Strata and owners corporation living comes with plenty of questions, especially if you are new to it. These answers cover the topics Victorian lot owners ask us about most, from what an owners corporation actually is to what your fees cover and who fixes what. For anything specific to your property, your local MBCM branch is always happy to help.
A strata title scheme is a form of property ownership that divides a building or parcel of land into individual lots, such as apartments, units, townhouses or even commercial, industrial and mixed use spaces, together with common property shared by all owners. In Victoria, every subdivision with common property has an owners corporation, which manages and maintains those shared areas on behalf of all lot owners. When you buy a lot in a strata subdivision, you automatically become a member of its owners corporation.
They describe the same thing from different angles. Body corporate is the former Victorian term for the body that is responsible for a shared property scheme; it became the owners corporation when the Owners Corporations Act 2006 came into force. Strata management is the professional service that supports an owners corporation with administration, finances, maintenance and compliance, which is what MBCM does.
Terminology still varies across Australia. Victoria, New South Wales and the ACT use owners corporation. Queensland, Tasmania and the Northern Territory use body corporate, South Australia uses strata corporation, and Western Australia uses strata company. Whatever the name, the role is the same: managing the shared property, finances and rules of the scheme.
When you buy a lot in a strata scheme, you automatically become a member of the owners corporation, and membership carries legal and financial responsibilities. The main ones are to pay your fees on time (whether or not you use shared facilities), follow the owners corporation’s rules (the Model Rules or its own registered rules), maintain your own lot, keep the owners corporation informed of changes to ownership or occupancy, and behave in a way that respects your neighbours’ peaceful enjoyment of their property. You also have rights: to attend meetings, vote, access records and stand for the committee.
Common property is the land and infrastructure in a strata scheme that all lot owners own and share collectively, rather than any one owner. Depending on the property, it can include gardens, driveways, pathways, stairwells, lifts, foyers, shared walls and fences. Exactly what counts as common property is set out in your plan of subdivision, which defines the boundaries between private lots and shared areas. Checking the plan is the quickest way to settle who owns, and who maintains, a particular part of the property.
An owners corporation committee is a group of lot owners elected at each annual general meeting (AGM) to act on behalf of all owners. In Victoria, an owners corporation with 10 or more lots must elect a committee, and committees can have between 3 and 12 members. Committees typically oversee the maintenance and repair of common property, work with the manager on finances, enforce the rules and make day-to-day decisions. Committee roles are voluntary and unpaid.
Owners Corporation fees (annual fees) cover the shared costs of running your property: building insurance, repairs and maintenance of common property, utilities for shared areas, gardening, cleaning and professional management. Fees are set through a budget approved at the AGM, and each owner pays a share based on their lot liability. Your owners corporation can also strike special fees for unexpected or extraordinary costs, such as urgent repairs, and schemes with a maintenance plan set money aside in a maintenance fund for major long-term works.
Both are set out in your plan of subdivision, and they do different jobs. Lot entitlement is the extent of your interest in common property, and it determines the weight of your vote at meetings. Lot liability is your share of the owners corporation’s expenses, and it determines the proportion of fees you pay. The developer engages a surveyor to set both figures when the plan is registered. In some schemes every lot is equal, while in many others the figures differ from lot to lot, so it is worth checking yours before you buy.
Strata insurance is a type of insurance designed for strata-titled properties, such as apartment blocks, townhouses or commercial buildings. It typically covers common property and shared areas, providing protection for the entire building structure, common facilities, and liability for the Body Corporate/Owners Corporation/Strata Corporation. Individual unit owners usually need to secure separate insurance for their personal belongings and any structural elements not covered by strata insurance.
Insurance is important to protect your owners corporation and the personal assets of all lot owners. The law sets out the minimum insurance required.
The minimum insurance required for an owners corporation is (except for two-lot subdivisions and owners corporations which only have shared services):
Firstly, insurance is compulsory for strata schemes, no matter where you live. That’s because injuries can occur to people on common property, or the common property itself can be damaged. In those cases everyone needs to be protected.
Here’s what you can expect strata insurance to cover:
• Theft or damage to common area contents, like shared outdoor furniture, gym equipment or the building itself.
• Theft or damage to common property assets like gardens, lobbies, car parks, pools and stairwells.
• Repairs to damaged property.
As a general rule in Victoria, the owners corporation repairs and maintains common property and services that benefit more than one lot, while lot owners look after their own lot, including fixtures that serve their lot exclusively. The boundary between the two is defined by your plan of subdivision, which is why the same problem, a leaking pipe for example, can fall on either side depending on where it sits. If you are unsure, check the plan or ask your owners corporation manager before arranging any works.
No. Every state and territory has its own strata laws and terminology. In Victoria, owners corporations are governed by the Owners Corporations Act 2006 and the Owners Corporations Regulations 2018, which include the Model Rules that apply unless a scheme registers its own rules. Consumer Affairs Victoria oversees the sector and the Dispute Settlement Centre of Victoria helps resolve disputes. Unresolved matters may be taken to the Victorian Civil and Administrative Tribunal (VCAT). The Act was significantly amended in 2021, and further reform is on the horizon following the Victorian Government’s 2026 response to a major review of the Act.
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