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Owning, managing and living in a unit or apartment: Guide to owners corporations

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Page 1: Owning, managing and living in a unit or apartment: Guide to … · 2018-10-11 · 1 Introduction 1 2 Commonterms 3 3 Theoperationofowners corporations 7 4 Propertymaintenance 9 5

Owning, managingand living in a unitor apartment:Guide to ownerscorporations

Page 2: Owning, managing and living in a unit or apartment: Guide to … · 2018-10-11 · 1 Introduction 1 2 Commonterms 3 3 Theoperationofowners corporations 7 4 Propertymaintenance 9 5

IMPORTANT INFORMATIONThis booklet is a summary guide to the operationsof owners corporations. It should not be used assubstitute for the relevant legislation or professionallegal advice. Legislation and other importantdocuments that set out the rights and obligations ofowners corporations, committees, lot owners,managers and residents include:• Owners Corporations Act 2006• Owners Corporations Regulations 2007• Subdivision Act 1988• Subdivision (Procedures) Regulations 2000

(possibly 2007)• Rules of the owners corporation• Plan of Subdivision

Published by Consumer Affairs Victoria121 Exhibition Street Melbourne Victoria 3000.

Authorised by the Hon Tony Robinson MP1 Macarthur Street Melbourne Victoria 3000.

Disclaimer

Because this publication avoids the use of legal language,information about the law may have been summarisedor expressed in general statements. This informationshould not be relied upon as a substitute for professionallegal advice or reference to the actual legislation.

© Copyright State of Victoria 2007

This publication is copyright. No part may bereproduced by any process except in accordance withthe provisions of the Copyright Act 1968. For advice onhow to reproduce any material from this publicationcontact Consumer Affairs Victoria.

ISBN 1 921079 19 3

Page 3: Owning, managing and living in a unit or apartment: Guide to … · 2018-10-11 · 1 Introduction 1 2 Commonterms 3 3 Theoperationofowners corporations 7 4 Propertymaintenance 9 5

Twenty yearsago, most sharedresidentialproperties hadless than fivelots and wereself-managed.Now apartmenttowers are

common in Melbourne and thereare medium-size developmentsthroughout metropolitan suburbsand regional Victoria.

Owners corporations, which managethe building and common property ofshared properties, serve up to a quarterof all residential housing in the stateand manage significant financial assetson behalf of owners. More than onemillion Victorians live in propertiesaffected by the Owners CorporationAct 2006.

If you own or live in a unit, apartmentor townhouse, you need to knowabout the laws that affect themanagement of your property.This involves far more than a changeof name from bodies corporate toowners corporation. Ownerscorporations now have more legalresponsibilities for matters includingfinancial management, record keeping,dealing with complaints and meetingprocedures. You should read this Guideif you own, manage or live in aproperty that has an ownerscorporation.

HON TONY ROBINSONMPMINISTER FOR CONSUMER AFFAIRS

Foreword> i

Foreword

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Contents

Foreword i

1 Introduction 1

2 Common terms 3

3 The operation of ownerscorporations 7

4 Property maintenance 9

5 Financial management 11

6 Insurance 15

7 Records 19

8 Decision-making 23

9 Committees 31

10 Managers 37

11 Rules 41

12 Complaints and disputes 43

13 Further information 47

14 Useful contacts 51

sdoheny
Text Box
Pages 6, 14, 18, 36, 40, 46 and 50 are blank and have been omitted from this PDF version of the Guide
Page 5: Owning, managing and living in a unit or apartment: Guide to … · 2018-10-11 · 1 Introduction 1 2 Commonterms 3 3 Theoperationofowners corporations 7 4 Propertymaintenance 9 5

If you own a flat, apartment or unitthen you are likely to be a memberof a body corporate, which looks afterthe building and common property.From 31 December 2007, all bodiescorporate in Victoria became “ownerscorporations” under the new OwnersCorporations Act 2006. This Actintroduced new powers and functionsfor all owners corporations, which aimto ensure better management for theincreasing number of multi-dwellingand multi-storey buildings in Victoria,and some more complex plannedcommunities.

When land or buildings aresubdivided, it is often necessary toprovide for shared ownership of walls,driveways and services or commonproperty. When a plan of subdivisioncontaining common property isregistered at Land Victoria, an ownerscorporation is created. One or manyowners corporations can be created inany subdivision of land or buildings.

Owners corporations manage commonproperty and services in residential,commercial, retail, industrial or mixeduse developments.

All owners corporations have statutoryduties and powers as set out in theOwners Corporations Act 2006. If youown property affected by an ownerscorporation then you automaticallybecome a member of that ownerscorporation and have responsibilitiesunder the Act.

Introduction> 01

Introduction 1

Fact sheets, sample documents andapproved notices covering manydetails of running an ownerscorporation are available fromConsumer Affairs Victoria.See page 47.

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Before buying a property managedby an owners corporation, you shouldfind out more about the ownerscorporation. You can get a copy ofthe owners corporation certificate orinspect the owners corporationregister. (See chapter 7)

The owners corporation certificateis part of the vendors statement orsection 32. It is the responsibility ofthe lot owner who is selling theproperty to ensure that the certificateis included in the section 32. You canalso buy the certificate from theowners corporation. The certificate andthe register contain importantinformation about the total fees,the allocation of lot liability and lotentitlement for the apartment or anylegal liabilities. You should check:

• the cost of living in the ownerscorporation

• how well the owners corporationoperates

• the information in the vendorsstatement or section 32

• the information provided in theowners corporation certificate(which must be included in thevendor’s statement)

• the details contained in the plan ofsubdivision. You should check theboundaries of the lot and commonproperty, the location of easementsand whether the allocation of lotentitlements and liabilities is fairand reasonable

• the contents and conditions inthe contract of sale

• the owners corporation register

• the matters contained in theowners corporations rules

• any leases/licences of commonproperty.

02> Introduction

What should I do before buying aproperty managed by an ownerscorporation?

Factsheet available forfurther information:

Purchasing an apartment checklist

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A plan of subdivision depicts thebreak-up of a piece of land, showingparcels of land, commonly called ‘lots’,that can be sold separately. The plan ofsubdivision for a property is registeredat Land Victoria and an ownerscorporation is automatically createdif the plan creates common property.The plan of subdivision defines andgoverns the ownership of land,buildings and airspace, setting outprivate lots, common property andeach lot owner’s voting entitlementsand financial contributions. LandVictoria registers and allocatesnumbers to the plan of subdivisionand the owners corporation if oneor more is created.

A lot is a part of land, buildings andairspace on a plan of subdivision thatcan be separately owned and sold.Technically, lots are parts of land,building or airspace that are notcommon property, road or a reserve,and include accessory lots like carspaces, storerooms, etc.

Common terms> 03

Common terms 2

Plan of subdivision Lots

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The lot entitlements and lot liabilitiesof lot owners are set out in the planof subdivision.

• “Lot entitlement” refers to yourshare of ownership of the commonproperty and determines yourvoting rights. A lot for example,may have an entitlement of morethan one vote (See chapter 8).

• “Lot liability” represents the shareof owners corporation expenses thateach lot owner is required to pay.

These entitlements and liabilities aredetermined by the developer at thetime of subdivision.

