If you are planning on buying a flat, unit or townhouse you need to understand how a body corporate works. If you buy one of these types of properties you automatically become a member of the body corporate.

A body corporate oversees the collective responsibility and decision making in relation to use and maintenance of the common property in your building. Owners are required to make financial contributions to the body corporate. Owners must pay fees and levies for administrative expenses including maintenance, upkeep and repair of buildings that form any part of the common property. Owners may also be required to contribute to a reserve or sinking fund to cover anticipated costs of repairs to the building or replacement of essential items or services such as air conditioners, security systems or lifts.

Body corporates have rules and restrictions that apply to residents. There may be restrictions on keeping pets, car parking restrictions or use of public spaces. You should consider how these regulations may impact on your lifestyle.

Other issues to consider when buying units are:

• Noise (i.e. Is there traffic noise? Is there sound insulation between units? Are there rules in the body corporate about floor coverings? Are there any polished floorboards?
• Layout of apartment (i.e. Where are the common walls?)
• Security (i.e. Are there security doors or intercoms? Are there signs of vandalism or break-ins?)
• Social dynamics (i.e. How many units are in the complex? How many units are owner-occupied or rented? How long have owners or tenants lived there? Generally, if residents have lived there for a long time, it indicates they are happy with their surroundings)
• Parking (i.e. What type of parking do you have? Are there rules about visitors parking on common areas?)