What is an Owners Corporation ?

An owners corporation (formerly known as a body corporate) manages and oversees common property in residential, commercial, industrial, or mixed-use property developments.

If you own a flat, apartment, or unit within a subdivision, you automatically become a member of the owners corporation, with specific rights and responsibilities. Owners corporations are created when a plan of subdivision that includes common property is registered with Land Use Victoria.

Established by the Owners Corporations Act 2006, owners corporations gained their legal framework to define duties and rights for managing shared spaces as of 31 December 2007. Owners corporations must adhere to the Owners Corporations Act 2006, Owners Corporations Regulations 2018, and any established rules to ensure lawful operations and member compliance.

The owners corporation must manage, administer, repair, and maintain the common property to ensure its upkeep and value for all owners. This includes shared areas such as gardens, pathways, stairwells, driveways, foyers, and more.

To cover maintenance and other expenses, owners corporations raise fees from lot owners, who are financially responsible for their portion of these costs. Owners corporations are legally required to take out and maintain insurance coverage for common property and liability.

The corporation must keep accurate financial records, prepare annual financial statements, and provide certificates to owners and prospective buyers upon request. A register containing key details of the corporation must be maintained, including information on owners, rules, and meeting minutes. The corporation is required to establish a grievance procedure to handle disputes among members, in line with the Owners Corporations Act 2006 and Regulations.