Strata vs Body Corporate: Key Differences Explained

Name: Mortgage Broker Brisbane - Hunter Galloway
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Buying an apartment or townhouse means more than just owning your own four walls — you’re also buying into a shared community with rules, responsibilities and ongoing costs. If you’ve been wondering what is the difference between body corporate and strata, you’re not alone — the two terms are often used interchangeably but mean very different things. One refers to ownership, while the other relates to legal responsibility and building management.

Understanding that distinction is crucial when budgeting — and it’s something a good mortgage broker in Brisbane can help you navigate.

Quick Summary

Strata title means owning a unit/townhouse/apartment as well as part of the whole building and common amenities
Body corporate (or owners corporation) is responsible for maintenance and management of common areas
Main difference is ownership (strata title) vs legal responsibility (body corporate)
Body corporate rules include: getting correct insurance, abiding by by-laws, attending meetings, notifying of ownership changes, paying levies
Body corporate responsibilities include: maintaining rules, administrative tasks, repairs and maintenance, record keeping, resolving issues
Strata title owner responsibilities include: paying maintenance fees, contributing to building insurance and rates, paying own bills
Steps before buying: research area, review strata plan/by-laws, check fees and sinking fund, do building/pest inspection, check other unit prices, get body corporate minutes, understand insurance

What Is Strata Title?

When you buy a unit, a townhouse, or an apartment, you also buy a part of the strata title. It means you will also be owning a part of the whole building, along with some common amenities, such as a gym, pool, lifts, garden, lobbies, entrances, car parks, and other facilities. You will also own a part of the land on which your unit is built.

Although you are responsible for your own unit or apartment, under the strata title, the upkeep and maintenance of common areas will be the collective responsibility of all the lot owners, including you. This can be difficult because when many people are involved in a decision, they might have different ideas on the best way to manage things, and this can cause confusion and disagreement. This is where the body corporate comes in.

What Is A Body Corporate?

Also known as an owners corporation, a body corporate is a legal entity whose core responsibility is to look after the maintenance and management of common areas in the building.

It’s up to them to decide whether to form a strata management team for the management of the building on the owners’ behalf or select someone from an executive committee who wants to do the work voluntarily.

So, the main difference between a strata title and body corporate is ownership and legal responsibility.

The body corporate is responsible for taking care of a number of issues related to the internal and external structure of the common area. It also tackles and resolves the problems that arise among the lot owners.

For example, if a person has issues with the general behaviour of their neighbour, the complaint goes straight to the owner’s corporation. Similarly, if there are any issues related to car parking or noise experienced by a lot owner, they can take the matter to the body corporate. Any decision regarding these matters is made in a general or committee meeting in the presence of lot owners.

Body Corporate—Rules And Regulations

To better understand the concept of a strata title vs body corporate, you should understand the rules and regulations from the perspective of both the owners corporation and as a lot owner.

Your responsibilities as a lot owner include:

Getting the correct insurance for the lot. The lot is insured under the insurance agreement of the building, so you will only need to arrange contents insurance.
Abiding by all the by-laws laid out by the body corporate.
Attending general meetings or participating via proxy in case of absence from the meeting. You can nominate a committee member to be your representative or choose a family member as a proxy.
Letting the body corporate know if or when there is a change in ownership. In the case of a tenanted lot, you should notify them when a tenant changes.
Making payment of all the levies in accordance with a schedule and without delay. Levies usually include the repair and maintenance cost, and a part of it goes into the sinking fund for coverage of any extraordinary expenditure.

The body corporate is responsible for the following:

Maintaining the rules and regulations laid out by the state legislation.
Taking care of the administrative tasks, finances and other funds, and insurance.
Taking responsibility for the repair and maintenance of common areas without causing any delay or inconvenience to the lot owners.
Maintaining proper records of all documents, including the register of committee members and lot owners, budget cost, financial records, and minutes of the meeting.
Making sure all documents are available for lot owners.
Resolving any issues that arise among lot owners (in the light of by-laws).

In Queensland, body corporate rules and responsibilities are governed by the Body Corporate and Community Management Act 1997. This legislation sets out the key duties and powers of the body corporate in Brisbane apartment complexes, such as:

Maintaining common property
Managing body corporate assets and finances
Enforcing by-laws
Holding meetings and keeping records
Raising funds through levies

As a strata title owner in Brisbane, it’s important to understand your rights and obligations under this Act.

