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