What is an Owners Corporation ?
*This guide was developed through the Hi-RES project; a City of Melbourne led initiative in partnership with the Cities of Port Phillip and Yarra, Strata Community Australia (Vic), Green Strata, Moreland Energy Foundation and Yarra Energy Foundation, and supported by the Victorian Government Sustainability Fund.
An Owners Corporation is a group of Owners that contribute a yearly amount to run, manage, maintain an area called Common Property
An Owners Corporation is formed when a plan of sub division is registered that contains land denoted as common property. Any persons that buy property in an owners corporation become a member of the owners corporation, this is not an option. With that comes both financial and legal responsibilities to the owners corporation.
The key responsibilities of an Owners Corporation:
The primary focus for an owners corporation is to manage and maintain shared property and services. Owners corporations are also required to:
- Manage and administer the common property
- Maintain the common property, fixtures and services
- Take out and maintain required insurance
- Raise fees from the lot owners to meet financial obligations
- Prepare financial statements and keep financial records
- Provide owners corporations certificates when requested
- Keep an owners corporation register
- Convene meetings of Owners, documents minutes and deal with all correspondence
- Manage the dispute resolution for the Owners Corporation disputes
- Ensure the rules of the Owners Corporation are upheld
An Owners Corporation should:
- Carry out any functions and duties under the Owners corporations Act 2006, the Owners corporations Regulations 2007, the owners corporation rules and any other law or regulation
- Ensure compliance with Owners corporations Act 2006, the Owners corporations Regulations and rules.
For further information on all Victorian Owners corporations and what they are for please visit the consumer affairs page below:
https://www.consumer.vic.gov.au/housing-and-accommodation/owners-corporations/buying-into-an-owners-corporation/what-is-an-owners-corporation
Responsibility
Owners have an obligation to ensure that they meet their financial and legal obligations to the owners corporation.
Owners must also ensure compliance with any design guidelines and covenants around the building, landscaping and or appearance of a lot.
Occupiers (whether they be the owner or a tenant) have responsibility to:
- Adhere to the rules and regulations that govern any common property
- Ensure that compliance to rules surrounding lot maintenance are complied with
