Back to basics – What is an “Owners Corporation”?

In the Dixon Kestles OC department, we often receive the comment from owners and tenants who we assist that “Dixon Kestles is our Owners Corporation”. This is not entirely accurate…the Owners Corporation is YOU!

The Owners Corporation is an entity that is made up of all of the lot owners in a strata scheme. To use the analogy of a company share, the Owners Corporation is the company and each of the owners (members) are the shareholders. As a member, you have both a responsibility to contribute to the Owners Corporation and uphold the relevant legislation; and an entitlement to a portion of the assets held by the Owners Corporation.

The ‘Common Property’, which is all of the land that is not privately owned by individual owners, belongs to the Owners Corporation. It is in all members’ interest to ensure that the common property is maintained and well managed as it is an asset belonging to the members as a group.

The Owners Corporation runs as a democratic system, and each member has the right to vote on matters relating to the building and how funds are spent.  A Committee of Management is elected at each Annual General Meeting, who represent the whole group and are often delegated the power to make all kinds of decisions as to the administering of the building.

The overarching goal of an Owners Corporation is twofold: to maintain and improve property values; and to maintain and improve the quality of life for those residing in the building. Dixon Kestles are engaged by Owners Corporations to assist in achieving these goals and ensure that they are meeting their legislative obligations.

- Caitlin See, Owners Corporation Manager

Owners Corporation and Insurances in 2012

We are all aware of the issues that have been faced in Australia over the past year and the effect that it is going to have on insurance premiums. Price rises are driven by the number and cost of claims across the whole industry, Owners Corporation policies unfortunately will not be spared in this and it is expected that most costs will rise, some quite significantly. 

Having said that, we are told it is not all doom and gloom. Australian insurers are amongst the best managed and leaders in Strata/owners Corporation insurances. This will assist in keeping costs for residential apartment owners, though rising, at a competitive level and favourably in line a typical household policy cost. 

Your Owners Corporation insurance does also cover many aspects above those provided in household policies due to the added infrastructure, services provided in these type of complexes and added policy benefits. Our aim is to make sure you are getting good value for money coverage for the balance needs of your property. 

Peter Davies, Manager - Owners Corporations

D: 03 9695 7718 

E: peterd@dixonkestles.com.au

Boundaries on Plans of Subdivisions and for Owners Corporations.
Boundaries in an Owners Corporation property have often been an issue and difficult for all involved to gain a clear understanding and interpretation of. The effect of a lack of clarity can lead to disputes over responsibility for certain works and the associated costs that come with them.

The new Subdivision (Registrar’s Requirements) Regulations 2011 which commenced in October 2011 have a much more detailed and understandable approach that will help members, owners, Managers, contractors and insurers going forward with the boundaries of lots and common property. Though not retrospective, this new detail and information could also be helpful in resolving some disputes with existing plans.

Knowing or at least understanding the boundaries for your lot, other lots and the common property areas of your Plan of Subdivision is important for you when you are involved in an Owners Corporation property. Knowing what is or is not your responsibility and how this could potentially have an impact on you financially is a key element in your property ownership strategy.

Dixon Kestles is happy to provide further details of these changes and assist you with a better understanding should you have any concerns.

Please contact Peter Davies, Manager - Owners Corporations.
D: 03 9695 7718
E: peterd@dixonkestles.com.au