Owners Corporation in Victoria: The Rules by Tier

Lot liability sets each owner's share of the owners corporation's expenses. It must be equal unless lot size, use of common utilities or the number of occupiers justifies a difference. Lot entitlement sets each owner's share of the common property and follows market value (Subdivision Act s 27F).

• Meetings: the first meeting, AGM, special general meetings, meeting procedure and ballots (Part 4 Divisions 1 to 5).
• Money: accounts and audit, the maintenance plan and the maintenance fund, and the fee notice and final notice steps.
• Insurance: the building and public liability insurance rules and valuations (ss 59 to 65). CAV says this means no building or public liability insurance has to be taken out in the owners corporation's name.
• Records and the owners corporation register, and the internal complaints procedure.
• In a 2-lot owners corporation, a special resolution means a unanimous resolution (s 7A(2)).
• Still required: owners corporation certificates. CAV warns that owners in a 2-lot subdivision "are responsible for any common property and risk significant legal and financial liabilities".

• AGM: required if the owners corporation receives or pays money in a year, with no more than 15 months between AGMs (s 69).
• Notice: at least 14 days in writing, with the agenda, financial statements, proposed budget and the text of any special or unanimous resolution.
• Quorum: 50% of lots, or 50% of lot entitlement. Without it, decisions are interim resolutions that take effect after 29 days unless challenged.
• One vote per lot. Ordinary resolution: simple majority of votes cast. Special resolution: 75% of the total votes for all lots.
• Interim special resolution: at least 50% for and no more than 25% against, which becomes a special resolution after 29 days unless owners with more than 25% of votes petition against it.
• Owners can attend by teleconference or videoconference and vote by ballot, by post, phone or online.
• Committee: required with 10 or more lots, optional below that. Without one, owners elect a chairperson.

• Annual fees cover administration, maintenance, insurance and other recurring costs, based on lot liability. Insurance premiums may be levied by lot entitlement.
• Special levy: based on lot liability. One above twice the current annual fees needs a special resolution, except for urgent safety repairs.
• Maintenance plan: tiers one and two must have one; tiers three to five may. It covers major items over the next 10 years, and an approved plan needs a maintenance fund.
• Interest on late fees, if authorised by resolution, up to the maximum under the Penalty Interest Rates Act 1983.
• Recovery: a fee notice with 28 days to pay, then a final notice, then VCAT once 28 days have passed after the final notice.

• Insurance: reinstatement and replacement cover for buildings on the common property, public liability of at least $20,000,000, and a valuation every 5 years or sooner (tier five exempt).
• Owners corporation certificate: issued within 10 business days of a written application, with the rules, a statement for buyers and the last AGM's resolutions (s 151).
• Rules: made, changed or revoked by special resolution and recorded with the Registrar. The model rules apply if none are made.
• Disputes: an internal complaint on the approved form first, then VCAT. CAV names the Dispute Settlement Centre of Victoria as the next step for owners, which is optional before VCAT.