Anyone who owns a lot in a community titles
scheme in Queensland is automatically a member
of the body corporate for that scheme.
One thing that is common to all such bodies
corporate is the ownership of common property.
This is land which does not belong to any
member individually, but only to the body
corporate as a whole.
I’m John Gallagher from Argon Law, and if
you are a member or are thinking about becoming
a member of a body corporate in Queensland,
then stay tuned because it is important that
you understand the risks that come with the
ownership of body corporate common property.
Common property is often developed with lawns,
gardens, access ways and sometimes even foyers,
elevators and stairways.
It is the body corporate that is responsible
for what happens on the common property including
injury or damage resulting from the negligence
or default of the body corporate or its agents.
Each body corporate is obliged to insure against
such exposure, but if that insurance is inadequate
to cover the exposure of the body corporate,
it is the members personally, through the
payment of additional levies that must cover
any shortfall.
This is different to company, regulated under
the Corporations Act, where the members, also
called shareholders, are not personally responsible
for the company’s debts.
It is therefore in the interests of all members
to ensure that adequate public liability insurance
is maintained in respect of the common property
and, beyond that, to take an active interest
in minimising any risks arising on the common
property.
So, members shouldn’t be complacent about
the risk that may arise on common property.
Like any property owner, they do have a personal
exposure and should behave accordingly.
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