A lot you may be considering buying could be under the owner’s corporation. A subdivision plan may lead to common property, which is managed under an owner corporate.
Formerly known as a body corporate, the owner’s corporate were created under part 5 of the subdivision Act of 1988. When you buy a property under the owner corporate, you become a member of the owner’s corporation. This gives you the right to use the common property as stipulated in the plan of subdivision. The common properties include stairs, driveways, paths, roadways, vehicles gates, lifts, passage, common garden, and other shared facilities.
The functions of owner’s corporation management
Management and maintenance of common properties within an establishment are the primary roles of owners corporate. To achieve this, a strata manager is selected to foresee the execution of the wishes and requirements of owners corporate.
· Steering the community
Owners Corporation is responsible for steering the community in the right direction. This is manifested in the corporate’s decision and is meant to dictate what is acceptable or not within a particular community. This forms the by-laws of the community.
· Decision making
The owner’s corporation management is responsible for making all the decisions through negotiations with the members of the corporate.
Categories of decision making in Owners Corporation
- Ordinary resolution– It requires 50% of eligible voters to pass the resolution.
- Special resolution– Special resolution is needed when discussing matters such as additional fees, extraordinary expenditures, setting annual fees, and leasing or licensing of common property. It requires 75% of eligible voters to pass the resolution.
- The unanimous resolutionincludes 100% votes when selling or buying property, altering liability, lot entitlement, and altering boundaries.
Holding an annual general meeting
During an annual general meeting, a smaller group known as the strata committee is chosen to ease decision-making. Each group has one-year tenure before a new group is elected. The smaller group ensures a faster and efficient decision-making process. To be chosen, you need to have a good reputation, have recommendations from significant people, and have experience working in a similar or same type of position.
Take care of administrative duties.
The strata committee is responsible for managing common property maintenance, corporate finances, maintaining and reviewing records, and enforcing rules. These responsibilities are listed in their performance contract. Also, the committee is to be supervised to avoid misdemeanours.
The owner’s corporation oversees the safety of the community. It is responsible for safety measures put in place in case of incidents like fire. These measures ensure the building occupants have ample time to evacuate the building when fire erupts.
The owner’s corporation is responsible for the legal compliance of the community. They ensure the community is abiding by the relevant federal laws. These include fire laws and ordinances, health and safety laws, and building and planning laws.
Also, the owner’s body is responsible for the undertaking of legal action in case a legal dispute arises. When appropriate, the owner’s corporation must obtain legal advice from professionals. This ensures the community lives in a safe and orderly environment.
The owner’s corporation is also responsible for notifying the residents of pest control actions involving pesticide use. Such notices should be issued days before the procedure begins. The strata is also responsible for allowing and facilitating the owners with records for inspection. In addition, the owner’s corporation must make available a strata information certificate within weeks of prospective purchasers’ request. They are also responsible for providing members who have a priority vote with notification of the availability of priority voting.
Most community living properties have Owners Corporation Management responsible for caretaking, ground maintenance, management of common property and taking care of insurance.