Strata Title—Rules And Regulations

Strata title gives certain rights to a lot owner. For instance, it enables you to live peacefully in your lot. This is because all owners are required to honour the by-laws and be respectful of one another.

As a strata title owner, your responsibilities are as follows:

Pay fees that are used for maintenance of the property.
Contribute towards insurance of the building and any common property.
Pay council rates.
Pay your regular bills like electricity and water.

Freehold vs Strata vs Body Corporate — What’s the Difference?

Feature / Aspect	Freehold	Strata Title	Body Corporate (Owners Corporation)
Ownership	Full ownership of land and property. No shared responsibility.	Own your unit/lot plus a share of common property (building, gardens, amenities).	Legal entity representing all lot owners; no individual ownership — manages shared property.
Responsibilities	Responsible for all maintenance, repairs, rates, and insurance of the property and land.	Responsible for maintaining your own lot; contribute to body corporate fees for common property upkeep.	Manages maintenance, repairs, insurance, compliance, and administration of shared areas on behalf of all owners.
Costs	One-off purchase price plus individual maintenance, rates, and insurance.	Purchase price plus ongoing strata fees, levies, insurance contributions, and occasional special levies.	Covered by levies from lot owners; may incur special levies for large works.
Flexibility	Full control over property modifications and use.	Limited — must comply with by-laws, body corporate rules, and restrictions (e.g., renovations, pets, Airbnb).	Decisions made collectively by the committee or general meeting; enforces rules and by-laws.
Dispute Management	Private resolution between neighbours or council if necessary.	Body corporate manages disputes between lot owners related to common property or by-laws.	Acts as the decision-making authority and mediator for the community.
Suitability	Ideal for buyers wanting full control and minimal shared obligations.	Suitable for low-maintenance living with shared amenities but some rules to follow.	Not a standalone purchase option — exists only as part of strata/lot ownership to manage common property.

Who Pays For What? (Strata vs Body Corporate Responsibilities Compared)

Many buyers get confused about which expenses fall under the body corporate and which are the responsibility of the lot owner. Understanding this distinction can help you budget accurately and avoid disputes.

Comparison Table: Strata vs Body Corporate Responsibilities

Expense / Item	Strata (Owner)	Body Corporate (Owners Corporation)
Building Insurance	Contributes via levies	Covers the entire building and common property
Contents Insurance	Owner pays for personal items and internal fixtures	N/A
Roof Repairs	N/A	Covered by body corporate through levies
Internal Plumbing	Owner responsible for plumbing inside their lot	Body corporate handles plumbing in common areas
Garden Maintenance	N/A (unless private lot area)	Maintains shared gardens and landscaping
Pest Control	Owner responsible inside lot	Body corporate covers common areas if part of maintenance plan
Council Rates	Owner pays individually	N/A (body corporate may manage water charges for common property)

Note on Grey Areas:

Some items may fall in between or require clarification:

Balcony leaks — often body corporate responsibility if structural, but interior damage may be owner’s responsibility.
External walls — structural repairs usually covered by body corporate, cosmetic finishes may be owner’s concern.
Shared wiring / utilities — depends on whether it’s within the lot or common property. Always check the by-laws and body corporate records.

Strata Title Vs Body Corporate Pros and Cons

Strata title and body corporate are often talked about together, but they affect owners in different ways. Strata title refers to what you own, while the body corporate controls how that shared space is managed. To help you decide if this ownership style suits you, here’s a simple pros and cons comparison.

Aspect	Strata Title (Ownership)	Body Corporate (Management & Rules)
Pros	• More affordable entry into property ownership • Shared maintenance reduces individual responsibility • Access to facilities like pools, lifts or gyms	• Handles building insurance, repairs and admin • Helps resolve disputes between owners • Ensures consistent upkeep of shared areas
Cons	• Less freedom to modify your property • Must comply with by-laws and approvals • Ongoing fees regardless of usage	• Can feel restrictive if rules are too strict • Committee decisions may not align with your preferences • Mismanaged funds can lead to sudden levy increases
Best For	• Buyers wanting low-maintenance living with shared amenities	• Owners who prefer structure, fairness and clear responsibilities within a shared community

Questions To Ask The Agent Or Body Corporate Manager Before Buying

Before committing to a strata property, it’s important to dig beyond the sales pitch. These questions will help you uncover hidden costs, restrictions or future risks.

