Significant reforms to the way owners corporations (OCs) operate in Victoria will come into effect on 1 December 2021.
These changes are important for OC managers, property developers, and people who own a property covered by an OC.
The Owners Corporations and Other Acts Amendment Act 2021 will introduce a range of changes, including different levels of requirements depending on the size of the OC, changes to responsibilities for managers and developers, and other reforms designed to ensure OCs are better governed and more liveable.
The amendments take into account experiences shared by stakeholders during a lengthy consultation process and recognise how the industry landscape has changed since the commencement of the Owners Corporations Act 2006.
Key elements of the reforms relating to the appointment of OC managers include:
- limiting the period a manager can be appointed for
- strengthening the conditions OC managers must meet to be eligible to be appointed
- making it easier for the OC to revoke or not renew a manager’s appointment.
The reforms will prohibit the registration of OC managers who have been convicted or found guilty of a range of serious offences in the last 10 years, including offences committed interstate.
Managers will also be required to be covered by professional indemnity insurance.
The duties of OC managers will be expanded to include new reporting requirements around the purchase of goods and services, and responsibilities for funds that managers hold on behalf of OCs.
The reforms also introduce a five-tiered system for OCs: different levels of administration will be required depending on the number of lots covered by OC, including around the provision of financial statements, and maintenance plans and funds.
The reforms also seek to improve and rationalise the regulation of owners corporations in retirement villages.
Developers will have greater responsibilities in relation to OCs they create, including limited powers to appoint OC managers, and bolstered budgetary responsibilities. Certain developer responsibilities will also apply for a longer period of time.
A licensed surveyor must be appointed when a developer is preparing a plan of subdivision, with specific requirements added around providing details of lot entitlements and liability.
Read more about the changes in our Owners Corporations Amendment Act factsheets on:
Read more about owners corporations and the responsibilities of owners corporation managers.