Common property includes any partsof the land, buildings and airspace thatare not lots on the plan of subdivision.Common property may includegardens, passages, walls, pathways,driveways, stairs, lifts, foyers andfences. The common property iscollectively owned by the lot ownersas tenants in common. Floor coveringsand fixtures within a lot are usuallythe property of the lot owner.

A property can have more than oneowners corporation. Multiple ownerscorporations are most commonlyused in large, multi-storey buildings,commercial properties, ordevelopments that combine residentialand commercial lots. Multiple ownerscorporations generally operate toallocate access and management andmaintenance responsibilities forcertain parts of the property betweendifferent groups of lot owners.

For example, a person who buys aground floor unit in a multistoreybuilding whose purchase price includesoffstreet parking may be a member ofthe owners corporation for the parkingspaces, but not a member of theowners corporations for the lifts.

Where a property does have multipleowners corporations, it is importantfor lot owners to understand howthese owners corporations affect theirparticular lot.

04> Common terms

Lot entitlements andlot liabilities

Multiple ownerscorporations

Common property

Factsheet available forfurther information:

Multiple owners corporations

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A common seal is a rubber stamp,which can be arranged through astationery shop. It contains the ownerscorporation and the plan ofsubdivision numbers allocated byLand Victoria.

All owners corporations must have acommon seal, which represents thesignature of the owners corporation.It is an important instrument of theowners corporation and its misusecan have serious financial and legalconsequences.

The seal must be used on alldocuments that are created as theresult of a resolution passed by theowners corporation; for example,contracts for services, makingadditional rules or the appointmentof an owners corporation manager.Those resolutions must be recordedin the minutes of a general meeting.

Each use of the common seal must alsobe witnessed by two lot owners, whosign the document, print their fullname and address and state that theyare members of the ownerscorporation.

Some owners corporations keep acommon seal register to record thenames of the witnesses, the date andthe purpose for using the seal. A sealregister is useful but not mandatory.

Common terms> 05

Common seal

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Depending on their size, ownerscorporations have different levelsof responsibilities and duties.Most owners corporations have theobligations that are set out in thisGuide, but two-lot subdivisions areexempt frommany requirements andprescribed owners corporations haveadditional obligations.

Two-lot subdivisionsOwners corporations operating intwo-lot subdivisions are exempt fromthe:

• requirements for notices of fees

• procedures for meetings anddecision making

• keeping records and an ownerscorporation register

• taking out insurance in the nameof the owners corporation.

Owners corporations containing twolots still need to prepare ownerscorporations certificates and maintaincommon property.

Prescribed owners corporationsPrescribed owners corporations:• have more than 100 lots, or

• collect more than $200,000 inannual fees per financial year.Separate owners corporations forstorage lots, car parking lots andaccessory lots are included in the feetotal for this purpose. Annual feesinclude the fees for generaladministration and maintenanceand contributions to maintenanceplans but do not includeextraordinary fees (see chapter 5).

The operation of owners corporations> 07

The operation ofowners corporations 3

Classes of ownerscorporations

Factsheet available forfurther information:

Two-lot subdivisionsThis fact sheet includes a sampleowners corporation certificate for atwo lot subdivision.

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In addition to the requirementsdescribed in this Guide, a prescribedowners corporation must also:

• establish a maintenance plan

• have financial statements auditedevery year, and

• obtain a valuation every five years ofall buildings it is required to insure.

The owners corporation operates atfour levels:

1. the owners corporation consistingof all the lot owners

2. the committee consisting of electedlot owners or lot owners proxies

3. a delegate of the ownerscorporation. For example, amanager, a chairperson, a secretary,a lot owner or an employee of theowners corporation

4. a delegate of the committee.The committee may delegate to a lotowner, a manager or sub delegate toa member of the committee

All owners corporations, committeesand delegates are required to acthonestly and in good faith and must

exercise due care and diligence incarrying out their functions, powersand activities.

The main obligations of ownerscorporations are:

• managing and administeringthe common property

• repairing and maintaining thecommon property, fixtures andservices

• taking out and maintainingrequired insurance

• raising fees from the lot ownersto meet financial obligations

• preparing financial statementsand keeping financial records

• providing owners corporationscertificates when requested

• keeping an owners corporationregister

• establishing a grievance procedure oradopting the grievance procedure inthe model rules and implementing it

• carrying out any functions andduties under theOwners CorporationsAct 2006, the Owners CorporationsRegulations, rules and any other law

• ensuring compliance with OwnersCorporations Act 2006, the OwnersCorporations Regulations and rules.

08> The operation of owners corporations

Levels of owners corporations

Obligations of ownerscorporations

Factsheet available forfurther information:

Prescribed owners corporations

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All owners corporations are requiredto repair and maintain the commonproperty, any equipment and servicesthat benefits some or all of the lots andcommon property and any of its ownpersonal property.

A maintenance plan covers planningand budgeting for future repairs andmaintenance of the building. If anowners corporation has a maintenanceplan then it is also required to have amaintenance fund to cover the cost ofthe works to implement themaintenance plan.

Only prescribed owners corporationsare required to prepare a maintenanceplan and establish a maintenancefund, but any owners corporation canhave a maintenance plan and fund.

The maintenance plan must set outthe following items:

• the major capital items that it willneed to be repaired and/or replacedwithin the next ten years

• the present condition of those items

• when the items or components willneed to be repaired or replaced

• the estimated cost of the repair andreplacement of those items orcomponents

• the expected life of those items orcomponents once repaired orreplaced, and

Property maintenance> 09

Propertymaintenance 4

Maintenance plans

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• any other prescribed information(there is no prescribed informationat the moment).

Once a maintenance plan is made andadopted, the owners corporation isrequired to report on its implementationat each annual general meeting.

The owners corporation can only makesignificant alterations to the use orappearance of the common property if:

• such alterations are listed in themaintenance plan, or

• the alterations have been approvedby special resolution (See chapter 8)

A special resolution is also requiredif the common property is to beupgraded, renovated or improvedor in cases where work is beingperformed and:

• the total cost of the work isestimated to be more than twicethe total amount of the currentannual fees, or

• the work requires a planning permitor a building permit before it can becarried out.

A special resolution is not requiredif alterations are urgently required toensure safety or prevent significant lossor damage. This exception only appliesto the work necessary to address safety,loss or damage.

Owners are required to maintain theoutward appearance and serviceabilityof their lot and ensure it does notaffect the use and enjoyment of otherlots and common property. This mayalso include maintaining any eaves orguttering that overhang the lot.

If owners fail to maintain the outwardappearance and servicability of theirlot, the owners corporation can orderthe owners in writing to carry outrepairs. If repairs are not made within28 days, the owners corporation canperform the repairs or other workswithout the owner’s approval andrecover the cost of those works fromthe owners.

Owners are entitled to renovateor refurbish the interior of theirapartment or unit. However, theymust notify the owners corporation ifthe renovations require an applicationfor a building or planning permit.

10> Property maintenance

Upgrades, renovations andalterations to the commonproperty

Maintenance of the outwardappearance of lots

Renovations to lots

Factsheet available forfurther information:

Maintenance and maintenance plansThis fact sheet includes a samplemaintenance sheet.

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Owners corporations are responsiblefor keeping track of their finances.Owners corporations can raise feesfrom lot owners, and lot owners haveunlimited financial and legal liabilityto the owners corporation. This meansyou may confront unexpected andadverse financial consequencesbecause of poor financial managementof the owners corporation.

