What is an Owners Corporation and when is it created?

What is an Owners Corporation?

An Owners Corporation is a body corporate that has obligations to manage, administer, maintain and repair the common property that is shown on a plan of subdivision. Common property may include gardens, passage ways, walls, foyers, lifts, gymnasiums, cafes and restaurants, stairwells, pathways, driveways and fences.

You will have legal and financial responsibilities and obligations to follow rules if you own property that forms part of an Owners Corporation. If there are no rules established by the body corporate, then the model rules will apply.  The model rules are a set of rules prescribed by legislation.  If there are special rules you will need to follow these.  The owners corporation certificate will generally provide the rules or a register search statement modification table will show whether special rules have been registered with Land Use Victoria.  A link to the model rules is https://www.consumer.vic.gov.au/housing/owners-corporations/rules/model-rules

When is an Owners Corporation created?

An Owners Corporation is created when a plan of subdivision is registered with Land Use Victoria which contains common property.  A plan of subdivision is land that is divided into two or more lots such as apartments, flats or units. If you own an apartment, it is very likely that it you are a member of an owners corporation.

Members of an Owners Corporation have lot entitlement and liabilities.  Lot entitlements mean your share of the common property that you own, and lot liabilities mean the owners corporation expenses that you must pay.

Lot entitlement and liabilities are set out in the plan of subdivision and can be changed by unanimous resolution by the lot owners.  The initial entitlement and liabilities are determined by the developer upon the time of subdivision.

If you require advice on property that forms part of an Owners Corporation,  or have an owners corporation dispute, please contact our office on (03) 9707 1155 or email us at admin@wslegal.com.au