Strata - FAQs

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Frequently Asked Questions

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Why should I use a Strata Manager?

While owners have the option to manage things themselves, it is strongly suggested to hire a professional management company. This ensures that the owners corporations are being managed in line with the regulations set by the Act and its Amendments. It’s important to note that there may be additional rules specific to the development that are applicable to all residents, including owners and tenants. An Owners Corporation professional, who is impartial, can enforce these rules to maintain harmony among residents and members of the owners corporation.

An Owners Corporation manager specializes in the efficient and professional management of an owners corporation. Managers play a crucial role in the smooth functioning of owners corporations by handling various key tasks such as financial management, insurance matters, administrative responsibilities, organizing meetings, and ensuring timely property maintenance. 

Larger owners corporations have almost always engaged paid professional managers due to the complexity of legal, technical, and people skills required for effective property management. The appointment of a manager is typically done through a general meeting of the owners corporation, where the powers and functions that can be delegated are determined. These powers and functions are then formalized in a comprehensive contract or instrument of delegation, granting the manager the authority to make decisions on behalf of the owners corporation. This delegation empowers the manager to take necessary actions and execute their duties in the best interest of the owners corporation, bringing invaluable expertise and professional know-how to the table.

An owners corporation, which was previously called a body corporate, is a group of owners who are responsible for a common/shared property of a residential, commercial, retail, mixed use and other associated areas, these can even be golf courses or marinas all can fall under the owners corporation act if they have a common property. These shared areas are called common property and include things like stairs, paths, elevators, lobbies, driveways, pools, gardens, and other facilities that owners and residents can use. 

An owners corporation can be formed in any type of property development, whether it’s residential, retail, commercial, industrial, or a mix of these. It’s possible to have multiple owners corporations in a subdivision of land or buildings.

If you own a flat, apartment, or unit, you’re probably a member of an owners corporation. The term “body corporate” became “owners corporation” when the Owners Corporations Act 2006 came into effect on December 31, 2007. This law outlines the responsibilities and authority of owners corporations.

If your owners corporation is currently managed by another company and you would like to transfer management of your owners corporation you will firstly need to look at your contact of appointment or agreement between the owners corporation and the management company. In this contract it will outline the procedure for termination of the contract. A copy of the agreement will be made available to you once requested – this may take a few days. If you would like assistance or have any questions regarding how to transfer management of the owners corporation please click here and we will send you the relevant information.

In Victoria, the Owners Corporations Act 2006 and the Owners Corporations Regulations 2007 form the legislative framework that governs and regulates the functioning of Owners Corporations specifically within the state of Victoria. This comprehensive set of laws ensures that Owners Corporations adhere to a standardized set of rules and regulations, providing a sense of clarity and consistency to all parties involved. By enforcing these legislations, the state aims to promote transparency, accountability, and harmonious living within the strata community. Therefore, it is essential for all Owners Corporations situated in Victoria to familiarize themselves with these acts and regulations in order to operate within the parameters defined by the law.

Common property refers to areas listed in the subdivision plan of subdivision like gardens, walls, pathways, and driveways. The owners corporation, as per the Owners Corporations Act 2006, is responsible for managing and maintaining the common property. The subdivision plan also identifies individual parcels of land, known as “lots,” which can be sold separately. Lot owners are the members of the owners corporation for that particular subdivision. It’s worth noting that a subdivision can have multiple owners corporations if there are multiple sections of land or buildings involved.

If you own a property in an owners corporation, you automatically become a member of that owners corporation. As a member, you have legal and financial duties to the owners corporation.

An 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 of the owners corporation
  • Prepare financial statements and keep financial records
  • Provide owners corporations certificates when requested
  • Keep an owners corporation registe
  • Establish a grievance procedure.

The owners corporation act is available by clicking the button ( OC ACT ) below. alternatively you are able to download a copy of the act at https://www.legislation.vic.gov.au. The Owners corporation act is 188 pages and it is amended from time to time. The current version of the owners corporation act came into force on 01 December 2021.