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Empower Wealth Blog post by Empower Wealth

Owners Corporations…..

Body Corps’ as they used to be known are important entities with important responsibilities.

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.

  • The Owners Corporation members are charged with a legal responsibility to:
  • Maintain all common property including the structure of any buildings on the land
  • Insure the whole of the property for full replacement value· Administer the finances and common funds of the group of owners
  • Administer the secretarial functions including the conduct of meetings of members, documentation of minutes and dealing with all correspondence
  • Resolve disputes involving members of the Owners Corporation and enforce the Owners Corporation rules

Certain decisions regarding upkeep, maintenance and security have the ability to add real value to your investment property.

 

Rules

All owners’ corporations in Victoria have rules for the control, management, administration, use or enjoyment of the common property of the lot.

By special resolution, the owner’s corporation can make or change rules or decide to rely on the model rules set out in the Owners Corporations Regulations 2007. The rules cover matters including car parking, noise, pets, and use of lots, dispute resolution procedures and behaviour of owners, residents or guests. All owners and residents must be given a copy of the rules before they move in.

Owners corporations can apply to the Victorian Civil and Administrative Tribunal to enforce rules and the tribunal can enforce penalties for breaches of the rules.

Rules must be recorded at Land Victoria to be enforceable.

Owners corporations can make rules for:

  • health, safety and security
  • committees and sub-committees
  • management and administration
  • use of common property
  • use of and works to lots
  • design of lots
  • behaviour of persons
  • dispute resolution
  • notices and documents
  • the common seal

 

Administration:

Each Owners Corporation is required by law to conduct an Annual General Meeting if it raises and distributes money. The members voting at the Annual General Meeting may appoint a committee to:

  • Administer the affairs of the Owners Corporation between Annual General Meetings
  • Approve a statement of income and expenses for the previous year
  • Consider and adopt a budget of income and expenses for the current year including the determination of contributions and levies payable by the members
  • Consider the appointment of a Owners Corporation Manager

(Source: Owners Corporation Victoria)

Taking an active interest in your investment may prove to be a very important decision. Any decisions affecting the upkeep and improvement of the property are made during these meetings, and as an owner you get to be involved and have your say, which will go a long way to protecting your important property investment.

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