Owners corporation explained — buying a Victorian apartment or townhouse

The short version

An owners corporation (OC) manages the common property and shared services of a subdivision — the lifts, lobbies, gardens, shared walls, building insurance and so on. It's governed by the Owners Corporations Act 2006 (Vic). If your lot is part of one, you become a member automatically at settlement, and you take on its fees, its rules and its financial position.

Victorians sometimes still say "body corporate" or "strata" — in Victoria the correct term is owners corporation, and it's the equivalent of what other states call strata.

What the Section 32 should tell you

Where an owners corporation applies, the vendor statement must include an owners corporation certificate (or the prescribed information). That typically covers:

• Fees. The regular owners corporation fees (often quarterly or annual) and what they cover.
• Special levies. Any one-off levies raised for major works — these can be substantial.
• The maintenance fund. Whether money is set aside for future repairs, and how much.
• Insurance. Whether the common property is insured and for how much.
• Rules. The owners corporation rules — pets, parking, renovations, short-stay letting and the like.
• Financial statements. The OC's accounts, so you can see its financial health.
• Legal proceedings. Any current or pending disputes the OC is involved in.

Why it matters to you

The owners corporation is an ongoing cost and an ongoing set of obligations you inherit:

• Fees are forever. They're a recurring cost on top of your mortgage and rates, and they can rise.
• Special levies can land after you buy. If major works are coming — a new roof, façade repairs, a lift replacement — a large levy may be on the horizon. The financials and any committee minutes hint at this.
• An OC in difficulty is a risk. Arrears, no maintenance fund, underinsurance or active disputes can become your problem as a member.
• The rules bind you. If you have a pet, want to renovate, or plan to let the property short-stay, check the rules allow it.

"Inactive" owners corporations

Some small subdivisions (often two-lot blocks) have an owners corporation that is inactive — it exists on the plan but doesn't collect fees or hold meetings. That's common and not necessarily a problem, but it does mean shared maintenance is handled informally between owners, which is worth understanding.

What to check before you sign

1. What are the fees, and what do they cover? Budget them in as a recurring cost.
2. Are there arrears or special levies? Outstanding levies or planned major works can mean a big bill soon after you buy.
3. Is the common property insured? Underinsurance is a real risk in an apartment building.
4. Do the rules suit how you'll live? Pets, parking, renovations, short-stay — confirm before you commit.
5. Is the OC financially healthy? The financial statements and any disputes tell the story.

Common questions

Is an owners corporation the same as strata?

Effectively yes — it's the Victorian term for the body that manages shared property in a subdivision. The concept matches what other states call strata or body corporate.

Do I have a choice about joining?

No. If your lot is part of an owners corporation, membership comes automatically with ownership — along with the fees and the rules.

Can fees go up?

Yes. The owners corporation sets fees to cover its budget, and they can rise — especially if major works are needed or a special levy is raised.