A Body Corporate, also called the owners corporation, is a legal entity consisting of the property owners of a land subdivided into apartments and townhouses. All property owners on the lot must pay a mandatory contribution to the Body Corporate called the strata fee. Legally, if you’re a part of the Body Corporate, you also own a share of the shared spaces on the lot such as the parking space, gardens, etc.
Think of it like a mini government that collects taxes every quarter to fund the maintenance of public goods and services like the garden, lift repairs, cleaning, etc.
- By law, an annual general meeting (AGM) must be held to agree on how much the contributions should be among other things.
- Apartment complexes with many recreational facilities will naturally have a larger strata fee.