An owner’s corporation management is a legal entity for unit owners in a strata scheme. This is a necessary entity when common property is shared, such as lifts, driveways, gardens, and swimming pools. Therefore, as soon as you own a property in a strata scheme, you automatically become a member of the owner’s corporation. For significant properties, there are more subdivisions of owner corporations for easier handling.
The owners’ corporation is aimed at easing the management and use of the common property. There are s set of rules that guide this corporation to ensure smooth and flawless management. It is also crucial to ensure that the rules and regulations of the owner’s corporation do not contradict the strata titles legislation and other property law. This document provides insightful information about the responsibilities mandated to the corporation.
Duties Of An Owner’s Corporation
It is the responsibility of the owner’s corporation to perform the following functions.
- Management and administration of all the common units.
- Handling insurance responsibilities, inclusive of the mandatory public liability insurance. Public liability insurance serves as a cover for legal action if a unit owner suffers a personal injury or property damage.
- Repair, maintain the property and ensure the perfect condition of common areas.
- Provision of all managerial responsibilities.
- Provision of the statutory certificate to the owners and prospective buyers.
- Enforcement of the strata title legislation.
- Mediating any disputes that could arise from the unit owners regarding the usage of the common property.
- Maintain proper records and documentation of financial reports, meeting minutes, and legal orders served.
- The collection and accountability of funding raised by the unit owners. It is a requirement that all unit owners should contribute maintenance and administration fees. Therefore, the owner’s corporation oversees this whole process.
Levels Of Owners Corporation
The owner’s corporation comprises different categories and groups that all have a role to play in seamless functioning. The first level of the owner’s corporation is the lot owners. They are responsible for all decision-making and can delegate these powers when they do not need a special resolution. The lot owners can overturn an earlier decision made by the owner’s corporations through obtaining a majority vote. Additionally, they are mandated to form sub-committees that can advise the corporation on ways to be competent enough.
The second level of the owner’s corporation is the committee. A committee is a group of individuals who the lot owners have nominated to administer the day-to-day running of the strata scheme. The committee members are only selected during the Annual General Meetings. The committee is responsible for making decisions on behalf of the lot owners except on critical decisions, which can only be determined during general meetings.
The third and fourth level comprises of delegate for the owner’s corporation and committee respectively. Examples of the representatives can be the chairperson, secretary, a lot owner, or a committee member.
Principles guide all the four levels of owner’s corporations in exercising their duties. They are supposed to depict high levels of integrity and actions of good faith. Secondly, before performing any of their mandated functions, they are supposed to do due diligence. They should not misuse their power by using their position to gain directly or indirectly from the owner’s corporation.
Decision Making In Owner’s Corporation
Most of the decision-making is determined by the lot owners where they have to vote during a meeting. The voting process is designed to be based on lots rather than the number of individuals living in or owning a unit.
An owners corporations management should make management of shared facilities within a community much more effortless. Thus, leaving the owners to enjoy their property investment.