If you are an owner of an apartment, a flat or a unit, you are likely a member of an owners corporation, previously known as a ‘body corporate’. An owners corporation is like the communal management structure for a complex of dwellings (or commercial properties).
When Is an Owners Corporation Created?
When a plan of subdivision is registered that contains common property (eg: gardens, pathways, staircases, fences, etc), an owners corporation is created.
The owners of lots on the plan are automatically the members of the owners corporation the moment they become the owner.
What Are the Responsibilities of an Owners Corporation?
In accordance with the Owners Corporation Act 2006, an owners corporation is required to manage, maintain, administer and repair the common property of a residential, commercial, retail, industrial or mixed-use development.
An owners corporation must also:
Ensure that there is adequate insurance;
Raise fees from the property owners to meet its obligations;
Prepare financial statements and maintain financial records;
Provide owners corporation certificates when required;
Maintain an owners corporation register with the required information;
Establish a grievance policy and procedures; and
Carry out all requirements and ensure compliance with both the Owners Corporation Act 2006 and the Owners Corporation Regulations 2007.
What Is the Structure of an Owners Corporation?
There are four levels:
1. The owners corporation – consists of all property/lot owners and has decision making control.
2. Committee – consists of elected property/lot owners and can make decisions on matters delegated to it by the owners corporation.
3. Persons to whom the owners corporation delegate responsibilities – for example, a chairperson, secretary, etc.
4. Delegates of the committee – for example, a chairperson, secretary, etc.
How Can Nevett Ford Assist?
Nevett Ford has vast experience dealing with owners corporation matters and can advise and assist you whether you be a member of an owners corporation, a committee member or delegate or if you are in the process of lodging a plan of subdivision and require assistance with the creation of an owners corporation. Our property team can be contacted on 03 9614 7111 or can be contacted by email at melbourne@nevettford.com.au.