What is an Owners Corporation?
An owners corporation (formerly body corporate) manages the common property of a residential, commercial, retail, industrial or mixed-use property development. If you own a flat, apartment or unit where common property exists then you will automatically become a member of an owners corporation.
Formerly known as “Body Corporate”
When the Owners Corporations Act 2006 came into force on 31 December 2007, what was formerly known as a ‘body corporate’ became an Owners Corporation. The Owners Corporation Act 2006 sets out the rights and responsibilities of members of Owners Corporations.
Do I have to be part of the Owners Corporation?
If you own property that involves an owners corporation then you become a member of that owners corporation automatically. As a member, you have legal and financial responsibilities to the Owners Corporation.
Owners Corporation Statement of advice and information for prospective purchasers and lot owners:
“The lot you have purchased is part of an Owners Corporation. Whenever a plan of subdivision creates common property, an Owners Corporation is responsible for managing the common property. A purchaser of a lot that is part of an Owners Corporation automatically becomes a member of the Owners Corporation when the transfer of that lot to the purchaser has been registered with Land Victoria.
If you buy into an Owners Corporation, you will be purchasing not only the individual property, but also ownership of, and the right to use, the common property as set out in the plan of subdivision. This common property may include driveways, stairs, paths, passages, lifts, lobbies, common garden areas and other facilities set up for use by owners and occupiers. In order to identify the boundary between the individual lot you are purchasing (for which the owner is solely responsible) and the common property (for which all members of the Owners Corporation are responsible), you should closely inspect the plan of subdivision.