenance of the common property such as pools, tennis courts and gymnasiums, and insurance preimums of the complex as a whole; and

The Sinking Fund Levies - This covers future expenditure for larger projects such as repainting the unit or townhose coomplex or refurbishment of the pool.

You should also ensure that you can afford the amounts of monies you will be required to contribute to the Administrative and Sinking Funds. If you are unable to pay your body corporate levies, the body corporate committee may be forced to commence legal proceedings against you to recover the levies and the costs of such proceedings will be borne by you. Non payment of your levies can potentially lead to the committee authorising the sale of your property.

You will be bound by the body corporate by-laws which specifiy what you can do and what prohibitions may be placed on you.

redchip comment: we are seeing an increasing number of unit owners default in payment of their body corporate fees, and be sued, bankrupted and lose their units. Before committing to buying a unit or townhosue, talk to us about the Contract of Sale and your on going obligations.
For any queries please do not hesitate to call Lucas Hewlett or Rebekah Craig at redchip lawyers on (07) 3852 5055.

Yours in Property

Morpheus Property

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