Victorian Consolidated Legislation

Owners Corporations Act 2006 - SECT 68

Obligations of initial owner

68. Obligations of initial owner



(1) Subject to subsection (3), the initial owner of land affected by an owners
corporation must act honestly and in good faith and with due care and
diligence in the interests of the owners corporation in exercising any rights
under this Act.

(2) Subject to subsections (3) and (4), the initial owner of land affected by
an owners corporation must take all reasonable steps to enforce any domestic
building contract (within the meaning of the
Domestic Building Contracts Act 1995) entered into by the initial owner in
respect of land in the plan of subdivision providing for the creation of the
owners corporation.

(3) Subsections (1) and (2) apply to an initial owner only while the initial
owner is the owner of the majority of the lots affected by the owners
corporation and only until the end of the period of 5 years following the
registration of the plan of subdivision.





(4) Subsection (2) applies only to the enforcement of a breach of contract-

   (a)  to the extent that it relates to the common property affected by the
        owners corporation; and

   (b)  of which the initial owner is aware or ought reasonably to be aware.

(5) In this section initial owner means the person who was the applicant for
the registration of the plan of subdivision.

Division 2-Annual general meeting