What is an Owners Corporation?
An owners corporation is the legal entity that combines all the lot owners in a strata scheme. Owners corporations (also called strata corporations, corporations, body corporates and strata companies, depending on the state or territory) are automatically created when a plan of subdivision contains common property. Common property may include driveways, paths, foyers, stairs, lifts, and common garden areas. Every strata scheme has an owners corporation. All owners are automatically members of the corporation, but tenants are not. In large subdivisions, more than one owners corporation may be created. An owners corporation operates like any other business. It can make rules which are binding on the corporation, owners and tenants regarding the use of common property and the lots, providing that the rules do not contravene legislation governing strata titles or other laws. Responsibilities Owners corporations have a legal responsibility to:
- Maintain all common property including the structure of any buildings on the land
- Insure the whole of the property for the full replacement value
- Administer the finances and common funds of the group of owners
- Administer the secretarial functions including the conduct of meetings of members, documentation of minutes, and dealing with all correspondence
- Resolve disputes involving members of the owners corporation and enforce the owners corporation rules.