Owners Corporations

An Owners Corporation (formerly known as a Body Corporate) is the legal entity responsible for managing and maintaining common property in strata developments - including apartments, townhouses, and mixed-use developments. It administers the rules of the Owners Corporation, manages finances, and ensures compliance with the Owners Corporations Act 2006 (Vic).

Common property generally includes areas shared by all lot owners, such as:

• Driveways
• Lifts
• Hallways
• Gardens
• Roofs
• External walls
• Car parks (where applicable)

Determining whether something is common property depends on the registered Plan of Subdivision.

Levy disputes, maintenance and repair obligations, by-law breaches, and disputes between lot owners.

Yes. The OC can enforce rules, recover unpaid levies, and take action where owners breach obligations.

We act for both, providing advice, dispute resolution, and representation in tribunal proceedings.

Responsibility depends on where the defect is located and who is legally responsible. Building defects affecting common property may give rise to claims by the Owners Corporation against builders, developers, designers or other consultants. Obtaining legal advice is important, particularly where limitation periods may apply.

Yes. Where defective building work affects common property, an Owners Corporation may be able to bring legal proceedings against the builder, developer or other responsible parties. This often involves expert evidence, defect investigations and careful consideration of contractual and statutory rights.

Committee members must act honestly, in good faith and in the interests of the Owners Corporation. Their responsibilities generally include:

• Making decisions on behalf of the Owners Corporation
• Managing maintenance and repairs
• Overseeing financial matters
• Complying with legislative obligations
• Conducting meetings appropriately

Victoria is implementing significant reforms aimed at improving governance, transparency and accountability within the Owners Corporation sector. The reforms are expected to address matters including:

• Proxy voting arrangements
• Conflicts of interest
• Committee governance
• Voting procedures
• Owners Corporation manager obligations
• Increased transparency

As further details become available, Owners Corporations, developers and managers should review their governance practices to ensure compliance.

Developers should carefully consider:

• Drafting appropriate Owners Corporation rules
• Allocation of common property
• Easements
• Shared facilities
• Management structures
• Initial budgets
• Handover obligations

Getting legal advice early can help minimise future disputes.

An Owners Corporation Manager assists with the day to day administration of the Owners Corporation. Their responsibilities may include:

• Organising meetings
• Managing records
• Collecting levies
• Coordinating maintenance
• Assisting with compliance obligations

Managers must also comply with increasing regulatory obligations.

Disputes can arise regarding:

• Committee decisions
• Voting outcomes
• Rule enforcement
• Maintenance responsibilities
• Levy contributions
• Use of common property

Many disputes can be resolved through negotiation or mediation, while others may require proceedings before VCAT.

Yes. Owners Corporations have legal mechanisms available to recover unpaid fees and charges, including debt recovery proceedings where necessary. Prompt action is often recommended to minimise financial impacts on the Owners Corporation.