What is an owners corporation?
The registration of a plan of subdivision in a complex – an industrial, commercial, retail, residential or combined-use complex – automatically creates an ‘owners corporation’ (previously known as a ‘body corporate’).
An owners corporation can be created if the plan of subdivision has common property or not. If the plan does not have common property, it usually contains common services. A plan of subdivision may also state that owners of all or some of the lots will be members of the owners corporation.
An owners corporation that manages common property with specified limitations is known as a ‘limited owners corporation’. An unlimited owners corporation manages the land affected by the owners corporation, except the use of common property affected by a limited owners corporation. All lot owners are members of the unlimited owners corporation.
Common property is held by the registered owners of individual lots as renters in common and usually includes gardens, walkways, foyers, storage areas, elevators, stairs, driveways, and communal facilities such as gymnasiums, swimming pools, recreational areas, meeting rooms and air space.
An owners corporation has statutory rights and obligations for:
the welfare and maintenance of the common property; and
the owners and renters who have a legal interest.
This chapter focuses on the rights and responsibilities of people working and living in these communities and the dispute resolution processes that are available.
What is an owners corporation?
Chapter: 6.5: Owners corporations
Contributor: Norman Mermelstein, Lawyer and REIV Accredited Owners Corporations Specialist, Law Ink, and Neville Sanders, REIV Accredited Owners Corporation Specialist, Whittles Australia
Current as of: 1 September 2024
Law Handbook Page: 531
Next Section: Key legislation
