When considering the purchase of an apartment or townhouse, is the owner ready to deal with all aspects of the sub-ownership property?
Sub-ownership appears to be complicated, but in fact, it makes life easier for owners and makes it easier to understand the property to be purchased.
Sub-ownership makes it easier for owners to handle matters in public life.
It also helps to deal with transactions with owners and corporate bodies, to negotiate charters, to manage public areas and to prepare for the costs that may arise from sub-ownership.
Numerous committees, meetings, fees and charters are confusing, so this article outlines some of the basics.
What is Divisional ownership?
Sub-ownership is a system of property rights, representing the ownership of a building or part of the legal ownership of the building.
Sub-ownership typically occurs in a private apartment or in a community with multiple homes, allowing individuals to acquire partial ownership of the property (which is called a "one unit").
Sub-title properties may be in the form of residential properties, including:
- Apartment
- High-rise / low-rise apartment
- Double-style villa
- Townhouse, o
- Single family villas
It can also be a commercial property, including:
- office
- Retail shop
- factory
- storehouse
- Storage unit house
Australia's laws on sub-ownership vary slightly from state to state and territory. When the owner buys a set of sub-ownership property, he will also become a member of the owner's body corporate.
What is an owner's body corporate?
A legal entity formed by an owner in a building or neighborhood, both a corporate body of owners (referred to in some states as a property).
Owners share ownership of and are responsible for the entire "public property"-including stairwells, gardens, pools, driveways, laundry rooms, halls and exterior areas of the building.
Understanding sub-ownership property
After staying in an ideal apartment, what are the obligations of the owner to the sub-ownership property and the community?
（规程或条例） rules
Life in a sub-ownership property is bound by a series of articles of association.
These regulations are designed to promote harmonious public life, ensure the safety of residents, and protect the appearance and integrity of buildings and their surrounding facilities.
These regulations are intended to create a harmonious atmosphere for residents of sub-ownership properties.
The charter sets out all aspects of daily life, including garbage disposal, noise restrictions, parking, pets and the ability to dry clothes on the balcony. Even renovations (including air conditioning or flooring) and any changes to public property.
Each sub-ownership property may have a different charter. However, different types of properties may have "charter templates" (e.g. residential, commercial and integrated-use types) depending on their type.
Please note: the property regulations are mandatory and individuals who violate the regulations may be punished. Therefore, be sure to read all kinds of guides carefully before allowing dogs to move in public areas.
collect fees
Sub-ownership property charges (i.e. property fees) are regular and are used for the operation and maintenance of the property.
This charge is generally calculated on the basis of the area of the unit owned by the owner (for example, the cost of the three-bedroom unit will be higher than the one-room unit), the area of the building in which the unit is located, the age of the building and its facilities. Elevators, swimming pools, gymnasiums and other facilities that need to be maintained regularly will generally increase fees.
The charge is generally calculated according to the area of the unit owned by the owner, the age of the building, the area and its configuration facilities.
Fees are divided into the following three categories:
- Management fee: management fee is mainly used for the daily operation of sub-ownership property, including cleaning, greening, real estate management, public area management, maintenance, insurance, accounting and so on.
- Debt repayment funds: debt service funds are generally used for large or long-term projects such as building construction, painting, plumbing, maintenance and emergency or configuration upgrades.
- Special charges: special charges are mainly used for emergency or temporary expenses. Large-scale construction, maintenance or structural optimization of buildings, such as replacement of roofs or removal of termites, are generally charged when the amount of the management fee or debt service fund is insufficient. Such fees are charged on the basis of other existing charges.
Experts suggest that special fees for sub-ownership properties may be the focus of debate between owners and managers, so owners must be aware of the corresponding responsibilities of the units they live in before they move in.
Now that you understand the obligations associated with sub-ownership, do you know who the decision makers that affect the owners and their properties are-and how they get the say?
meeting
The property meeting decides on feasible matters related to sub-ownership of property operations, such as building maintenance, management, constitution-making and community activities.
All owners and owners' representatives have the right to participate in the meeting and vote by proxy or in person.
Owners and owners' representatives may take part in the meeting and vote.
Voting rights, like fees, are calculated according to the size of the owner's unit. For decisions to be approved, the meeting shall reach a quorum (that is, the minimum number of owners and units present). The L ä nder prescribes that at least one meeting (annual general meeting) shall be held every year.
If a particular problem needs to be dealt with and cannot wait until the annual general meeting, such as special fees, regulations revision or large-scale projects, it is possible to hold extraordinary or special meetings.
committee
Joining the committee is an important way for owners to participate in sub-ownership of real estate operation. A committee composed of owners (or their nominees) manages the owners' bodies corporate on behalf of the owners of all units. The committee is usually elected at the annual general meeting.
The purpose of the Commission is to ensure that all households comply with the State's sub-title laws and community statutes. It also handles all resolutions submitted at previous meetings and the day-to-day operation of sub-ownership properties. The committee may meet on its own throughout the year and handle a variety of matters, such as obtaining quotations for maintenance works.
The committee can make the project work and the building improved, but there is also responsibility to other owners.
Management of Divisional ownership of Real Estate
Sub-ownership property is not necessary to have a manager, some sub-ownership property can be self-managed by the owner. But the manager will solve many complicated and thorny problems in owner's self-management.
A sub-ownership property usually assigns a manager, usually an independent company, to implement guidelines on behalf of the owner.
A sub-ownership real estate manager-usually an independent company-is responsible for a wide range of matters, large and small.
The manager is responsible for everything from arranging maintenance to helping draft new statutes, holding annual meetings, issuing fee notices, formulating budget plans and preparing financial accounts, records and statements. First-class managers have extensive experience and are valuable resources for any sub-ownership property or committee, so owners need to conduct a full investigation before appointing managers.
But it's more than that.
Sub-title properties are complex, so owners should read state laws and review sub-ownership reports before buying them. In some parts of Australia, goverment and authorities organize courses or exchanges related to common problems in sub-ownership.
