Legal

Legal Reference ⏱ 9 min read  ·  All lot owners, committee members & managers In this article What the Act covers and how it is structured Part-by-part overview in plain English Key sections every lot owner should know The major amendments since 2006 — 2019 and 2021 Where to access the full text of the legislation ℹ️ The foundation document for all OC matters in Victoria Every right, obligation, dispute process, governance requirement, and penalty in this resource ultimately traces back to the Owners Corporations Act 2006. Familiarity with its structure helps you find the answers you need. The Owners Corporations Act 2006 (Vic) is the primary legislation governing owners corporations in Victoria. This guide provides a plain English overview of its structure and key provisions. Structure of the Act Part What it covers Key sections Part 1 — Preliminary Purpose, definitions, and application of the Act Sections 1–3 Part 2 — Owners Corporations Functions, powers, lot owner rights and obligations, maintenance duties Sections 4–22 (esp. 7, 46–47) Part 3 — Fees and Contributions Annual fees, special fees, penalty interest, maintenance fund Sections 23–38 Part 4 — Financial Management Accounts, statements, audit requirements Sections 39–43 Part 5 — Insurance Building insurance, public liability, valuation requirements Sections 55–68 (esp. 59–60) Part 6 — General Meetings AGMs, SGMs, notice, quorum, voting, proxies, resolutions Sections 69–96 (esp. 72, 75) Part 7 — Committees Composition, powers, procedures, conflict of interest Sections 97–120 Part 8 — Rules Model rules, registered rules, enforcement Sections 136–143 Part 8A — Retirement Villages Special provisions for retirement village OCs Sections 143A–143F Part 9 — Records Record keeping, OC register, Form 4 certificates Sections 144–151 Part 10 — Dispute Resolution Internal complaints, grievance process, breach notices Sections 152–161 Part 11 — VCAT Applications Jurisdiction, who can apply, orders available, short-stay provisions Sections 162–169 Part 12 — Managers Registration, duties, regulation of OC managers Sections 170–198 ⚖️ Sections every lot owner should know Section 7 — lot owner rights and obligations | Sections 46–47 — OC’s duty to maintain common property | Sections 59–60 — compulsory insurance | Section 72 — AGM timing | Section 75 — requesting a special general meeting | Section 163 — VCAT applications Key Amendments Since 2006 2019 — Short-stay accommodation: Part 10 Division 1A and Part 11 Division 1A introduced — complaint process, prohibition orders, and compensation for short-stay conduct issues 2021 — Governance reforms: Default committee maximum reduced to 7 members (up to 12 by 50% majority vote), clearer framework for electronic meetings and voting, updated penalty provisions 💡 Access the full text for free The complete, current text of the Act — including all amendments — is freely available at legislation.vic.gov.au. Search for ‘Owners Corporations Act 2006’. Frequently Asked Questions 📄 Where can I access the full text of the Act? Freely available at legislation.vic.gov.au. Search for ‘Owners Corporations Act 2006’ — the consolidated version includes all amendments. ⚖️ Is this summary a substitute for legal advice? No. This is a general orientation guide. For specific legal questions about your situation, always consult a lawyer with owners corporation experience. 📋 Key takeaways The Owners Corporations Act 2006 is the foundation of all OC governance in Victoria — it covers everything from creation to dispute resolution. It commenced on 31 December 2007, replacing the old ‘body corporate’ framework under the Subdivision Act 1988. Key sections every lot owner should know: Section 7 (rights & obligations), Sections 46–47 (maintenance duty), Section 59–60 (insurance), Section 163 (VCAT applications). The Act has been significantly amended in 2019 (short-stay accommodation) and 2021 (electronic meetings, committee sizes). The full text is freely available at legislation.vic.gov.au — this summary is for general orientation, not a substitute for legal advice. OC Act 2006Legal ReferenceLegislationPlain EnglishVictoriaOC governance OC OC Resource Centre Victoria’s independent educational resource for lot owners, committee members, and tenants. General information only — not legal advice. Last updated: March 2026.