The owners corporation has a numberof financial powers and responsibilitiesunder the Owners Corporations Act2006 including:

• setting fees to cover generaladministration, maintenance andinsurance

• levying special fees for extraordinaryexpenditure

• borrowing money

• investing money

• recovering money owed

• charging penalty interest

• operating a bank account

• paying remuneration to managersand employees

• paying insurance premiums

• keeping financial records

• preparing annual financialstatements

In addition a prescribed ownerscorporation must audit financialstatements after the end of thefinancial year and establish amaintenance fund to cover the cost ofimplementing the maintenance plan.

Financial management> 11

Financialmanagement 5

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An owners corporation must keepfinancial records that:

• cover all income, expenditure, assetsand liabilities of the ownerscorporation, and

• provide for the making of true andfair reports of the financial situationof the owners corporation.

The owners corporation can keepfinancial records in a paper form orin an electronic software package.If financial records are kept in anelectronic software package, they mustbe kept secure, be regularly backed upand be able to be printed out. If thefinancial records are kept on acomputer that is owned by a thirdparty such as a manager or secretary,the committee and lot owners are stillentitled to inspect those records andobtain a copy on the payment of areasonable fee.

The owners corporation should alsokeep sufficient financial records tomeet its obligations to the AustralianTax Office for income tax and GSTpurposes. The basic information thatan owners corporation should keepincludes:

Income records• invoices and statements issued

(including tax invoices)

• invoices and statements paid orreceipts

• credit card statements, and

• bank deposit books and bankaccount statements.

Expenditure records• purchase/expense invoices

(including tax invoices)

• purchase/expense receipts (whichinclude an ABN)

• cheque butts and bank accountstatements

• credit card statements.

Assets and liabilities records• asset register

• depreciation schedules

• taxation returns

• list of debtors

• list of creditors

• unpaid invoices.

For further information, contact theAustralian Tax Office on 13 28 66 or goto www.ato.gov.au and refer to thepublication Record Keeping for SmallBusiness (Nat3092).

12> Financial management

Financial records

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The owners corporation sets annualfees to cover general administrationmaintenance, insurance and otherongoing costs. The owners corporationcan decide the level of fees, how theyare paid and times for payment(usually quarterly).

An owners corporation can alsolevy special fees or charges on lotowners to cover extraordinary orunexpected expenditure (for exampleto pay for painting of the building).If the amount of the proposed specialfees is more than twice the amount ofthe owners corporation’s annual fees,then it must be approved by a specialresolution (75 per cent majority of alllot owners).

Owners must pay their share of theannual and special fees according tolot liability. If owners do not pay feesthey lose the right to vote on allmatters requiring an ordinaryresolution. Although they can stillattend meetings of the ownerscorporation, they can only vote onmatters requiring a special resolutionor unanimous resolution. (See chapter8) The owners corporation can alsocharge penalty interest on any moneyowing and take action to recover anydebts in a court or at the VictorianCivil and Administrative Tribunal(VCAT).

Fees

Financial management> 13

Factsheet available forfurther information:

Financial managementThis fact sheet includes copies of theapproved notices for Fee Notice andFinal Fee Notice.

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The Owners Corporations Act 2006sets out the minimum insurancecover requirements for all ownerscorporations. The Act also enablesowners corporations to take outinsurance cover for other risks.

All owners corporations must takeout reinstatement and replacementinsurance for all buildings on thecommon property. This covers thecost of repairing or rebuilding orreplacing the damaged property andremoving debris, as well as paying forarchitects and tradespeople requiredin the process.

Two-lot subdivisions are exempt fromthese requirements, but if there arebuildings on the common property,the owners should still have insuranceto cover the costs of reinstating orreplacing those buildings.

Obtaining valuationsAn owners corporation can obtainvaluations of the buildings it isrequired to insure. A prescribed ownerscorporationmust obtain a valuationevery five years of all buildings thatit is liable to insure and present thevaluer’s report at the next generalmeeting.

Insurance> 15

Insurance 6

Reinstatement and replacementinsurance

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Owners corporations must alsotake out public liability insurancefor common property to a minimumof $10 million. Public liabilityinsurance must cover any liabilityfor the owners corporation to paycompensation in the case of anyinjury, death or illness of a person,and any damage or loss of propertyarising from the common property.

If there is no common propertythen the owners corporation can bya unanimous resolution decide thateach lot owner must arrange theirown insurance.

Two-lot subdivisions are also exemptfrom these requirements, but if thereis common property, the ownersshould still have public liabilityinsurance.

In almost all situations, an ownerscorporation must take out bothreinstatement and replacementinsurance and public liabilityinsurance for all lots in a multi-storeydevelopment if:

• any of the lots is located above orbelow another lot, or

• any of the lots is located above orbelow common property.

The only situations where thisrequirement does not apply are if:

• the lots are actually single-storey,such as those found on multi-storeyplans that define the space aboveand below the lots as commonproperty, or

• the multi-storey development wasregistered under the Strata Titles Act1967 and Cluster Titles Act 1974and does not have lots above orbelow one another.

16> Insurance

Public liability insurance Multi-storey developments

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The owners corporation can, byordinary resolution at a generalmeeting, decide to take out anyinsurance that it considers importantto safe guard the interests of the lotowners. Some additional kinds ofinsurance available to ownerscorporations are:

• office bearers’ legal liability

• workers compensation

• fidelity guarantee (covers the ownerscorporation against loss incurred bythe dishonest act of an employee ofthe owners corporation)

• machinery breakdown

• catastrophe insurance

• lot owners’ improvements to thebuilding

• legal defence expenses.

The owners corporation should seekprofessional advice about the rangeof insurance products and the amountof insurance to cover its risks.For example, there may be significantfinancial and administrative savingsif all single-storey buildings or lotsare covered by the same insurer.Additional insurance should alwaysbe on the agenda and considered atthe annual general meeting.

Insurance> 17

Other insurance

Factsheet available forfurther information:

Insurance

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An owners corporation is requiredto keep records under the OwnersCorporations Act 2006. Records arealso required under other laws, suchas Commonwealth taxation laws andessential safety measures under theBuilding Act 1993.

An owners corporation must keepvoting papers and ballots for 12monthsafter a vote or ballot is taken. Proxiesmust be kept for 12 months afterthey expire or are revoked. An ownerscorporation must keep all otherdocuments for at least seven years.

The Owners Corporation Act 2006requires owners corporations to keepthe following records:

• the full name and address of eachlot owner

• a consolidated copy of the rules

• minutes of meetings

• copies of resolutions

• records of the results of ballots

• proxies

• voting papers or ballots

• correspondence

• accounting records

• records of assets and liabilities

• financial statements

• income tax returns and goods andservices tax records (if any) of theowners corporation

• insurance policies

• maintenance plans (if applicable)

• notices and orders served on theowners corporation by a court ortribunal

• notices served by the ownerscorporation

• contracts and agreements enteredinto by the owners corporation

• leases and licences entered into bythe owners corporation.

Records> 19

Records 7

Factsheet available forfurther information:

RecordsThis fact sheet includes a samplerequest to inspect records.

