Hints and Tips
Strata Management Victoria provides up to date information about the changing world of Owners Corporations so that you are better informed to enjoy your home or business premises to the full!
Owners Corporations have a language of their own
Owners Corporation is also known as Body Corporate or Strata Title Scheme. These are different words used in different states with in Australia, they mean the same thing
Owners Corporations are legal entities and there is a language and definitions that you will hear and read when they are being discussed. Here are a few terms which you will need to know:
Owners Corporation – Owners Corporation is created to manage common ownership of property when a plan of subdivision is registered
Members and Owners – ‘Owners’ and ‘Members’ are one and the same – an owner of a lot which is part of a Owners Corporation is a member of the Owners Corporation
Lots – entitlement and liability – A member’s liability and voting entitlements are determined by the member’s lot liability and entitlement, which are set out on the plan of subdivision and are set by the surveyor at the time of subdivision.
When you purchase a lot in a strata or (owners corporation) subdivision you buy both the lot (your unit) and a ‘share’ in the common property. All the land or parts of the building on the plan of subdivision that are not lots are normally part of the common property.
Each plan of subdivision sets out the liability and entitlement of each lot which is usually expressed as the number of units of liability (or entitlement) as a part of the total units of liability (or entitlement) for the total Owners Corporation.
Lot liability is the proportion of Owners Corporation expenses, which the lot owner is obliged to pay. Lot entitlement determines voting rights at a meeting of the Owners Corporation.
Lot Liability and entitlement are not always the same and an unanimous decision of the owners corporation or representation to the appropriate court of law is required to vary liability or entitlements
Resolutions – Owners Corporations decision-making processes are defined by law, and different criteria may be required for different decisions. To pass a normal resolution requires the agreement of a simple majority of a quorum eligible of members votes. (note members are required to be fully financial to be entitled to vote A special resolution is required for some decisions to do with Owners Corporations (including make, amend or revoke the rules of the owners corporation). To pass a special resolution requires the agreement of 75 per cent of the members’ votes. Some decisions require a unanimous resolution of all owners.
Running Effective Meetings
A key role of Strata Management Victoria is to run effective meetings of Owners Corporations so that the members views are fully canvassed and effective decisions are made for the common good.
A Owners Corporation is required to conduct a meeting of its members within the first six months of registration with Land Registry, Land Victoria. After this initial meeting, a Owners Corporation is required to have an Annual General Meeting if it receives or pays out money in the financial year.
Strata Management Victoria provides prior to any meeting conducted by them on behalf of the Owners Corporation full agenda a documentation to support the meeting
For an Annual General Meeting you are provided with financial reports of the previous year of the Owners Corporation as well as the statutory reports, any relevant quotations to be considered and a budget for your Owners Corporation.
Strata Management Victoria managers have the expertise to effectively chair your Owners Corporation meetings when and as required.