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Owners Corporation workshop Oct 2012: Provisions of services to lot owners

Dec 13, 2012

At our Owners Corporation Workshop in October 2012, Senior Associate Sangeeta Thaker presented on the provision of services to lot owners and the resolutions required.

Below are the notes provided during the presentation.

The Owners Corporation Act 2006

  • Section 4 – Functions and powers of owners corporation
  • Section 12 – Provision of services to members and occupiers
  • Section 47 – Owners Corporation must repair and maintain services

The cases

  • Sulomar & Ors v Owners Corporation Plan No. PS511613Q [2010] VCAT 600
  • Filippou Management Pty Ltd v MREEF Project Company No. 11 Pty Ltd & Ors [2010] VCAT 371
  • Noonan v Owners Corporation No. 2 PS409115E and Anor (Owners Corporation [2011] VCAT 1934
  • Owners Corporation SP26824D –c- Suponja (Owners Corporation) [2011] VCAT 2402

Services that may have to be provided pursuant to obligations under other legislation

Entering into service contracts — tips

Section 4 — Functions and powers of owners corporation

An owners corporation has the following functions:

(a) to manage and administer the common property;
(b) to repair and maintain:

(i)   the common property;
(ii)  the chattels, fixtures, fittings and services related to the common property or its enjoyment;
(iii) equipment and services for which an easement or right exists for the benefit of the land affected by the owners corporation or which are otherwise for the benefit of all or some of the land affected by the owners corporation;

(c) to take out, maintain and pay premiums on insurance required or permitted by any Act or by Part 3 and any other insurance the owners corporation considers appropriate;
(d) to keep an owners corporation register;
(e) to provide an owners corporation certificate in accordance with Division 3 of Part 9 when requested;
(f) to carry out any other functions conferred on the owners corporation by:

(i)    this Act or the regulations under this Act; or
(ii)   the Subdivision Act 1988 or the regulations under that Act;
(iii)  any other law; or
(iv)  the rules of the owners corporation. Note An owners corporation is a body corporate which is incorporated by registration of a plan of subdivision or a plan of strata or cluster subdivision. An owners corporation has perpetual succession and a common seal and is capable of suing and being sued in its own name. See section 28 of the Subdivision Act 1988.

Section 12 — Provision of services to members and occupiers

(1) An owners corporation, by special resolution, may decide:

(a) to provide a service to lot owners or occupiers of lots or the public; or
(b) to enter into agreements for the provision of services to lot owners or occupiers of lots.

(2) An owners corporation may require a lot owner or occupier to whom a service has been provided to pay for the cost of providing the service to the lot owner or occupier.

Section 47 — Owners corporation must repair and maintain services

(1) An owners corporation must repair and maintain a service in or relating to a lot that is for the benefit of more than one lot and the common property.

(2) An owners corporation may, at the request and expense of a lot owner, repair and maintain a service in or relating to a lot if it is impracticable for the lot owner to repair or maintain that service.

(3) In this section:

  • Service includes a service for which an easement or right is implied over the land affected by the owners corporation or for the benefit of each lot and any common property by section 12(2) of the Subdivision Act 1988. Note: The easements or rights that may be implied under section 12(2) of the Subdivision Act 1988 are those necessary to provide:
    • support, shelter or protection;
    • passage or provision of water, sewerage, drainage, gas, electricity,
    • garbage, air or any other service of whatever nature (including telephone, radio,television and data transmission);
    • rights of way;
    • full, free and uninterrupted access to and use of light for windows, doors or other openings;
    • maintenance of overhanging eaves.

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