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Except for two-lot subdivisions, allowners corporations must establishand keep a summary of its activities,undertakings and membership. A hardcopy or electronic version of thefollowing records must be kept as theowners corporation register:

• the owners corporation plannumber and address

• the name and address of each lotowner

• the name, registration numberand contact details of the manager(if there is one)

• total lot liability and total lotentitlements

• lot liability and lot entitlementsfor each lot

• the basis for setting of lot liabilityand lot entitlement (if available)

• the date and details of eachamendment to the ownerscorporation rules

• details of contracts, leases andlicences entered into by the ownerscorporations

• details of insurance policies.

The owners corporation recordsand register must be made availablefor inspection free of charge. However,a manager can charge the ownerscorporation for his or her time tosupervise inspections of therecords and register. If a personrequests copies of the documents,the owners corporation can alsocharge a reasonable fee to providethem. The following people are ableto inspect the owners corporationsrecords and register:

• a lot owner

• a mortgagee of a lot

• a purchaser of a lot

• a representative of a lot owner,mortgagee or purchaser of a lot.

20> Records

Owners corporation register Availability of recordsand the register

Factsheet available forfurther information:

Owners corporation registerThis fact sheet includes a sampleowners corporation register.

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The owners corporation should alwaysget a written request from all peopleinspecting an owners corporations’records and register. This identifies theperson making the request and is usedto report to the owners corporation.The owners corporation shouldsupervise records inspections to ensurethat documents are not lost, destroyedor interfered with.

A person whose name or otherpersonal information is kept in therecords of the owners corporation or inthe owners corporation register mayapply to the Victorian Civil andAdministrative Tribunal for an orderrestricting access to that information.However, the tribunal will only restrictaccess to information in exceptionalcircumstances and only for a limitedtime.

All owners corporations are requiredto issue an owners corporationcertificate to any person who submitsa written application accompaniedby a fee of up to $150 per certificate.The owners corporation certificatemust be prepared and supplied within10 business days.

It is very important that theinformation contained in the ownerscorporation certificate is accurate as itwill form part of the vendors statementor section 32 required for the sale andpurchase of a lot.

If there are any applications for anowners corporation certificate for alot that is affected by more than oneowners corporation, there will needto be a certificate prepared for eachowners corporation.

The owners corporation certificatemust contain the followinginformation:

(a) the current fees for the lot foreach quarter or annually

(b) the date up to which the fees forthe lot have been paid

(c) the total of any unpaid fees orcharges for the lot

(d) any special fees or levies whichhave been struck and the dates onwhich they are payable

(e) any repairs, maintenance or otherwork which has been or is aboutto be performed which may incuradditional charges to those set outin (a) to (d)

(f) in relation to the ownerscorporation’s insurance cover:

(i) the name of the insurancecompany

(ii) the number of the policy

(iii) the kind of policy

Records> 21

Privacy safeguards

Owners corporationcertificates

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(iv) the buildings covered

(v) the building amount

(vi) the public liability amount

(vii) the renewal date

(g) if the owners corporation hasresolved that the members mayarrange their own insuranceunder section 63 of the Act, thedate of this resolution

(h) the total funds held by theowners corporation

(i) whether the owners corporationhas any liabilities or contingentliabilities (in addition to any suchliabilities specified in paragraphs(a) to (d)) and, if so, the details ofthose liabilities

(j) details of any current or proposedcontracts, leases, licences oragreements affecting thecommon property

(k) details of any current or proposedagreements to provide services tolot owners, occupiers or thepublic

(l) details of any notices or ordersserved on the owners corporationin the last 12 months

(m) details of any legal proceedings towhich the owners corporation is aparty, or any circumstances whichmay give rise to legal proceedingsto which the owners corporationwould be a party

(n) whether the owners corporationhas appointed, or has resolved toappoint, a manager and, if so, thename and address of the manager

(o) whether an administrator hasbeen appointed for the ownerscorporation, or whether there hasbeen a proposal for theappointment of an administrator

(p) total lot entitlement and lotliability.

The owners corporation certificatemust include a statement that furtherinformation can be obtained by aninspection of the owners corporationregister. The certificate must also havethe following documents attached:

• a copy of resolutions made at thelast annual general meeting

• a copy of the owners corporationrules registered at Land Victoria

• a copy of the “Statement of Adviceand Information for ProspectivePurchasers and Lot Owners” that iscontained in Schedule 3 of theOwners Corporations Regulations2007.

22> Records

Factsheet available forfurther information:

Owners corporation certificateThis fact sheet includes a sampleowners corporation certificate.

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An owners corporation makes adecision or resolution when itsmembers vote. Decisions of theowners corporation may be madeby an ordinary, special or unanimousresolution, all of which requiredifferent percentages of the totalnumber of votes. Please note thatin an owners corporation, votesare allocated according to lots orlot entitlements, not by number ofindividuals. This means that a personwho owns more than one lot has morethan one vote. It also means that if alot is jointly owned, the owners stillonly have one vote between them.

Resolutions may be made by a meetingor ballot of the owners corporation, ameeting or ballot of the committee,or by a decision of a delegate. Onlyordinary resolutions that are notrequired to be made at a generalmeeting can be delegated.

TheOwners Corporations Act 2006 createsa hierarchy of decision-making power:

• The owners corporation(comprising all the lot owners)retains control of all decisionmaking and matters requiring aunanimous or special resolution, orresolutions that can only be made ata general meeting. Only the ownerscorporation can overturn an earlierdecision of the owners corporation.

• The committee can make decisionsrequiring an ordinary resolutionexcept those that must be decided ata general meeting. The committeecannot overturn decisions of theowners corporation.

• If the owners corporation hasdelegated powers to a manager ora lot owner, then the delegate canmake decisions. A delegate cannotoverturn a decision of the ownerscorporation or the committee.

• An owners corporation can appointsub-committees to advise theowners corporation. Sub-committeescannot make decisions.

Decision-making 8

Decision-making> 23

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Owners corporations must hold ageneral meeting (called the annualgeneral meeting) each year. The noticeof an annual general meeting must bein writing and either handed or sent tolot owners at least 14 days before themeeting. The Owners Corporations Act2006 allows notices to be sentelectronically.

The notice must include:

• the date, time and location of themeeting

• the general nature of business or anyresolutions to be discussed ordecided at the meeting (the agenda)

• the text of any special or unanimousresolutions to be decided at themeeting

• the financial statements

• the proposed annual budget

• a statement that lot owners have aright to appoint a proxy.

Agenda for the annual generalmeetingA well-planned agenda is necessaryfor an effective meeting. It shouldinclude:

• election of chair, attendances,apologies, proxies, quorum andentitlements to vote

• confirmation of minutes of theprevious meeting

• report of the manager (if applicable)

• report of the committee(if applicable)

• reports on the implementation ofthe maintenance plan (if applicable)

• acceptance of the financialstatements

• insurance

• proposed budget for the nextfinancial year

• setting of fees

• appointment of committee

• appointment of manager

• appointment of secretary

• delegations and any proposedcontrols on expenditure by delegates

• reports on the number ofcomplaints and nature ofcomplaints including:

• the number of matters on whichaction was taken under disputeprocedures in the Act

• the nature of matters in respect ofwhich action was taken

• the number of applications to theVictorian Civil and AdministrativeTribunal concerning the ownerscorporation

• the valuation report (for prescribedowners corporations only).

