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Strata Titles In Tasmania – Inactive Body Corporates explained

We act for many people who buy and sell strata titles. When we ask for information about the Body Corporate we are often told by our clients that we don’t need to worry about it because the body corporate is ‘inactive’.

From a legal point of view there is no such thing as an ‘inactive’ body corporate. What is really meant is that the Body Corporate does not comply with the Strata Titles Act 1998 (Tas), for example meetings are not held and levies are not issued. Also it is likely that the common property of the strata will not be insured.

If you purchase a strata title you automatically become a member of the Body Corporate. Body Corporates have legal obligations that are to be met in accordance with the Strata Titles Act 1998 (Tas). The main obligations are:

  • arranging building insurance policy for all improvements forming the strata together with public liability cover over the common property;
  • having an Annual General Meeting at least once every 15 months;
  • keeping records of body corporate meetings;
  • enforcement of by-laws; and
  • ensuring that sufficient funds are available to meet the financial obligations of the Body Corporate.

It is a misconception that if a lot owner decides to insure their own lot individually that this exempts them from the insurance requirements under the Strata Titles Act, it does not.

A Body Corporate may decide to manage their affairs, or appoint a professional strata manager. Whatever the management model is used, the Strata Titles Act must be complied with.

A failure to comply with the Strata Titles Act may lead to a fine (the maximum is currently $5,000). 

This article is a guide only, if you require specific advice about strata titles you should consult a lawyer.

If you own or are thinking of buying a strata title in Tasmania and need advice please contact us on 03 6332 9353 or use our Contact Us form - http://www.cormistonlegal.com.au/contact

 

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