What is an owners corporation?
An owners corporation (formerly body corporate) manages the common property of a residential, commercial, retail, industrial or mixed-use property development.
Buying into an owners corporation
Many people buy the unit or property of their dreams, and only after they have settled on the property do they realise that they have certain obligations.
How to make owners corporation rules
Your owners corporation (formerly body corporate) committee, secretary or manager should consider the purpose, scope and wording of the rules. This may take considerable time and effort.
Owners Corporations Act 2006
This law sets out the duties and powers of owners corporations.
If you own property affected by an owners corporation then you become a member of that owners corporation automatically. As a member, you have legal and financial responsibilities to the owners corporation.
Make an insurance claim
Strata Community Insurance.
CHU Strata Insurance.
Frequently asked questions
What is a plan of subdivision
A plan of subdivison depicts the break up of a piece of land, showing parcels of land commonly called ‘lots’ that can be sold separately. The plan of subdivison for a property is registered at Land Victoria and an owners corporation is automatically created if the plan creates common property. The plan of subdivision defines and governs the ownership of land, building and airspace, setting out private lots, common property and each lots voting entitlements and financial contributions.
What is an Owners Corporation
The lot you are consider buying may be part of an Owners Corporation. Whenever a plan of subdivision is lodged with the Titles Office of Victoria that creates common property, an Owners Corporation is incorporated. An Owners Corporation is responsible for managing the common property. A purchaser of a lot that is part of an Owners Corporation automatically becomes a member of the Owners Corporation when the transfer of that lot to the purchaser has been registered with Land Victoria. If you buy into an Owners Corporation, you will be purchasing not only the individual property, but also ownership of, and the right to use, the common property as set out in the plan of subdivision. This common property may include driveways, stairs, paths, roadways, vehicle gates, passages, lifts, common garden areas and other facilities set up for use by owners and Occupiers. In order to identify the boundary between the individual lot you are purchasing (for which the owner is solely responsible) and the common property (for which all members of the Owners Corporation are responsible), you should closely inspect the plan of subdivision.
What is a prescribed Owners Corporation
A prescribed owners corporation is one that has more than 100 lots or collects more than $200,000 in annual fees per financial year. A prescribed owners corporation must: establish a maintenance plan, have financial statements audited and obtain a valuation every five years of all buildings it is required to insure.
What is a maintenance plan
A maintenance plan covers planning and budgeting for future repairs and maintenance of the building. The maintenance plan sets out things such as: the major capital items that it will need to be repaired and/or replaced within the next ten years, the present condition of those items, when the items will need to be repaired or replaced, the estimated cost of the repair and replacement of those items and the expected life of those items once repaired or replaced.
As a member will I receive notification about an Owners Corporation Annual General Meeting
Yes you will. An owners corporation is required to provide a notice of an annual general meeting to each lot owner at least 14 days before the meeting. Notices may be sent electronically. The notice must include the date, time, location of the meeting. The general nature of business or any resolutions to be discussed or decided at the meeting. The text of any special or unanimous resolutions to be decided at the meeting, the financial statements, proposed budget and a statement that a lot owners have a right to appoint a proxy.
Is my Owners Corporation required to have a committee
An owners corporation with 13 or more lots must elect a committee at each annual general meeting. Owners corporations with less than 13 lots may elect a committee.
Membership of a committee
A committee must have at least 3 or not more than 12 members. The members must be lot owners or hold a proxy for a member. Once elected, a Committee hold office until a new Committee is elected. A Committee is elected at an annual general meeting. Members who have any amounts owing to the owners corporation is not eligible to be elected as a Committee member.
What are the duties of a committee member
A member of a committee must: Act honestly and in good faith, exercise due care and diligence, not make improper use of his or her position as a member to gain, directly or indirectly an advantage for themselves or for any other person and report to the owners corporation at each annual general meeting.