FAQs
Here’s a handful of answers to the questions we come across most often.
What is an owners corporation?
An owners corporation forms when a subdivision with common property is registered with Land Victoria. Anyone who owns a lot within the subdivision is a member of that owners corporation.
Owners corporations are responsible for the common property in their subdivision. Their duties include:
Repairing and maintaining the common property
Taking out and maintaining insurance
Raising fees from the lot owners to meet financial obligations
Preparing financial statements and keeping financial records
What is common property?
Plans of subdivision consist of separate lots. Any land, building and airspace that is on the plan of subdivision – but is not a part of these lots – is common property. Lot owners own this common property collectively as tenants-in-common.
Common property can include gardens, passages, walls, pathways, driveways, stairs, lifts, foyers and fences. Depending on the building, amenities like swimming pools, gyms and entertainment areas can also be common property.
If you’re unclear about your building’s common property, ask your committee for your address’s plan of subdivision.
What is an owners corporation committee?
An owners corporation committee is a group of up to 12 members – elected by your owners corporation each year at your AGM.
Your committee represents and governs management of your owners corporation (until a new committee is appointed at your next AGM).
If your owners corporation has 10 or more lots, it must elect a committee. If your owners corporation has fewer than 10 lots, it may choose to elect a committee – though this is not mandatory.
What does an owners corporation manager do?
Here’s a refresher on the owners corporation duties we spoke about in the first question:
Maintenance and repairs
Fee collection
Insurance
Financial records
An owners corporation manager performs these duties on behalf of your owners corporation.But on top of that, a great owners corporation manager will:
Ensure your owners corporation operates within legislative requirements
Facilitate and moderate productive AGMs and committee meetings
Offer guidance around owners corporation matters
Communicate clearly and regularly with your owners corporation committee
Does my owners corporation need a manager?
If your owners corporation has over 100 occupiable lots, it must appoint a manager.
For owners corporations of fewer than 100 occupiable lots, appointing a manager is not mandatory. But it is recommended. Because a manager keeps your owners corporation compliant, its finances in check and its projects on budget and on time.
The bottom line? Proper management maintains and enhances the function and value of properties within your owners corporation.