When it comes to managing shared spaces like apartment complexes, townhouses, or subdivisions, you’ve probably heard the terms “body corporate” and “resident society.” These are two different ways to handle shared property and community living and understanding how they work can help you make informed decisions, whether you're a homeowner or investor. Here’s a detailed breakdown to help you understand their roles.
What is a Body Corporate?
A body corporate is automatically set up when a property with multiple units—like an apartment complex—is created under the Unit Titles Act. This is a legal entity that is made up of all the unit owners, and its main responsibility is to manage shared areas such as elevators, gyms, common rooms, gardens, or driveways. The body corporate ensures the upkeep and functionality of the property by collecting fees from all the owners to cover maintenance, insurance, and other shared expenses.
When you own a property within a body corporate, you own your specific unit and a proportional share of the common property. However, you do not directly own the land your unit sits on—it is collectively owned by all the unit owners as part of the body corporate. This collective ownership ensures the shared spaces are maintained and managed effectively.
Decisions about the property are made collectively during owner meetings, where votes are cast on important matters. Routine tasks and operations are often delegated to a committee selected from the owners. If you own a unit in this type of property, you’re automatically a part of the body corporate and are required to follow its rules and pay the associated fees. This structure provides a legal framework for managing the property, ensuring accountability and fairness.
What is a Resident Society?
A resident society, on the other hand, is typically associated with subdivisions or developments that feature shared spaces like private roads, car parks, or other communal amenities. Unlike a body corporate, a resident society is not automatically created by law. It is instead established by the developer through a contract or agreement, which homeowners must agree to when purchasing a property within the area.
In a resident society, you own the land your home is built on (freehold title), as well as the home itself. However, as part of the agreement, you share responsibility for maintaining and managing any communal spaces or amenities, such as the car parks which are collectively owned or managed by the society. This means you’re required to join the resident society and pay fees to ensure these shared areas are well-maintained.
Unlike body corporates, resident societies do not operate under a specific legal framework like the Unit Titles Act. Instead, they follow their own bylaws or rules, which are created and agreed upon by the residents themselves. This allows for more flexibility in how the society operates.
Key Differences
Although body corporates and resident societies both manage shared spaces, they differ significantly in their structure and operation. Here’s a closer look at the key differences:
Why It Matters
Understanding whether a property is part of a body corporate or a resident society is essential when buying, selling, or managing a property. Body corporates offer a well-defined structure backed by legal rules, providing clarity and consistency. However, in a body corporate, you don’t own your land outright but rather a proportional share of the common land. On the other hand, resident societies allow for greater flexibility and come with the added benefit of owning your land, giving you more control over your property.
For homeowners and investors, it’s crucial to understand the obligations and benefits of each system, including fee structures, decision-making processes, and what you actually own within the property.
If you’re unsure which setup is right for your situation or need expert advice on property management, we’re here to help. With years of experience in property sales, we can guide you through the process and ensure everything operates smoothly, giving you peace of mind. Shared spaces should feel like a benefit—not a burden. Let us help you make the most of your investment.