Hi,
Just a quick question relating to a subdivision in Melbourne.
There's going to be 3 dwellings on the subdivided block, so we'll need a body corp. However, someone said to me I should look to remove them all from the body corporate and have them as their own stand alone dwellings as that would make them easier to sell.
If I'm not mistaken this isn't possible to do – but could someone enlighten me if I'm wrong? I was under the impression that the moment a subdivision occurred and there were 2+ dwellings a body corp was created.
Cheers.
Hi dodo_lurker,
This is my 1st entry in this forum. There are many others that would answer your question in far greater detail and accuracy but I've always wanted to answer a call.
BTW: I have my own questions to ask but I'll ask them in another entry.
My understanding is that Body Corp became an "Owners Corporation" at the end of 2007.
An "Owners Corporation" is automatically created when a plan of subdivision containing common property is registered at Land Victoria. The lot owners are the members of the Owners corporation and they manage the common property between them. There has to be common property for the Owners corporation to be automatically registered.
There is a list of what could constitute as common property and they are: driveways, lifts, fences, walls, gardens etc.
Search for "Owners corporation" for all the info you will need.
If common property is not longer present, removing an "Owners corporation" is not something that I could tell you about. My guess would be that the members would make a final decision to dissolve it and to make the application changes at land Victoria – just a guess.
An owners corporation is not registered if there is no common property. Battle-axe sub looks like Owners corporation is a must – in my opinion.
I hope this helps you.
Best of luck and great wealth to you.
Pimobpi
Hi Pimobpi,
Thanks for your post. Certainly makes sense. I guess my subdivision would need to be structured in such a way for that to happen, but sounds like it might be possible. If anyone else on here has any insight, would be much appreciated.
Cheers.
Hi dodo_lurker
I haven't seen another reply yet so I thought that I'd make another comment.
Yes, you are right about it being possible because many subdivided lots have been sold by developers without an OC.
eg: A subdivision that retains direct street access (for all of the lots) may or may not need an OC. It really depends on whether there is other common property involved.
Pathways & driveways can easily be made to have separate access if the sub was done in that way but the shape of your block and the building designs that suit it would be the most significant reason why an OC would become automatically created or not.
Is this project setup as a business to develop real estate or setup for property investment?
Regards.
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