New Property Developments
We’ve been receiving a lot of questions of late from property developers asking about ‘how to set-up an owners corporation’, so here’s a helpful checklist.
I think the starting point for this conversation should the question
- An Owners Corporation (formerly known as Body Corporate) is created when a piece of land (Torrens Title) is sub-divided into 2 or more Strata Title lots;
- The Owners Corporation is established/created upon the registration of the Plan of Subdivision with Land Victoria;
- The Owners Corporation is a legal entity in its own right – it can therefore open and operate a bank account, enter into contract etc.;
- The Owners Corporation, as the legal entity, is the owner of the land and responsible for the upkeep of common property;
- It’s important for smaller sub-divisions (where there is a professional manager in place) to ensure the building insurance is appropriate and adequate;
- Most of the time this means a Residential Strata Policy is needed to cover, at minimum, the replacement cost and public liability;
- It’s ultimately the choice of the Owners / Developer as to whether to employ/engage a professional manager for a two-lot subdivision.
Consumer Affairs Victoria – Legal exemptions for owners corporation with two lots:
Property Observer – “Why a strata subdivision is better than a Torrens title subdivision for some developments”
Need Help Changing or Setting-up a New Owners Corporation?
Speak to Strata Consultant on 1300 917 848, or email us at firstname.lastname@example.org