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OWNERS CORPORATIONS ACT 2006

Table of Provisions

PART 1--INTRODUCTORY

  • 1 Purposes  
  • 2 Commencement  
  • 3 Definitions  

PART 2--FUNCTIONS AND POWERS OF OWNERS CORPORATION

Division 1--Functions and powers of owners corporation

  • 4 Functions of owners corporation  
  • 5 Owners corporation must act in good faith  
  • 6 Powers of owners corporation  
  • 7 The five tiers of owners corporations  
  • 7A Owners corporation for 2-lot subdivision (tier five owners corporations)  
  • 8 Services only owners corporation (tier five owners corporations)  
  • 9 Power to employ or engage persons  
  • 10 Execution of documents by owners corporation  
  • 11 Management of owners corporation and power to delegate  

Division 2--Powers relating to services

  • 12 Provision of services to members and occupiers  
  • 13 Owners corporation not to carry on business  

Division 3--Powers relating to property

  • 14 Leasing or licensing of the common property  
  • 15 Power to obtain lease or licence over land  
  • 16 Power to acquire and dispose of personal property  
  • 17 Owners corporation must not mortgage or charge common property  
  • 17A Water on common property  

Division 4--Power to commence legal proceeding

  • 18 Power to commence legal proceeding  

Division 5--The common seal

  • 18A Owners corporation not required to have or use common seal  
  • 19 The common seal  
  • 20 When can the common seal be used?  
  • 21 Who must witness the use of the common seal?  
  • 22 Judicial notice of use of common seal  

PART 3--FINANCIAL MANAGEMENT

Division 1--Financial powers

  • 23 Owners corporation may levy annual fees  
  • 23A Owners corporation may levy fees in relation to insurance  
  • 24 Extraordinary fees and charges  
  • 25 Power to borrow money  
  • 26 Power to invest  
  • 27 Bank account  
  • 28 Liability of lot owners  
  • 29 Penalty interest on arrears  
  • 30 Recovery of money owed  
  • 31 Fee notice  
  • 32 Final notice  

Division 2--Accounts and audit

  • 33 Financial records  
  • 34 Financial statements  
  • 35 Audit of financial statements of owners corporations  
  • 35A Exemption from requirement to audit financial statements  

Division 3--Maintenance plan

  • 36 Maintenance plan  
  • 37 What must a maintenance plan contain?  
  • 38 When does a maintenance plan have effect?  
  • 39 Report on approved maintenance plan  

Division 4--Maintenance fund

  • 40 Establishment of maintenance fund  
  • 42 Payments into maintenance fund  
  • 43 Payments from maintenance fund  
  • 44 Extraordinary payments from maintenance fund  
  • 45 Extraordinary payments for urgent matters  

Division 5--Asset management

  • 46 Owners corporation to repair and maintain common property  
  • 47 Owners corporation must repair and maintain services  
  • 47A Lot owners must not repair, alter or maintain common property or services  
  • 48 Lots not properly maintained  
  • 49 Cost of repairs, maintenance or other works  
  • 50 When can an owners corporation authorise a person to enter a lot?  
  • 51 What notice of entry must be given?  
  • 52 Significant alteration to common property requires special resolution  
  • 53 Upgrading of common property  

Division 5A--Disposal of goods abandoned on common property

  • 53A Owners corporation may dispose of goods abandoned on common property  
  • 53B Notice of intention to dispose of goods abandoned on common property  
  • 53C Removal of goods to safe place  
  • 53D Disposal of goods  
  • 53E Owners corporation not liable in relation to disposed goods  

Division 6--Insurance

  • 54 What is an insurable building?  
  • 55 Members may take out insurance  
  • 56 Owners corporation has insurable interest  
  • 57 Amount payable under owners corporation insurance  
  • 58 Insurance if lot mortgaged  
  • 59 Reinstatement and replacement insurance  
  • 60 Public liability insurance  
  • 61 Insurance for lots in multi-level developments  
  • 61A Insurance for multiple single dwellings on a plan of subdivision  
  • 62 Owners corporation may have additional insurance  
  • 63 Insurance not required where there is no common property  
  • 64 Insurance not required where another owners corporation has insured  
  • 65 Valuation of buildings  

PART 4--MEETINGS AND DECISIONS OF OWNERS CORPORATION

Division 1--First meeting of owners corporation

  • 66 When must the first meeting be held?  
  • 67 What documents must be provided at the first meeting?  
  • 67A What must be disclosed at the first meeting?  
  • 67B Contract entered into by applicant for registration of the plan of subdivision prior to first meeting  
  • 67C Minutes of first meetings  
  • 68 Obligations of initial owner  

