Get legal advice on your owners corporation rules in Victoria — Quarter

In New Zealand? Visit quarter.nz for body corporates.

Rules nobody has read are rules nobody follows.

Most buildings are running on the owners corporation rules they were handed at registration, plus whatever has been bolted on since. Some of those are unenforceable, some were never registered, and a few are the reason an otherwise sensible owners corporation is in a dispute it cannot win. This is the cheapest legal work a building can do, and the work that most often prevents the expensive kind.

Get legal advice on your owners corporation rules in Victoria

Victoria calls them rules rather than by-laws, and an owners corporation that has never made its own runs on the model rules in the regulations. Those are lawful but generic. Making your own requires a special resolution and lodgement with Land Use Victoria, and — importantly — Victorian rules can only cover what the Act says rules may cover. Anything outside that is not a rule, however solemnly it was passed.

Governed by the Owners Corporations Act 2006, administered by Consumer Affairs Victoria.

At a glance — VIC

What they are called
Owners corporation rules, under the Owners Corporations Act 2006.
Default
The model rules in the regulations apply where the owners corporation has made none of its own.
To change them
A special resolution, then lodgement with Land Use Victoria.
Limits
Rules may only address the matters the Act permits, and cannot be inconsistent with it.
Enforcement
A breach notice, then Consumer Affairs Victoria, then the Victorian Civil and Administrative Tribunal.
Tier
Your tier affects the meeting and reporting obligations around the change, not the rules themselves.

How to do it in Victoria.

  1. 1

    Find out whether you have your own rules at all

    Many Victorian owners corporations assume they do and are actually running on the model rules. The answer changes what you are amending.

    In Quarter: Your registered rules, the amendments and the minutes that passed them sit together with dates on them. Ask the Manager what they say about a pet, a renovation or a short-stay letting and it quotes the rule back rather than making you read the set.

    Find out whether you have your own rules at all in Quarter
  2. 2

    Get advice on what a rule may cover here

    Victoria is more prescriptive than most about the permitted subject matter. This is the question worth paying for.

    In Quarter: Put the agreement in your documents register and ask the Manager to summarise it — when it expires, how much notice it needs, what leaving early costs, and what they have to hand back. It reads the forty pages so the committee does not have to, and will turn the answer into a task with a date on it.

    Get advice on what a rule may cover here in Quarter
  3. 3

    Draft against the model rules

    Start from the model set and change only what your building actually needs. It keeps the result lawful and the advice short.

  4. 4

    Special resolution with 14 days' notice

    And watch the 50% quorum — an interim resolution is a poor foundation for a rule you intend to enforce.

    In Quarter: Build the motion from the quotes and the budget, send the notice to every owner off the ownership register on the statutory clock, and record the vote as it is cast — a decision carries its majority automatically and emails the outcome to whoever raised it.

    Special resolution with 14 days' notice in Quarter
  5. 5

    Lodge the change

    A rule change that has not been lodged is not doing the job you passed it to do.

    In Quarter: The ownership register, financial records, insurance, contracts and documents sit in one searchable place, so a handover is an export rather than an archaeology project — and they are still there when the committee turns over.

    Lodge the change in Quarter
  6. 6

    Give every owner the current set

    Including new owners at settlement, which is where most rule disputes begin.

    In Quarter: Announce it to every owner and resident in a single send — email, and posted to the residents' portal at the same time.

    Give every owner the current set in Quarter

Where VIC buildings get caught.

Rules about things rules cannot cover

Passed in good faith, unenforceable on the day they are tested.

Assuming the model rules were replaced

Check. It is a five-minute question with a large consequence.

An interim resolution on a rule change

Without quorum it can be challenged, and a challenged rule is not one you want to be enforcing against a neighbour.

Why this is worth doing properly

A rule is the only thing standing between a shared building and an argument about what people may do in it. It is worth having ones that are current, that are enforceable, and that a court or tribunal would actually uphold.

Unregistered changes do nothing
In most jurisdictions a change to your owners corporation rules has no legal effect until it is registered. Buildings routinely pass a resolution, file the minutes and believe the job is done. It is not, and the gap is only discovered when somebody is asked to comply.
Unreasonable rules are unenforceable rules
A rule that is harsh, oppressive or unreasonable can be struck out, and a blanket ban is the usual culprit. A building that over-reaches ends up with less enforceable than one that drafted narrowly in the first place.
Old rules describe a building that no longer exists
Short-stay letting, electric vehicles, e-bike batteries, working from home and renovations have all arrived since most rule sets were written. Silence on a live issue is what produces the dispute.
It is cheap compared with the alternative
A few hours of a strata lawyer's time against a tribunal matter that runs for a year. This is the one place in a building's budget where legal advice reliably pays for itself.

How Quarter supports the work

Quarter does not give legal advice — that is what the lawyer is for. What it does is make the lawyer's job short, and make the outcome stick.

Every rule in one place

The registered set, the amendments, the minutes that passed them and the correspondence about them, together — so the first thing a lawyer asks for takes a minute rather than a fortnight.

Ask before you pay

Ask the Manager what your current rules say about a pet, a renovation or a short-stay letting. It will quote the rule back to you, which is often the whole answer.

The motion, properly put

A change to your owners corporation rules usually needs a particular resolution type and a particular notice period. Quarter puts it as that motion, on that clock, and records the vote.

A record of what was passed and when

The resolution, its date and its wording, held against the building — which is exactly what registration and any later dispute both need.

Owners can actually read them

Rules published where residents and buyers can find them, rather than in an attachment to an email from 2019.

Questions we get asked.

Do we really need a lawyer for this?
For a review, yes — it is a few hours' work and it is where the value is. For putting the motion, giving notice and recording the vote, no. The mistake buildings make is paying a lawyer to do the administration and skipping the advice.
What makes a rule unenforceable?
Broadly, being inconsistent with the legislation, being outside what the Act allows rules to cover, or being harsh, unconscionable or oppressive. Blanket prohibitions are the most common failure — courts and tribunals have repeatedly preferred a requirement to seek consent, with consent not unreasonably withheld, over an outright ban.
Can we just adopt the model rules?
Often, and it is a reasonable starting point — the defaults are drafted to be lawful. What they will not do is address anything specific to your building, which is usually the reason you were looking at your rules in the first place.
How long does it take?
The advice is quick. The process is not: you need a general meeting with proper notice, the right resolution, and then registration. Plan on a few months from decision to enforceable.

Where this comes from

General information about Victoria, not legal or financial advice for your building. Legislation is amended and grant programmes open and close — check the current position with Consumer Affairs Victoria or the administering body before you act on anything here.

Review your building's rules — elsewhere

Other things to get done in VIC

Get this one off the list.

Tell us about your building in Victoria and we will show you exactly how Quarter would run it.