Owners Corporations govern properties that are part of a multi-dwelling or master-planned residential housing complex (for example, units, townhouses, and apartments).
An Owners Corporation (formerly known as a Body Corporate) is a legal entity that oversees the subdivision of property that is registered. Every property that is part of a subdivided estate (containing more than one home) generally requires the formation of an Owners Corporation.
An Owners Corporation’s function is strata management Geelong and to safeguard (but not limit) sections of the partitioned property that are referred to as “Common Property.” That is spaces or amenities that are used and benefited by the entire individual house (lot) owners together. The Owners Corporation structure ensures that all of this property is well-maintained, insured, and controlled.
What Does Common Property Mean?
While each lot has its own land title and ownership, units/apartments/townhouses are part of a larger piece of subdivided land and so share some of the estate’s “community” features. Individual members in the common area own property to which they have a title or other evidence of ownership.
What Does It Mean to Be an Owner’s Corporation Manager?
Instead of individual lot owners being actively involved in the management of common property problems, an Owners Corporation Manager is chosen to do so. This firm is compensated to administer the Owners Corporation and must carry at least $2 million in professional indemnity insurance and be registered with the Business Licensing Authority. Within an Owners Corporation, the manager has no decision-making authority or voting rights.
What Is the Purpose of an Owners Corporation?
The Owners Corporation’s major functions are:
- Maintain and repair the common areas, fixtures, and services (such as estate entrances, front gardens, public lighting, open spaces driveways, and driveway landscaping).
- Maintain adequate insurance for shared property, including mandatory public liability coverage (eg: driveways that will be used by all members of the public, including visitors and trades).
- Organizing building restoration and replacement insurance (i.e.: a policy to cover all individual buildings on the land).
- Provide overall management and administration of the Owners Corporation’s land and structures.
- Instead of using the council’s services, arrange for private waste collection (estate dependant).
- Ensure that all government laws and regulations governing the operation of an Owners Corporation are followed.
Owners Corporations provide a particular benefit to investors by basically acting as a “watchdog” over their asset, ensuring that it has every opportunity to develop and preserve its value. They’ll collaborate with a competent property manager to ensure that your investment’s interior and external/communal aspects are constantly kept in top shape. This means that the investment is less stressful and time-consuming than purchasing a stand-alone property (such as a home and land), which may or may not provide greater growth or rental returns.
Owner Corporations should not be considered an “expense,” but rather a layer of security and value, as well as an important component of your total property investment service. They will make your life undoubtedly easier when it comes to keeping track of all owners’ business registrations and the roll, as well as responding to all orders, requests, and appeals, as well as monitoring meetings and providing notifications, agendas, and minutes.