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Capitalizing on the possible marketing advantages
For the possible marketing advantages of community title to result in an improved selling price and a higher rate of sale, the services that will be delivered to residents must be valued by the residents and must be delivered cost effectively. Further, the community money that is collected and spent on administering the public space and infrastructure must bring demonstrable benefits to the residents, in improved lifestyle and increased property values.
Body Corporate Contributions
Contributions must be reasonable for owners and must be based on both expected current and future expenses.
Holding Costs
For the balance development land (i.e. not yet developed and sold, but still part of the community) body corporate levies will attach, which will be payable by the developer.
Outside balance lot levies the developer must be prepared to support services such as security if they are offering and provide such as 24 hours. This will be a transition period as the scheme grows more funds from owners will mean less support requested by the developer.
The Local Authority must not be alienated
Currently, community title is well accepted by certain local authorities, because it is regarded as a means of addressing other concerns (e.g. management of storm water run off, imposition of environmental management plans). However, under the heading “Local authority concerns” factors that could be a concern to some local authorities are outlined.
Balance the rights of the developer and the empowerment of the residents of the community
Community title does make the body corporate, and the owners (who are members of the body corporate), a factor in on going development of the land.
Should the development plan change outside of the parameters that are outlined in the original representations to owners, then the change may need the consent of the body corporate. Please see Part 6 of the Body Corporate and Community Management Act 1997 (Queensland) for an example of the type of consent required, and the circumstances in which it will be required.
Further, should the developer wish to change any of the maintenance agreements pertaining to the public space, then to the extent the body corporate is a party to those arrangements (possibly through a caretaking contract) then again the consent of the body corporate will be required.
Consulting on the above possibilities early may assist in describing possible outcomes during initial disclosure to purchasers.
