Owners Corporation Fees in Victoria: What Section 32 Must Disclose
Buying a unit, apartment, or townhouse in Victoria? The owners corporation fees can add thousands to your annual costs. Here's what to look for in the Section 32.
If you're buying a unit, apartment, townhouse, or any property that shares common areas with other properties, there's a very good chance you'll be joining an owners corporation (also known as a body corporate). Understanding what you're signing up for — and what it costs — is essential before you exchange contracts.
What is an owners corporation?
An owners corporation (OC) is the legal entity responsible for managing and maintaining the common property in a multi-unit development. This includes shared areas like driveways, lobbies, lifts, gardens, car parks, and building facades.
Every owner of a lot in the development is automatically a member of the owners corporation. Membership is not optional — it comes with the property.
What must the Section 32 disclose about owners corporation?
Victorian law requires the vendor to attach an Owners Corporation Certificate to the Section 32. This certificate must include:
- The annual fees payable by the lot owner
- Any special levies currently outstanding or anticipated
- Details of any current legal proceedings involving the OC
- Insurance details for the common property
- The OC's financial statements and maintenance fund balance
- Any rules or by-laws that restrict lot owners
If the property is not affected by an owners corporation, the Section 32 must also state this clearly.
What are typical owners corporation fees?
OC fees vary enormously depending on the type and size of development:
- Small townhouse developments (4–8 lots): $1,000–$3,000 per year
- Mid-size apartment buildings (20–50 lots): $3,000–$6,000 per year
- Large buildings with lifts, gyms, and concierge: $6,000–$15,000+ per year
These fees are on top of council rates, water rates, and your mortgage repayments. Always factor them into your budget.
What are special levies?
A special levy is an additional charge raised by the owners corporation for a specific unexpected expense — typically major repairs to common property that the maintenance fund can't cover. Examples include replacing a roof, repairing a lift, or remediating combustible cladding.
Special levies can be significant — sometimes tens of thousands of dollars per lot. The Section 32 must disclose any special levy that has already been formally approved before the contract is signed. If an approved levy is not disclosed, it remains the vendor's responsibility. However, if a levy is merely being discussed but not yet formally voted on, it may not need to be disclosed — and could become your responsibility after settlement. This is why checking the maintenance fund balance and asking about upcoming works is so important.
What questions should I ask about owners corporation?
- What are the current annual fees and when are they reviewed?
- Is there a special levy planned or already approved?
- What is the balance of the maintenance fund — is it healthy or depleted?
- Are there any ongoing disputes or legal proceedings involving the OC?
- Are there OC rules that affect how I can use the property (e.g. no pets, no short-term rentals)?
- Is there more than one owners corporation on this lot?
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