New Property Developments - 'To Strata Or Not To Strata?'

How to Set-Up a Body Corporate (Owners Corporation)

We’ve been receiving a lot of questions of late from property developers asking about ‘how to set-up a body corporate’, so here’s a helpful checklist.

I think the starting point for this conversation should be the question

A Body Corporate is created when a piece of land (Torrens Title) is sub-divided into 2 or more Strata Title lots;
The Body Corporate is established/created upon the registration of the Plan of Subdivision with Land Victoria;
The Body Corporate is a legal entity in its own right â€“ it can therefore open and operate a bank account, enter into contract etc.;
The Body Corporate, as the legal entity, is the owner of the land and responsible for the upkeep of common property;
It’s important for smaller sub-divisions (where there is a professional manager in place) to ensure the building insurance is appropriate and adequate;
Most of the time this means a Residential Strata Policy is needed to cover, at minimum, the replacement cost and public liability;
It’s ultimately the choice of the Owners / Developer as to whether to employ/engage a professional manager for a two-lot subdivision.

Consumer Affairs Victoria – Legal exemptions for Body Corporate with two lots:

https://www.consumer.vic.gov.au/housing-and-accommodation/owners-corporations/buying-into-an-owners-corporation/two-lot-subdivisions

Property Observer – Why a strata subdivision is better than a Torrens title subdivision for some developments

https://www.propertyobserver.com.au/finding/residential-investment/new-developments/13515-why-a-strata-subdivision-is-better-than-a-torrens-title-subdivision-for-some-developments.html

Time to Change Strata Management Companies But Not Sure How to?

Change Body Corporate Victoria helps body corporates change their body corporate manager. There are tons of unvetted and untrustworthy managers in Victoria, and we help body corporates find the best strata manager for them.