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Selling a Unit or Townhouse in a Body Corporate in Queensland

Strata-title sales come with specific disclosure obligations and buyer questions that freehold house sales don't. Here's what sellers need to prepare for.

A large proportion of inner Brisbane's property stock is strata-titled: units, townhouses, and villa complexes in body corporate schemes. In suburbs like Bulimba, Morningside, Coorparoo, Norman Park, and Hawthorne, strata properties form a substantial part of what changes hands each year. Selling one involves obligations and buyer questions that simply do not arise with a freehold house sale, and vendors who are not prepared for these can find their campaigns disrupted at the worst possible time.

The governing legislation in Queensland is the Body Corporate and Community Management Act 1997 (BCCM Act). It sets out what records sellers must make available, what buyers are entitled to request, and what happens if disclosure is deficient. This article covers what vendors need to understand practically before listing and during the campaign.

What you must disclose as a seller

Queensland's contract of sale for community title schemes requires the seller to attach a Body Corporate Information Certificate at the time of contract. This certificate, obtained from the body corporate manager, confirms the current levy amounts (both administrative fund and sinking fund contributions), any outstanding levies on the lot, whether there are any special levies approved or pending, and whether the lot is the subject of any orders, notices, or proceedings under the BCCM Act.

Critically, this is not optional documentation that buyers request. It is a legal requirement attached to the contract. A contract without a current Body Corporate Information Certificate gives the buyer the right to terminate before settlement. Vendors who attempt to proceed without it or who attach an outdated certificate expose themselves to contract rescission at a point where they may have already committed to a purchase elsewhere.

Obtaining the certificate takes time. Body corporate managers typically charge a fee and have a turnaround period of several business days, sometimes longer for large or complex schemes. The certificate is valid for a limited period. Vendors should arrange this before they go to market so they are not scrambling to produce it when a buyer moves to contract.

What body corporate records actually contain

Beyond the mandatory information certificate, buyers who are serious about due diligence on a strata property will typically request access to body corporate records or commission a search through a specialist body corporate search firm. These records include minutes of body corporate meetings (usually the last two years), financial statements, the sinking fund forecast report, current insurance details, any by-laws or by-law amendments, and correspondence about disputes or maintenance issues.

The sinking fund forecast is often the most closely scrutinised. It shows whether the building's maintenance reserve is adequately funded for the major capital works that are anticipated over the next 10 years, including roof replacement, external painting, common area refurbishment, and lift maintenance where applicable. A well-funded sinking fund means buyers are unlikely to face a special levy shortly after purchase. An underfunded one is a red flag that experienced buyers notice immediately.

If your body corporate has recently approved or is planning a special levy, this will appear in the records and on the information certificate. It does not necessarily kill a sale, but buyers will factor the cost into what they are willing to pay and your solicitor needs to advise you on your disclosure obligations in relation to it.

The difference between module types

Queensland's BCCM Act operates through a number of regulation modules, and which module applies to your scheme depends on how it was established and how it operates. The most common are the Standard Module and the Accommodation Module. The Standard Module applies to most residential unit and townhouse complexes. The Accommodation Module applies to schemes where lots are regularly let out as short-term accommodation, typically apartment complexes that operate as serviced apartments or have management rights arrangements.

This distinction matters in practice because the governance rules, dispute mechanisms, and by-law frameworks differ between modules. Buyers purchasing in an accommodation module scheme may face restrictions on how they occupy or let the property. Most residential buyers in inner Brisbane will be dealing with Standard Module schemes, but it is worth confirming with your solicitor if you are unsure.

How body corporate levies affect buyers' borrowing capacity

Lenders factor ongoing body corporate levies into their serviceability assessment for a borrower. This is not a minor consideration: in older inner Brisbane complexes or buildings with lifts, pools, and significant common areas, levies can be substantial. A buyer who looks pre-approved on paper may find their borrowing capacity is reduced when the lender applies their assessment of ongoing levy obligations on top of the mortgage repayment.

Buyers in the market for strata properties generally know to ask about levies early. As a vendor, having current and accurate levy figures ready for enquiries during the campaign speeds up conversations and avoids the scenario where a buyer discovers the levies during due diligence and reassesses their offer. Transparency about levies from the first inquiry is both practical and signals you have nothing to hide.

What your agent handles and what your solicitor handles

This is a clear division. Your agent manages the marketing campaign, attends opens, negotiates offers, and coordinates the sale process. Your agent is not qualified to provide legal advice about body corporate disclosure obligations, and should not be relied upon to do so.

Your solicitor prepares or reviews the contract, ensures the Body Corporate Information Certificate is current and attached, advises you on your obligations under the BCCM Act, and handles the conveyancing through to settlement. For a strata property, engaging a solicitor who is familiar with Queensland community title legislation before you list is sensible. Issues that arise at the contract stage because the vendor's solicitor is working from a template without the right expertise cause delays, create risk, and damage buyer confidence at a fragile point in the sale.

Body corporate search firms sit between the two. They provide buyers with a detailed independent review of body corporate records and produce a report that covers financial health, maintenance history, dispute records, and current issues. You cannot control whether a buyer commissions one of these searches, and you should assume that serious buyers at higher price points will. There is rarely anything strategic to be gained by being guarded about body corporate matters; buyers who find problems they were not told about lose confidence in the whole transaction.

What buyers typically ask about

Beyond levies and the sinking fund, buyers for strata properties commonly ask about: whether there are any ongoing disputes between lot owners or with the body corporate, whether there are any restrictions on pets, vehicles, or short-term letting under the by-laws, whether any defects claims are active (particularly relevant for newer buildings constructed after 2015 in the defects liability window), whether there is a building manager or caretaker and on what terms, and the age and condition of the complex's major assets including roof, lifts, and swimming pool.

None of these questions should catch a well-prepared vendor off guard. If you own the property, you already know the answers to most of them. If you have been using a property manager, request a current information package from the body corporate manager before you list. It costs a small fee and eliminates the scramble.