Understanding the Legal and Formal Process of Changing Your Owners Corporation

Changing an owners corporation, formerly known as a body corporate, isn’t something most property owners think about until things go sideways. Maybe you’re dealing with mismanagement, a lack of transparency, or rising fees with no accountability.

Whatever the reason, knowing the legal and formal process of changing your owners corporation is crucial if you want to make the switch legally and ethically.

Let’s break it down.

What Is an Owners Corporation?

An owners corporation (OC) is a legal entity that manages common property in a residential, commercial, or mixed-use strata scheme. If you live in an apartment, for example, your OC manages everything from the elevator to the shared gardens, and even the building’s insurance.

They’re responsible for:

• Managing shared areas
• Enforcing building rules
• Organising repairs and maintenance
• Handling finance and insurance

They can either self-manage or hire an external strata management company to do the heavy lifting.

Legal Rights

You might be wondering if you’re legally allowed to change owners corporation. The answer is yes, you are well within your rights as a lot owner or committee member to initiate a change.

The key is to follow the correct procedures outlined in your state’s legislation. If you’re in Victoria, refer to the Owners Corporation Act 2006. For New South Wales residents, the Strata Schemes Management Act 2015 applies. And Queensland follows the Body Corporate and Community Management Act 1997.

These laws protect your right to elect a new OC manager or even dissolve an existing arrangement if it’s not working in the community’s best interest.

Steps in Changing an Owners Corporation

Let’s walk through the formal process.

Review the Management Agreement

Start by reviewing the current contract with your existing OC manager. Pay attention to:

• Termination clauses
• Notice periods
• Renewal or rollover terms
• Any penalties or exit fees

If your agreement is about to expire, it’s the perfect time to prepare a switch.

Engage with Other Lot Owners

You can’t do this alone. You will need the majority’s support to call for a general meeting. Start the conversation by:

• Holding informal discussions
• Sharing concerns
• Presenting facts, not feelings
• Suggesting alternatives

Make sure others feel heard and included in the process.

Call a General Meeting

To make any change official, a general meeting of the OC must be held. This involves:

• Preparing a notice of meeting
• Including a detailed agenda
• Outlining the proposition to terminate or replace the current manager

Vote on the Change

During the meeting, members will cast their votes. Here, proxies can be used, but make sure the rules on proxy voting in your state are followed.

Terminate the Existing Contract

If the decision passes, you can now give official written notice to the current manager. Make sure this is:

• Sent in accordance with contract terms
• Clear and respectful
• Dated and signed by an authorised representative

This notice should also outline when the change will take effect.

Appoint the New Manager

Now, it’s time to bring in someone new. Before signing with a new OC manager:

• Ask for references
• Compare quotes
• Check licenses and accreditations

Make sure you also file the necessary paperwork with your state-based body to officially record the change.

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