Removing body Corp

I have 4 units and another owner has 6 units in a 10 unit complex. The current body corp contact is coming to an end next month.

We would like to abolish the body corp and simply set up a sinking fund for common areas and insurance.

Is this possible?

 

Hi there - presumably this is in Queensland? Im a body corporate manager in Queensland.

The answer is that you do not need a body corporate manager, but you cannot abolish the body corporate as a legal entity.

Having or not having a body corporate manager does not change the body corporate's legal obligations (basic example - to lodge income tax returns) - so if you get rid of the manager, the owners would need to self-manage that process.

The risk in not running the body corporate properly is that if either of the two current owners choose to sell any of their lots, the incoming person will expect to see it run properly. Buyers are naturally a little hesitant with body corporate at the best of times - so this can have a big impact on value.

Your best bet will probably be to leave it with a manager, but don't get them to go overboard with maintenance - just do as much of the practical things yourself (like mowing) and let the manager deal with the legal and financial administration.

Matt

 

Thanks. We both not plan on sell any. The sinking fund is over $180k and they just jackup the body corp fees by 30% for forecast expenses.

 

Ha ha....you guys are in charge of the strata managers, you can put forward what you want and make agenda items to be voted on.....who is instructing them to increase if only 2 owners ???

 

Just got notification we can privately manage the property ourselves. We are going to release the majority of the sinking fund to ourselves as a bonus plus stop paying all the ridiculous bc fees so win win

 

If your not living there and close, it may still be worth having a manager, depends on if you want to learn all the rules etc, you should not empty the accounts to yourselves, advise to think about that if keeping the places.

I have dealt with a few unit blocks and the managers that mis manage or do everything to line their pockets, on the last one, shopped around for a manager & found someone with a flat fee & it was very low, he did a good job and followed what was wanted within the rules,

There will still be a strata plan, so it comes with baggage.