Dissolving a body corporate

[boomtown]

Anyone have any experience with (separately) buying all the units in a complex and dissolving the body corporate?

What happens to the sinking fund?

 

[dave99]

Anyone have any experience with (separately) buying all the units in a complex and dissolving the body corporate?

What happens to the sinking fund?

If the units are all on separate titles, you can't dissolve the body corporate. The body corporate is established with the strata plan and continues as long as the strata plan exists. As the sole member, you would still need to ensure the body corporate does all the required things, such as maintaining insurance, etc.

In most smaller buildings, a sinking fund is not required by law. Once you control the body corporate, you could act to disburse any sinking funds back to the body corporate members - i.e., you.

The only way to get rid of the body corporate would be to combine all the units into a single title, with the council, and eliminating the strata plan. This means you no longer have the flexibility to sell the units separately.

 

[boomtown]

Thanks that's very helpful. Is there any way to find out the sinking funds of a unit block without enquiring of the body corporate? Do they have to release that information to the public or is it generally only released if someone wants to sell?

 

[attrill]

The strata manager or owners are under no obligation to reveal that information. As a potential buyer you would have every right to ask to see all the records from the body corparate. I have bought units and made it a condition on the offer that I can inspect the records and pull out of the deal if I am not satisfied with them.

Looking through the minutes of the last AGM will reveal if there is anything major that the owners are worried about.