What Is an Owners Corporation Certificate in Victoria—and Why It Matters

If you're buying a property in Victoria that’s part of a strata scheme—like an apartment, townhouse, or unit—you’ll likely come across something called an Owners Corporation Certificate. Also known as a Section 151 Certificate, this document is a vital part of the due diligence process and can reveal a lot about the financial and legal health of the property you're considering.

What Is an Owners Corporation?

An Owners Corporation (OC)—formerly known as a body corporate—is a legal entity responsible for managing the common property in a multi-unit development. This includes shared spaces like gardens, driveways, foyers, and recreational facilities. Every lot owner is automatically a member of the OC and contributes to its upkeep through fees.

What Is an Owners Corporation Certificate?

The Owners Corporation Certificate is a legal document issued under Section 151 of the Owners Corporations Act 2006 (Vic). It must be provided within 10 business days of a written request and payment of the prescribed fee as per Consumer Affairs Victoria. This certificate is typically included in the Vendor’s Statement (Section 32) when a property is sold.

What’s Included in the Certificate?

The certificate provides a comprehensive snapshot of the OC’s operations and financial standing. Here’s what you can expect to find:

1. Financial Information

• Current fees payable by the lot owner

• Any outstanding or overdue fees

• Proposed future levies or special charges, and bank loans

• Funds held in administrative and sinking (maintenance) accounts
  

2. Insurance Details

• Type and extent of insurance coverage held by the OC

• Whether the building is insured and to what value
  

3. Legal and Contractual Matters

• Any legal proceedings involving the OC

• Contracts, leases, or licenses affecting common property

• Any liabilities or contingent liabilities

• Defect, or major building-related matters
  

4. Maintenance and Repairs

• Planned or ongoing maintenance works

• Special levies for major repairs or upgrades
  

5. Rules and Regulations

• A copy of the OC’s rules (bylaws)

• Any restrictions or special conditions that apply to the lot
  

6. Administrative Details

• Minutes of recent meetings

• Contact details for the OC manager (if applicable)

What Should You Look Out For?

When reviewing an Owners Corporation Certificate, pay close attention to:

• Outstanding Fees: Are there unpaid levies? This could indicate financial instability.

• Special Levies: Are there any upcoming large expenses that might require extra contributions? Keep an eye out for any major defects or major building-related matters, and don't be afraid to ask this question, as these must be disclosed within the certificate if there are any at the time of the certificate being generated.

• Legal Disputes: Ongoing litigation can be a red flag.

• Insurance Gaps: Ensure the building is adequately insured.

• Maintenance Plans: Look for evidence of proactive upkeep—neglect can lead to costly repairs down the line.

• Rules: Make sure the OC’s rules align with your lifestyle (e.g., pet ownership, renovations, noise restrictions).

Final Thoughts

An Owners Corporation Certificate is more than just a formality—it’s a window into the health and governance of the property you’re about to invest in. Always review it carefully, and if in doubt, seek advice from a conveyancer or property lawyer.