Fees & Financial Health

What are the current body corporate levies — and how often are they reviewed or increased?
Is there a healthy sinking fund balance? Can I see the latest financial statement?
Are there any upcoming special levies planned?

Building Condition & Maintenance

Have there been any recent major repairs (e.g. waterproofing, structural works, fire systems)?
Are there any current defects or pending insurance claims?
What maintenance is scheduled in the next 12–24 months?

Rules & Restrictions

Are pets allowed — and under what conditions?
Are renovations or flooring upgrades allowed without approval?
Is Airbnb or short-term letting permitted?

Community & Occupancy Mix

Is the building mostly owner-occupied or investor-owned?
Are there any recurring disputes noted in the meeting minutes?

Governance & Compliance

Who is the current strata/body corporate manager? Are they proactive and responsive?
How many people are on the committee — and how often do they meet?
Have there been any legal disputes or tribunal cases involving the body corporate?

Pro Tip: Always request the last 2 years of AGM minutes, the strata financial report and the by-laws — these documents will tell you more about the building than any glossy brochure.

Can You Disagree With The Body Corporate?

Disagreements in strata living are common. After all, you are sharing walls, facilities and decision-making with your neighbours. The good news is that you do have rights — and there are clear processes in place if you feel something is unfair.

Common Disputes Owners Face

Here are some realistic scenarios where owners often clash with the body corporate:

Noise complaints that never get resolved
Renovation requests being rejected without explanation
Unfair parking arrangements or misuse of visitor spaces
Special levies that feel excessive or poorly justified

If any of these sound familiar, you don’t have to stay silent.

Start by Raising It Formally

Always begin with a calm, written request to the committee. Explain the issue clearly and ask for it to be added to the next meeting agenda. Keep all communication in writing. This creates a record in case things escalate later.

Think Your Levies Are Unfair?

You have the right to request a breakdown of expenses or challenge how funds are being used. Ask for copies of recent budgets, quotes or meeting minutes that led to the decision. If the committee refuses to review it, you can call for a vote at a general meeting.

Use the Internal Dispute Resolution Process

Every body corporate must follow an internal dispute process. This usually involves:

Submitting a written complaint
Allowing the committee to respond formally
Attempting to resolve the issue through discussion or mediation

In many cases, that’s enough to sort things out.

Still Not Resolved? Escalate to QCAT

If the issue remains unresolved, you can escalate it to QCAT (Queensland Civil and Administrative Tribunal). QCAT handles disputes involving:

By-law enforcement
Levy disagreements
Renovation or property access disputes
Unreasonable decisions by the committee

You don’t always need a lawyer — the process is designed for everyday owners.

Final Tip

Don’t wait until emotions boil over. The sooner you raise an issue, the easier it is to solve. And if you are unsure where you stand, speak with your solicitor or even your mortgage broker in Brisbane — they often deal with strata disputes every day and can point you in the right direction.

Bonus: 12 Steps To Follow Before Buying A Unit

Step 1: Research the Area

Find out the local demographics using tools like Microburbs. Enter the suburb or property to get information such as café score, average age groups, and overall vibe. This helps you determine if the area suits your lifestyle or investment plans. Demographics also give insight into potential tenants if you plan to rent the property.

Step 2: Review Strata Plan and By-Laws

Examine the strata plan to understand your property boundaries and what constitutes common property. Review by-laws carefully, as they govern rules about pets, balcony modifications, and short-term rentals like Airbnb. Every building can have unique rules that may impact your living arrangements or investment plans.

Step 3: Check the Quarterly Strata Fees

Ask the real estate agent for the quarterly strata fees. High fees may indicate maintenance issues, while lower fees might suggest fewer amenities. Consider additional costs from features like pools and lifts, as these can significantly affect ongoing expenses.

Step 4: Check the Sinking Fund

The sinking fund is a collective reserve for emergencies or major maintenance. A balanced fund is important: too little may result in special levies, too much may indicate maintenance is being neglected. Review historic minutes to understand past spending—e.g., roof or balcony repairs versus major structural issues.

Step 5: Complete a Building and Pest Inspection

Hire a building and pest inspector to uncover hidden issues such as foundation problems or pest damage. Even if the strata reports seem fine, inspections provide an independent assessment of the property’s true condition.

Step 6: Check What Other Units Have Sold For

Review recent sales in the building to gauge property value and detect potential issues. Significant discounts compared to nearby units may indicate problems or management concerns within the strata.

