Can a body corporate manager oncharge owners for fees incurred by direct contact?
Our body corporate has 12 lots across six floors, operating under the BFP module. Some owners contact the body corporate manager directly instead of communicating directly with the seven committee members, despite the committee encouraging owners to follow this process to avoid additional fees. These owners say they do not trust the committee. The body corporate manager charges a $25 fee for time spent processing and responding to these direct enquiries, and these costs are currently charged to the body corporate.
In many cases, the body corporate manager forwards the enquiry to the chairperson for the committee to answer or investigate, but the fee is still incurred. Can these fees be oncharged to the individual owners who make direct contact?
The body corporate manager charges individual owners for matters such as late levy payments, animal applications, and other lot specific requests. Why can't enquiry related fees be oncharged to the individual owner instead of the body corporate?
The administration agreement is between the body corporate and the body corporate manager, and there is no ability to charge a third party pursuant to that contract.
There is no ability for the body corporate manager's fees to be oncharged to lot owners. The administration agreement is between the body corporate and the body corporate manager, and there is no ability to charge a third party pursuant to that contract. If the charges are what the engagement of the body corporate manager provides for, this is a cost the body corporate must bear. The adjudicator in Balmattum [2011] QBCCMCmr 483 relevantly provided that:
"Again, this is just a cost of administering a community titles scheme, which is borne by the body corporate."
Levy recovery costs are different because the legislation provides that these can be recovered. Other applications by lot owners do not have a right of recovery but the committee may be reasonably imposing a condition of approval that the related costs are borne by the lot owner (or agreeing to expedite the request on the basis that the costs are borne by the lot owner).
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Todd is an experienced property lawyer who heads up Mahoneys body corporate team.
Todd specialises in body corporate law and predominantly acts for bodies corporate, body corporate managers and lot owners on all matters affecting bodies corporate.
Todd is an active member of the Strata Community Association (Qld). In 2019 he was appointed to the Strata Community Association (Qld) legislation committee and assists in making submissions on behalf of the Strata Community Association (Qld) on issues such as legislative reform in body corporate law.
As Todd is also a body corporate committee member, he understands the day to day requirements of administering a body corporate.
Todd has a focus on achieving practical and commercial results for his clients and understands the market in which bodies corporate operate within.
Todd also provides body corporate managers, and other industry stakeholders, with presentations and training on matters affecting the body corporate industry.
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