24> Decision-making

Annual general meeting

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Before the annual general meeting, it isa good idea for the lot owners or thecommittee to contact each other, orthe manager, to identify what needs tobe discussed at the annual generalmeeting.

The manager, secretary or thecommittee should:

• prepare the financial statement,reports and a proposed budget forthe next financial year.

• identify and assemble the motionsto include on the agenda

• consider sending out a coveringletter with the notice and agendathat sets out background to theissues, such as encouraging peopleto nominate to be on thecommittee, explaining any changesto fees, options for insurance andany necessary repairs andmaintenance issues for the comingyear.

QuorumA quorum for general meetings is atleast 50 per cent of all the lot ownersor their proxies by number orrepresenting 50 per cent of the totalnumber of lots or lot entitlements.If there is not a quorum, the annualgeneral meeting can still go ahead butall of the decisions are interimdecisions.

Voting can be done at a meeting or bya ballot. At a meeting, voting is usuallyby a show of hands, with one vote foreach lot. However, any lot owner mayrequire before or after a vote by showof hands, that a vote be taken basedon lot entitlements.

The Owners Corporations Act 2006also enables voting and ballots by post,telephone, facsimile, the internet orother electronic communication.

Lot owners owing fees or other moneyto the owners corporation are notentitled to vote on ordinaryresolutions. However, they can stillvote on matters requiring a specialor unanimous resolution.

If the votes are equal and thechairperson is a lot owner or a proxyfor a lot owner, then the chairpersonmay exercise a second or casting vote.

Decision-making> 25

Factsheet available forfurther information:

Annual General MeetingsThis fact sheet includes a samplenotice, agenda and minutes.

Voting

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There are different types of resolutions,depending on the percentage of votesrequired to agree before a resolution ispassed. Please note:

• The percentages required to passresolutions relate to the totalnumber of lots or lot entitlementsnot to the percentage of ownerswho may attend a meeting orrespond to a ballot.

• A lot owner may ownmore thanone lot and therefore may havemore than one vote.

• The text of unanimous and specialresolutions must be set out on thenotice of the meeting.

Types of resolutions• Unanimous resolutions require

100 per cent agreement by lots(ie, all owners or their proxies).

• Special resolutions requireagreement by owners or theirproxies representing 75 per centof lots or lot entitlements. If ata meeting or by ballot, a specialresolution attracts agreement byowners or proxies representing atleast 50 per cent of lots and nomore than 25 per cent against, it istermed an interim specialresolution.

• Interim special resolutions requirea notice to be sent to all lot ownerswithin 14 days and can only beacted on after 29 days. If thesecretary receives a petition byowners or proxies representing25 per cent of the lots against aninterim special resolution within29 days of the meeting or ballot,the resolution fails.

• Ordinary resolutions that cannotbe delegated to a committee,manager or lot owner requireagreement by owners or proxiesrepresenting at least 50 per cent oflots or lot entitlements. If a generalmeeting does not have a quorum,the ordinary resolutions passed atthe meeting become interimordinary resolutions.

• Interim ordinary resolutionsrequire a notice to be sent to all lotowners within 14 days and can onlybe acted on after 29 days if nopetition representing 25 per centof lots or lot entitlements is receivedto call another meeting.

• Ordinary resolutions that canbe delegated to the committee,manager or lot owner. The delegatecan make a decision without furtherconsultation.

Unanimous resolutions are requiredfor fundamental decisions, such asselling common property, buying land,altering boundaries or altering lotentitlement and lot liability.

26> Decision-making

Resolutions

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Special resolutions are required to:

• make, amend or revoke the rulesof the owners corporation

• provide a service to lotowners/occupiers or the public

• enter into agreements for theprovision of services

• lease or license the whole or anypart of the common property toa lot owner or other person

• obtain a lease/licence over any land

• bring legal proceedings (a specialresolution is not required for anapplication to the Victorian Civiland Administrative Tribunal toenforce rules or to recover fees)

• levy special fees if the amountinvolved is more than twice thetotal amount of the currentannual fees

• borrow any amount more thanannual fees

• approve payment out of themaintenance fund

• make significant alterations to theuse or appearance of the commonproperty

• upgrade or renovate commonproperty.

Notice of interim special resolutionsThe notice should clearly state thatthe decision is an interim specialresolution. It must include thesecretary’s contact details and thedeadline for submitting a petition.

Notice of interim ordinaryresolutionsThe notice of should clearly state thatthe decisions are interim resolutionsand include the secretary’s contactdetails and a deadline for thesubmitting a petition.

Decision-making> 27

Factsheet available forfurther information:

Voting and ballot guidelinesThis fact sheet includes sample votingcards, ballot papers, notices of interimordinary resolution, notices of interimspecial resolution, and petitions.

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An owners corporation shouldconsider delegations of its powersat each annual general meeting.Delegations enable a chairperson,secretary, manager or committeeto make decisions on behalf of theowners corporation and carry out dayto day tasks without having to calla general meeting.

If the delegated powers are reviewedand changed, record the decision inthe minutes of the meeting and setout the delegated powers in a newinstrument of delegation.

Each owners corporation has theability to set limits on the delegatedpowers to spend money or do otherthings on behalf of the ownerscorporation.

There are some powers of the ownerscorporation that cannot be delegated,including all matters requiring aunanimous resolution, a specialresolution or an ordinary resolutionat a general meeting.

The owners corporation must arrangefor minutes of all meetings to be kept.Minutes must include:

• date, time and location of themeeting

• names of lot owners at the meeting

• names of lot owners who haveprovided proxies

• names of proxies at the meeting

• the text of all resolutions of theowners corporation made at thegeneral meeting

• the votes on any resolutions.

28> Decision-making

Delegations Minutes of meetings

Factsheet available forfurther information:

Meeting procedures

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As a lot owner, if you cannot attend ameeting, you can appoint a trustedperson as your representative. Thisperson is your “proxy” and their voteis counted as yours.

You may authorise a person in writingto act as your proxy to:

• attend, speak or vote on your behalfat a meeting of the ownerscorporation

• vote on your behalf in a ballot, or

• represent you on the committee ofthe owners corporation.

To nominate a proxy you mustcomplete a prescribed form, which isin the Owner CorporationsRegulations 2007 and available fromConsumer Affairs Victoria, and deliverit to the owners corporation secretary.Proxies automatically lapse 12 monthsafter the form is delivered to thesecretary, unless an earlier date isspecified.

It is illegal for someone to coerce youinto making another person yourproxy.

A person acting under a power ofattorney for a lot owner may vote ontheir behalf at a general meeting or ona ballot. A power of attorney can onlyact for more than one lot if they are amember of a lot owner’s family. It isillegal for someone to require you togive a power of attorney.

All meetings other than annual generalmeetings are known as special generalmeetings. Special general meetings canbe convened by:

• the owners corporation chairpersonor secretary

• a lot owner nominated by lotowners who have at least 25 per centor more of the total lot entitlements

• the manager of the ownerscorporation:

• if there is no committee, or

• acting on the authority of thecommittee, or

• if nominated by lot owners whohave at least 25 per cent or moreof the total lot entitlements.

Decision-making> 29

Proxies

Special general meetings

Powers of Attorney

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Notice of a special general meetingThe convenor of a special generalmeeting is required to give notice inwriting of the meeting to each lotowner at least 14 days before themeeting. The notice must containthe following information:

• the date, time and location ofthe meeting

• the agenda for the meeting

• the text of any special resolution orunanimous resolution to be movedat the meeting

• a statement that the lot owner canappoint a proxy to attend themeeting.

