Victorian Consolidated Legislation

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OWNERS CORPORATIONS ACT 2006

No. 69 of 2006
Version incorporating amendments as at 12 February 2008

TABLE OF PROVISIONS

           Section Page

   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.      Owners corporations for 2-lot subdivisions
   8.      Owners corporations that are limited to common property
   9.      Power to employ or engage persons
   10.     Power to execute documents etc.
   11.     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

           Division 4-Power to bring legal proceedings

   18.     Power to bring legal proceedings

           Division 5-The 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 fees
   24.     Extraordinary fees
   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 accounts of owners corporations

           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
   41.     What is the maintenance fund for?
   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
   48.     Lots not properly maintained
   49.     Cost of repairs, maintenance or other work
   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 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
   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?
   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-Proxies and powers of attorney

   87.     Proxies
   88.     Voting under power of attorney
   89.     Person not to require a lot owner to give a power of attorney
           or proxy

           Division 7-Decisions of owners corporation

   90.     Resolutions by meeting or ballot
   91.     One vote for each lot
   92.     Voting at a meeting
   93.     Does the chairperson have a casting vote?
   94.     Can a lot owner vote if fees are unpaid?
   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 committees and sub-committees
   118.    Immunity of committee members

   PART 6-MANAGERS

   119.    Appointment and removal of manager
   120.    Functions of manager where there is a committee
   121.    Functions of manager where there is no committee
   122.    Duties of manager
   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
   139.    Model rules
   140.    Rules to be of no effect if inconsistent with law
   141.    Who is bound by the rules?
   142.    Recording of rules
   143.    Rules to be given to lot owners

   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
   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 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 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
   183.    Annual registration fee and statement
   184.    Extension of time
   185.    Failure to lodge annual statement
   186.    Automatic cancellation of registration
   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
   199.    Application of Fair Trading Act 1999.

   PART 13-GENERAL

   200.    Approved forms
   201.    Money to be paid to Victorian Property Fund
   202.    Certain provisions of contracts void
   203.    Who may bring proceedings for offences?
   204.    Regulation-making powers
   205.    Transitional provisions

   PART 14-AMENDMENT OF SUBDIVISION ACT 1988.

   206.    Definitions
   207.    Application of Act
   208.    Council role
   209.    Easements and other rights
   210.    Registration of plan
   211.    New Part 5 substituted

   PART 5-SUBDIVISIONS WITH OWNERS CORPORATIONS

           Division 1-Creation of owners corporation
           must be created

           Division 2-Common property

           Division 3-Alteration of a subdivision
           alteration of plan

           Division 4-General provisions relating to plans

           Division 5-Disputes and other proceedings relating to owners corporations

           Division 6-Winding up of owners corporation

   212.    References to body corporate
   213.    Repeal of section 38.
   214.    Other disputes arising under Subdivision Act 1988.
   215.    Regulations
   216.    New sections 47 and 48 inserted

   PART 15-AMENDMENT OF SALE OF LAND ACT 1962.

   217.    New section 9AAA substituted
   218.    New section 11 substituted
   219.    Section 32 certificate

   PART 16-AMENDMENT OF OTHER ACTS

   220.    Amendment of Business Licensing Authority Act 1998.
   221.    Amendment of Domestic Building Contracts Act 1995.
   222.    Amendment of Limitation of Actions Act 1958.
   223.    Amendment of Victorian Civil and Administrative Tribunal Act 1998.

   PART 15AB-OWNERS CORPORATIONS ACT 2006.

   224.    Amendment of Other Acts
           __________________
           SCHEDULE 1-Power to Make Rules of Owners Corporation
           1. Health, safety and security
           2. Committees and sub-committees
           3. Management and administration
           4. Use of common property
           5. Lots
           6. Design
           7. Behaviour of persons
           8. Dispute resolution
           9. Notices and documents
           10. Common seal
           SCHEDULE 2-Transitional Provisions
           1. Definitions
           2. General transitional provisions
           3. Subdivision bodies corporate deemed to be owners
           corporations
           4. References to subdivision bodies corporate
           5. Rules of body corporate
           6. Body corporate certificate
           7. Committees
           8. Resolutions
           9. Managers
           10. Administrators
           11. Transitional regulations
           SCHEDULE 3-Consequential Amendments
           1. Accident Compensation Act 1985.
           2. Credit Act 1984.
           3. Docklands Act 1991.
           4. Equal Opportunity Act 1995.
           5. Estate Agents Act 1980.
           6. Fair Trading Act 1999.
           7. Retirement Villages Act 1986.
           8. Southgate Project Act 1994.
           9. Tobacco Act 1987.
           10. Transfer of Land Act 1958.
           11. Victorian Civil and Administrative Tribunal Act 1998.
           12. Water Act 1989.
           13. Water Industry Act 1994.
           ---------------
           ENDNOTES
           1. General Information
           2. Table of Amendments
           3. Explanatory Details


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