Owners Corporation Agreements

Owners Corporation Agreements: What You Need to Know

If you own a property in a multi-unit development, you are likely a member of an Owners Corporation, also known as a Body Corporate. An Owners Corporation is responsible for managing the shared areas of a multi-unit development, such as common property, facilities, and services used by all residents.

One of the most important documents governing an Owners Corporation is the Owners Corporation Agreement. This legal document outlines the rules and regulations that govern the Owners Corporation and how it functions. It is essential that you are familiar with the contents of the Owners Corporation Agreement, as it affects your rights and obligations as an owner.

Here are some key aspects of Owners Corporation Agreements:

By-Laws: The Owners Corporation Agreement will contain a set of by-laws that govern how residents must behave while in the common areas of the development. By-laws cover a range of topics, including noise levels, parking, rubbish disposal, and pet ownership. By-laws may also restrict certain types of renovations or modifications that owners can make to their properties.

Management: The Owners Corporation Agreement will outline the roles and responsibilities of the Owners Corporation committee, which manages the day-to-day operations of the development on behalf of all residents. The committee is responsible for maintaining the common property, arranging for repairs and maintenance, and organizing insurance for the development.

Contributions: Owners must pay contributions to the Owners Corporation, which fund the maintenance and management of the common property. The Owners Corporation Agreement will specify the amount of the contributions that each owner must pay, and how they are calculated. It will also outline the procedures for collecting and enforcing payment of contributions.

Dispute Resolution: The Owners Corporation Agreement will include procedures for resolving disputes between residents or between residents and the Owners Corporation committee. This may involve mediation or arbitration, and is intended to avoid the need for costly and time-consuming court proceedings.

Amendments: The Owners Corporation Agreement can be amended by a vote of the Owners Corporation members. This allows for changes to be made to the by-laws, management structure, or contribution arrangements, as circumstances change over time.

In summary, the Owners Corporation Agreement is a vital document for anyone who owns a property in a multi-unit development. It outlines the rules and regulations that govern the Owners Corporation and how it functions, and affects residents` rights and obligations. Familiarizing yourself with the contents of the Owners Corporation Agreement will help you to understand your responsibilities as a resident and ensure that you are complying with the relevant by-laws and regulations.