Frequently Asked Questions
What is an "Owners Corporation" (formerly Body Corporate)?
Where a building is subdivided into a number of lots, the plan of subdivision may provide for the creation of a body to collectively manage the building. When the plan is registered at the Titles Office this body becomes ‘incorporated’ as a separate legal entity and is known as an owners corporation. At this time an inaugural meeting is convened on behalf of the owners by the developer in conjunction with their solicitors. At this meeting the delegation of the duties of the owners corporation are approved and the owners corporation manager is appointed. Minutes from this meeting are then prepared for the records of the owners corporation. Once a majority of purchasers have settled a Special General Meeting of unit owners is held to approve additional special rules and appoint a Committee of Management.
What is the role of the Owners Corporation?
The role of the Owners Corporation is to manage and administer the common property in accordance with the relevant Owners Corporation regulations. The powers, duties and functions of a Owners Corporation and its members are contained in the regulations and in the Owners Corporation rules. A Owners Corporation is responsible for:
- The general management and administration of land and buildings in the subdivision including, in particular, any common property
- Taking out and maintaining insurance, including compulsory public risk and reinstatement insurance
- Properly maintaining common property
- Taking any action necessary to ensure compliance with regulations, rules and by-laws
- Providing statutory certificates to owners and prospective purchasers
- Providing information about the Owners Corporation's financial position
What does Owners Corporation insurance cover?
The Owners Corporation insurance covers the building, the common area and contents, legal liability, workers compensation, fidelity guarantee and office bearers insurance.
What insurance cover do I need to take out?
The Owners Corporation insurance does not include the contents, personal belongings or public liability of the individual apartment owners or occupants. Individual owners are advised to take out a personal contents policy, including personal legal liability cover.
How are Owners Corporation fees calculated?
The annual maintenance fund required to meet the anticipated expenditure is divided by the lot liability for each apartment as shown on the registered plan of subdivision.
What does the Owners Corporation Manager do?
The Owners Corporation Manager is actively involved in the day-to-day operational management of the building as well as financial management of the budget.
What is the Committee of Management?
Owners within the building elected by the members to represent all owners between Annual General Meetings.
What is a sinking fund?
A sinking fund is the regular investment of funds to meet anticipated future capital expenditure of the property.