Nothing happens to your title, but if they're bankrupt (unlikely), or badly in debt (quite possible), then they need to pass special levies to cover the debt. The body corporate at my place had that problem. They got auditors in and the previous head is now fighting the charges against him for nicking the money. They passed a few special levies to put them back in the black. Everything has been fine since then. If you're buying you just need to know if that's going to happen anytime soon. Whether or not they're insolvent won't affect your insurance unless they've stopped paying insurance. That's a problem. Have you requested the financials for the body corporate of the place where you're buying? What did they show? From: cpt-fgc-bounce@xxxxxxxxxxxxx [mailto:cpt-fgc-bounce@xxxxxxxxxxxxx] On Behalf Of euraima tobias Sent: 12 November 2013 4:19 PM To: cpt-fgc@xxxxxxxxxxxxx Subject: [CPT-FGC] Re: Hi Can someone maybe advise me? How does the financial state of the body corporate of a complex affect you as a owner of one its units? Ie. Its solvency, its insurance etc. What happens to your sectional title in a case where they are declared insolvent? ********************************************************************** The information in this e-mail is confidential and may be legally privileged. It is intended solely for the addressee. Access to this e-mail by anyone else is unauthorized. If you have received this communication in error, please address with the subject heading "Received in error," send to the original sender, then delete the e-mail and destroy any copies of it. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful. Any opinions or advice contained in this e-mail are subject to the terms and conditions expressed in the governing KPMG client engagement letter. Opinions, conclusions and other information in this e-mail and any attachments that do not relate to the official business of the firm are neither given nor endorsed by it. KPMG cannot guarantee that e-mail communications are secure or error-free, as information could be intercepted, corrupted, amended, lost, destroyed, arrive late or incomplete, or contain viruses. This email is being sent out by KPMG International Cooperative ("KPMG International") on behalf of the local KPMG member firm providing services to you. KPMG International Cooperative ("KPMG International") is a Swiss entity that serves as a coordinating entity for a network of independent firms operating under the KPMG name. KPMG International provides no services to clients. Each member firm of KPMG International is a legally distinct and separate entity and each describes itself as such. Information about the structure and jurisdiction of your local KPMG member firm can be obtained from your KPMG representative. This footnote also confirms that this e-mail message has been swept by AntiVirus software.