| 1. The body corporate has never been formally established. What needs to be done? |  | A first meeting must be convened by the person who applied for registration of the plan of subdivision. It must be convened within 6 months of registration of the plan.
At the first meeting, all of the following documents must be provided:
- Owners Corporation (OC) register
- Any accounts or records made on behalf of the OC
- Maintenance plan (if any)
- A copy of the plan of subdivision, building plans and other similar documents
- Books to enable the OC to keep the necessary minutes, accounts and other records
- Any contracts, leases and licences binding on or benefiting the OC
- Any insurance covering the property
- Copies of all warranties and guarantees and the names of all companies, tradespeople or suppliers who provided them
- A common seal for the OC
- A copy of the Act and Regulations
It is a common problem that the initial owner has not set up the body corporate (owners corporation). Therefore the current owners must convene a meeting to activate the body corporate.
Further Information:
Activating your Owners Corporation fact sheet
Guide to Owners Corporations |
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2. We want to sell our unit. Where do we get the owners corporations certificate?
[Back to questions] | | There is no Prescribed Owners Corporations Certificate in the Owners Corporations Act 2006. This is different to the Subdivision (Body Corporate) Regulations 2001.
Section 151 of the OC Act only makes reference to the word "prescribed information".
Consumer Affairs Victoria has a sample Owners Corporations Certificate on the website. It is expected that the Owners Corporation will produce it's own certificate. The certificate needs to comply with s. 151 and reg. 11.
Further Information:
Sample Owners Corporation Certificate
Owners Corporation Certificate fact sheet
Owners Corporation Act 2006
Contact CAV on 1300 55 81 81 |
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| 3. Should a tenant be provided with a copy of the owners corporations rules? | | Yes. The rules of an owners corporation are binding on:
- The owners corporation;
- The lot owners;
- Any lessee or sub-lessee of a lot;
- Any occupier of a lot.
Further Information:
Model Rules for an Owners Corporation
Guide to Owners Corporations |
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| 4. Our Owners Corporation doesn’t have a manager, but the secretary of our Owners Corporation is getting a small salary. Must we still make sure that the secretary is registered as a manager? | | Yes, a person must not, alone or in partnership, carry out any functions as the manager of an owners corporation for a fee or reward unless the person is registered.
The Owners Corporations Act 2006 requires all managers who are paid a fee to manage owners corporations to be registered with the Business Licensing Authority by 31 March 2008.
Further Information:
Guide to Owners Corporations
Owners Corporation Act 2006
Business Licensing Authority website |
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| 5. Can penalty interest on arrears of levies only be imposed after a special resolution of an Owners Corporation? | | No resolution is needed as an owners corporation is permitted to charge interest as per section 29 of the Owners Corporation Act. The interest is set by the Penalty Interest Rates Act 1983.
Further Information:
Owners Corporation Act 2006
Contact CAV on 1300 55 81 81 |
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| 6. What is the Dispute Resolution procedure (3 tier process)? | | The Owners Corporations Act 2006 sets out a process to help your Owners Corporation deal with grievances. This process has 3 steps (3 Tier):
- internal dispute resolution with the Owners Corporation
- conciliation through Consumer Affairs Victoria (CAV), and
- application to the Victorian Civil and Administrative Tribunal (VCAT).
Further Information:
Dealing with Grievances fact sheet
Model Rule - Dispute resolution (Owners Corporations Regulations 2007)
Owners Corporation Act 2006
Victorian Civil and Administrative Tribunal website |
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| 7. Do we have to have a maintenance plan? | | Only prescribed owners corporations are required to prepare a maintenance plan and establish a maintenance fund, but any owners corporation can have a maintenance plan and fund.
Further Information:
Maintenance and Maintenance Plans fact sheet
Contact CAV on 1300 55 81 81 |
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| 8. What are two-lot subdivisions exempt from? | | Owners corporations operating in two-lot subdivisions are exempt from the:
- Power to bring legal proceedings (s. 18)
- Requirements for notices of fees (s. 31)
- Requirements for final notice (s. 32)
- Accounts and Audits (Part 3, Div. 2)
- Maintenance Plan (Part 3, Div. 3)
- Maintenance Fund (Part 3, Div. 4)
- Reinstatement and replacement insurance (s. 59)
- Public liability insurance (s. 60)
- Insurance for lots in multi-level developments (s. 61)
- Owners corporation may have additional insurance (s. 62)
- First Meeting of Owners Corporation (Part ,4 Div. 1)
- Annual General Meeting (Part 4, Div. 2)
- Special General Meeting (Part 4, Div. 3)
- Procedure at General Meetings (Part 4, Div. 4)
- Ballot (Part 4, Div 5.)
- Does a chairperson to have a casting vote? (s. 93)
- Can a lot owner vote if fees are unpaid? (s. 94)
- Unanimous resolution (s. 95)
- Special resolution (s. 96)
- Interim special resolution (s. 97)
- Keeping records and an owners corporation register (Part 9, Div. 1/2)
- Procedures for meetings and decision making (Part 10, Div. 1)
Owners corporations containing two lots still need to prepare owners corporations certificates and maintain common property.
Further Information:
Two-lot Subdivision fact sheet
Contact CAV on 1300 55 81 81 |
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| 9. What is a quorum? | | A quorum for a meeting is at least 50% of the total votes or if 50% of the total votes are not available, the quorum is at least 50% of the total lot entitlement.
Further Information:
Contact CAV on 1300 55 81 81 |
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| 10. What is a plan of subdivision and where do I get a copy? | | The plan that shows the layout of:
- the lots
- the common property
- the boundaries between the lots of common property
- lot entitlements and lot liability
- whether there are any special rules
- the location of any easements
- and various other details.
A copy of the plan can be obtained from:
Land Victoria
Foor 9 Marland House
Land Registry
570 Bourke Street
Melbourne Vic 3000
Ph: (03) 8636 2010
Website: www.land.vic.gov.au
E-mail: customer.service@nre.vic.gov.au |
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| 11. Do we have to get a new common seal since the Owners Corporations commenced? | | No. The previous Body Corporate number is the same number as the Owners Corporation.
Further Information:
Contact CAV on 1300 55 81 81 |
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| 12. Are the windows, the roof or overhanging eaves part of the common property? | | It is not possible to say without seeing the plan of subdivision. It is not the responsibility of Consumer Affairs officers to read the plan. The public should seek the advice of an appropriately trained solicitor or land surveyor. The Subdivision Section of Land Victoria may assist the enquirer though it is not a service it is obliged to provide.
The Subdivision Section of Land Victoria is located at:
Floor 11 Marland House
570 Bourke Street
Melbourne
Ph: (03) 8636 2000
Website: www.land.vic.gov.au |
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