In this weeks episode John Gallagher from Sunshine Coast Law Firm Argon Law, will be discussing all you need to know about body corporate and common property.
Do you own a lot in a community title scheme in Queensland? One thing that is common to all such property is an ownership of common property, this is land that doesn’t belong to any member individually but only to the body corporate as a whole.
If you are a member or thinking of becoming a member of a body corporate in Queensland this video will be important to you in order to understand the risk that comes with ownership of common property. Common property refers to areas shared amongst those within a community title scheme such as Lawns, Gardens, Access Ways, Foyers, Elevators and Stairways and the body corporate is responsible for all of these areas. The body corporate is also responsible for any injury or damage to persons or property occurring on such property as a result of negligence or default of the body corporate.
Because of this risk the body corporate is obliged to insure against such exposure. However, if that insurance is not adequate to cover the exposure of the body corporate, it's the members personally, via the payment of additional levies, who must cover this shortfall.
This is different to a company regulated under the Corporations Act, where the members, also called shareholders, are not personally responsible for the company's debts. It is therefore in the interest of all members that adequate public liability insurance is maintained in respect of the common property. Furthermore, the body corporate members should take an active interest in minimising any potential risks which may arise from common property.