Owners Corporations Law Victoria – An Introduction

Owners corporations law Victoria governs the operation, management, and regulation of owners corporations in the State of Victoria. This guide provides a brief, plain English summary of owners corporations law Victoria, governing and applicable to owners corporations in Victoria in accordance with the Owners Corporations Act 2006 (Vic) and associated legislation, including the Subdivision (Body Corporate) Regulations 2001 (Vic) and other applicable regulations.

It is not intended to be a detailed summary of any aspect of such laws. Rather, it briefly examines what an owners corporation is, and outlines the rights and obligations of an owners corporation and a lot owner, among other key matters.

What Is an Owners Corporation?

An owners corporation (also known in legal terminology as a body corporate) is the legal entity comprised of all owners of lots within a subdivided property, usually within a building or group of buildings.

In essence, the owners corporation owns and controls the common property for the benefit of all lot owners. Common property usually includes driveways, gyms, pools, conference rooms, hallways, lifts, stairwells, and associated electrical, plumbing, lighting, and security infrastructure such as gates and CCTV systems.

Each lot owner owns their individual lot and contributes financially to the owners corporation in proportion to their unit entitlement or lot entitlement, which is used to fund the maintenance and operation of the common property. In some developments, concierge or other shared services may also be provided and funded through levies.

Notwithstanding the number of unit or lot entitlements held, each lot has one (1) vote at meetings of the owners corporation. This also applies where a lot is jointly owned.

Legislation Governing Owners Corporations in Victoria

These statutes collectively form the framework of owners corporations law Victoria and regulate how owners corporations operate and make decisions.

The principal legislation governing owners corporations in Victoria includes:

1. Owners Corporations Act 2006 (Vic);
2. Owners Corporations Regulations 2018 (Vic);
3. Short Stay Levy Act 2024 (Vic); and
4. Subdivision (Body Corporate) Regulations 2001 (Vic).

While each of these instruments has a role, the most significant and commonly applied legislation is the Owners Corporations Act 2006 (Vic).

Key Concepts Under Owners Corporations Law Victoria

Common Property and Lot Ownership

A significant portion of a building, particularly in larger apartment complexes, constitutes common property. Common property is accessible to lot owners for its intended purpose, subject to any lawful restrictions imposed for security or operational reasons.

Certain areas, although classed as common property, may not be accessible to all lot owners, such as secure building levels, utility cupboards, or management system rooms.

The owners corporation is responsible for managing and maintaining the common property for the benefit of all lot owners.

Under “Common Property and Lot Ownership” in Owners Corporation Law Victoria:

Example: If a building has 50 apartments, the owners corporation might maintain the pool, gym, and car park. Each lot owner contributes to these costs through levies according to their lot entitlement. If a lot owner damages the gym equipment, they may be liable to cover the repair cost in addition to the regular levies.

Powers and Duties of an Owners Corporation

An owners corporation has various powers and obligations, including the ability to:

1. Raise levies, requiring lot owners to contribute financially in accordance with their unit entitlement;
2. Make and enforce rules (bylaws) regulating the use of lots and common property; and
3. Maintain and insure the common property and building as required by law.

Levies, Funds, and Financial Management

Levies are essential to the operation of an owners corporation. Generally, levies consist of:

Levy Type	Purpose
Administrative levy	Day-to-day operational expenses
Maintenance levy	Ongoing building maintenance
Special levy	Major or emergency repairs

The Owners Corporations Law Victoria prescribes the processes for raising levies, managing funds, and recovering unpaid contributions. Lot owners are entitled to inspect financial records and audited reports.

Insurance

Owners corporations are required to insure the building as a whole, funded through levies. Individual lot owners generally cannot, and do not need to, insure the building itself.

However, owners corporation insurance does not usually cover a lot owner’s contents or damage caused by the lot owner. Insurance claims may impact premiums payable by all lot owners.

Rules, Bylaws, and Enforcement

Owners corporations may make registered rules governing matters such as noise, pets, renovations, and the use of common property. Where no specific rule applies, model rules operate by default.

Rules must not conflict with the Owners Corporations Law Victoria or the model rules.

Meetings, Voting, and Committees

Owners corporations are required to hold an Annual General Meeting (AGM) each year. Matters discussed usually include financial reports, levies, and anticipated expenditures.

Notice requirements, quorum rules, proxy voting, and record-keeping obligations apply, many of which are detailed in the Owners Corporations Regulations 2018 (Vic).

Common Owners Corporation Disputes

Disputes commonly arise under owners corporations law Victoria due to levies, bylaws, insurance, and meeting procedures. Other disputes often arise regarding:

• Non-payment of levies
• Noise or nuisance from other lot owners
• Breach of bylaws (e.g., pet restrictions or renovations)
• Disagreement over the maintenance of common property

Tip: Seek legal advice early if a dispute cannot be resolved through the owners corporation or by negotiation.

What is owners corporations law in Victoria?

Owners corporations law Victoria governs how owners corporations operate under the Owners Corporations Act 2006 (Vic).

What does an owners corporation control?

An owners corporation manages and maintains common property for the benefit of all lot owners.

Can an owners corporation raise special levies?

Yes. Special levies may be raised to fund major or emergency repairs in accordance with Victorian legislation.

Do lot owners have voting rights?

Each lot has one vote at owners corporation meetings, regardless of unit entitlement.

When should I seek legal advice?

Legal advice should be sought early if disputes arise regarding levies, bylaws, insurance, or meetings.

Need Advice About Owners Corporations Law Victoria?

If you have a question about an owners corporation law Victoria, need assistance amending bylaws, challenging a breach notice, or dealing with an owners corporation dispute, legal advice can help resolve issues efficiently.

We regularly assist owners, occupiers, owners corporations, and managers with complex matters involving owners corporations law Victoria and are available to help when you need expert advice. We also advise clients on property disputes and commercial litigation matters connected with owners corporations.