Consumer Information > A Better Informed Community

The provision of accurate, clear and timely information to members of owners corporations and potential purchasers of properties which are part of owners corporations is critical.

The need is all the more critical because of the growing number of owners corporations and their changing nature. Not only are strata title properties now found within large tower blocks with sophisticated services and assets such as lifts, swimming pools and gymnasiam but also within mixed developments of, for example, retail, commercial and residential properties. Large developments that are built in stages are also seeing a rise in the number of limited owners corporations. The nature of these developments can result in significant issues for members about the equitable distribution of costs, liabilities and entitlements.

Professional owners corporation managers are aware that many people purchasing a home or investment property for the first time that are part of owners corporations have little understanding of the rights and responsibilities of owners corporation members.

It is also undeniable that the issues that must be understood by a person considering purchasing a property that is part of a owners corporation are also, in many ways, more complex than those faced by a prospective purchaser of a house on a separate title.

OCV also believes there are unique and significant responsibilities that should be borne by property developers particularly in relation to the sale of properties in large blocks with sophisticated facilities and potentially costly medium to long term maintenance.

It is also clear that there are distinctions to be made between the information that should be provided for existing properties and for new properties.

New Laws

New laws have significantly changed the landscape for the one in four Victorians who own or occupy property in more than 65,000 owners corporations in Victoria.

The Owners Corporations Act 2006 [the Act] commenced on 31 December 2007. The new regulatory regime aims to improve transparency and financial accountability in the management of owners corporations, as well as new dispute resolution provisions. 

With 65,000 owners corporations and 500,000 lots in Victoria, about 1,000,000 Victorians or 1 in 4 people are living in or affected by owners corporations. 

Owners corporations play an important role in maintaining property and sustaining residential property values in Victoria. 

This legislation represents a huge shift in public policy and completely changes the rules we’ve been working under for a generation.  Under the new Act, the term Body Corporate is replaced with Owners Corporation.  The name change is the least of the amendments. Owners corporations now have more legal responsibilities for matters including financial management, record keeping, dealing with complaints and meeting procedures. 

An owners corporation certificate is required to be attached to the Section 32 statement of the contract of sale. 

An owners corporation is required to have a register of important information, and has 9 months from commencement to establish its owners corporation register. 

A Guide for owners corporations has been developed by Consumer Affairs Victoria [CAV] - “Owning, managing and living in a unit or apartment: Guide to owners corporations”. Printed copies are available or you can download it now from the CAV web site. 

CAV also have on their web site a range of fact sheets that provide information and sample documents about running an owners corporation.

OWNERS CORPORATIONS CERTIFICATES FOR SALE OF LOTS

All owners corporations are required to prepare and supply a certificate within ten business days to anyone who applies in writing and pays the maximum fee of $150 for each certificate. The certificate must outline the current fees for the lot, the date fees have been paid, the total of any unpaid fees or charges for the lot, the date and amounts of any special levies or fees which have been raised and when they are payable, any additional maintenance or work about to be performed not included in the fees and levies, details of insurance coverage, funds held, any liabilities, agreements, leases or licences affecting common property, details about orders and notices served in the past 12 months, any legal proceedings on foot or anticipated, details of any professional manager engaged and the total lot entitlement and liability.  The certificate must be attached to a copy of resolutions made at the last AGM, a copy of the owners corporation rules registered at Land Victoria and a prescribed Statement of Advice and Information for Prospective Purchasers and Lot Owners. 

Free Public Seminars

OCV is committed to ensuring the community is informed relating to owners corporation issues. OCV holds regular public seminars

The Owners Corporations Act 2006 has been fully operational for six months, yet the vast majority of the more than one million Victorians affected by the new laws remain uniformed about their rights and compliance responsibilities.

Owners Corporations Victoria has been funded by the Victorian Property Fund to deliver 16 information forums across Victoria throughout September and October to educate people who live in, rent, own or manage owners corporations.

It is in your interest as an Owners Corporation resident to understand the new laws and compliance responsibilities.

Enter here for a list of dates, times and venues for the forums.

The funding for this project was provided from the Victorian Property Fund on the approval of the Minister for Consumer Affairs.