To help build a better understanding of some of the issues and requirements surrounding the management of residential facilities, we’ve collected some of the more commonly asked questions and answers. Please note that these are for guidance only and should not be considered legal advice.
What is an Owners Corporation?
Do I have to be a member of the Owners Corporation for my property?
As a lot owner, you’re automatically a member of the Owners Corporation. With membership comes a legal and financial responsibility to the OC, so it’s important that members familiarise themselves with those requirements in order to understand their role in the OC.
What does an Owners Corporation do?
The OC manages and administers works on the common property areas and enforces any rules, regulations and by-laws.
It ensures the areas and facilities it is responsible for are comprehensively insured and maintained. These services are paid for from fees collected from the lot owners by the OC.
What do my levies pay for?
Costs and fees vary based on the demands of the membership and requirements under specific state and national legislation. Typical expenses include services and such as:
What is an Owners Corporation manager (OCM)?
An OCM is a professional manager that administers an OC, assisting with finances, insurance, administration, meetings and maintenance functions. An OC can appoint an OCM to carry out a range of specified functions in a contract.
What does the OCM actually do?
Specific OCM functions will vary dependent on the terms of appointment and the delegated authorities. That said, all professional OCMs are responsible for the following :
Why use a professional OCM?
Typically, OCs associated with larger facilities engage professional OC Managers to assist and guide executive committees in the development and implementation of the often complex compliance and legislative requirements and dispute handling.
Professional OCMs are open to review, held accountable to their OC committee and transparent in all aspects of their performance. While not unilateral decision makers, OCMs can provide, through their professional network, the experience and buying power, the specialist people and processes to significantly improve the executive committee’s performance.
* This is a summary and should not be taken as legal advice. For a comprehensive explanation of roles & responsibilities we recommend you visit: https://www.consumer.vic.gov.au/housing-and-accommodation/owners-corporations