When first purchasing in an Owners Corporation, many questions arise. Who is the Owners Corporation, what is the purpose of an Owners Corporation, how is the Owners Corporation financed, how does the Owners Corporation make decisions and more!
The Owners Corporation
The Owners Corporation is made up of all owners in a Strata scheme. When you buy into a property that is part of a Strata scheme, you will automatically become a member of the Owners Corporation.
What is the purpose of an Owners Corporation?
An Owners Corporation exists to manage the issues of necessary and mutual interest to all the Owners.
The Victorian Government explains that an Owners Corporation must:
- manage and administer the common property
- repair and maintain the common property, fixtures and services
- take out and maintain insurance
- raise fees from the lot owners to meet financial obligations
- prepare financial statements and keep financial records
- provide Owners Corporations certificates when requested
- keep an Owners Corporation register
- establish a grievance procedure
- Carry out any functions and duties under the Owners Corporations Act 2006, the Owners Corporation Regulations 2018, the Owners Corporation rules and any other law or regulation.
How is the Owners Corporation Financed?
Contributions are received from every lot owner of the Owners Corporation and are pooled to maintain the community and common areas. The size and frequency of the contributions required to properly run the Owners Corporation are decided by all Owners at the annual general meeting.
How does the Owners Corporation make decisions?
Decisions can be made in two ways:
- Voting at a meeting
- By Ballot
Have your say!
By being actively involved in the running of your Owners Corporation, for instance joining the Owners Corporation Committee, Lot Owners can have a say in how a community allocates its funds and can assist in planning Committee projects.
If you are new to your Owners Corporation and would like more information specific to your scheme, please don’t hesitate to reach out to SSKB with any questions you may have. SSKB will also provide you with a welcome pack to ensure you know who to contact, our role, and other information about living in an Owners Corporation. Click here to contact the SSKB team today.