These Q&As are about Victorian strata properties, combining Owners Corporations and whether you are required to form an Owners Corporation.
Table of Contents:
- QUESTION: We would like to combine our three Owners Corporations into one. Our OC Manager says it is too difficult. Are they right?
- QUESTION: How do we find out if our property is strata title? Our Owners Corporation Manager says we are not strata title, the insurance company that he uses for the common ground says that we are.
- QUESTION: In a three lot scheme with little or no common areas, do we need to form an owners corporation or can we agree to act independently. What is the minimum we are required to do?
Question: We would like to combine our three Owners Corporations into one. Our OC Manager says it is too difficult. Are they right?
We live in a block of 24 apartments. It was set up in 2004 with 3 Owners Corporations. We would like to combine them into 1 Owners Corporation and we were wondering how much this would cost and whether it is worth doing? What are the steps required? Do we just take the POS to a conveyancer with an agreement from all owners that this is how they want to do it?
This arrangement has been set up by the developer/builder to benefit himself. He voted himself in as chairman and avoided being sued for his shonky building, hiding many reports. Now that we have repaired so many areas we want to become more streamlined and spread the liability more fairly across the 24 apartments.
Our existing OC Management Company says it is way too complicated to combine the plans into one single plan but I think it would just be a matter of getting records together and paying a new registration fee. We can keep the ‘unlimited’ OC as the umbrella organisation and shut the other two down. There seems no clear direction about how to do this.
Answer: This solution would be complex, costly and challenging to work through
Short answer is: their manager is not far off. It is complex, costly and challenging to work through. Lawyers, Valuers and Surveyors will likely need to be involved.
It requires a 100% Unanimous Resolution and an application to VCAT by the OC to seek an order. If this is not obtained then the OC will need to lodge an application to VCAT to justify the circumstances for them to give you an order to do so, though you will need a Special Resolution 75% of owners to initiate this legal action (though there is provision for an interim special resolution of 50%).
Failing this then there is a possibility for one owner to lodge an application on their own representing all of the owners to seek an Order for VCAT.
It can only be obtained by lodging an application to VCAT and seeking an order to be able to do this.
Michael Darby
Quantum United Management Pty Ltd
E: [email protected]
P: +61 3 8360-8800
This post appears in Strata News #477
Question: How do we find out if our property is strata title? Our Owners Corporation Manager says we are not strata title, the insurance company that he uses for the common ground says that we are.
I am an owner of a unit in Melbourne, which is part of an Owners Corporation. There are 6 units in total – 3 on two separate blocks with a common ground in between. How do we find out if our property is strata title?
While our Owners Corporation manager says we are not strata title, the insurance company that he uses for the common ground says that we are.
Surely, there must be some documentation that states if our property is under strata title, or is it purely a definition that we need to apply to our property/ies and that indicates if it is or not?
Answer: Your plan of subdivision will refer to the title of the property and any owners corporation notes or information which are relevant to the use of the common property.
Our understanding is that when there is common property involved with a plan of subdivision property in Victoria, an owners corporation is created at the time that the plan of subdivision is registered.
Make sure that you have a copy of the registered plan of subdivision to review and this may be obtained from either your owners corporation manager or Landata. On that plan, you will be able to identify the boundaries of each lot and the areas that are common property.
You should also find that the plan of subdivision will refer to the title of the property and any owners corporation notes or information which are relevant to the use of the common property.
Another point of reference would be your contract of sale for the purchase of your unit. Your Conveyancer or Solicitor at the time you purchased should have advised whether you were buying a strata titled property and if they did not advise you at the time, it should be in your contract of sale.
It is important to note that registered special rules may also exist in relation to the use and maintenance of common areas and this would be noted on the registered plan of subdivision. Copies of any registered special rules could also be obtained through your owners corporation manager or Landata.
Jane Giacobbe
Strata Reports Victoria
E: [email protected]
P: 0402 341 848
This post appears in Strata News #315.
Question: In a three lot scheme with little or no common areas, do we need to form an owners corporation or can we agree to act independently. What is the minimum we are required to do?
I’m a lot owner in a 3 lots scheme on a strata property in Victoria. Our lots have little to no common areas, all yards and driveways are separate etc. Do we still require an Owners Corporation? My understanding is that it is mandatory.
If all three owners agree, can we act independently or do we need to operate as an Owners Corporation – committee, meetings, insurance, fund, approvals?
If bound by the legislation, what is the minimum we are required to do?
Answer: If you have more than two lots, you do need to have an OC established.
The obligations for the lot owners really does depend on the plan of subdivision and it would be imperative that you closely look at this or ask a specialised owners corporation lawyer to review it for you.
