As many of the one million Victorians affected are beginning to discover, the Owners Corporations Act and regulatory regime has increased the responsibilities for unit and apartment owners to such an extent that just getting a grip on the requirements is challenging.

Self-managed owners corporations are expected to perform the role of a property manager, with the expertise of a lawyer, valuer, insurance broker and accountant on tap….just to ensure they comply with the laws. Owners need to understand the legal, financial reporting, record keeping and insurance requirements. In addition, all owners corporations are well advised to make short and long term plans for ongoing, periodic, routine and urgent maintenance management.

The committee elected by the owners corporation need to know how to administer the day to day running of the property, plan for and anticipate future needs, run a meeting, establish and administer grievance and dispute resolution procedures. As a result of the complexity of the laws, many owners corporations are moving away from self management and turning to professional managers for assistance, who are experts in the administration of all aspects of owners corporations and strive to protect owner’s assets.

The effective operation of an owners corporation is largely determined by the willingness of members to engage with, and assume responsibility for, the operations of the owners corporation.

The process and effective operation of owners corporations is facilitated and enhanced when a professional manager is appointed. It is not uncommon that a professional manager is appointed to solve intractable problems and relationship breakdowns in previously self-managed properties.

Professional owners corporation managers play a vital role in an increasingly complex environment by ensuring owners corporations are compliant with their legal responsibilities, efficiently and effectively protect and maintain the owners’ assets and plan for the future.

Owners corporations now have more legal responsibilities for matters including financial management, record keeping, dealing with complaints and meeting procedures.

Many owners corporations use professional managers to assist with finances, insurance, administration, meetings and maintenance functions.

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Managers are now required to be registered with the Business Licensing Authority [BLA] and it is an offence to carry out any function as the manager for fee or reward unless the person is registered under Part 12 of the Act.

An owners corporation Manager must have Professional Indemnity insurance covering claims up to $1,500,000 and be an Authorised Representative of an insurance company. There are currently no formal educational qualifications required in Victoria relating to owners corporation managers.

If you appoint a manager that is a member of SCA (Vic) the manager will also have had a police record check and must comply with our Code of Professional Conduct. To be awarded post nominals SCA (Vic) members have to comply with the Continuing Professional Development [CPD] program.

Upon commencement later in 2008 members may also be required to undertake the national qualification - Certificate IV Property Services [Operations]; CPP07 PDSM [Property Development, Sales and Management].

Currently new managers may purchase the SCA (Vic)’s recorded self-paced introductory training course which is aimed at new entrants to the industry starting their own business with no mentor or supporting employer.

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Yes, SCA (Vic) has an endorsed Contract of Appointment – Owners Corporation Manager. All SCA (Vic) members are entitled to use the SCA (Vic) endorsed Contract of Appointment.

This has been developed to take into account the changes to the regulatory environment brought about by the operation of the Owners Corporations Act 2006 and the approved form published by Consumer Affairs Victoria. Attached below is the CAV approved form of Contract of Appointment.

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An owners corporation must have an annual general meeting if it receives or pays out money in any financial year.

The time between those annual general meetings must not exceed 15 months.

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A significant change of the strata laws a few years ago was the restoration of the committee as the executive of the OC and acts as the executive of the OC. The committee now has the power and responsibility to act as the OC between general meetings of the OC.

A committee has all the powers and functions that may be delegated by the OC save for those requiring a unanimous resolution [100%] or a special resolution [75%] or where the OC has otherwise determined must be decided by ordinary resolution [50%] at a general meeting.

The OC can also decide on what powers and functions it wants to delegate to the committee.

The committee must elect a chairperson and secretary, who are also the chairperson and secretary of the OC. The chairperson’s role is to ensure effective conduct of meetings, and the secretary’s role is to ensure the proper handling of proxies and ballots. If the OC has a professional strata manager, then the strata manager typically performs the roles of chair of a general meeting, and can also act as secretary.

It is worth an owner taking the time to be involved in the OC since the apartment is one of the biggest investments they will have in their life. You want to not only maintain and increase the value of the asset, but also to play a part in promoting the communal living that is fundamental to living in an OC. It is in everyone’s interest for owners to ensure they make informed decisions and meet their compliance responsibilities under the strata laws.

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Available from Consumer Affairs Victoria [CAV] are the Approved Forms and Notices, such as Fee Notices for example.

A Guide for owners corporations has been developed by CAV - “Owning, managing and living in a unit or apartment: Guide to owners corporations”. Printed copies are available or you can download it from the CAV web site.

CAV also have on their web site a range of fact sheets that provide information and sample documents about running an owners corporation.

The BLA / CAV have also published a guide for registered managers.

More information is available from CAV on Ph: 1300 55 81 81 or www.consumer.vic.gov.au and the BLA at www.bla.vic.gov.au
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