Body corporate disputes: your rights and process

The structure: what a body corporate is

A body corporate is the legal entity that owns and manages the common property of a unit-title development. Every owner of a unit in the development is automatically a member. Membership is not optional; it comes with the unit.

The body corporate is governed by the Unit Titles Act 2010 and by its own operational rules. Operational rules are specific to the body corporate; they cover day-to-day matters like noise, parking, pets, and common-property use. The Act sets the framework; the operational rules fill in the detail.

Day-to-day administration is usually delegated to a body corporate committee (elected at the annual general meeting) and often to a professional body corporate manager (a third-party company, paid from body corporate levies).

How decisions are made

Decisions are made at general meetings — the annual general meeting (AGM), which must be held each year, and special general meetings called as needed. Different decision types require different majorities:

• Ordinary resolutions — most routine matters. Simple majority (more than 50%) of votes cast.
• Special resolutions — significant matters including changes to operational rules, substantial changes to common property, some financial matters. 75% of votes cast, where the vote represents at least 50% of total ownership interest.
• Unanimous resolutions — very significant matters including unit redefinition. Unanimous.

The statutory default under the Unit Titles Act 2010 is one vote per principal unit (section 97). Voting by ownership interest (in proportion to each unit's size or value) applies where the Act or regulations specifically require it — for example, in relation to operational rule changes, common property transactions, or where a poll is demanded. Always check your specific body corporate's rules and the nature of the resolution before assuming which voting basis applies.

Proxy voting is allowed; a member who cannot attend can vote by proxy. Postal voting is also allowed in most circumstances.

Common dispute categories

Levies

Disputes about the amount of levies, how they are calculated, or whether they are payable. Levies are the body corporate's primary funding mechanism. Non-payment is a serious matter — the body corporate can pursue unpaid levies through the Tenancy Tribunal or District Court, and in severe cases can apply for a sale of the unit.

Common property maintenance and repairs

Disputes about whether a defect is the body corporate's responsibility (common property) or the unit owner's (inside the unit). The dividing line is usually the unit boundary as defined in the unit plan — but edge cases (balconies, plumbing running through walls, shared structural elements) are frequent sources of dispute.

Long-term maintenance plan (LTMP)

The LTMP is a mandatory forward-looking plan covering common property maintenance over at least ten years, with funding allocations. Disputes arise over whether the LTMP is adequately funded, whether specific work is captured, or whether a special levy is warranted.

Operational rules

Disputes about the content of operational rules (pets allowed or not, parking allocation, noise hours) or their enforcement (one owner's alleged breach).

Behaviour of the committee or manager

Disputes about whether the committee or manager is acting in the body corporate's interests, whether decisions have followed proper process, or whether there are conflicts of interest.

Disclosure at sale

Disputes between a vendor and a purchaser (or between a purchaser and the body corporate) about whether required pre-contract or pre-settlement disclosure was adequate. See Unit Titles Act 2010.

The steps before formal dispute resolution

For most disputes, the sensible sequence is:

1. Raise the issue with the body corporate committee in writing. Be specific: what has happened, what you are seeking, by what date.
2. If the committee does not respond or the response is inadequate, request inclusion at the next AGM or call a special general meeting. Special general meetings require a specified minimum proportion of owners to requisition.
3. Consider mediation. Many bodies corporate will agree to informal mediation before formal proceedings. A third-party mediator (often a lawyer or retired judge experienced in unit title disputes) can be cost-effective.
4. Formal proceedings. The Tenancy Tribunal has jurisdiction over most unit-title disputes up to the current monetary limit. For amounts above that limit, the District Court. For very complex matters, the High Court.

Skipping directly to formal proceedings is usually suboptimal. Costs can be awarded, and tribunals and courts generally expect parties to have attempted informal resolution first.

Tenancy Tribunal for body corporate matters

Despite its name, the Tenancy Tribunal has extensive jurisdiction over body corporate disputes under the Unit Titles Act 2010. It can make orders including:

• Payment of unpaid levies.
• Repair of common property.
• Enforcement of operational rules.
• Variation or cancellation of body corporate decisions on procedural or substantive grounds.
• Costs and compensation.

Applications are made via the Tenancy Services website. Fees are modest compared to District Court filing fees. The process is designed to be accessible to individuals without legal representation, though for complex matters legal representation is worthwhile. Typical turnaround: a few months from application to hearing.

Before you engage: five things to know

1. Read the operational rules. Many disputes come down to whether the operational rules cover the situation. The rules are available from the body corporate manager or on the body corporate register. If you have never read them, start there.
2. Understand the ownership-interest voting structure. Your voting power is not one-person-one-vote; it is proportional to your unit's share. On any decision, count the actual voting power before assuming a majority view.
3. Document everything. Written records of meetings, levies, committee correspondence, maintenance requests, and the responses become the evidence for any formal process. See Evidence Act 2006.
4. Understand the pre-contract and pre-settlement disclosure regime. If disputes arise from a recent purchase, the statutory disclosure statements (and their accuracy) are central.
5. Consider collective action. A single dissatisfied owner often struggles to make progress. Ten owners coordinated produce more leverage — including the ability to call a special general meeting, pass resolutions, or elect new committee members.

Where this guide sits in the section

Related: Rates: how they work, when to challenge, how to appeal.

Rules cited: Unit Titles Act 2010, Evidence Act 2006.