An owners corporation with more than two lots does need to have an Owners Corporation established. However, there is no requirement to have an Owners Corporation Manager appointed and instead it could be self-managed by the owners.
Your plan of subdivision will also need to be referenced to determine whether there is any common property.
If there is no common property and therefore no maintenance required, the owners could agree to just have an annual general meeting for the records and may not need to have any contributions as there are no shared costs given there is no common property.
There may however be a requirement to have insurance for the owners corporation and this will once again come down to the plan of subdivision and whether there is common property that should be covered by insurance.
If insurance is required it may be prudent to have a contribution determined at the annual general meeting. This ensures that although it is a small owners corporation, good governance is being carried out which helps protect the value of the properties and allows for transparent and accurate records should a property be sold or require an inspection of some sort.
We hope this has been helpful and we note that it is not legal advice and we would suggest consulting a specialised owners corporation lawyer if you would like legal advice with your matter.
Jane Giacobbe
Strata Reports Victoria
E: [email protected]
P: 0402 341 848
This post appears in Strata News #261.
Have a question about whether your property is a strata title or if you are required to form an owners corporation in Victoria, please leave a comment below.
Read next:
- VIC: Q&A Let’s Just Not Tell Them About the Cat in our Apartment
- What’s yours and what‘s common property?
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Have a question about whether you are required to form an owners corporation in Victoria or something to add to the article? Leave a comment below.
Hi, I am in the process of building 3 townhouses. There is only common property of a driveway and small garden bed running alongside the driveway. Is it compulsory to have a body corporate or owners corporation in Victoria. I have read very conflicting articles.
We will be living in one of the 3 units for 1 year and renting the other two, then selling 1 after 12 months.
The townhouses are located in the City of Kingston.
Your advice would be greatly appreciated.
Hi Meredith
This article should assist: VIC: New Five Tiered System for Owners Corporations
We are the owners of 3 of 4 units on the one site.they are all strata titles with limited area around each unit as being “the property”. Tha balance is obviously common property.there has been no body corporate since they were built approximately 1990.can we now change the boundaries so there is no common property and what will that entail
If there is no common property and each unit has their own street frontage, it there a requirement to still have an owners corporation? This question is assuming more than two units.
Thanks very much for this informative article. Are there any penalties for failing to form an Owners Corporation? If the owners of individual units opt not to form an Owners Corporation, can they be compelled to do so?
Hi Jade,
When an Owners Corporation is formed with the registered Plan of Subdivision, it must operate as an Owners Corporation.
Although the owners may choose not to have a professional Owners Corporation Management Company managing them, they are still obliged to ensure that the Owners Corporation is formally set up and is operating correctly.
To my understanding there are no penalties for failing to form the Owners Corporation but it may be best to confirm this further with a specialised Owners Corporation Lawyer such as Phillip Leaman at Tisher Liner FC Law.
Hi all.
I own a unit which has another 5 units/apartments on it, 1 of the owners manages the owners corp to keep the cost of having a real owners corp managing it, its a two story development. We all have rear patio/balconies 5 out of the 6 have floor tiles some have outdoor cupboards and fridges and different furniture which doesn’t bother me, recently i installed a small clothes line which is installed on my back patio behind a treed area and is on my title not common property, my manager believes i should of asked the other owners for approval and have to wait until our November meeting, to top it off all the front security doors are different Indesign, granted everything is the same colour but because of this inconsistencies and the fact it is on my title i don’t need to justify anything to her am i correct ? I have also emailed all the other owners and to date none have replied regarding my plans to replace existing windows and front security door as manager believes i can wait till the November meeting your thoughts please
Hi Andrew,
It sounds like there may be some inconsistencies around how the owners corporation is being managed, along with the enforcement of by laws.
Although even if this is the case, it would still be in your best interest to follow the correct procedure in line with the legislation, which would be to submit a written request to the Committee/Owners Corporation if you wish to make any changes to the appearance of your lot and this would include your small clothes line, windows and front security door.
Unfortunately with your current owners corporation, it does appear that you may have to wait until the meeting in November to have things addressed..
Should this time frame be too long for you, it would be an idea to also request in writing a possibility of the owners corporation holding an earlier meeting to address these matters and or even possibly engage a professional strata management company who may have more time to ensure that things are managed promptly for all owners.
If you are not satisfied with the responses you receive from your owners corporation, you may like to speak with Consumer Affairs Victoria for some advice.
Hopefully this has been helpful but feel free to ask any further questions you may have.
I am thankful that your article provides what situations where an owners’ corporation is needed. My father is a lot owner on 3 lots scheme much as your article states. I’ll send your article to him in order to assist him in taking his next actions.