Many Body Corporates and Strata Schemes lapse because the owners can become apathetic about the process and let informal agreements be instituted in place of formal agreements.

From a practical point of view, this would make sense however a Body Corporate needs to be established initially, to allow separate titles deeds to be issued for the units.

Then owners of the units have a legal obligation to maintain the operation of the body corporate.

If you purchase a unit in a strata scheme where the body corporate is operational, you can protect yourself by making the contract subject to a search of the body corporate records.

If however, the Body Corporate has been inactive for a number of years, you will need to physically meet with your neighbours to satisfy yourself that everything is above board. This is essential and the only real way to obtain peace of mind.

Co-Ownership

If you do decide to go into the co-ownership road instead of buying into strata, it is essential that you have a well thought out co-ownership agreement, to make sure that every owner is treated fairly and equally.

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