Frequently Asked Questions – Owners Corporation
What is the difference between a strata title, body corporate and an owners corporation in Victoria?
What was previously known as a ‘body corporate’ became an ‘owners corporation’ on 31 December 2007, when the Owners Corporations Act 2006 came into force. ‘Strata title’ is a more generic term for a plan of subdivision containing common property that an owners corporation is responsible for managing.
Why do I need to be part of an owners corporation?
When you buy into a subdivided property, you are not only purchasing the individual property, but also ownership of, and the right to use, the common property as set out in the plan of subdivision. This may include driveways, stairs, paths, lifts, lobbies, common garden areas and other facilities. The common property is managed by the owners corporation and if you buy a property like this you are automatically part of the owners corporation with its legal and financial responsibilities.
What law regulates an Owners Corporation in Victoria?
The Owners Corporations Act 2006 sets out:
- the functions and powers of an owners corporation.
- the requirements of owners corporation meetings including procedures.
- the election of committees, chairperson and secretary of an owners corporation.
- the duties and rights of owners and occupiers of an owners corporation.
You can get a copy of the Owners Corporations Act 2006 and the Owners Corporations Regulations 2007 from Information Victoria,(505 Collins Street, Melbourne) or order online at www.bookshop.vic.gov.au
What does an owners corporation manager do?
- Collects and banks member contributions and levies.
- Keeps proper books of account and prepares an annual financial statement of the Owners Corporation.
- Maintains a budget to assist owners in assessing expenses and setting the amount of contributions for the coming year.
- Organises and attends each Annual General Meeting including the recording and distribution of the minutes of the meeting.
- Maintains the required insurance policies.
- Obtains quotations for maintenance of the common property, at the request of the Owners Corporation.
- Deals with the day to day requirements of the Owners Corporation including correspondence, e-mails, faxes and telephone enquiries.
- Advises on matters of procedure and management.
If your question is not answered here please call us on (03) 9830 4044