An owners corporation, also known as a body corporate or strata corporation, is a legal entity created to manage and govern the common areas and shared amenities of multi-unit properties or developments. It is typically formed when a property is subdivided into individual lots, units, or townhouses, where multiple owners coexist in a single building or plan of subdivision.
The owners corporation acts as a collective body that represents the collective interests of all individual lot or unit owners within the property. Its main purpose is to ensure the proper management, maintenance, and administration of the shared areas, facilities, and services.
Here are some key aspects of an owners corporation:
Legal Entity: An owners corporation is established as a separate legal entity, often through the registration process, which gives it the ability to enter into contracts, sue or be sued, and enforce bylaws and regulations.
Common Property: The owners corporation has responsibility for the management and maintenance of the common property, which typically includes areas like lobbies, hallways, gardens, swimming pools, parking lots, and any shared amenities or facilities.
Bylaws and Rules: The owners corporation creates and enforces bylaws and rules that govern the conduct and use of the common property and regulate the behaviour of the lot owners and residents.
Decision Making: Important decisions related to finances, maintenance, repairs, and improvements are made collectively through an elected committee.
Levies and Funds: Lot owners contribute to the funding of the owners corporation through levies or fees, which are used to cover various expenses, including maintenance, repairs, insurance, utility bills, and administrative costs. The levies are usually calculated based on the unit of liability assigned to each lot.
Dispute Resolution: The owners corporation may assist in resolving disputes among lot owners or between the owners and the corporation itself. Depending on the jurisdiction, there may be specific dispute resolution procedures in place to address conflicts related to common property or non-compliance with bylaws.
Overall, an owners corporation plays a crucial role in ensuring harmonious living, proper maintenance, and the protection of shared property values within developments. Its establishment and functioning are typically governed by specific legislation or regulations passed by the Victorian Parliament.