Yay or nay : No owner (body) corp

Hi,

I am looking at a unit/villa that does not have any owner (body) corp, but do have public liability insurance. According to RE everyone pays for their own building insurance and maintenance.
Any potential complications under such arrangement? Would you recommend to buy such property.

Your answers will be highly appreciated.

Thank you

 

I will bite.
The reason body corporates exist because many owners/tenants can't get along.
So, if it is a small block of unit/villa's with little to no common area's (just adjoining walls and roof, then yes sure, why not.
If it doesn't work/agreement isn't reached then a body corporate can always be established.
Any more than 4 owners/units, PASS for me.

 

Only common driveway

 

There are 4 units on the block.

 

Thanks for your reply. Can you impose body corp on others? Do you have to seek court orders?

 

As per @The Y-man
It only takes 1 to disagree (or claim they cant afford X as they only inherited their unit)
Example, a tree root caused the dr uhh ve to crack, split and lift, someone trips and threatens to sue, so you and two others agree the driveway requires immediate replacement to mitigate further risk, but one owner either disagree's or can't afford it....
Registering a body corporate would take time and a few $s, but wort it if all the owners aren't on the same page !

(I have two units, i am the chairman on one committee and awaiting the FAGM of the second, i prefer to be pro active than reactive with my investments)

 

I live in one. Works great of there's only 4 units and everyone gets along.

Depends on the layout of the units etc. What do you do if the complex needs a new roof? Are water meters seperate?

We still have an owners corp and there must be meetings, minutes and budgets. One of the owners is still doing this work, even though there appears to be bugger all to do.

My experience with these has been FANTASTIC. Most of the benefits of a small house at the price of a unit.

 

[NSW perspective - every state is different and Victoria will be]

Firstly, insurance will probably be cheaper under one policy and more importantly, there will be no gaps.

Is there a registered strata plan? If yes, then there is an owners corporation.

If there is a strata plan, the owners corporation must maintain common property and insurance.

If you don't then the owners corporation has a potential liability issue if an owner does decide to pursue the owners corporation to fulfill it's responsibilities. e.g. New roof is needed and I don't have insurance because it should be a strata responsibility

I imagine there is common property drainage, water, gas, power infrastructure.What happens when this needs repair? What happens if someone wants to modify their unit? What happens if someone starts blocking the common driveway? What happens if someone uses common property for their own purpose exclusively (e.g. garden as parking spot?)...

I would call a decent strata manager and ask their thoughts about the situation.

 

I would think about this differently.

1. You get quotes from 2 strata managers
2. Ask them for advice on how to call and structure a general meeting to appoint the strata manager.
3. Conduct meeting: cover standard motions + appoint strata manager

 

You're right and the details are all there but the point I was making was that by using a strata manager you have an "independent" party involved to co-ordinate and drive the process with your instruction. It is extremely unrewarding to be the single owner doing the strata management on behalf of the other owners and potentially will end not so good....

 

Would it stop me buying a unit in a small complex? Probably not.

Can it create some headaches along the way? Definitely.

 

You may find that everyone in the block is not very open to getting a strata manager. If they've been successfully using the same system for years (decades even), why should they start forking out lots of money to a third party manager?

They might of course go for it too...but I wouldn't think starting up a strata will be easy.

Alternatively you could just roll with the system that the units have been using for yearsyand haveway less outgoings....

Might be worth a doornock before you buy?

 

Thanks you all for your valuable replies.

I was suggested that the neighbours are not interested in establishing owner corp; they are happy with their casual arrangement. I'm waiting for their insurance paperwork ATM.

Could someone please recommend a genuine lawyer, in Melbourne, for section 32 review. This property has front yard on the title. Will it be possible to raise the front fence to make the front yard more private? I was suggested that it is not possible if the front yard has common water or gas connections or pipelines (not sure if I'm using the correct terminology). Could you please advise where can I find the information in regards to it.

I am very nervous with this whole process of buying. I like this place very much, but I'm so scared about having no owner corp.

Thank you

 

U will need a permit to raise the front fence unless on a main road which allows it to 2m in Melbourne

 

Do I need permission from the council or other unit owners? The front yard is facing the street.

Thank you

 

You will have to read the owners Corp rules which shd be in the s32

 

when i was doing a subdivision about 10 years ago in whitehorse that 3 or more on a block needed a body corp. Is what you have quite old or are the rules different depending on councils?