The mundane life of large body corporates will be shaken up at the start of next year when the Owners Corporations Act 2006 takes effect.
As reported by Wendy Mason in the Herald Sun they will be called Owners Corporations (OCs). The idea is to move away from the ad hoc approach to building maintenance, and prevent lot owners being slugged with considerable levies when maintenance work is needed.
Mason’s article quoted Rob Beck, general manager of the Institute of Body Corporate Managers (Victoria), who believes the upside is a well managed OC with a good maintenance plan. For owners the flow-on effects are greater protection for their investment, and a major selling point for their property if they opt to sell.
Just who will be affected is unclear, Beck believes it will be properties with over 100 units or body corporates with a budget over $200 000. If this is true, it will effect about 50 per cent of units and 10 per cent of all existing owners corporations according to Mason.
The tricky part is the quantum leap in OC responsibilities; they will be required to prepare an annual financial statement and have it audited, and they must have the property valued every five years
Prospective purchasers, agents and conveyancers take note, this means added requirements for your Section 32s. Find out more about the new legislation and its implications at the Lawyer’s Real Estate Website…