One of the primary functions of the Owners Corporation is to regulate the use of the lots and Common Property within the scheme, for the benefit of all Lot Owners. The Owners Corporation does this by establishing and enforcing Owners Corporation rules. It is important that all parties involved understand their rules and the procedures and applications involved in enforcing them.
A set of model rules apply to all Owners Corporations. These rules are set out in schedule 2 of the Owners Corporations Regulations 2018. The Developer or the Owners Corporation determines the rules that best suit it.
What are Owners Corporation rules?
A developer may set out rules for the Owners Corporation which are to be recorded with the plan of subdivision, or an Owners Corporation may resolve to create rules once it is established. An application must be made to Land Use Victoria to record these rules.
When lodging rules with Land Use Victoria, a ‘consolidated copy’ of the rules must be supplied. This means a current copy of all rules in place, as only one set of rules will be recorded against an Owners Corporation. Note that this does not include the model rules that may or may not apply.
What do the rules cover?
The rules regulate what can and cannot happen inside the Owners Corporation, and cover a wide range of topics, for example:
- Changes to each Lot’s external appearance
- Renovations of Lots
- Rules for using shared recreation areas
- Owners Corporation supplying services to residents
- Speed limit on the shared driveways
- Opening times of the shared facilities
- What plants can be planted in courtyards
Where do I find my rules?
A copy of your Owners Corporation Rules is kept on the strata records and is available from either the Secretary of the Owners Corporation or from your Owners Corporation Manager. You can obtain copies of the rules from inspecting the records or contacting Land Use Victoria.
How are rules enforced?
If the rules are not registered with Land Victoria, the rules will be void and not enforceable.
Land Use Victoria registers the Plans of Subdivision which creates or alters Owners Corporations. Consumer Affairs Victoria is the governing body for all other Owners Corporation matters, including insurance and disputes.
A person who owns property in an Owners Corporation automatically becomes a member of that Owners Corporation. As a member, they have legal and financial responsibilities to the Owners Corporation.
All Owners Corporations have statutory duties and powers set out in the Owners Corporation Act 2006.
When rules are updated, the Owners Corporation has a responsibility to update records and notify Lot Owners and Occupiers.
Your Owners Corporation must:
- Notify Lot Owners of the new rules;
- Update the Owners Corporation register;
- Notify tenants, sub-lessees and other occupiers;
- Place the new consolidated rules on the noticeboard, if there is one.
How do I change the Owners Corporation rules?
This depends on how many Lot Owners vote in favour of the new rules.
- If at least 75% of votes were in favour of the new rules, a ‘special resolution’ is passed. The special resolution is recorded in the minutes of the general meeting or the outcome of a postal ballot.
- If at least 50% of votes were in favour of the new rules, an interim special resolution is passed. A notice of interim special resolution and minutes of the meeting must be sent to all lot owners within 14 days of the close of the ballot.
The decision can only be acted on after 29 days, if no petition representing more than 25 per cent of lot entitlements has been received. If the secretary receives a petition before the deadline, a new meeting is called to vote on the matter.
If the rules are not registered with Land Use Victoria, the rules will be void and not enforceable.
At SSKB, we aim to educate our communities on the many different areas of strata living. If you are looking for an Owners Corporation Manager that supports your community, click here to request a proposal today.
