New Property Developments – ‘To Strata or Not to Strata?’

New Property Developments – How to Set-Up an Owners Corporation

We’ve been receiving a lot of questions of late from property developers asking about ‘how to set-up an owners corporation’, so here’s a helpful checklist.

I think the starting point for this conversation should the question

  • An Owners Corporation (formerly known as Body Corporate) is created when a piece of land (Torrens Title) is sub-divided into 2 or more Strata Title lots;
  • The Owners Corporation is established/created upon the registration of the Plan of Subdivision with Land Victoria;
  • The Owners Corporation is a legal entity in its own right – it can therefore open and operate a bank account, enter into contract etc.;
  • The Owners Corporation, as the legal entity, is the owner of the land and responsible for the upkeep of common property;
  • It’s important for smaller sub-divisions (where there is a professional manager in place) to ensure the building insurance is appropriate and adequate;
  • Most of the time this means a Residential Strata Policy is needed to cover, at minimum, the replacement cost and public liability;
  • It’s ultimately the choice of the Owners / Developer as to whether to employ/engage a professional manager for a two-lot subdivision.

 

Consumer Affairs Victoria – Legal exemptions for owners corporation with two lots: 

https://www.consumer.vic.gov.au/housing-and-accommodation/owners-corporations/buying-into-an-owners-corporation/two-lot-subdivisions

Property Observer – “Why a strata subdivision is better than a Torrens title subdivision for some developments”

https://www.propertyobserver.com.au/finding/residential-investment/new-developments/13515-why-a-strata-subdivision-is-better-than-a-torrens-title-subdivision-for-some-developments.html

 

Time to Change Strata Management Companies But Not Sure How to?

Strata Consultants Melbourne has been helping and guiding Committees on how to change owners corporation management companies since January 2014. We guide you through the process of changing body corporate management company and everything is done according to the body corporate rules and regulations. Speak to a Strata Consultant about changing owners corporation managers on 1300 917 848.

 

The contents of this article or website are only intended to provide a general overview of the topics discussed. The author of this article makes no representations as to the accuracy or completeness of any information and the information is not intended to constitute investment, legal or professional advice. You should seek professional advice before acting or relying on any of the content. This article does not contain references to any specific company, organisation or individual, unless expressly specified.
Strata Management Company
Google Rating
5.0