By Gaylord Pierce - January 25, 2021
What Is a Body Corporate?
If you own an asset that is impacted by the Body Corporate (currently known as an owner’s corporation), you immediately become a part of the Owners Corporation. Many of the owners’ corporations in Melbourne and throughout Victoria will also prefer to hire a dedicated corporation management company.
Flats, homes, apartments, detached houses, and commercial properties are commonly owned by the Owners Corporation and the owners of such properties are typically members of the Owners Corporation. ‘The term Body corporate was the term used before 2007. All Bodies Corporate became recognized as Owners Corporations on 31 December 2007, when the Owners Corporations Act of 2006 [Victoria] came into force. This legislation sets forth the responsibilities and powers of the Owners Corporation.
The Owners Company shall be formed immediately when a subdivision plan including common land is recorded with Land Victoria. Types of common property can include parks, pools, tennis courts, passageways, walls, paths, driveways, lifts, fireplaces, and fences. As a shareholder, you have a financial and legal obligation to the Owners Corporation.
What Is a Body Corporate or Owners Corporation?
The Owners Corporation is an organization that jointly controls the multi-occupancy subdivision of a property or building. The Owners Corporation is formed when any land is subdivided into 2 or more lots. This involves assets categorized as domestic, retail, and business, industrial, or mixed-use.
The term Owners Corporation is a new phrase for the old familiar corporate body. The Owners Companies Act 2006 [Victoria] came into force on 1 January 2008. The Act established a new system for controlling multi-occupancy subdivisions and introduced the word Owners Corporation. The switch of naming was planned to bring Victorian law into line with the language used in other states and to emphasize that the Owners Corporation operated to represent the interests of the shareholders of the lot.
Management Activities of the Owners Corporation
Normal OC functions involve:
- Repair and maintenance of common properties, equipment, and services.
- Maintain proper protection, including statutory public liability insurance.
- Provide for the general maintenance and management of land and property.
- Compliance with the OC Laws and Rules.
- Provide regulatory certification to owners or potential purchasers; (Form 4 certification).
Many owners’ corporations hire specialized companies. For example, if you live in the area, search for owners corporation Ballarat online.
Owners Corporation Rules
The Act contains laws regulating meetings and motions, the appointment of a committee and a director, the roles and privileges of landowners, and the procedure for resolving disputes.
The OC can lay down additional rules by passing a resolution. These extra restrictions can only be amended or revoked by special resolution.
If the OC does not have its own laws, the model rules shall apply as set out in Schedule 2 of the Owners Company Regulations 2007. Model rules are a brief description of OC and lot owners’ obligations.
Decisions or resolutions of the Owners Corporation fall into three groups or stages. The essence of the item to be determined will determine if the resolution will be an ordinary resolution, a special resolution, or a consensus resolution.