Step 7: Get a Copy of the Body Corporate Minutes

Minutes provide insight into property management, upcoming levies, and past maintenance. The further back you can review, the better understanding you’ll have of the unit’s history and financial health.

Step 8: Lean on Your Solicitor to Review Contracts and Minutes

Solicitors can help interpret contracts, strata reports, and minutes, ensuring you make an informed decision. In NSW, they typically assist with understanding the legal and financial implications of your purchase.

Step 9: Check the Balance Between Occupants and Investors

Prefer buildings with higher owner-occupier rates, as they tend to maintain properties better. Investors may focus solely on returns, which can affect property upkeep. Use realestate.com.au to check the proportion of rented versus owner-occupied units.

Step 10: Understand the Insurance Cover

Know what the strata insurance covers, including natural disasters like floods. Ensure both your unit and the entire complex are protected. Include a due diligence clause in your finance offer to allow time for verification before purchase.

Step 11: Consider Pre-Approval

Some banks have restrictions on lending for units, specific postcodes, or property sizes. Ensure your pre-approval covers the type of property you want to buy to avoid complications later.

Step 12: Put Protective Clauses in Your Contract

Include clauses such as due diligence, subject-to-finance, and building/pest inspections. Your solicitor and mortgage broker can advise on the right combination of clauses based on market expectations and property specifics.

Strata Title Vs Body Corporate Frequently Asked Questions

Can I refuse to pay body corporate fees?

No — levies are legally enforceable. Even if you don’t use shared facilities like pools or lifts, you must contribute to maintenance and insurance. Unpaid levies can lead to interest charges or legal action.

Can I run a business or Airbnb from a strata property?

It depends on the by-laws. Some buildings allow short-term rentals or home businesses, while others strictly prohibit them. Always check the strata rules before you buy.

Can I challenge a decision made by the body corporate?

Yes. Start by raising it formally at a committee meeting. If unresolved, disputes can be escalated to a state tribunal such as QCAT in Queensland.

Who owns the land in a strata title?

In a strata title, individual owners own their unit or lot, while the land and common property — such as driveways, gardens, and hallways — are collectively owned by all owners through the body corporate.

What does the body corporate cover in Queensland?

Generally, the body corporate covers building insurance, maintenance of common property, shared utilities, and administration of by-laws. However, it does not cover internal fixtures, contents, or personal liability within individual lots.

How do I know if my property is strata title?

Check your property title or contract documents — it will state if it’s a “Strata Title” or “Community Title Scheme.” You can also confirm through your state titles office or by asking the selling agent for a copy of the strata plan or disclosure statement.

What is the average body corporate fee in Brisbane?

The average body corporate fee in Brisbane ranges from $3,000 to $6,000 per year for standard apartment buildings. Complexes with lifts, pools or gyms may reach $7,000 to $10,000, while luxury high-rise buildings can exceed $12,000 annually.

Is an owners corporation the same as a body corporate?

Yes. An owners corporation and a body corporate are the same thing. The name simply changes depending on the state. Queensland uses “body corporate,” while Victoria and New South Wales use “owners corporation.”

Do body corporate fees include council rates?

No. Body corporate fees do not include council rates. Council rates are billed separately to each owner by the local council, while body corporate levies cover shared insurance, maintenance and administration.

Is body corporate compulsory in Victoria?

Yes. Body corporate (owners corporation) is compulsory in Victoria for any property with shared areas, such as apartments, townhouses or units. If you buy into a strata title, you automatically become a member and must pay levies.

Does body corporate include building insurance?

Yes. Body corporate fees normally include building insurance, which covers the structure and common property. However, it does not cover your contents, flooring upgrades or internal fixtures, so owners still need personal contents or landlord insurance.

What are the benefits of a body corporate?

The main benefits of a body corporate are shared maintenance costs, professional management, dispute resolution and access to facilities like pools or lifts without individual upkeep responsibilities. It creates structure and fairness within shared living environments.

What are the disadvantages of a body corporate?

The disadvantages of a body corporate include ongoing fees, restrictions on renovations or pets, and the risk of sudden special levies for major repairs. You must also follow majority decisions made by the committee, even if you disagree.

Thinking Of Buying A Unit Or Any Other Property? We're Here To Help.

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If you want to get started, please call us on 1300 088 065 or book a free assessment online to see how we can help.