The first meeting of a new owners corporation forms the foundation of a successful community. It’s the moment when key information is recorded, decisions are made, roles are assigned and rules are adopted.
At Above OCM we know the importance of starting a new community off on the right foot. When you do things right the first time, you won’t face nasty and costly surprises down the track.
In this guide we’ll tell you all you need to know about that first meeting: the whats, whens, whos and hows of establishing an owners corp.
When is the first meeting and who attends?
The first meeting of a new owners corporation must be convened by whoever applied to register the subdivision plan: typically either the property developer or the original landowner. It must be held within six months of that registration.
Any early owners are invited to attend, but as property and land purchases are rarely settled at the six month mark of a new development, in practice the developer or landowner will often have that first owners corp meeting with themselves, via proxies who represent the organisation.
The mandatory documents
The first meeting isn’t just a chance to shake hands. It represents the formal establishment of the owners corporation, and thus comes with a list of legally binding responsibilities. Under the Owners Corporations Act 2006, the initial owner must present the following documents at the meeting:
- The owners corporation register (the official record keeping system).
- Any accounts or records made on behalf of the owners corporation.
- Books to keep minutes, accounts and other records.
- A building manual and maintenance plan.
- A copy of all subdivision plans, building plans and planning documents.
- A copy of all relevant Owners Corporation Acts.
- Any contracts, leases and licences relating to the owners corporation.
- Any insurance policies relating to the property.
- Copies of any warranties and guarantees relating to the property.
- An asset register.
- Copies of subdivision specifications, reports, certificates, permits, notices or orders.
The first meeting will also see the appointment of office holders such as the Chairperson and Secretary. For more information on the different positions, check out our complete breakdown of office bearers roles and responsibilities.
Forming rules and budgets
A set of basic rules automatically apply to all owners corporations, but every property and group of owners is unique, so a set of more specific rules and governing principles will also need to be created to cover things like noise restrictions, parking arrangements and the use of common areas.
First year budgets for the administration (day-to-day operations) and maintenance (long-term upkeep) of the property must also be set, plus the owners corp fees required to cover these budgets. Low fees can be enticing for potential buyers, but the developer or land owner convening the meeting has a legal obligation not to set these budgets unsustainably low just so they can sell lots.
The maintenance budget should be based on the maintenance plan document submitted at the meeting, as well as any relevant warranties, which will often protect owners from paying for early repairs that are covered by builder guarantees.
Any insurance, third-party contracts and service agreements entered into before the first meeting must be disclosed. These can include building and public liability coverage, utilities and waste management arrangements.
Above OCM: Get your owners corp off on the right foot
The first meeting of an owners corporation can feel like a formality, but in reality it protects the long-term health and sustainability of the new property and community.
While the Owners Corporations Act 2006 outlines the rules for the first meeting, it leaves a lot of things unsaid and open to interpretation. If you skip steps, forget documents or gloss over important information, you could be held liable for the often serious consequences.
At Above OCM we ensure that things are done right from day one: that every document is tabled, every necessary decision is made, and every dollar can be accounted for in the yearly budget.
If you want to ensure your new community is founded on a rock solid and fully compliant foundation, we’re here to help.
Get in touch with our friendly team today.