If owners representing 25 per centor more of lot entitlements haverequested the meeting, then theperson convening the meeting musthave the agenda approved by therelevant lot owners.

An owners corporation is required tohold its first general meeting withinsix months of registration with LandVictoria. If this has not been done,then all that is required is that ownersrepresenting 25 per cent or more of lotentitlements agree to call the inauguralannual general meeting of the ownerscorporation. After this meeting, anowners corporation is only requiredto have an annual general meetingif it receives or pays out money in afinancial year.

30> Decision-making

Activating your ownerscorporation

Factsheet available forfurther information:

Activating your owners corporationThe fact sheet includes a sampleaction sheet for preparing for a generalmeeting and a sample petition.

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The Owners Corporations Act 2006requires an owners corporation with13 or more lots to elect a committeeat each annual general meeting.Owners corporations with less than13 lots may elect a committee if theychoose, but it is not mandatory.

A committee must have at leastthree and not more than 12 members.The members of the committee mustbe lot owners or hold a proxy for a lotowner. Once elected, the committeemembers hold office until a newcommittee is elected. There must notbe more than one committee memberfrom any one lot.

A lot owner, or anyone acting as aproxy for a lot owner, may nominatethemselves for election as a committeemember before or at the annualgeneral meeting.

The owners corporation may, at anannual general meeting or specialgeneral meeting, resolve to add orremove a committee member orreplace or remove a committee.The committee can invite membersto the committee if there is a vacancy.

The committee may appointsub-committees or invite other lotowners or proxies of lot owners toadvise and assist in carrying out itsfunctions and powers. However,sub-committees and invited membersare not entitled to vote as part of thecommittee.

Committees> 31

Committees 9

Membership of a committee

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Amember of a committee orsub-committee of an ownerscorporation must:

• act honestly and in good faith

• exercise due care and diligence

• not make improper use of his or herposition as a member to gain,directly or indirectly, an advantagefor themselves or for any otherperson

• report to the owners corporation ateach annual general meeting.

Under the Owners Corporations Act2006, any liability resulting from theact or omission by a committeemember, sub-committee member orvolunteer manager attaches to thewhole owners corporation providedthat the person acted in good faith:

• in the exercise of a power or thecarrying out of a function underthe Act, regulations or rules

• in the reasonable belief that theact or omission was in the exerciseof a power or the carrying out of afunction under the Act, regulationsor rules.

Committee members shouldunderstand the requirements of thelegislation. Minutes of all committeemeetings should be submitted to theowners corporation at every annualgeneral meeting as part of thecommittee’s report.

32> Committees

Duties of committee membersand volunteer managers

Immunity of committeemembers

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If an owners corporation has acommittee, it must elect a chairpersonand a secretary. Failure to fill eitherof these positions may mean thecommittee is not lawful.The committee’s chairpersonand secretary also then becomethe chairperson and the secretaryof the owners corporation.

Special duties of the chairpersonThe chairperson’s role is to facilitatemeetings. If you are chairperson, allowfair discussion of matters and stick tothe agenda, so that decisions can bemade.

The chairperson must:

• be the chairperson of the committeeand the owners corporation

• have an instrument of delegationfrom the owners corporation or thecommittee

• act on the directions of the ownerscorporation

• act on the directions of thecommittee

• act honestly and in good faith,exercise due care and diligence andnot make improper use of his or herposition.

The chairperson has the power to:

• convene the annual general meeting

• convene a special general meeting

• arrange a ballot

• make the casting vote at a general orcommittee meeting when the votesare equal.

The Owners Corporations Act 2006does not give the chairperson of thecommittee any special powers to makedecisions on behalf of the ownerscorporation or the committee.However, the owners corporation candelegate powers to the chairperson.Any powers delegated must be set outin an instrument of delegation andrecorded in the minutes.

For example, the owners corporationcan resolve that the chairperson isresponsible for checking and recordingproxies, and supervising ballots andpolls.

Committees> 33

The chairperson and secretary

Factsheet available forfurther information:

ChairpersonThe fact sheet includes a sampleinstrument of delegation - chairperson.

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Special duties of the secretaryThe secretary must:

• be the secretary of the committeeand the owners corporation

• have an instrument of delegationfrom the owners corporation or thecommittee

• act on the directions of the ownerscorporation

• act on the directions of thecommittee

• receive petitions against an interimspecial resolution

• receive ballot forms at generalmeetings, or via post, telephone,internet or other electronic meansin accordance with the rules

• receive proxies from lot owners

• set the time, date and the agenda formeetings

• give three days notice of committeemeetings

• keep minutes of committeemeetings

• collect records and funds from amanager after the manager has beenremoved

• certify and record rules with LandVictoria

• act honestly and in good faith,exercise due care and diligence andnot make improper use of his or herposition.

The secretary also has the power to:

• convene the annual general meeting

• convene a special general meeting

• arrange a ballot.

Lot owners can remove a committeeat an annual general meeting. If thereis a casual vacancy on a committee,the remaining members of thecommittee can invite another lotowner or a person holding a proxyfor a lot owner to be a member ofthe committee. The vacancy doesnot have to be filled if three or moremembers remain on the committee.

34> Committees

Removing committee members

Factsheet available forfurther information:

SecretaryThe fact sheet includes a sampleinstrument of delegation - secretary.

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QuorumsA quorum for a committee meetingis at least 50 per cent of the committeemembers. When there is no quorum atthe meeting, the committee can makeinterim resolutions.

These do not take effect unless:

• they are confirmed at the nextcommittee meeting when a quorumis present, or

• they are confirmed by a ballot ofcommittee members, or

• other procedures set out in the rulesabout interim committee decisionsare followed.

If the votes are equally split, thechairperson has a casting vote.

ProceduresA committee meeting may be called bythe owners corporation, the committee,the chairperson of the committee, thesecretary of the committee, themanager of the owners corporation ora delegate of the owners corporation.

The secretary must prepare the notice,which must:

• be sent out at least three days beforethe meeting or as determined by theowners corporation

• set out the time and place of themeeting

• include an agenda.

Committees can make decisions by aballot or at meetings by a show ofhands. Committee members have onevote each. A ballot cannot close before14 days elapse from the notice of theballot, but if a majority of thecommittee vote in favour of themotion before the closing date, it isdeemed to have passed.

Minutes of committee meetingsThe committee must keep minutes ofevery meeting. The minutes mustinclude the date, time and place of themeeting, names of those present andall resolutions made by the committee.

At every annual general meeting theowners corporation should resolve thatthe committee keep minutes of allmeetings and submit those minutes aspart of the report at the annual generalmeeting.

Accurate minutes of committeemeetings are necessary for eachmember of the committee to confirmthe decisions made and that they actedin good faith and in accordance withthe legislation and the ownerscorporation rules.

Committees> 35

Committee meetings

Factsheet available forfurther information:

CommitteesThe fact sheet includes a samplenomination form, ballot paper andinstrument of delegation.

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Many owners corporations useprofessional managers to assist withfinances, insurance, administration,meetings and maintenance functions.Larger owners corporations usuallyengage paid professional managersbecause complex legal, technical andpeople skills are required to managethe property.

