Cheap Body Corp Fees — Why They Might Be Too Good to Be True
It's one of the most overlooked checks before negotiating, and most buyers & surprisingly selling agents don’t understand the difference.
When comparing two similar townhouses. One has body corporate fees of $65 a week, the other $90. Why the big discrepancy?
The answer often lies in the type of plan within the Body Corp scheme.
Standard Format Plan vs Building Format Plan
In a Building Format Plan — typical of apartments and many newer townhouses — the lot is defined by the building itself. The body corporate owns and is responsible for the structure: the roof, external walls, common areas. That's why fees tend to be higher to cover maintenance and repair costs.
In a Standard Format Plan — common in older townhouse and villa complexes — the lot is defined by a surveyed land area, not the building outline. That means you, as the individual owner, are responsible for the maintenance. The roof over your head is yours to fix.
That's why the fees look so attractive. They're lower because the body corporate is responsible for less.
Why It Matters
I've seen buyers assume a healthy sinking fund will cover a building and pest recommendation, only to discover the repair falls on them personally — not the body corporate at all. If you haven’t factored in the cost to you personally then you may be overpaying or setting yourself up with a burden you don’t want.