What is an owners corporation, and what do they do?
The major difference between owning a house and owning an apartment is the existence of an owners corporation.
An owners corporation is the entity, created by law when subdivided land is registered as having common property i.e. strata title property. Their function is to carry out tasks required under relevant laws including the maintenance of common property.
Responsibilities of an owners corporation include managing taking out and maintaining insurances, raising fees from owners to meet financial obligations, maintenance of the building’s Essential Safety Measures (ESMs), preparing financial statements, keeping records, and ensuring compliance with relevant legislation and regulations such as the Owners Corporation Act 2006 and Owners Corporation Act 2018.
Legal requirements of the owners corporation
The Owners Corporation Act 2006 and the Owners Corporation Regulations 2018 sets out the legal and financial responsibilities and powers of an owners corporations. These include:
- Managing and administering the common property
- Repairing and maintaining the common property, fixtures and services
- Taking out and maintaining the required insurance
- Raising fees from owners to meet financial obligations
- Preparing financial statements and keeping financial records
- Providing owners corporation certificates when requested
- Keeping an owners corporation register
- Establishing a grievance procedure
- Carrying out any functions and duties under the Owners Corporations Act 2006, the Owners Corporations Regulations 2007
- Adhering to all applicable laws, including planning, building, fire and safety inspections and work, health and safety laws.