Victoria Body Corporate Services provide management of owners corporations, stratum title and company share properties

VICTORIA
BODY CORPORATE SERVICES PTY LTD

GENERAL INFORMATION

	Owners Corporation functions
	Legal requirements
	Current Legislation

Contact Details
Telephone 8531 8100
Facsimile 8531 8190
Email vbcs@vbcs.com.au

Postal Address
Locked Bag 1291
Port Melbourne 3207

Office Location
64 Fennell Street
Port Melbourne 3207

Melway Reference: 43 C11
GPS Coordinates: S 37° 49.590' E 144° 56.442'

Office Hours
9am to 5pm
Mon - Fri

After Hours Emergency
Telephone: 9883 6428
Only to be used

by clients of Victoria Body Corporate Services for

after hours emergencies relating to the Owners Corporation common property.

There is free parking after 5 pm in the Care Car Park opposite the office.

ABN: 85 007 034 522

GENERAL INFORMATION

Managers of Owners Corporation, Stratum Units & Company Share Flats

Functions Of An Owners Corporation

The most common understanding of an owners corporation is associated with residential units. However, owners corporations may be associated with almost any type of real estate including villa units, shopping centres, factories, warehouses and farms.

An owners corporation comes into existence when an existing parcel of land is divided into two or more parcels and common property created by the subdivision. Common property may be a driveway, roof, stairwells and gardens. Some owners corporations may have lifts and recreational facilities such as swimming pools, tennis courts or gymnasiums. The owners corporation may also be responsible for services such as common water supply and drains. An owners corporation is not required to maintain services which are for the exclusive benefit of one unit.

It is necessary to refer to the plan of subdivision to determine the common property and hence, the particular responsibilities of the owners corporation. Common property is jointly owned by all of the members of the owners corporation and the plan of subdivision sets out the proportion of ownership in the owners corporation schedule. This schedule will also determine the proportion of owners corporation expenses to be borne by each member.

An owners corporation is a separate legal entity from its members. Although analogous to a company it requires no separate steps for creation and does not require the lodgement of Annual Returns with the Australian Securities and Investments Commission.

The role of the owners corporation is to maintain the common property for the benefit of members and to provide services to the members. In doing so the owners corporation must comply with legal obligations such as conducting an Annual General Meeting of members.

Repairing and Maintaining Common Property

As the common property is for the benefit of all members, the owners corporation undertakes the repair and maintenance of the common property to ensure that it is maintained to the standard members' desire.

A member may participate in decisions regarding repairs and other works by attending the Annual General Meeting and offering to serve on the committee.

An owners corporation is also required to comply with any notice served by a statutory authority in regard to the common property. An example would be an order by the water authority to repair a leaking supply main.

Managing and Administering the Common Property

The owners corporation manages the common property by determining the works to be carried out and the timing of the work. Most decisions require a majority of members to be in favour of proposed works to be undertaken.

Owners corporation is required to keep books of account and other records such as minutes of meetings. It is preferable that the owners corporation has a separate bank account into which members funds are deposited and from which the expenses of the owners corporation are paid.

Insurance

Owners corporation is required to take out insurance for public liability and reinstatement of the common property. Additionally, most owners corporations are required to insure all of the buildings in the development. It is recommended that a valuation be obtained from a qualified valuer on a periodic basis to ensure that the full value of the buildings is insured thereby reducing the risk of members in the event of a substantial loss.

It is important to note that the owners corporation insurance does not cover the contents of owners' units and members should ensure that they have appropriate contents cover in place, whether a resident or landlord of a tenanted property. Members should ensure that the policy in place for their unit includes public liability cover.

Rules

Model rules are set out in the regulations and apply to those owners corporations which have not adopted their own rules.

Owners corporation may also adopt additional rules to deal with particular matters such as the hours of operation of a swimming pool. The adoption of additional rules requires that a special resolution of members be passed by the owners corporation. A special resolution requires at least 75% of the members of the owners corporation be in favour. Once passed the rules are lodged with the Land Registry and recorded on the plan of subdivision, taking effect from the date of registration and are legally enforceable against owners, tenants and their guests.

Enforcing the Regulations and Rules of the Owners Corporation

Whilst most breaches of rules may be resolved by discussion between parties, it may be necessary to invoke a disputes resolution mechanism. If a resolution cannot be achieved through the less formal methods, then there is provision for recourse to the Victorian Civil & Administrative Tribunal for a decision regarding a dispute.

The owners corporation may also carry out any other requirement imposed by law. For instance, if the owners corporation has a lift it may be required to carry out prescribed maintenance in accordance with government regulations.

Stratum and Company Share Properties

The Owners Corporation Act 2006 does not apply to Stratum and Company Share properties. The responsibility of these companies regarding maintenance, rules and other powers will usually be set out in the company's constitution and service agreement and it is necessary to consult these documents to be certain of the obligation for particular matters.