VIC Does one have to set up a owners corp / body corp

Hi

If I am an owner of a multi unit property, do I have to create an owners corporation or body corporate....
My understanding was that would only be required if there were different property owners for the various units within the property....

 

You can form one if you like, have all of the owners attend the initial meeting, elect a chair, secretary, treasurer and other positions.

It'll be a lonely meeting and you might win all of the positions but with no-one to propose or second you, it would be hard to formalise.

 

Multi unit - how many? different rules in different states. May not be much fun at the first meeting when you own all but if you sell one/some it's a different story.
In the present situation with you owning all units it should be easy to make a decision.

 

He'd be beside himself if he got any objections.

 

It depends on the state and generally speaking, one a body corporate/owner's corporation exists, it stays and it can be hard to sell a unit without a working body corp so it's advantageous to have one running. If there is one, you must meet all your legal obligations even if you are the sole owner but these are quite simple and I wouldn't be paying for strata management if there are no other owners besides yourself at all. The requirements pretty much pertain to holding an AGM, taking minutes and making decisions on financials that are recorded. Check state requirements.

I own the majority units in a small complex in Adelaide and I engage a strata manager because the other owner isn't very responsive or financial. I need property management of insurance payments and chasing him for them otherwise it would all fall to me and I simply can't do it from afar.

Just remember, if it's strata titled property then you must have the building insured under strata insurance. Don't try and insure your lot separate for the building, even if you own them all. It's about $1500 a year for around $1million of cover (again, depending on variables).

- Andrew

 

In Victoria, 4 townhouses (2 detached, other 2 will share a common wall)
I would assume I’d be getting seperate insurance for each townhouse.....
Would look to sort myself, without getting strata managed at a cost.
Guess I’d just need public liability for the common property driveway & garden....
YVWater have requested a owners corporation schedule for the subdivision..... anyone know what this entails.....

 

No, you insure the complex as a whole where or not they are attached. My complex in Adelaide has completely detached dwellings but is strata titled so the entire complex including common property is insured. It's the title that determines the type of insurance, not whether or not they are attached. In fact, most insurers won't individually issue building insurance for a strata titled property.

I should let you know that I am not an insurance expert or qualified to provide insurance advice, this is just my knowledge from dealing with these things so please consult your solicitor or an insurance adviser before making any decisions.

- Andrew

 

[QUOTE="It's the title that determines the type of insurance, not whether or not they are attached. In fact, most insurers won't individually issue building insurance for a strata titled property.
- Andrew[/QUOTE]

I wonder when the title is tenants in common, the development is still to be finished and subdivision completed - would the titles office normally then with each lot receiving its own title - would they all become strata or remain tenants in common...

I guess that is upto the individuals choice...

 

That's not a title, it's just the purchasing structure of the title. I think you're getting confused with terminology between what a title is and what you use to purchase the title.

You can buy a strata titled lot as joint tenants, tenants in common, company, trust, etc.

You can buy a torrens title lot as joint tenants, tenants in common, company, trust, etc.

Whichever entity or real person you use to buy the title doesn't affect the title itself and how it needs to be insured.

- Andrew

 

Yes - cheers - thanks