top of page

Do I have to be part of the owners corporation?



If you own property affected by an owners corporation then you become a member of that owners corporation automatically. As a member, you have legal and financial responsibilities to the owners corporation.


Responsibilities of an owners corporation

An owners corporation must:

  • manage and administer the common property

  • repair and maintain the common property, fixtures and services

  • take out and maintain required insurance

  • raise fees from the lot owners to meet financial obligations

  • prepare financial statements and keep financial records

  • provide owners corporations certificates when requested

  • keep an owners corporation register

  • establish a grievance procedure.

It must also:

  • carry out any functions and duties under the Owners Corporations Act 2006, the Owners Corporations Regulations 2018, the owners corporation rules and any other law or regulation

  • ensure compliance with the Act, the Regulations and the rules.

Special rules for certain types of owners corporations

Special rules apply to certain types of owners corporations:

  • Two-lot subdivisions - Owners corporations with only two lots

  • Prescribed owners corporations - Owners corporations that have more than 100 lots or collect more than $200,000 in annual fees in any financial year

  • Multiple owners corporations - Common in large multi-storey buildings, commercial properties or developments that combine residential and commercial lots.

Four levels of an owners corporation

The owners corporation operates at four levels:


The owners corporation, consisting of all the lot owners.

The committee, consisting of elected lot owners or lot owners’ proxies.

A delegate of the owners corporation. For example: the chairperson, the secretary, a committee member, a lot owner, or an employee of the owners corporation.

A delegate of the committee. The committee may delegate to a lot owner, a manager or sub delegate to a member of the committee.


The owners corporation (all the lot owners):

  • keeps control of all decision-making

  • can delegate powers, but only for matters that do not require a unanimous or special resolution or that are required to be dealt with

  • can overturn an earlier decision of the owners corporation. Only the owners corporation can do this

  • can appoint sub-committees to advise the owners corporation. Sub-committees cannot make decisions.

The committee:

  • can make decisions on all matters delegated to it by the owners corporation except on matters that the owners corporation has determined must be decided at a general meeting.

A delegate:

  • can make decisions within the limits set by the owners corporation

  • cannot overturn a decision of the owners corporation or the committee.

Role of chairperson and secretary

  • An owners corporation committee must elect a chairperson. This person also becomes the owners corporation chairperson.

  • Your committee may not be legal if it fails to elect a chairperson, whose role is to run meetings in a way that encourages decisions. For more information about the chairperson’s role, view our Chairperson - owners corporations page.

  • An owners corporation must also have a secretary, who is responsible for tasks including managing correspondence and organising meetings. For more information about the secretary’s role, view our Secretary - owners corporation page.

All owners corporations, committees and delegates are required to:

  • act honestly and in good faith

  • exercise due care and diligence in carrying out their functions, powers and activities

  • not make improper use of their position to gain, directly or indirectly, an advantage for themselves or for any other person.

Decision-making in owners corporations

Your owners corporation makes a decision or resolution when its members vote at a meeting or by ballot. Votes are based on lots or lot entitlements, not by the number of individuals living in or owning a lot. This means:

  • a person who owns more than one lot has more than one vote

  • if two people own one lot, they only have one vote between them.

  • Decisions can be made by ordinary, special or unanimous resolutions, each requiring different percentages of the total votes.

Comments


bottom of page