The OC must make the records and register available to a lot owner, mortgagee of a lot and purchaser of a lot (or any of their representatives), and those people can copy the documents for not more than the prescribed fee.

A person can apply to VCAT to restrict access to personal information in exceptional circumstances.
OC Certificate and Vendor's Statements

The OC must provide within 10 days of a request, an OC certificate containing certain information including information relating to the manager, all contracts, leases, licences and agreements affecting the common property, legal proceedings and liabilities and contingent liabilities of the OC, and accompanied by certain documents.

The OC Certificate (including all documentation) must be attached to a Vendor's Statement for the sale of any lot.
Dispute Resolution

The Act outlines a number of dispute resolution procedures. These include:

* Complaint to the OC – A lot owner, occupier or manager may complaint to the OC about an alleged breach of an obligation by a lot owner, occupier or manager. The OC must have a dispute resolution process or the dispute resolution process of the model rules will apply. An OC must follow the dispute resolution process as set out in the rules before making an application to VCAT;
* Application to the Director - On application to the Director of Consumer Affairs Victoria (CAV) by any person, the Director may refer a matter to an employee of CAV for conciliation or mediation; and
* VCAT - VCAT has powers to resolve a dispute arising under the Act or regulations or rules with regard to the operation of an OC, breach by a lot owner or occupier of the Act or regulations or rules, and exercise of a function by the manager. VCAT can dismiss an application by an OC if the dispute resolution process set out in the rules has not been followed.

Adverse Possession

The Act amends the Limitation of Actions Act 1958 so that the right, title and interest of an OC in common property is not affected by reason only of any adverse possession, irrespective of the period of that possession.
Concerns which have been raised in regard to the Act

Although there were a large number of submissions regarding amendment to the Act, and it was accepted that the Act was not without flaws, the Act passed through both houses of Parliament without amendment.

Some of the concerns raised, which may be addressed in the regulations or in future amendments to the Act, include:

* that the Chairman and Secretary must be members of the OC, rather than these roles being undertaken by a manager as occurs in most bodies corporate at present;
* that in attempting to address the issues of larger OCs, the Act imposes a burden on the 30% of OCs which consist of 5 lots or less, and the 45% of OCs which consist of between 5 and 100 lots which may result in additional expense, such as the employment of a manager where one was not previously required;
* that the Act does not address the problem of obtaining a quorum of lot owners, and particularly of obtaining a special resolution of the lot owners (75%). Further, the legislation does not provide that meetings can be conducted by ballots in addition to in person;
* that a special resolution is required in order to commence legal proceedings, thereby reducing the availability of this dispute resolution mechanism;
* that a unanimous decision is required to increase the lot entitlement and liability of a lot, and it is unlikely that a lot owner will vote to increase its lot liability;
* that the status of contracts entered into prior to the Act becoming operational is uncertain;
* that there is no minimum standard imposed on managers;
* that the register of managers will reveal each managers' client base; and
* that there is inadequate provision for the protection of OC funds (including the maintenance fund).

Page 5 of 5 :: First | Last :: Prev | 1 2 3 4 5 | Next