Legal Reference ⏱ 6 min read  ·  Committee members & lot owners In this article What the Regulations cover and how they relate to the Act The model rules (Schedule 2) — what they say and when they apply Prescribed forms — proxy forms, complaint forms, levy notices, and certificates Financial thresholds that determine whether an OC is prescribed The grievance procedure timeframes set out in the Regulations ℹ️ The Regulations provide the ‘how’ to the Act’s ‘what’ Where the Act sets out what must be done, the Regulations explain how to do it — the forms, timeframes, thresholds, and detailed rules that implement the Act’s requirements. The Owners Corporations Regulations 2018 (Vic) complement the Act by providing the detailed rules, procedures, and forms for implementing its requirements. The full text is freely available at legislation.vic.gov.au. The Model Rules (Schedule 2) The model rules are the default rules for all Victorian owners corporations. They apply automatically unless the OC has adopted registered rules that override them. ⚖️ Model rules — key conduct provisions The model rules cover: noise restrictions (no undue noise in or about common property or any lot), parking, pets (no animal likely to cause nuisance without OC approval), waste disposal, use of common facilities, behaviour on common property, and the internal grievance procedure. The model rules cannot be changed by an individual OC. However, an OC can adopt registered rules by special resolution (75% of votes cast) that override or supplement the model rules on specific matters. Registered rules must be lodged with Land Victoria to take effect. Prescribed Forms The Regulations prescribe the forms that must be used for various OC activities: Form Purpose Proxy form Authorising someone to vote on your behalf at a meeting Complaint form Lodging a formal complaint with the owners corporation Levy notice Notifying lot owners of levy amounts and due dates OC certificate Providing a snapshot of the OC’s financial and governance status (Section 151) Grievance Procedure Timeframes Section 7 of the Model Rules sets out that the internal grievance hearing should take place within 28 calendar days after the dispute comes to the attention of all parties. This tight timeframe encourages prompt resolution of internal disputes before escalation. Frequently Asked Questions 🔄 Can the model rules be changed? The model rules cannot be changed by an individual OC. However, an OC can adopt registered rules by special resolution that override or supplement specific model rules. 📄 Where can I find the full text of the Regulations? Freely available at legislation.vic.gov.au — search for ‘Owners Corporations Regulations 2018’. 📋 Key takeaways The Owners Corporations Regulations 2018 provide the practical procedural detail that sits behind the Act. The model rules (Schedule 2) apply automatically to all OCs unless custom registered rules override them. An OC can adopt registered rules by special resolution (75%) to supplement or replace model rules. The grievance procedure timeframe is 28 calendar days from when the dispute comes to the attention of all parties. OC Regulations 2018Legal ReferenceModel rulesPrescribed formsFinancial thresholdsVictoria OC OC Resource Centre Victoria’s independent educational resource for lot owners, committee members, and tenants. General information only — not legal advice. Last updated: March 2026.

Legal Reference ⏱ 18 min read  ·  Lot owners, committee members & OC managers In this article The new five-tier system replacing prescribed/non-prescribed OCs Governance reforms — committee duties, proxy restrictions, voting changes Financial administration — levying for damage and insurance excess OC manager reforms — contract limits, commission disclosure, registration New rule-making powers — smoke drift, sustainability, fire safety, hardship What your OC needs to do in response ℹ️ The most significant OC reform since 2006 The Owners Corporation Amendment (Governance and Integrity) Act introduced wide-ranging reforms commencing from 1 December 2021. These changes affect how OCs are classified, governed, and managed — touching everything from committee duties and voting rules to OC manager obligations and rule-making powers. This guide covers every key change introduced by the Amendment Act, organised by the five main reform areas: the new tier system, governance and decision-making, financial administration, OC manager reforms, and new rule-making powers. 1. The New Five-Tier System One of the most significant structural changes is the replacement of the old “prescribed” and “non-prescribed” classification with a new five-tier system. Under the previous framework, an OC was either prescribed (more than 100 lots or more than $200,000 in annual fees) or non-prescribed. The new system provides a more graduated approach, with larger OCs subject to more stringent regulations. ⚖️ Key change — graduated regulation by size Larger OCs now face progressively stricter requirements for committees, financial reporting, auditing, and maintenance planning. Tier Definition Tier 1 More than 100 occupiable lots (and not a services-only OC) Tier 2 51 to 100 occupiable lots (and not a services-only OC) Tier 3 10 to 50 occupiable lots (and not a services-only OC) Tier 4 3 to 9 occupiable lots (and not a services-only OC) Tier 5 2-lot subdivision or a services-only OC Committees by tier Tier 1, 2, and 3 OCs must elect a committee at the AGM. Tier 4 and 5 OCs may choose to elect a committee but are not required to. All committees