An Owners Corporation (formerly known as a Body Corporate) manages the common property of a residential, commercial, retail, industrial or mixed-use property development.
Common property is whatever it is stated to be on the plan of subdivision and may include gardens, passages, walls, stairwells, pathways, driveways, lifts, foyers, and fences.
The Owners Corporations Act 2006 states that the owner’s corporation must, among other things:
- Manage and administer the common property
- Repair and maintain the common property, fixtures and services
- Takeout 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 owner’s corporation register
- Establish a grievance procedure
In a residential setting, if you own a flat, apartment, unit, or townhouse, you are likely to be a member of an owner’s corporation. Active Body Corporates became Owners Corporations on 31 December 2007, when the Owners Corporations Act 2006 came into force. This law sets out the duties and powers of owner’s corporations.
An owner’s corporation is automatically created when a plan of subdivision containing common property is registered at Land Use Victoria. Land Use Victoria registers and records owner’s corporation applications received either with a plan of subdivision or lodged following registration of the plan of subdivision. If you own property affected by an owner’s corporation then you become a member of that owner’s corporation automatically. As a member, you have legal and financial responsibilities to the owner’s corporation.
For more information regarding Owners Corporations, please visit the Consumer Affairs Victoria website - https://www.consumer.vic.gov.au or contact the friendly team at First National Real Estate Neilson Partners Property Management at Narre Warren, Berwick or Pakenham.
