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Coming up to the end of the financial year, we have prepared a snapshot of matters to help owners corporations understand trends affecting this sector.
In the 2016-17 financial year, many of the issues that came to our attention regarding owners corporations had the potential to result in physical danger, property damage and additional costs to lot owners and other residents. Owners corporations can benefit from knowing more about common issues encountered by residents or committee members and consider whether your owners corporation manages these issues well.
In 2016 - 17, we engaged with many residents and owners corporations committee members who required information around their rights and responsibilities:
Disputes with the manager or operator
- Alleged breaches of the Owners Corporation Act 2006, failure to undertake duties as manager (including financial mismanagement).
- Unresponsive owners corporation managers with respect to repairs (including urgent repairs such as plumbing and building defects), maintenance or damage.
- Use of the maintenance fund. An ordinary resolution at a general meeting is required for money to be paid out of the maintenance fund for items listed in the maintenance plan.
If there is a maintenance matter not listed in the maintenance plan, a special resolution is required for payments from the maintenance fund, except for urgent matters, which can be authorised by ordinary resolution.
- Removing the owners corporation manager or the manager refusing to leave.
- Accessing records (including financial records).
- Owners corporation conflict of interest.
- Disputes over fines and charges issued by the owners corporation.
The Owners Corporations Act 2006 sets out a process to help owners corporations deal with grievances on the Complaint handling and dispute resolution page.
Disputes regarding common property and maintenance
- Plumbing problems, tree damage, lighting, walls and fences, doors and locks, security.
- Owners corporation maintenance responsibilities.
- Owners corporation disputes over cost and liability for repairs.
- Failure to maintain common areas.
- Disputes over car parking.
Owners corporation managers can be subject to penalties for breaches of their legal obligations. To find out more visit our Penalties – owners corporation managers page.
For more information on owners corporations rules and resolving disputes, view our Rules and resolving disputes section.
For industry information for owners corporations, property managers, real estate agents and conveyancers, sign up to our Real estate updates newsletter.
General rights and responsibilities
- Advice regarding responsibilities such as pest management and fire safety.
- Financial management of owners corporation funds, lot entitlements and financial liabilities.
- Subdivision boundary disputes, property valuations, property sale / building works / renovation notification requirements.
- Privacy concerns, personal security, noise and other pollution, dispute resolution between lot owners.
- Building defects referrals.
For more information about how to meet your legal obligations as an owners corporation manager, view our Owners corporations managers section.