Self-Managing a Body Corporate in Victoria

Can you self-manage in Victoria?

Tier 5 owners corporations — those with two or three lots — are exempt from many of the obligations that apply to larger schemes. Tier 4 (4–9 lots, non-services) OCs also have reduced compliance: they are not required to prepare a maintenance plan or keep a maintenance fund. Any tier can self-manage; a registered manager is only mandatory when the OC chooses to appoint one. Tier 5 OCs are not required to hold AGMs, prepare financial statements, take out public liability insurance (unless lifts/services exist), or have a committee.

Required office bearers

For tiers 1–4, lots holding a majority of lot entitlements must elect a committee at each AGM (or every two years for some tiers). Office bearers — chairperson and secretary — are elected from the committee. Tier 5 OCs need not appoint office bearers, but in practice one owner usually acts as the contact point.

Meetings and notices

AGMs are required for tiers 1–4 and must be held at least once each financial year. Notice must be given at least 14 days in advance and include the proposed agenda, special resolution texts in full, and financial statements. Tier 5 OCs are exempt from holding AGMs but must still hold ballots where the Act requires it (e.g. major repairs).

Levies, budgets and funds

Owners pay annual fees set by ordinary resolution. Tiers 1–3 must prepare a 10-year maintenance plan and contribute to a maintenance fund. Tiers 4 and 5 are not required to have a maintenance plan but may adopt one. All OCs must keep accounting records and produce financial statements (tier 5 excluded).

Insurance obligations

Reinstatement-value building insurance is mandatory for all OCs that include common property buildings or any lot in a multi-storey building. Public liability of at least $10 million is required for tiers 1–4. Tier 5 OCs (no shared services) can resolve unanimously to opt out of public liability insurance. Office bearers liability is recommended but not legally required.

Records to keep

Every OC must keep a register of lot owners, minutes of meetings, financial records, correspondence and any contracts entered into. Records must be made available to lot owners and prospective purchasers on request. The OC must also issue an OC certificate (section 151) to owners selling their lot.

Common pitfalls

• Misclassifying tier 5 (two/three lots) as exempt from insurance — the building cover obligation still applies.
• Failing to update the lot owner register when a lot is sold, causing notices to be served on the wrong person.
• Skipping the OC certificate at sale time — a $1,650 maximum statutory fee applies and missing certificates can delay settlement.
• Holding a vote on a special resolution without recording every owner’s position in writing — invalidates the resolution.
• Charging interest on overdue fees without first sending the prescribed final notice.

Frequently asked questions