Owners corporations must maintain common areas. The corporation’s powers may be delegated to a manager or chair or secretary. It may lease or licence parts of the common property. Prospective buyers must receive owners corporation certificates. Two-lot subdivisions are exempt from many of the requirements. The subdivision plan decides the boundaries for who pays for repairs. Implied easements restrict what owners may add to the building. Reinstatement and replacement insurance is required for shared services. Annual general meetings must not be more than 15 months apart and matters to cover are set by law. Un-financial lot owners are ineligible to vote. Power of attorney can only be held by a family member of a lot owner. The dispute resolution provisions of the Owners Corporations Act 2006 (Vic) are complex. Complainants may seek conciliation or mediation from Consumer Affairs Victoria. VCAT may determine disputes.

Contributors

Norman Mermelstein

REIV Accredited Owners Corporation Specialist

Neville Sanders

REIV Accredited Owners Corporation Specialist

Key legislation related to owners corporations

Last updated

1 July 2020

The legislation and rules relating to owners corporations include:

  • the Owners Corporations Act 2006 (Vic) (‘OC Act’);
  • the Owners Corporations Regulations 2018 (Vic) (‘OC Regulations’);
  • the Subdivision Act 1988 (Vic) (‘Subdivision Act’);
  • the Subdivision (Registrarx Requirements) Regulations 2011 (Vic) (‘SRR Regulations’);
  • the Australian Consumer Law and Fair Trading Act 2012 (Vic);
  • the Victorian Civil and Administrative Tribunal Act 1998 (Vic) (‘VCAT Act’); and
  • the registered rules of the owners corporation.

Note that the day-to-day running of an owners corporation is declared by the Subdivision Act (s 29) to be excluded from the operation of the Corporations Act 2001 (Cth).

Consumer Affairs Victoria (see ‘Contacts’ at the end of this chapter) administers the OC Act and the OC Regulations.

All section references in this chapter are references to the OC Act, unless otherwise stated.

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