Division 2--Annual general meeting

  • 69 Annual general meeting  
  • 70 Who may convene annual general meetings?  
  • 71 Agenda for annual general meeting  
  • 72 Notice of annual general meetings  

Division 3--Special general meetings

  • 73 What is a special general meeting?  
  • 74 Who can convene a special general meeting?  
  • 75 Agenda for special general meeting  
  • 76 Notice of special general meetings  

Division 4--Procedure at general meetings

  • 77 Quorum for a general meeting  
  • 78 Can a general meeting proceed even without a quorum?  
  • 79 Who chairs the general meeting?  
  • 80 Procedure at meeting  
  • 81 Minutes of meetings  
  • 82 Owners corporation may require certain matters to be dealt with at general meetings  

Division 5--Ballots

  • 83 Who can arrange a ballot?  
  • 84 How can a ballot be conducted?  
  • 85 Notice of ballot  
  • 86 Resolution by ballot  

Division 6--Voting

  • 87 One vote for each lot  
  • 88 Voting on a resolution of the owners corporation by ballot  
  • 89 Voting on a resolution of the owners corporation at a meeting  
  • 89A Does the chairperson have a casting vote?  
  • 89B Can a lot owner vote if fees are unpaid?  
  • 89C Proxies  
  • 89D Restriction on number of lot owners on behalf of whom a proxy may vote on a resolution  
  • 89E Revocation of a proxy  
  • 89F Voting under power of attorney  
  • 89G Person must not require or demand that a lot owner give authorisation to vote under power of attorney or proxy  
  • 89H Term of contract of sale limiting voting rights void  

Division 7--Decisions of owners corporation

  • 90 Resolutions by meeting or ballot  
  • 95 What is a unanimous resolution?  
  • 96 What is a special resolution?  
  • 97 Interim special resolutions  

Division 8--Office-holders

  • 98 Chairperson of owners corporation  
  • 99 Secretary  

PART 5--COMMITTEES

  • 100 Election of committee  
  • 101 Functions and powers of committee  
  • 102 Delegation by committee  
  • 103 Membership of committees  
  • 104 Casual vacancies on a committee  
  • 105 Chairperson of committee  
  • 106 Acting chairperson  
  • 107 Secretary of committee  
  • 108 How can a meeting of a committee be called?  
  • 109 Notice of meetings  
  • 110 Co-opted members  
  • 111 Ballots  
  • 112 Proceedings of committee  
  • 113 Resolutions of committee to be resolutions of owners corporation  
  • 114 Minutes  
  • 115 Committee to report  
  • 116 Sub-committees  
  • 117 Duties of members of committees and sub‑committees  
  • 118 Immunity of committee members  

PART 6--MANAGERS

  • 119 Appointment and removal of manager  
  • 119A Contract of appointment of manager  
  • 120 Functions of manager where there is a committee  
  • 121 Functions of the manager where there is no committee  
  • 122 Duties of manager  
  • 122A Manager must disclose beneficial relationship with supplier  
  • 122B Manager must disclose commission, payment or other benefit  
  • 123 Immunity of volunteer manager  
  • 124 Delegation  
  • 125 VCAT may appoint manager  
  • 126 Report  
  • 127 Manager to return records  

PART 7--DUTIES AND RIGHTS OF LOT OWNERS AND OCCUPIERS

  • 128 Compliance with laws  
  • 129 Care of lots  
  • 130 Care of common property  
  • 131 Overhanging eaves  
  • 132 Right to decorate interior walls, floors and ceilings  
  • 133 Notice of planning and building applications and plans of subdivision  
  • 134 Address of new owners  
  • 135 Address of absent owners  
  • 136 Advice to occupiers  
  • 137 Duties of occupiers of lots  

PART 8--RULES OF THE OWNERS CORPORATION

  • 138 Power to make rules  
  • 138A Power to make rules regarding proxies  
  • 138B Power to make rules regarding external alterations and other works affecting lot owners  
  • 139 Model rules  
  • 140 Rules to be of no effect if inconsistent with law  
  • 141 Who is bound by the rules?  
  • 141A Occupier to ensure guests comply with rules  
  • 142 Recording of rules  
  • 143 Rules to be given to lot owners  

PART 8A--RETIREMENT VILLAGES

  • 143A Application  
  • 143B Fees  
  • 143C Maintenance fees  
  • 143D Obligation of initial owner of retirement village land  
  • 143E Appointment of the manager of an owners corporation  
  • 143F Rules of owners corporation of retirement villages  

PART 9--RECORDS

Division 1--Keeping of records

  • 144 Keeping of records  
  • 145 How long must records be kept?  
  • 146 Availability of records  

Division 2--Owners corporation register

  • 147 Owners corporation register  
  • 148 What must be kept on the owners corporation register?  
  • 149 In what form must the register be kept?  
  • 150 Availability of register  

Division 3--Owners corporation certificate

  • 151 Owners corporation certificate  

PART 10--DISPUTE RESOLUTION

Division 1--Complaints and procedures

  • 152 Complaints  
  • 153 Decision whether to take action in respect of alleged breach  

Division 1--of Part 3 applies to recovery of fees and other amounts.

