What to Do If Your Owners Corporation Manager Breaches Their Duties in Victoria?

Guy Bowell
Jul 6
3 min read

Owners Corporations (formerly known as body corporates) play a vital role in managing shared property and ensuring harmonious living environments. However, issues can arise when the appointed Owners Corporation Manager fails to meet their contractual obligations or breaches the Owners Corporations Act 2006. If you're part of an Owners Corporation in Victoria and facing such a situation, here's a clear guide on what you can do.

Step 1: Identify the Breach

A breach may include:

Failure to act in the best interests of the Owners Corporation.
Mismanagement of funds or records.
Not following proper procedures for issuing breach notices.
Ignoring maintenance responsibilities or communication duties.

Ensure you document the breach clearly, including dates, communications,

and any evidence of misconduct.

TIP Do not inform the manager in advance that a breach notice will be issued. Doing so may give them time to correct any mistakes, develop an action plan to counter the notice, or seek legal advice that could potentially invalidate the breach notice. Instead, keep the matter within the Committee until you have gathered all necessary evidence and documentation to support your complaint or breach. Once you have a solid case, proceed with issuing the breach notice in accordance with the procedures outlined in the Owners Corporations Act 2006

Step 2: Use the Internal Complaints Process

Under the Owners Corporations Act 2006, the first step is to follow your Owners Corporation’s internal dispute resolution process

. This may involve:

Submit a formal written complaint to the manager, and include the Committee for transparency. If you haven’t yet spoken to the Committee, this is a good opportunity to reach out directly and explain the situation. However, if you are already on the Committee, you can proceed straight to submitting the formal complaint. Remember, it’s best to cover all bases—attach a breach notice that clearly outlines the nature of the complaint or breach.
Arrange and hold a meeting to discuss the issue. TIP It’s a good idea to either record the meeting or take detailed minutes for record-keeping purposes. Just make sure to formally advise all participants in advance that the meeting will be minuted and recorded.
Attempting resolution through dialogue and negotiation.

If your Owners Corporation has adopted the Model Rules for dispute resolution, these should guide the process. If custom rules are in place, they must be registered with Land Use Victoria to be enforceable.

Step 3: Escalate to the Dispute Settlement Centre of Victoria

If internal resolution fails, you can escalate the matter to the Dispute Settlement Centre of Victoria (DSCV). This free service offers mediation to help parties reach a mutual agreement without formal legal proceedings.

Step 4: Apply to VCAT

If mediation is unsuccessful or inappropriate, the next step is to apply to the Victorian Civil and Administrative Tribunal (VCAT). VCAT can:

Review the manager’s conduct.
Order compensation or corrective actions.
Terminate the manager’s contract if necessary.

Step 5: Report to Consumer Affairs Victoria

If the manager’s conduct involves serious breaches or unethical behavior, you can lodge a complaint with Consumer Affairs Victoria. They oversee compliance with the Owners Corporations Act and can investigate misconduct.

Tips for Owners Corporations

Review your contract: Understand the terms under which your manager was appointed.
Keep records: Maintain detailed documentation of all communications and decisions.
Seek legal advice: If the breach is complex or involves financial loss, consult a legal professional experienced in strata law.

Conclusion

Owners Corporations have the right to expect professionalism and accountability from their managers. If your manager is not fulfilling their duties, following the correct process ensures your concerns are addressed fairly and legally. Don’t hesitate to escalate the matter if internal efforts fail—your property and community deserve proper management.