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:
It must also:
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.