Understanding Owners Corporations

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  • ABOUT OC

Understanding Owners Corporation

An owner’s corporation (body corporate) manages the common property of a residential, commercial, retail, industrial or mixed-use property development.

An owners’ corporation is automatically created when a plan of subdivision containing common property is registered at Land Use Victoria. All owners are automatically members of the owners’ corporation. As owners, you have the duty of care to maintain the building and comply with statutory safety standards. 

Strata, Stratum and Company Share

There are three types of legal structures for developments with multiple separate units and multiple owners:

Company Share: The entire development is owned by a company. All owners have shares in the company (rather than directly owning their unit). These shares entitle each owner to their unit.

Stratum: Each unit is owned by the individual purchaser. Common area is owned by a company in which each owner has a share.

Strata: Each individual unit is directly owned by the owner of the unit. Common area is owned by all owners together.

Developments built since the 1960’s are increasingly strata titled.

Changing a company share development to strata often adds value to the property and transforms the owners from shareholders to direct owners. However, it is expensive and a drawn-out process.

Role of an Owners’ Corporation

An owners’ corporation must: 

  • manage and administer the common property
  • repair and maintain the common property, fixtures, and services
  • take out required insurance and manage claims
  • 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

It must also:

  • carry out any functions and duties under the Owners Corporations Act 2006, the Owners Corporations Regulations 2018, the owners’ corporation rules and any other law or regulation
  • ensure compliance with the Act, the Regulations and the rules.

An owners’ corporation is a complex business that requires expertise.  At Secure Strata, we partner with you to guarantee that your building is well maintained, complies with statutory law and maintains a budget that allows for long term building improvements. 

WHAT WEOFFER

STAIRS
PROPERTY MAINTENANCE
Owning a unit or suite is a significant asset and is usually one of its owner’s primary assets. As your OC managers, we attend to all maintenance, both scheduled and emergency, as directed by the committee and owners. We also proactively ascertain property maintenance needs via periodic inspections and communication with the caretakers and other contractors to bring to the attention of the committee or owners.
BUILDING
OH & S AND ESSENTIAL SERVICES
Property should be safe from hazards. Secure Strata engages with leading companies to ensure your properties are safe and compliant with regulation at a fair price.
PARQUET
Strategic Planning
Upon request, we offer owners and committee our assistance in creating a strategic plan, so that major maintenance items are dealt with in the suitable sequence and so that the OC builds a fund towards paying for maintenance items, rather being hit with unexpected, major special levies.
money
Financials
Your finances are prepared using Urbanise Software. Up to the minute financial information including Income and Expenditure Statement and Transaction List, Annual Financial Statement, Balance Sheet (and pie graph), General Ledger, Budget and Levies Balance are available via Secure Strata or via the owners’ My Community app.
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Compliance
We are registered with SCA, BLA and ASIC. We have professional indemnity and Worksafe insurance. ASIC registration for company share and stratum properties is undertaken on your behalf, as is all required essential services.
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Meetings
Annual general meetings are held each year for owners. We also inspect each property on an annual basis and meet with owners while undertaking the inspection. When needed (e.g. before embarking on a major renovation or rectification), we hold special general meetings.