Understanding Body Corporate Disclosure Statements
In Queensland, the law mandates that sellers of lots in community title schemes provide a disclosure statement to prospective buyers before entering into a contract.
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The general goal of the sinking fund is to allow the body corporate to pay for all capital improvements and replacements as they become due, without needing to either take a loan, or issue a special levy to owners.
The body corporate is required by law to have a detailed report of the elements of the building and common property that require investment. This is called a sinking fund forecast.
Think of the body corporate as a car driving down a dark road. The sinking fund forecast acts as its headlights, showing what will most likely be approaching in the next 10 years. This gives the body corporate enough time to speed up, slow down, or swerve around any oncoming obstacles.
The car never catches up to its headlights, but they are always revealing what lay ahead, just like the sinking fund forecast.
In Queensland, the law mandates that sellers of lots in community title schemes provide a disclosure statement to prospective buyers before entering into a contract.
Understanding how your individual levy amount is calculated can help you appreciate where your money goes and ensure transparency in the management of your community. Here’s a breakdown of the aspects involved in calculating levy amounts.