Frequently Asked Questions

What is an Owners Corporation?

“Owners Corporation” simply means; an incorporated body of owners relevant to one particular Strata Titled site / development.

When Does an Owners Corporation Commence?

An Owners Corporation commences upon the registration of the development at the Titles Office, at which time an Inaugural Meeting is convened on behalf of the owner(s) / developer, usually in conjunction with their Solicitors. Details of this meeting are then documented as “Minutes”, with the original held for the records of the owners corporation and copies provided for the reference of prospective purchasers.

With respect to a new development, once a majority of the units or first stage release is settled, or all stages of the development are incorporated, a Plan of Subdivision registered number is issued. The duties of the owners corporation may be delegated to associated members, membership of which is determined by Lot Entitlement, in accordance with space allotment on the registered Plan of Subdivision. †At this stage a common seal for the execution of documents is provided for the owners corporation Corporate, together with all relevant records; including details of trades-people associated with the project, the necessary warranties, model numbers of equipment etc.

An owners corporation must be registered in accordance with the Act; Rules and Regulations, and By-Laws, and Lot Entitlements must be submitted and registered with the Titles Office.

What is the Owners Corporation Responsible For?

Responsibilities of the owners corporation are identified as those relating to "common area(s) and property", (ie: land and facilities that are not on title to any one particular owner; eg: main entrance, central courtyard, communal spa, swimming pool, tennis courts, etc.).

The overall appearance of the complex is also of the upmost importance to the owners corporation, and subsequently, is authorised to govern any issues related to the exterior facade of the building.

What are the Duties of a Owners Corporation?

Accordingly, it is the duty of the owners corporation to ensure the areas and facilities it is responsible for are maintained in a serviceable state, undertaking all relative administration tasks; including obtaining comparative quotations for repair works and / or improvement works as necessary.

Maintenance of facilities extends also to the common area chattels, fixtures and fittings, ensuring attention is given to lifts, fire escapes, and all apparatus / equipment services for which an easement exists (eg. Service meters, such as gas, electricity, water etc.).

The insurance cover placed on the building is also the responsibility of the owners corporation, ensuring the appropriate policy is maintained; requiring both a review of the previous years cover and prompt payment of the relevant premium.

The owners corporation must set Contribution Fees and regulate payment times, issuing corresponding invoices to individual owners, to ensure the commitments of the development may be met, and where appropriate calculate and distribute invoices for Special Levies to cover costs incurred over and above general maintenance items.

“Common Area” accounts must be paid on a routine basis (ie. public lighting, garden maintenance, pool maintenance, etc.), and bank records of all transactions maintained.

An Annual General Meeting of all owners must be convened by the owners corporation, however throughout the year, meetings may be convened to discuss and/or resolve any issues of concern. Minutes of such meetings are distributed to owners for their information.

In general terms, the owners corporation should manage and administer works on the common property areas and enforce, the related Rules and Regulations, and By-Laws.

Why is Professional Owners Corporation Management Important?

Although members have the option of ‘self management’, it is highly recommended that the services of a professional management company be engaged, as owners corporations must comply with strict governing by an Act of Parliament in the state of Victoria, known as The Owners Corporation Act 2006 and Subdivision Regulations, 2001, addendum to same. Noting also that amendments to the Act are frequently published, it is the responsibility of the Strata Manager to keep abreast of these amendments and to ensure that their respective owners corporations are being administered in accordance with the rulings and regulations imposed by the Act and its Regulations.

It is therefore imperative that an owners corporation be administered in accordance with the many rules and regulations set down by The Registrar and his governing body/ies, as non-compliance may result in financial penalties being imposed on the owners corporation.

Owners should note also that ‘Standard Rules’ or ‘Additional Rules’ (depending on what has been registered on the Plan of Subdivision) applies within the confines of a development and are applicable to all residents, ie. owners and tenants. A managing agent, being an impartial body, would therefore be in a position to enforce these rules with little or no disharmony amongst occupants.

When Do I Appoint a Strata Manager/Management Company?

Prior to completion of a new site or ‘off the plan’ project a Strata Manager or Management Company is usually appointed by a developer or marketing organisation, to act for and on behalf of the unit owners collectively. In such a case, where a professional management company has been appointed prior to six months from the registration of a plan, the company would automatically assume the responsibilities associated with the first meeting, if not already held, and all of the establishment criteria.

This appointment would then be confirmed at the Inaugural Annual General Meeting of unit owners (which is generally held once the majority of the purchasers have settled, upon completion of either stage one of the development, or the entire project).

In the instance where the development is already established, the appointment of a management company, may be as a result of a change of firm or, simply the desire of a ‘self managed’ development to engage professional services.

What are “Owners Corporation Rules”?

The most effective way of managing a strata building is through comprehensive Owners Corporation Rules that contain guidelines to which the owners corporation, Owners and Occupiers must adhere.

Effective Rules ensure that a building is properly maintained by enabling the Caretaker/Resident Manager and allocated Strata Manager to efficiently manage the building.

What does a Committee do?

TEYS (Pty Ltd) work with the Committee on actioning items as required and identified by the Committee or TEYS (Pty Ltd).

With the vast amount of experience and knowledge TEYS (Pty Ltd) has in managing owners corporations, we are able to provide professional advice to the Committee to assist in their decision-making process.

All Committee meetings are minuted, with a copy issued to every owner for their information. TEYS (Pty Ltd) then ensure that items noted on the Minutes are quickly actioned.

What are Owners Corporation Levy Contributions?

An Owners Corporation Levy is a contribution towards the owners corporation for expenses for that year.

Owners Corporation Levy Contributions are invoiced on a quarterly basis. Invoices are issued two weeks prior to the date they are due. Owners are given a total of 4 weeks to pay, prior to receiving a Levy Arrears Notice. With regard to arrears, the Committee will be requested to advise TEYS (Pty Ltd) of further action to recover any bad debts, i.e. legal action, further letters etc.

TEYS (Pty Ltd) are extremely proficient in chasing up outstanding arrears and on instruction of the Committee, will follow procedure to have a property sold to recoup outstanding Owners Corporation Levies.

What is a “Maintenance Fund”?

TEYS (Pty Ltd) will work together with the Committee of Management to build a Maintenance Fund to ensure that the common areas maintain their same appearance in years to come.

That’s why TEYS (Pty Ltd) encourages owners corporations to have a Maintenance Plan prepared  for the building after it has been in operation for a one to two year period. This will ensure that any future works to the building are accurately budgeted for and that funds are available for future work. It also ensures that there is a consistent contribution from owners for future work required.