Are you looking to purchase an apartment in a Unit Title complex?  If so, you should include a further term of sale in the Agreement for Sale and Purchase for you and your lawyer to review the body corporate information. 

The idea behind this clause is to ensure that a prospective purchaser is happy with the way the body corporate works, its financial position and that it is keeping up with its obligations.

The vendor must provide you with a pre-contract disclosure statement before the Agreement for Sale and Purchase is signed. This should include:

  • Details of the body corporate levies in respect of the unit you want to purchase;
  • Brief details of planned maintenance, and how this will be funded.  The full details should be set out in the Long Term Maintenance Plan (LTMP).  Having a LTMP in place is a legal requirement and should also be supported by a Long Term Maintenance Fund;
  • The body corporate’s bank accounts and balances;
  • Whether the complex is or has been subject to any weathertightness claims or proceedings.

Additional information that should be reviewed wherever possible includes:

  • The body corporate’s operational rules, which are sometimes supplied along with the pre-contract disclosure statement;
  • Body corporate meeting minutes, particularly from recent annual or special general meetings.  We would recommend obtaining and reviewing the AGM minutes from the previous two or three years ;
  • Resolutions by the body corporate committee;
  • Other documentation obtained by the body corporate, such as an engineering report or building inspection;
  • Body corporate insurance details, including any exclusions in the policy.

You should ensure that your Agreement for Sale and Purchase includes a clause about reviewing the body corporate information, and should seek legal advice as to the correct wording of this clause to ensure that your situation is covered.  Your experienced property legal advisor can help you obtain and review this information. 

Laurie Pallett
Senior Registered Legal Executive