must have between 3 and 7 members, unless the OC resolves by ordinary resolution to increase the maximum to 12. OC managers by tier Tier 1 OCs must appoint a manager, unless the OC opts out by special resolution. Tier 2, 3, 4, and 5 OCs may choose to have a manager, but it is not compulsory. Financial statements by tier Tier Financial statement requirement Tier 1, 2, 3 Must prepare annual financial statements per Australian Accounting Standards and present at AGM Tier 4 Must prepare annual financial statements for any year in which it levies annual fees Tier 5 No mandatory requirement Auditing by tier Tier Audit / review requirement Tier 1 Must be audited by a registered or authorised auditor, or an accredited accountant Tier 2 Must be reviewed by an independent member of CPA Australia, Institute of Public Accountants, or Chartered Accountants ANZ Tier 3, 4, 5 May choose to have statements audited or reviewed — not required A review or audit cannot be conducted by someone with a direct or indirect personal or financial interest in the OC. Maintenance plans by tier Tier 1 and 2 OCs must prepare and approve a maintenance plan. Tier 1 OCs were given 12 months after commencement; Tier 2 OCs were given 24 months. Tier 3, 4, and 5 OCs may choose to prepare a maintenance plan but are not required to. Plans can be amended by ordinary resolution. 2. Governance and Decision-Making Reforms Committee member duties ⚖️ New statutory duties for committee members Members of committees and sub-committees must now act honestly and in good faith, exercise due care and diligence, act in the interests of the OC, and must not make improper use of their position to gain an advantage for themselves or anyone else. Proxy voting restrictions (“proxy farming”) ⚠️ New limits on proxy accumulation 20 or fewer occupiable lots: a person must not hold proxies for more than one lot owner More than 20 occupiable lots: a person must not hold proxies for more than 5% of lot owners These restrictions do not apply if the lot owners are members of the person’s family, or if other prescribed exceptions apply Voting clarifications Ordinary resolutions: one vote per lot Special and unanimous resolutions: one vote per unit of lot entitlement Voting may be by show of hands, a prescribed manner, or as resolved at the meeting If a lot owner requests a poll before or after a vote on an ordinary resolution, the vote is then based on one vote per unit of lot entitlement (this does not apply to special or unanimous resolutions) If there is a deadlock, the chairperson has a casting vote if they are a lot owner or authorised proxy — the resolution is deemed not to have passed if the chairperson does not exercise that right Interim special resolutions (for inactive OCs) If a matter requires a special resolution but does not achieve the 75% threshold, it is taken to be passed as an interim special resolution if there is a quorum and there are no votes against the matter. Interim resolutions by OC managers An OC manager may pass an interim resolution at a general meeting if no lot owner is present (in person or by proxy). However, the manager must not pass an interim resolution that: Affects their own contract of appointment Involves an amount greater than 10% of the OC’s annual budget The OC may, by ordinary resolution, exclude or alter the manager’s power to make interim resolutions. Common property, water rights, and entry to lots Any water on common property (excluding waterways or bores) is considered part of the common property and may be collected and used by the OC A lot owner must not repair, alter, or maintain common property or a service benefiting more than one lot — unless expressly authorised by the OC as its agent The OC may authorise someone to enter a lot for repairs to common property. VCAT

Legal Reference ⏱ 6 min read  ·  Property buyers, lot owners & conveyancers In this article What the Owners Corporation certificate contains — the complete list Who can request a certificate and under which section of the Act How long the OC has to provide it (10 business days) What to look for as a buyer — the red flags that matter most The difference between the Owners Corporation Certificate and the OC’s full financial records ℹ️ The Owners Corporation Certificate is your financial health check on any OC property For buyers, conveyancers, and investors, the Owners Corporation certificate provides a verified, point-in-time snapshot of the OC’s financial position and known issues. It is not optional — it is essential. The owners corporation certificate — also known as a Section 151 certificate — provides a snapshot of the financial and governance status of an owners corporation at the time of issue. What Does the Certificate Contain? Information Why it matters Annual levy for the lot Your ongoing holding cost Any outstanding levies or amounts owing Debts that must be cleared at settlement Maintenance fund balance Indicates financial health and special levy risk Current or pending legal proceedings Potential future costs and disruption Insurance arrangements Confirms compulsory insurance is in place Registered rules Rules you will be bound by as a member OC manager details Who manages the building Building orders or compliance issues Potential rectification costs ⚖️ Section 151 — who can request and the 10-day timeframe A certificate can be requested by a lot owner, a person authorised by the lot owner (e.g. a conveyancer or solicitor), or a mortgagee of a lot. The OC must provide the certificate within 10 business days of the request. What