In Queensland, a Body Corporate Disclosure Statement is a mandatory document that must be provided by a seller to a buyer when selling a lot in a community titles scheme (e.g., an apartment, townhouse, or unit within a strata scheme). It is governed by the Body Corporate and Community Management Act 1997 (BCCM Act).
Director of GM Law, Gerard Pagliaro shares his thoughts on this matter:
1. What Is the Body Corporate Disclosure Statement?
It is a prescribed form (Form 14) that includes key information about:
- The lot being sold, including: entitlement and contribution schedule lot entitlements; whether there are exclusive use areas (e.g., car parks, courtyards).
- Body corporate levies: the amount of contributions payable by the owner for the current financial year; special levies (if any); details of any unpaid levies.
- Body corporate records: whether a body corporate manager is appointed; insurance details; any proceedings involving the body corporate (e.g., disputes).
Legal Requirements
- Must be given to the buyer before signing the contract.
- If it is not provided or is incorrect, the buyer may have the right to terminate the contract under section 206 of the BCCM Act before settlement.
- The statement must be current as at the date the contract is entered into.
Where to Get It
The seller (or their agent/lawyer) typically obtains the information from:
- The body corporate manager
- Recent meeting minutes
- Financial statements and levy notices
Common Issues (which may lead to a right to terminate)
- Outdated information
- Failure to disclose known legal actions or special levies
- Wrong levy amounts
2. How does the information gathering process work and how much does a disclosure statement usually cost?
Preparing the Form 14 from these documents usually costs $150–$500 plus GST through search agents. Turn-around in SE-Qld is 24-48 hours; remote schemes can take a week.
In the case of GM Law, our solicitors take on this function. Body Corporate Information, Certificate & Insurance, and Certificate (Estimate only) will cost $280.
3. Can an agent sign a disclosure statement for their client?
Yes, but only if the agent holds written authority to do so. Without that authority the signature is invalid, and this may give the buyer termination rights.
Don’t forget we offer the following:
Conveyancing
We have 25 years experience with commercial and residential conveyancing in Queensland.
Commercial leasing
We are experienced in all facets of retail and commercial leases in Queensland.
Estate Planning
We are highly experienced in Wills, Deceased Estates, and Powers Of Attorney in Queensland.
