By Jordan Reid, Associate Director, Strata Management Consultants, with legal commentary from Leila Idris, Partner, Grace Lawyers.
Poor handovers create delays, confusion, and extra costs for owners corporations. In Victoria, an outgoing manager must return the owners corporation’s records and funds within 28 days of the end of their appointment.
Key takeaways:
- Outgoing managers must return all owners corporation records and funds they hold or control within 28 days of termination under section 127 of the Owners Corporations Act 2006 (Vic).
- A disorganised handover can delay maintenance, disrupt financial administration, and frustrate lot owners and the Committee.
- Clear, complete records help the incoming manager act quickly and reduce avoidable disputes.
- In Victoria, owners corporation records include registers, meeting minutes, ballots, correspondence, financial records, contracts, insurance documents, and maintenance records.
Throughout my years as a strata management Consultant, I have seen the disorder that can follow a mishandled handover of owners corporation books and records.
Perhaps the worst was when the outgoing manager dumped boxes of unsorted documents on the new manager’s doorstep. There was no index, no explanation, and no clear order to anything. Weeks were lost sorting through the mess, while urgent maintenance and day to day administration were held up and owners grew increasingly frustrated.
Another time, financial records that should have been available for the transition could not be readily located. The incoming manager had to piece the file together from fragments, which added delay and uncertainty at exactly the time the owners corporation needed continuity.
Handling owners corporation books and records can feel like stepping into a minefield, especially when the previous manager leaves behind incomplete information. It is a stressful way to begin.
By contrast, an organised handover allows the new manager to start work quickly, respond to urgent issues, and maintain confidence with the Committee and lot owners.
Thankfully, Victoria has a clear legal framework. Section 127 of the Owners Corporations Act 2006 sets out the outgoing manager’s duty to return records and funds after their appointment ends.
Manager to return records
A manager of an owners corporation must, within 28 days of termination of appointment as manager, return to the secretary of the owners corporation all records relating to the owners corporation or funds of the owners corporation held or controlled by the manager.
Penalty: 60 penalty units.
Leila Idris, Partner at Grace Lawyers, explains:
Section 127 of the Owners Corporations Act 2006 (Vic) requires a manager must return all records and funds of the owners corporation that are in their possession or under their control within 28 days of termination of appointment as manager. This includes the register of the owners corporation and financial documents. The obligation is mandatory. Failure to comply with this requirement may result in a penalty of up to 60 penalty units.
Across cases that have been before the Victorian Civil and Administrative Tribunal, the Tribunal consistently upholds the strict obligations under section 127. Failure to comply can result in orders for immediate compliance, as well as financial penalties. Disputes over fees or other issues do not excuse a delay in the return of records, as VCAT treats these as separate matters.
Why the handover of owners corporation books and records matters
In my experience, a proper handover matters for several reasons:
- It avoids delays. When records are complete and organised, the incoming manager can deal with maintenance, payments, compliance tasks, and owner enquiries without losing valuable time.
- It supports trust. A planned handover shows professionalism and respect for the owners corporation, the Committee, and the incoming manager.
- It protects the owners corporation. Accurate records support transparency, accountability, and informed decision making.
- It helps the incoming manager start properly. Delays in returning records within 28 days of termination of appointment can cause disruption to the operations of the owners corporation, is an act of non-compliance with Committee’s resolutions, is a violation of section 127 and SCA (Vic)’s professional code of conduct.
If your Committee is preparing to change managers and wants guidance on the transition, you can learn how we help Committees change owners corporation managers.
Types of Owners Corporation Records
To facilitate a smooth handover, it’s vital to understand the kinds of records that an Owners Corporation keeps. These records are important for effective property management and allow the new manager to maintain operations without any disruptions.
Consumer Affairs Victoria has outlined the various records from those provided by the developer to other essential documents as well as the records your Owners Corporation should collect:
- the full name and address of each lot owner
- a consolidated copy of the owners corporation’s rules
- minutes of meetings
- copies of resolutions
- records of the results of ballots
- proxies
- voting papers or ballots
- correspondence
- accounting records
- records of assets and liabilities
- financial statements of income and expenditure
- income tax returns and GST records (goods and service tax records, if any) of the owners corporation
- insurance policies
- any maintenance plan
- any notices and orders served on the owners corporation by a court or tribunal
- any notices served by the owners corporation
- any contracts and agreements entered into by the owners corporation
- any leases and licences entered into by the owners corporation.
An owners corporation is required to keep records that comply with the stipulations outlined in the Owners Corporations Act 2006, along with other relevant laws, such as Commonwealth tax regulations and the Building Act 1993.
Establishing better handover standards
I still think the industry can do better here.
A good handover is not just about returning boxes or forwarding a few files. It should involve a clear transfer of records, funds, contracts, financial information, maintenance history, and any urgent matters that need immediate attention.
When that happens, the incoming manager can get up to speed faster, respond to pressing issues, and start building a productive relationship with the owners corporation from day one.
At Strata Management Consultants, we regularly help Melbourne Committees plan manager transitions so the handover process is handled with more structure and less stress.