to Look for as a Buyer ⚠️ Red flags on an OC certificate High outstanding levy balances from other lot owners — indicates cash flow problems or poor debt recovery Maintenance fund balance significantly below the 10-year plan target Any current or pending legal proceedings — potential future costs Any outstanding building orders or compliance issues — rectification costs may fall on the OC (and therefore all lot owners) Insurance gaps or inadequate coverage Evidence of a recent or pending special levy 💡 The OC certificate is a snapshot — also request meeting minutes The certificate shows the position at one point in time. Request the last two years’ meeting minutes from the OC manager to understand the history, disputes, planned works, and governance culture of the building. Frequently Asked Questions 💰 How much does a certificate cost? Fees vary between OC managers — typically $150–$300 depending on how quick you need it. Check with the OC manager for the current fee. ⏱️ How long does it take to get a certificate? The OC must provide the certificate within 10 business days of a properly made written request. 📋 Is the certificate legally binding? The certificate is a statement of the information the OC holds at the time of issue. It provides important assurance but is a snapshot — always combine it with additional due diligence. 📋 Key takeaways The OC certificate (Section 151 certificate) is the single most important document for anyone buying into an owners corporation. It must be provided within 10 business days of a written request from a lot owner, their authorised representative, or a mortgagee. Key things to check: outstanding levies, maintenance fund balance, pending legal proceedings, building orders, and upcoming special levies. The certificate is a point-in-time snapshot — also request recent meeting minutes to get the full picture. High outstanding levies from other lot owners, a depleted maintenance fund, and pending legal disputes are the most significant red flags. OC certificateLegal ReferenceSection 151Due diligenceProperty purchase OC OC Resource Centre Victoria’s independent educational resource for lot owners, committee members, and tenants. General information only — not legal advice. Last updated: March 2026.

Legal Reference ⏱ 5 min read  ·  All lot owners & tenants In this article What CAV can do for lot owners and committee members What CAV cannot do — common misconceptions When to contact CAV vs DSCV vs VCAT How to lodge a complaint about a registered OC manager through CAV The register of OC managers maintained by CAV ℹ️ Know which organisation does what Many lot owners contact the wrong organisation for their issue, causing delays. CAV, DSCV, and VCAT all play different roles — understanding which one handles your type of matter saves significant time. Consumer Affairs Victoria (CAV) is a Victorian Government agency that plays a specific but limited role in owners corporation matters. Understanding what CAV can and cannot do ensures you direct your enquiry to the right place. What CAV Can Do Provide general information about OC legislation and lot owner rights Accept and investigate complaints about registered OC managers Maintain the register of registered OC managers (check your manager’s registration status) Provide access to prescribed forms and links to legislation Direct you to appropriate dispute resolution services (DSCV for mediation, VCAT for formal disputes) Provide educational resources about OC matters What CAV Cannot Do ⚠️ CAV’s limitations Mediate individual OC disputes between lot owners or between a lot owner and the OC — that’s the role of the DSCV Provide legal advice about your specific situation Make binding decisions about OC governance matters Override decisions made by your owners corporation Force an OC to take a specific action (only VCAT can do this) The Right Organisation for Each Matter Your issue Where to go first General information about OC rights CAV (consumer.vic.gov.au) Complaint about a registered OC manager CAV Neighbour dispute, noise, parking, pets DSCV (free mediation) OC refusing to maintain common property DSCV then VCAT Unpaid levies (OC recovering from lot owner) VCAT Challenging an OC decision VCAT Retirement village dispute CAV (specialist retirement village team) Frequently Asked Questions 🏛️ Is CAV the same as VCAT? No. CAV is a government agency that provides information and regulates OC managers. VCAT is a tribunal that hears and determines disputes — they are entirely separate bodies. 🤝 Can CAV help me with a dispute with my neighbour? Not directly. CAV can direct you to the DSCV for free mediation or to VCAT for formal dispute resolution, but CAV does not conduct individual dispute mediation. 📋 Key takeaways CAV provides information, regulates registered OC managers, and directs people to the right dispute resolution service. CAV cannot mediate individual disputes, make governance decisions, or force the OC to take specific action. For manager-related complaints: contact CAV. For individual disputes: contact DSCV (free mediation) or VCAT. CAV maintains the register of registered OC managers — useful for verifying your manager’s credentials. CAV is not the same as VCAT — CAV provides information and regulation; VCAT hears and decides disputes. Consumer Affairs VictoriaCAVLegal ReferenceDispute resolutionOC managersComplaints OC OC Resource Centre Victoria’s independent educational resource for lot owners, committee members, and tenants. General information only — not legal advice. Last updated: March 2026.