An owners corporation may appointa manager to carry out any powersor functions it is able to delegate ata general meeting. The ownerscorporation usually delegates powersto a manager in a contract orinstrument of delegation. This enablesthe manager to make decisions onbehalf of the owners corporation.The appointment must be in writingor through a contract of appointmentin the approved form.

However, some owners corporationsmay be self-managed by a committeeor a lot owner who has been delegatedpowers on a voluntary basis.

Managers> 37

Managers 10

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The Owners Corporations Act 2006requires all managers paid a fee tomanage owners corporations to beregistered with the Business LicensingAuthority. The registration schemeapplies to management businesses,rather than requiring registration ofeach individual manager who may bean employee of the business.

People who are less than 18 years old,who are insolvent, or who do not haveprofessional indemnity insurancecannot be registered. The register ispublicly available and includes detailsof any orders made against a manager.

An application for registration as amanager must:

• be in writing

• include a copy of a birth certificateor a passport, or a drivers licence

• include evidence of the requiredprofessional indemnity insurance

• be accompanied by the prescribedfee.

In the case of a company applyingfor registration, each director of thecompany must include a copy of abirth certificate, or a passport, or adrivers licence.

If you are appointing a professionalowners corporation manager, onlydeal with a registered manager. Youcan check their status by contactingVictoria’s Business Licensing Authorityon 1300 13 54 52 or searching thepublic register at www.bla.vic.gov.au.

All professional owners corporationmanagers are required to haveregistered with the Business LicensingAuthority by 31 March 2008.

38>Managers

Registration of paid managers

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All registered managers must:

• be appointed by an instrument orby contract of appointment in theapproved form

• act honestly and in good faith.They must not improperly usetheir positions to gain an advantagefor themselves or any other person

• carry professional indemnityinsurance for the prescribed amount

• hold all money on behalf of anowners corporation on trust

• account separately for money heldfor each owners corporation itmanages

• report to the owners corporationat each annual general meeting

• if there is a committee, report to thecommittee as required

• register with the Business LicensingAuthority

• lodge an annual statement with theBusiness Licensing Authority.

The owners corporation, thecommittee or a delegate can removea manager, but this can involvecomplex legal and contractual issues.An owners corporation removing amanager should make this decisionat a general meeting or by ballot.

A manager whose appointment isterminated has 28 days to return allfunds and records to the secretaryof the owners corporation.

Managers> 39

Duties of managers Removing a manager

Factsheet available forfurther information:

ManagersThe fact sheet includes a copy of theapproved notice for the appointmentof a manager.

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All owners corporations in Victoriahave rules for the control,management, administration, useor enjoyment of the commonproperty or of the lot.

By a special resolution, the ownerscorporation can make or changerules or can decide to rely on theModel Rules set out in Schedule 2of the Owners CorporationsRegulations 2007.The rules cover matters includingcar parking, noise, pets, use of lots,dispute resolution procedures andbehaviour of owners, residents orguests. All owners and residentsmust be given a copy of the rulesbefore they move in.

Owners corporations can apply to theVictorian Civil and AdministrativeTribunal to enforce rules and thetribunal can impose penalties forbreaches of rules.

By default, the Model Rules apply toan owners corporation, unless theowners corporation makes its ownrules and records than with LandVictoria. Rules, other than ModelRules must be recorded at LandVictoria to be enforceable.

Owners corporations can make rulesfor:

• 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.

Rules> 41

Rules 11

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All owners corporations are requiredto keep a letterbox and/or a signdisplaying contact details of theowners corporation.

However, if you wish to make contactwith the owners corporation urgently,then you need to know how to contactthe chairperson, secretary or themanager. Owners corporations shoulddevelop a policy on how day to daycommunication between a lot ownerand the owners corporation can bemade. The policy should be part of therules and may specify how and whenthe chairperson, secretary or themanager can be contacted and what todo if there is an emergency. This policyshould be given to all new lot ownersor be displayed on a notice board.

42> Rules

Communication

Factsheet available forfurther information:

RulesThis fact sheet includes the ModelRules for an owners corporation andLand Victoria form for amending rules.

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The Owners Corporations Act 2006 setsout a three-tiered complaint anddispute resolution process involving:

• internal dispute resolution

• conciliation through ConsumerAffairs Victoria

• applications to the Victorian Civiland Administrative Tribunal (VCAT)for an order.

An owners corporation must followits internal dispute resolution processbefore proceeding to conciliationthrough Consumer Affairs Victoriaor making an application to VCAT.

ComplaintsComplaints to the owners corporationrelating to an alleged breach of theOwners Corporation Act 2006, theRegulations or rules by a lot owner,an occupier or a manager must bemade in writing to the ownerscorporation in the approved form.

If an owners corporation decidesto take no action, it must providewritten reasons.

Complaints and disputes> 43

Complaintsand disputes 12

Internal dispute resolution

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If an owners corporation decides totake action, it must give notice to theperson who is alleged to havecommitted the breach. If the personabout whom the complaint has beenmade is not the lot owner, then theowners corporation must also give acopy of the notice to the lot owner.The notice must be in writing in theapproved form and the breach mustbe rectified within 28 days of thenotice being served.

What if the breach is not rectified?If the problem is not resolved within28 days, the owners corporation canextend the deadline for action.The owners corporation can alsochoose to issue the individual witha final notice.

The final notice must be in writingand on an approved form. A finalnotice states that the individual has28 days from the date of the noticeto comply. The notice must also statethat if the breach is not rectified withinthat time, the owners corporation maytake the matter to VCAT for an order.

Before going to VCAT, the ownerscorporation must try to resolve thematter through its internal disputeresolution process.

Grievance procedureAn owners corporation may adopt thegrievance procedure in the model ruleswhich are set out in the OwnersCorporations Regulations or make itsown rules.

For example, an owners corporationsmay make a rule that states: “if youwish to raise an issue, you can make awritten request for a meeting of theowners corporation or its committee”.This meeting would allow everyone tohave a say on the issue and provide anopportunity to get the matter resolvedbefore it escalates.

A lot owner, occupier or manager whohas a complaint is not required to usethe owners corporation’s grievanceprocedure. Instead, they can make acomplaint to Consumer AffairsVictoria. However, Consumer AffairsVictoria cannot make an order toenforce a resolution and may adviseyou to seek internal dispute resolution.

Consumer Affairs Victoria will assessthe complaint to determine if it canbe conciliated. The conciliation processinvolves negotiation between theparties to bring them to an agreedresolution.

44> Complaints and disputes

Lodging a complaint withConsumer Affairs Victoria

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The owners corporation must followits internal grievance procedure beforemaking an application to the tribunal.These people can take a complaint tothe tribunal:

• a manager or former manager

• a lot owner or former lot owner

• the owners corporation

• the occupier or former occupierof alot

• a mortgagee of a lot

• an insurer under a policy taken outby the owners corporation

• the Director of Consumer AffairsVictoria.

What can the Victorian Civil andAdministrative Tribunal do?The tribunal can impose penalties forbreaches of rules and make a widerange of other orders.

These include:

• ordering someone to do something

• imposing a penalty of $250 forbreaches of rules

• requiring the payment of moneyowed, as damages or restitution

• varying or ordering a term of acontract as void

• appointing or removing a manager

• appointing or removing achairperson or secretary

• appointing an administrator.

