VIC Strata Glossary

Administrative Fund

The account used for the day-to-day operational expenses of the owners corporation, such as utilities, cleaning, minor repairs and management fees.

Annual General Meeting (AGM)

The mandatory yearly general meeting required under the Act at which the owners corporation reviews its financial statements, elects the committee and makes key decisions.

Audit / Financial Statement

The annual financial report (and where required an audit) of the owners corporation, showing income, expenditure, assets, liabilities and fund balances.

Budget

The annual financial plan of the owners corporation, showing projected income and expenditure for the coming year.

Building Manager / Caretaker

A person or company appointed by the owners corporation (or through the manager) to oversee daily building operations, contractor coordination and on-site maintenance.

Chairperson

The committee member elected to preside over meetings of the committee (and often the owners corporation) and to ensure decisions are made properly.

Cladding Compliance

Compliance with relevant Victorian requirements — including the Building Act 1993 (Vic) and Building Regulations 2018 — relating to combustible external cladding and associated rectification or safety measures.

Committee

The elected group of lot owners (or their proxies) that manages the owners corporation’s affairs between general meetings, in accordance with the Owners Corporations Act 2006 (Vic) and the rules.

Common Property

Those parts of the subdivision that are defined as common property on the plan of subdivision and are jointly owned by all lot owners (e.g., driveways, foyers, gardens, lifts).

Consumer Affairs Victoria (CAV)

The Victorian Government agency that provides guidance on owners corporation matters and handles certain information and dispute-resolution functions.

Defect Liability Period

The period after construction during which the builder or developer remains responsible for rectifying defects, as set out in the building contract or under the Domestic Building Contracts Act 1995 (Vic). Though not part of the Owners Corporations Act, it’s highly relevant to new owners corporations.

Delegated Authority

The specific powers which the committee or owners corporation may delegate under section 11 of the Owners Corporations Act 2006 (Vic) to a manager, lot owner, sub-committee or other person to act on defined matters.

Dispute Resolution

The process by which conflicts within the owners corporation are handled, typically first through internal mechanisms, then via CAV advice and ultimately by applications to the Victorian Civil and Administrative Tribunal (VCAT) under the Act.

Essential Safety Measures (ESM)

The fire and life safety systems and equipment (such as alarms, sprinklers and exits) that must be regularly inspected and maintained in multi-unit developments to meet Victorian safety regulations.

Extraordinary General Meeting (EGM)

A general meeting called between annual general meetings to deal with urgent or specific issues requiring a vote of the owners corporation.

Insurance (OC)

The building replacement and public liability insurance which the owners corporation is required to maintain for the insurable building, plus any additional insurance considered appropriate under the Act.

Lot Entitlement & Liability

The numbers assigned to each lot in the subdivision, which determine the voting power (entitlement) and the proportion of costs (liability) to be borne by each lot owner.

Lot Owner

The person or legal entity that owns a lot (unit, apartment, townhouse) within the subdivision shown on the plan of subdivision and is thereby a member of the owners corporation.

Maintenance Fund (Sinking Fund)

The reserve account established under the Act for future major repairs and replacements of common property assets, often derived from the approved maintenance plan.

Minutes

The official written record of the discussions, decisions and resolutions of meetings of the owners corporation and/or its committee, maintained in accordance with the Act.

Owners Corporation (OC)

The legal entity created automatically when a plan of subdivision containing common property is registered in Victoria. It is responsible for the management and administration of the common property under the Act.

Plan of Subdivision

The registered plan lodged with Land Use Victoria that subdivides land into lots and common property, and thereby triggers creation of the owners corporation.

Proxy

A written authority given by a lot owner to another person to attend and vote on their behalf at a meeting of the owners corporation, subject to the limits and rules of the Act.

Quorum

The minimum number of eligible votes or voting proxies required to be present (in person, by proxy or electronically) before the meeting of the owners corporation can validly proceed under the Act.

Register of Owners Corporation

The formal register which the owners corporation is required to keep under the Act, containing details of lot owners, lot entitlements and liabilities, insurance, amendments to rules and other prescribed information.

Resolution (Ordinary / Special / Unanimous)

A formal decision passed at a meeting or by ballot of the owners corporation. The Act defines thresholds and categories including ordinary resolution, special resolution and unanimous resolution.

Rules (By-laws / OC Rules)

The regulations made by the owners corporation under the Act that govern behaviour, use of common property, parking, pets, noise and external alterations, in addition to the model rules in the Regulations.

Secretary (Committee)

The committee office-bearer responsible for administrative tasks including issuing meeting notices and agendas, recording and circulating minutes, and maintaining records.

Special Levy

A one-off (non-annual) contribution raised by the owners corporation to meet a specific unexpected or large expense, which is approved by an appropriate resolution under the Act.

Strata Fees / Levies (OC Fees)

The regular fees (also called levies) payable by lot owners to the owners corporation for its operating expenses, insurance, administration, maintenance and contributions to funds, as permitted by the Act.

Strata Manager / Owners Corporation Manager

A licensed or registered professional in Victoria appointed by the owners corporation under the Act to assist with administration, compliance, contractor management, meetings and financial management.

Treasurer (Committee)

The committee office-bearer who oversees the budget, approves expenditures (as permitted), maintains financial oversight and reports to the committee and members.

VCAT (Victorian Civil and Administrative Tribunal)

The tribunal to which applications under the Act may be made for owners corporation disputes including rule breaches, repairs, manager appointment and orders.