Legal Reference ⏱ 6 min read  ·  Committee members & OC managers In this article The comprehensive list of records every OC must keep (Section 144) How long records must be retained — the 7-year general rule Your right as a lot owner to inspect records (Section 146) The OC register — what it contains and why it must be kept current What to do if the OC refuses to give you access to records ⚖️ Section 144 — the complete list of records Every owners corporation must keep: the plan of subdivision, all rules (model and registered), minutes of all meetings, financial records (budgets, levy notices, statements), all contracts and agreements, insurance policies and claims records, all correspondence, maintenance records, the OC register, and any building reports, defect assessments, and compliance certificates. Proper record keeping is a fundamental obligation of every owners corporation. Records provide transparency, accountability, and a historical reference for building management decisions. How Long Must Records Be Kept? Record type Minimum retention General records (meeting minutes, financial records, correspondence) At least 7 years (Section 145) Plan of subdivision Permanently — relevant for the life of the OC OC rules (model and registered) Permanently — must be accessible at all times Insurance policies At least 7 years plus current policy Contracts At least 7 years from expiry Your Right to Inspect Records ⚖️ Section 146 — lot owner access rights Every lot owner has the statutory right to inspect the records of the owners corporation at any reasonable time agreed upon with the OC or its manager. The OC can charge a reasonable fee for providing copies but cannot refuse inspection. ℹ️ What you can inspect All records held by the OC are accessible to lot owners — including meeting minutes, financial statements, contracts, insurance policies, maintenance records, and all correspondence. This includes records going back 7 years. The OC Register Under Section 147, every OC must maintain a register containing the names and addresses of all lot owners, lot numbers and entitlements, and any other information required by the regulations. This register must be kept up to date as lots change ownership — typically the OC manager updates this after receiving notification by a lot owner’s conveyancer once settlement has occurred. Electronic Records Records can be kept in electronic form, provided they are accessible and can be reproduced in written form when required. Cloud-based document management is common and entirely compliant. Frequently Asked Questions 🚫 Can the OC refuse to let me see the records? No. Lot owners have a statutory right to inspect OC records. If access is refused, you can apply to VCAT for an order compelling access. 📄 Can I get copies of the records? Yes. The OC can charge a reasonable fee for providing copies but cannot refuse the copying request. 📋 Key takeaways Under Section 144, the OC must keep the plan of subdivision, rules, meeting minutes, financial records, contracts, insurance policies, correspondence, maintenance records, and the register. Records must generally be kept for at least 7 years (Section 145) — some records like the plan of subdivision should be kept permanently. Lot owners have a statutory right to inspect OC records at any reasonable agreed time (Section 146) — access cannot be refused. The OC can charge a reasonable fee for providing copies but cannot refuse inspection. If access is refused, apply to VCAT for an order — the right to inspect records is legally enforceable. OC recordsLegal ReferenceRecord keepingSection 144Section 146Transparency OC OC Resource Centre Victoria’s independent educational resource for lot owners, committee members, and tenants. General information only — not legal advice. Last updated: March 2026.