Victorian Current Acts

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

   206.    Definitions  
   207.    Requirement to have maintenance plan  
   208.    Term of contract of appointment void  
   209.    Financial statements  
   210.    Review of amendments made by 2021 Act  
           SCHEDULE 1
           SCHEDULE 2
           ENDNOTES