If you are buying a unit, townhouse, apartment, or any other property in a community titles scheme in Queensland, something significant changed in how that sale is conducted from 1 August 2025. As part of a major overhaul of Queensland property law under the Property Law Act 2023 (Qld), sellers of lots in community titles schemes are now legally required to provide you with a body corporate certificate before you sign the contract.
This is not a minor procedural update. It changes what you as a buyer are entitled to receive before committing to one of the most significant purchases of your life — and it creates meaningful legal consequences if those obligations are not met.
What Is a Community Titles Scheme?
A community titles scheme is a type of land ownership arrangement where individual lots — such as units, apartments, or townhouses — exist alongside shared common property managed by a body corporate. The body corporate is responsible for managing the building, common areas, insurance, financial accounts, by-laws, and other administrative matters on behalf of all lot owners.
When you buy a lot in a community titles scheme, you do not just buy your individual unit or townhouse. You also become a member of the body corporate and take on financial obligations — including levies — from the date of settlement. Understanding the financial health and governance of the body corporate is therefore critical before you sign.
What Changed on 1 August 2025?
Before 1 August 2025, sellers were required to provide a section 206 disclosure statement under the Body Corporate and Community Management Act 1997 (Qld) (the BCCM Act). That form has now been replaced.
Under the new seller disclosure regime introduced by the Property Law Act 2023 (Qld), sellers of existing lots in community titles schemes must now provide a body corporate certificate as a prescribed certificate, forming part of the overall seller disclosure package. The old section 206 form no longer applies to new contracts.
The body corporate certificate comes in two versions:
- Form 33 — for use in all community titles schemes except specified two-lot schemes.
- Form 34 — for specified two-lot schemes.
A separate form — Form 18 — applies to schemes under the older Building Units and Group Titles Act 1980 (Qld).
Critically, unlike the old section 206 disclosure statement which the seller could prepare themselves, only the body corporate can prepare the new body corporate certificate. The seller (or their authorised agent) must send a written request to the body corporate manager or committee, and under the Property Law Regulation 2024 the body corporate must respond within five business days of receiving the request.
What Does the Body Corporate Certificate Contain?
The body corporate certificate provides a comprehensive snapshot of the scheme at the time of the sale. For the lot being sold, it covers:
- The by-laws and any exclusive use entitlements affecting the lot.
- The lot’s entitlements and financial contribution obligations — including how much the regular levies are.
- Outstanding amounts owed on the lot (for example, unpaid levies from the current owner).
- Information about common property, shared assets, and any service contracts or embedded networks affecting the scheme.
- The body corporate’s administrative and sinking fund balance and recent contributions.
- Any special levies that have been raised or are anticipated.
- Insurance details for the scheme.
- Any orders, disputes, litigation, or other matters affecting the body corporate.
This level of disclosure is significantly more comprehensive than what was required under the previous section 206 regime — and for good reason. Buyers are now entitled to see the financial reality of the body corporate before making their decision, not after.
What Are Your Rights If Disclosure Is Not Provided?
The Property Law Act 2023 (Qld) gives buyers meaningful rights where the disclosure obligations are not met. Under section 104 of the Act, a buyer may terminate the contract at any time before settlement if:
- The seller failed to provide a body corporate certificate before the buyer signed the contract, or
- The body corporate certificate was provided but was inaccurate or incomplete in relation to a material matter, the buyer was not aware of the true state of affairs when they signed, and the buyer would not have signed had they known the correct position.
Importantly, under section 106 of the Act, the termination right applies even where the inaccuracy was caused by the body corporate rather than the seller — for example, where the body corporate provided incorrect levy information on the certificate. This reflects the legislature’s intention to place the risk of disclosure failures on the seller’s side of the transaction.
If a buyer exercises this termination right, section 105 requires the seller to refund all amounts paid by the buyer, including any interest accrued on the deposit. There is no penalty imposed on the buyer for terminating on these grounds.
What Should Buyers Look for in the Certificate?
When you receive a body corporate certificate, do not treat it as administrative paperwork to be filed away unread. It is one of the most practically important documents in your purchase. Key things to check include:
- Outstanding levies. Are there unpaid levies on the lot? These can become your responsibility to clear, or they should be adjusted at settlement.
- Special levies. Has a special levy been raised — for example, for building repairs, roof replacement, or external painting? A special levy can add thousands of dollars to your holding costs after settlement.
- Sinking fund balance. Is the sinking fund well-funded or underfunded? An underfunded sinking fund often means significant levies are coming.
- By-laws. Do any by-laws restrict how you intend to use the property — for example, restrictions on pets, short-term rentals, or renovations?
- Disputes and litigation. Is the body corporate involved in any legal proceedings? Active litigation can be costly and can affect the value of your lot.
- Financial contributions. What are your quarterly or annual levy obligations, and do they fit your budget?
What Sellers and Agents Need to Know
If you are selling a lot in a community titles scheme, the obligation to provide the body corporate certificate rests with you — not the buyer, and not just your real estate agent. You need to request it from your body corporate manager or committee early in the sale process, given the five-business-day response window.
Failure to provide the certificate — or providing an inaccurate one — can give the buyer a right to terminate, at any point right up until settlement. This is a significant risk, and one that requires careful coordination between you, your agent, your solicitor, and your body corporate manager.
Note also that the body corporate may charge a fee for producing the certificate, with prescribed fee limits applying under the Body Corporate and Community Management (Body Corporate Certificate Fees) and Other Legislation Amendment Regulation 2025, which was registered on 19 June 2025. Urgent requests (with a 24-hour turnaround) typically attract a higher fee.
Auctions Are Not an Exception
Even when a property in a community titles scheme is sold at auction, the seller’s disclosure obligations still apply. From 1 August 2025, sellers must provide the Form 2 seller disclosure statement, including the body corporate certificate, to registered bidders before the auction takes place. This is a significant change from the previous auction environment in Queensland, and both agents and sellers need to plan for it accordingly.
A New Era of Buyer Protection
The introduction of the body corporate certificate as a mandatory pre-contract document reflects a broader shift in Queensland property law — away from the traditional “buyer beware” approach and toward a regime that places clear information obligations on sellers before any contract is signed.
For buyers, this means greater certainty and more information at the point of decision. For sellers and their representatives, it means more preparation is needed before a property can be marketed and sold. In both cases, good legal advice at the outset will help the transaction proceed smoothly and lawfully.
Our Residential Conveyancing Lawyers are experienced in the new seller disclosure regime and can guide you through every step of your transaction. Contact us today on (07) 3482 6999 or at mail@biglaw.com.au.