Complaints and disputes> 45

Applying to the Victorian Civiland Administrative Tribunal

Factsheet available forfurther information:

Dealing with grievancesThis fact sheet includes copy of anissue log and the approved notices forComplaint Form, Notice to RectifyBreach and Final Notice to RectifyBreach.

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Hard copies of the legislation can bepurchased from Information Victoria:

505 Little Collins StreetMelbourne 30001300 366 356www.information.vic.gov.au

Online copies of the legislationcan be downloaded from:www.legislation.vic.gov.au(Victorian Law Today).

Copies of a plan of subdivision andan owners corporation’s rules can beobtained from Land Victoria:

570 Bourke StreetMelbourne 300003 8636 2010www.land.vic.gov.au

Consumer Affairs Victoria can assistyou with telephone advice and dealingwith disputes. Consumer Affairs alsohas a range of fact sheets, sampledocuments and approved forms andnotices specifically for ownerscorporations. You can obtain them by:

Telephone – 1300 55 81 81Online – www.consumer.vic.gov.au

By using the order form includedwith this Guide

In person - Victorian Consumer&Business Centre113 Exhibition StreetMelbourne

Regional servicesConsumer Affairs Victoria also hasregional offices in Ballarat, Bendigo,Geelong, Morwell, Mildura,Wangaratta andWarrnambool,together with a mobile outreachservice that regularly visits ruralcommunities. To find details about theoffice or mobile service nearest you,call 1300 55 81 81 or go towww.consumer.vic.gov.au andclick on “Contact Us”.

Further information> 47

Furtherinformation 13

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Consumer Affairs VictoriainformationThese documents are availablein printed form (see the includedorder form) or from the ConsumerAffairs Victoria website(www.consumer.vic.gov.au).

Please note: the Sample documentsand Approved notices are included aspart of the printed fact sheets and areonly available as separate documentsfrom the Consumer Affairs website.

Fact sheets

• Activating your owners corporation

• Annual general meetings

• Chairperson

• Committees

• Dealing with grievances

• Financial management

• Insurance

• Maintenance and maintenanceplans

• Managers

• Meeting procedures

• Multiple owners corporations

• Owners corporation certificate

• Owners corporation register

• Prescribed owners corporations

• Purchasing an apartment checklist

• Records

• Rules

• Secretary

• Two-lot subdivisions

• Voting and ballot guidelines

Sample documents

(Included in the Activating your ownerscorporation fact sheet)

• Action sheet: preparing for a generalmeeting

• Petition for a general meeting

(Included in the Annual generalmeeting fact sheet)

• Agenda for AGM

• Schedule of tasks

• Minutes for AGM

• Notice of AGM

(Included in the Chairperson fact sheet)

• Instrument of delegationchairperson

(Included in the Committees fact sheet)

• Nomination form

• Ballot paper

• Instrument of delegation

• Sample rule for a ballot to elect a

committee

(Included in theDealing with grievancesfact sheet)

• Issue log sheet

• Model Rule – Dispute resolution(Owners Corporations Regulations2007)

• Sample Rule – Dispute Resolution &Communication procedures

(Included in theMaintenance andmaintenance plans fact sheet)

• Maintenance survey sheet

(Included in the Owners corporationregister fact sheet)

48> Further information

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• Sample register

(Included in the Owners corporationcertificate fact sheet)

• Sample certificate

(Included in the Records fact sheet)

• Request to inspect records

(Included in the Rules fact sheet)

• Model rules for an ownerscorporation

• Sample rule – dispute resolution &communication procedures

• Communicating with your ownerscorporation

• Issue log sheet

(Included in the Secretary fact sheet)

• Instrument of delegation - secretary

(Included in the Two-lot subdivisionsfact sheet)

• Sample two-lot owners corporationcertificate

(Included in the Voting and ballotguidelines fact sheet)

• Voting cards

• Ballot papers

• Petition for a general meeting orballot

• Notice of interim ordinaryresolutions

• Notice of interim special resolutions

Approved notices

(Included in the Dealing withgrievances fact sheet)

• Complaint Form

• Notice to Rectify Breach

• Final Notice to Rectify Breach

(Included in the Financial managementfact sheet)

• Fee Notice

• Final Fee Notice

(Included in theManagers fact sheet)

• Appointment of owners corporationmanager

Prescribed forms

• Proxy nomination (Schedule 1 -Owners CorporationsRegulations 2007)

• Model rules for an ownerscorporation (Schedule 2 - OwnersCorporation Regulations 2007)

• Statement of advice andinformation for prospectivepurchasers and lot owners(Schedule 3 - Owners CorporationsRegulations 2007)

For professional owners corporationsmanagers

Telephone 1300 13 54 52or go to www.bla.vic.gov.au

• Application for Registration

• Applications to Change RegistrationDetails

• Guidelines for Registered OwnersCorporation Managers

Further information> 49

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Consumer Affairs VictoriaTelephone – 1300 55 81 81Online – www.consumer.vic.gov.au

In personVictorian Consumer& Business Centre113 Exhibition StreetMelbourne VIC 3000

Regional servicesConsumer Affairs Victoria also hasregional offices in Ballarat, Bendigo,Geelong, Morwell, Mildura,Wangaratta andWarrnambool,together with a mobile outreachservice that regularly visits ruralcommunities. To find details about theoffice or mobile service nearest you,call 1300 55 81 81 or gowww.consumer.vic.gov.auand click on “Contact Us”.

Business Licensing Authority1300 13 54 52www.bla.vic.gov.au

Victorian Civil and AdministrativeTribunal (VCAT)55 King StreetMelbourne VIC 3000www.vcat.vic.gov.au

Australian Taxation Office - BusinessTax Enquries13 28 66www.ato.gov.au

Information Victoria505 Little Collins StreetMelbourne VIC 30001300 366 356www.information.vic.gov.au

Owners Corporations Victoria30 Peel StreetCollingwood VIC 306603 9416 4688www.ocv.org.au(formerly Institute of Body CorporateManagers Inc (Victoria)www.bodycorp.org)

Useful contacts> 51

Useful contacts 14

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Land Victoria570 Bourke StreetMelbourne VIC 300003 8636 2010www.land.vic.gov.au

Law Institute of Victoria470 Bourke StreetMelbourne VIC 300003 9607 9311www.liv.asn.au

Real Estate Institute of Victoria335 Camberwell RoadCamberwell VIC 312403 9205 6666www.reiv.com.au

Your Local Council

52> Useful contacts

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Page 51: Owning, managing and living in a unit or apartment: Guide to … · 2018-10-11 · 1 Introduction 1 2 Commonterms 3 3 Theoperationofowners corporations 7 4 Propertymaintenance 9 5

Consumer Affairs Victoria

Victorian Consumer & Business Centre113 Exhibition StreetMelbourne 3000Telephone 1300 55 81 81 (local call charge)Email [email protected] www.consumer.vic.gov.au

Regional offices are located in Ballarat, Bendigo,Geelong, Morwell, Mildura, Wangaratta andWarrnambool.

TIS 131 450Textphone (TTY) or modem users only, ringthe NRS on 133 677, then quote 1300 55 81 81.Callers who use Speech to Speech Relay dial1300 555 727, then quote 1300 55 81 81.

March 2008OC-01-02-1066