Understanding Your Owners Corporation

Melcorp Strata has broken down the fundamentals of Owners Corporations (previously known as Body Corporates). Over the coming months, we will be exploring these further, giving you clear insight into how they work, their responsibilities, and how a strata management service like Melcorp Strata assists Owners Corporations.

What is an Owners Corporation?

An Owners Corporation is automatically created when a Plan of Subdivision containing common property is registered at Land Use Victoria, therefore if you own an apartment, you are likely to be a member of an Owners Corporation.

Plan of Subdivision

The purpose of a Plan of Subdivision is to show the precise location of each lot and boundary as well as the common areas. The Plan helps to clarify and identify:

• Who is responsible for maintaining a specific piece of property
• Whether a property improvement is privately located
• The locations of easements
• Lot liabilities which represent the share of Owners Corporation fees that each Member has to pay and the lot entitlements which refer to each Member’s share of ownership of the common property, i.e. determines each Member’s voting rights.

Your Owners Corporation is a legal entity. This means it can sue and be sued, it has its own bank account and tax file number, can legally enter into contracts and agreements, and has contractors. Furthermore, all owners who have lots within the Plan of Subdivision are automatically Members of the Owners Corporation once the Plan is registered.

The Role of the Owners Corporation

Owners Corporations are governed by General State Statues, such as The Water Act, Specific State Statues such as The Owners Corporations Act 2006, and Local State Statues such as local Councils.

As a Member of an Owners Corporation, some obligations must be met, which is why a professional Owners Corporation Manager like Melcorp Strata is appointed to assist and execute these on your behalf.

Primarily, an Owners Corporation is responsible for the management of all the common property. An easy way to explain common property is that your apartment is wholly owned by you, and only you and your guests have access to it. Any areas outside of your apartment are considered common areas, such as corridors/hallways on your floor, entrance lobbies, lifts, swimming pools, and car parks, etc, which are shared spaces among other Members.

In summary, your Owners Corporation must:

• Manage and administer the common property
• Repair and maintain the common property, fixtures, and services
• Take out and maintain required insurance
• Raise fees from the lot owners to meet financial obligations
• Prepare financial statements and keep financial records
• Provide Owners Corporation certificates when requested
• Keep an Owners Corporation register
• Establish a grievance procedure
• Carry out functions and duties under the Owners Corporations Act 2006, the Owners Corporations Regulations 2018, the Owners Corporation rules, and any other law and/or relevant regulation
• Ensure compliance with the ACT, the regulations, and the rules.

The Committee of Management

A Committee of Management is appointed at each Annual General Meeting by the Members. The Committee’s role is to make decisions on behalf of the Owners Corporation. Each Committee Member must act in good faith, exercise due care and diligence, and not make improper use of his or her position as a Committee Member. They should also act in good faith on behalf of all the Members in the best interest of the Owners Corporation.

How can Melcorp Strata benefit your Owners Corporation?

Melcorp Strata’s role as professional Owners Corporation Managers is to assist, guide and action the instructions of the Committee on behalf of the Owners Corporation. We work very closely with each Committee to provide them with the information and guidance required to allow the Committee to make informed and sound decisions on behalf of the Owners Corporation.

With decades of combined experience and in-depth industry knowledge, Melcorp Strata’s role is to ensure that your Owners Corporation is managed legally, is well-kept, and that a harmonious living environment is fostered. Our team consists of strong administration assistants, Senior Owners Corporation Managers who have a wealth of experience in managing different types of Owners Corporations, and Senior Accountants to ensure that all financials are professionally managed. Our team provides reliable and timely communication and offers expertise and insights into the legislative requirements, and the financial support to successfully manage an Owners Corporation.

While our main objective is to professionally manage your Owners Corporation we also emphasise creating communities for each of our Owners Corporations. We recognise that your home, your pride and joy is part of each of the communities we manage and as such we like to think outside the box to cater to all demographics so you love where you live. We believe your front door starts when you walk into the property and not at the front door to your apartment.

If you have a question or would like to learn more about Owners Corporations, please get in touch with Melcorp Strata today by emailing us at info@melcorpstrata.com.au