  • 154 Notice of decision not to take action  
  • 155 Notice to rectify breach  
  • 156 What if the person does not rectify the breach?  
  • 157 Final notice  
  • 158 How may notice be given?  
  • 159 Report to annual general meeting  

Division 1A--Complaints and procedures--short-stay accommodation arrangements

  • 159A Complaints—short-stay accommodation arrangements  
  • 159B Decision whether to take action in respect of alleged breach by a short-stay occupant  
  • 159C Notice of decision not to take action—short-stay accommodation arrangement complaint  
  • 159D Notice to rectify breach—short-stay accommodation arrangement complaint  
  • 159E What if the person does not rectify the breach?  
  • 159F Report to annual general meeting  

Division 2--Powers of Director

  • 160 Making a complaint  
  • 161 Conciliation and mediation  

PART 11--APPLICATIONS TO VCAT

Division 1--Owners corporation disputes

  • 162 VCAT may hear and determine disputes  
  • 163 Who may apply to VCAT in relation to a dispute?  
  • 164 VCAT may dismiss application  
  • 165 What orders can VCAT make?  
  • 166 Penalty for breach of rules  
  • 167 What must VCAT consider?  
  • 168 Monetary orders  
  • 169 Notice to Business Licensing Authority  

Division 1A--Short-stay accommodation disputes

  • 169A VCAT may hear and determine short-stay accommodation disputes  
  • 169B Who may apply to VCAT in relation to a short-stay accommodation dispute?  
  • 169C What orders can VCAT make?  
  • 169D Prohibition order  
  • 169E Loss of amenity compensation order  
  • 169F What must VCAT consider?  
  • 169G Civil penalty for breach by short-stay occupant  
  • 169H Joint and several liability of short-stay provider and short-stay occupant  

Division 1B--Proceedings commenced, prosecuted, defended or discontinued by lot owner on behalf of owners corporation

  • 169I Lot owner may apply to VCAT to commence, prosecute, defend or discontinue any proceeding on behalf of owners corporation  
  • 169J VCAT may make order authorising lot owner to commence, prosecute, defend or discontinue proceeding  

Division 2--Exemption orders

  • 170 Owners corporation may apply to VCAT for exemption  
  • 171 VCAT may make exemption order  

Division 3--Restriction of access to records

  • 172 Application to VCAT to restrict access to information  

Division 4--Appointment of administrator

  • 173 Application for appointment of administrator  
  • 174 Appointment of administrator  
  • 175 Remuneration of administrator  
  • 176 Powers and responsibilities of administrator  
  • 177 Administrator to act in good faith  

PART 12--REGISTRATION OF MANAGERS

Division 1--Managers to be registered

  • 178 Offence to act as manager without being registered  
  • 179 Eligibility for registration  
  • 180 Application for registration  
  • 181 Further information  
  • 182 Registration  
  • 182A Permission to be registered as manager despite criminal record  
  • 183 Annual registration fee and statement  
  • 184 Extension of time  
  • 185 Failure to lodge annual statement  
  • 185A Professional indemnity insurance  
  • 186 Automatic cancellation of registration  
  • 186A Permission to continue to be registered as manager despite criminal record  
  • 186B Conditions on permission  
  • 187 Death, disability etc. of registered manager  
  • 188 If details given in application or annual statement change  
  • 189 Offence to supply false or misleading information  
  • 190 Cancellation of registration if false information is given  
  • 191 Application for review  

Division 2--Register of managers

  • 192 Register of managers  
  • 193 Purposes of register of managers  
  • 194 What must the register of managers contain?  
  • 195 Inspection of register of managers  
  • 196 Removal of information from register of managers  
  • 197 Duty of Licensing Registrar  

Division 3--General

  • 198 Provision of information for the purposes of this Act  

PART 13--GENERAL

  • 199 Application of Australian Consumer Law and Fair Trading Act 2012  
  • 200 Approved forms  
  • 200A Manner in which documents may be given to or served on owners corporation  
  • 201 Money to be paid to Victorian Property Fund  
  • 202 Certain provisions of contracts void  
  • 203 Who may commence a proceeding for offences?  
  • 203A Infringement notices  
  • 204 Regulation-making powers  
  • 205 Transitional and savings provisions  

PART 14--TRANSITIONAL AND SAVINGS PROVISIONS--OWNERS CORPORATIONS AND OTHER ACTS AMENDMENT ACT 2021

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