What is BCCM Form 33 and Why does Form 33 matter before signing a QLD property contract

What is BCCM Form 33?

BCCM Form 33 is the body corporate certificate used for many community titles scheme properties in Queensland.

It is relevant where a seller is selling a lot in a community titles scheme governed by the Accommodation Module, Commercial Module, Small Schemes Module or Standard Module.

In simple terms, it is a document that gives the buyer important information about the body corporate and the lot being purchased.

For many buyers, this is the first time they realise that buying a unit or townhouse is different from buying a freestanding house. When you buy into a body corporate property, you are not only buying the lot. You are also entering into a scheme with shared rules, shared costs and shared responsibilities.

Why does Form 33 matter before signing?

Under Queensland’s current seller disclosure framework, body corporate property sellers need to provide certain documents to a buyer before the buyer signs the contract of sale.

For body corporate properties, these documents may include:

• the body corporate certificate;
• the seller disclosure statement; and
• the community management statement.

This timing is important. The purpose is to give the buyer relevant information before they commit to the contract.

A buyer who does not review the body corporate certificate carefully may miss important financial or practical issues. A seller who does not organise the certificate early may face delays or disclosure problems before the contract can be signed.

What information can a body corporate certificate show?

A body corporate certificate can contain information that affects both the cost and practical use of the property.

Depending on the scheme, the certificate may help identify:

• regular body corporate levies;
• levies that are due;
• outstanding amounts owed by the current owner;
• the regulation module that applies to the scheme;
• applicable by-laws;
• insurance information;
• authorised improvements to common property;
• maintenance responsibilities;
• body corporate management information;
• contractual arrangements involving the body corporate; and
• details that may affect settlement adjustments.

These issues can be significant. A property with low purchase price but high levies may not be as affordable as it first appears. A property with strict by-laws may not suit the buyer’s intended use. A property with outstanding levies may create settlement adjustment issues.

What buyers often misunderstand about body corporate properties

Many buyers think body corporate issues only relate to shared facilities, such as pools, lifts, gardens or driveways.

In reality, body corporate ownership can affect everyday decisions. It may affect pets, parking, renovations, noise, short-term letting, use of common property and maintenance obligations.

Buyers also need to understand that when they buy a lot in a body corporate property, they automatically become a member of the body corporate. This is not optional.

This is why the body corporate certificate should be reviewed as part of the buyer’s due diligence, not after the buyer has already emotionally committed to the property.

Levies: the cost buyers often underestimate

Body corporate levies can have a direct impact on affordability.

The certificate may tell the buyer what levies are payable and whether there are amounts outstanding. Buyers should consider not only the current levies, but also whether levies may increase over time.

Common reasons for higher or increasing levies include:

• aging common property;
• building maintenance;
• insurance increases;
• capital works;
• shared facilities;
• management contracts;
• lift or fire safety systems; and
• unexpected repairs.

A buyer should not only ask, “Can I afford the purchase price?” The better question is, “Can I afford the ongoing ownership costs?”

By-laws: the rules that may affect how you live or invest

By-laws are rules that apply within the body corporate scheme. They may regulate the behaviour of owners, occupiers and visitors.

Depending on the scheme, by-laws may affect:

• keeping pets;
• parking;
• noise;
• renovations;
• use of balconies;
• air-conditioning installation;
• short-term letting;
• moving in and out; and
• use of common facilities.

A buyer who plans to keep a pet, renovate, rent out the property or use it as an investment should review the by-laws before signing.

Insurance and maintenance: who is responsible?

Body corporate insurance and maintenance responsibilities can be confusing.

The body corporate may be responsible for insuring common property and some buildings. However, an owner may still need their own insurance for contents or for matters not covered by the body corporate’s insurance.

Maintenance responsibility can also be complicated. Some items may be the owner’s responsibility, while others may be the body corporate’s responsibility. The survey plan, by-laws, CMS and body corporate records may need to be reviewed to understand the position.

Buyers should avoid assuming that “the body corporate will take care of everything.” That is not always the case.

Form 33 is not always the correct form

Another point that can be missed is that BCCM Form 33 is not the only body corporate certificate form.

For specified two-lot schemes, BCCM Form 34 may be relevant instead. For some older body corporate schemes under different legislation, another form may apply.

This is why sellers should not simply download a form and assume it is correct. The applicable scheme type and regulation module should be checked before preparing disclosure documents.

When should a seller request the body corporate certificate?

Sellers should request the body corporate certificate early.

The certificate must be requested from the body corporate in writing, and the seller will need to pay the prescribed fee. The body corporate is generally required to provide the certificate within the relevant statutory timeframe.

Sellers should also remember that the information in the certificate is only accurate as at the date the certificate is issued. If the lot does not sell quickly, or if relevant details change, an updated certificate may be needed.

In practice, sellers should speak to their lawyer early so that disclosure documents can be prepared before marketing, negotiation or contract signing becomes time-sensitive.

What should buyers do after receiving Form 33?

Buyers should not simply file the certificate away.

Before signing or going unconditional, buyers should consider:

• reviewing current and upcoming levies;
• checking whether there are outstanding amounts;
• reading the by-laws;
• checking insurance information;
• understanding maintenance responsibilities;
• reviewing the CMS;
• asking whether there are body corporate records worth inspecting;
• checking meeting minutes for upcoming works or disputes;
• considering whether the property suits their intended use; and
• obtaining legal advice before signing or before key contract deadlines.

What body corporate records may be worth checking?

Form 33 is important, but it may not tell the whole story.

In some transactions, a buyer may also want to review body corporate records, such as:

• annual general meeting minutes;
• committee meeting minutes;
• financial statements;
• insurance documents;
• contribution notices;
• caretaking or management contracts;
• records about building defects or maintenance issues;
• records about disputes; and
• documents relating to upcoming major works.

This is particularly important for older buildings, buildings with lifts or shared facilities, high-levy schemes, investment properties and properties where the buyer has specific plans, such as keeping pets or renovating.

How a lawyer can help

A lawyer can assist both sellers and buyers with body corporate property transactions.

For sellers, a lawyer can help identify what disclosure documents are required, when the documents must be provided, and whether Form 33, Form 34 or another certificate is relevant.

For buyers, a lawyer can review the body corporate certificate, CMS, by-laws, levies, contract conditions and any issues that may affect the purchase.

This is especially important where the buyer is purchasing an apartment, townhouse, commercial lot, management rights-related property or a property within a complex scheme.

How Ensure Legal can assist

Ensure Legal assists clients with Queensland conveyancing, contract review, body corporate property transactions, commercial property matters and related legal issues.

If you are buying or selling a unit, townhouse or body corporate property in Queensland, our team can assist with reviewing the contract, body corporate certificate, CMS and related disclosure documents.

Early review can help identify document issues, levy risks, by-law restrictions, settlement adjustment issues and transaction timing concerns before they become more difficult to manage.

Key takeaway

BCCM Form 33 is more than a standard form. It can tell a buyer important information about the body corporate, the lot, ongoing costs, by-laws, insurance and scheme obligations.

For sellers, it is part of preparing the property for sale. For buyers, it is a key due diligence document.

Before signing a contract for a unit, townhouse or body corporate property in Queensland, make sure the relevant body corporate documents are obtained and reviewed.