VIC: How do we restart a dormant owners corporation?

Question: Our owners corporation has been inactive for years, with no insurance, no meetings and no records. How do we get it up and running again?

I own a unit in a block of four. There should be an owners corporation, but all the owners are elderly and have allowed things to lapse for some years. We have no insurance, we don’t meet, and we keep no records. I can’t find information about the original owners corporation or any historical records. What do we need to do to get the owners corporation functioning again? Can we meet and elect a chairperson, or is there more to it?

Answer: A dormant owners corporation never ceases to exist and can be brought back into compliance by convening a meeting, electing office holders and addressing key obligations.

Does the owners corporation still exist?

The short answer is yes, it likely never “lapsed”. It became dormant.

Under the Owners Corporations Act 2006 (the Act), an owners corporation (OC) is automatically created when a plan of subdivision is registered. It doesn’t cease to exist just because it’s inactive or non-compliant. So the block of four units almost certainly has a legally existing OC. It’s just not functioning properly.

How to find historical and official records

You won’t usually find owners corporation records centrally stored, but you can reconstruct things from land records:

• Search the plan of subdivision through Land Use Victoria. This will show the owners corporation number, the common property, and lot entitlements and liabilities.
• Order a title search for one unit. This will often list the owners corporation number.
• Check with the local council. They sometimes hold planning and subdivision records. There will likely be a relatively small cost to obtain these records.

Legal obligations currently being breached

The owners are likely not complying with several duties under the Act, including:

• Insurance: Required under section 59 of the Act (building insurance for multi-unit developments).
• Holding meetings: An annual general meeting must be held as per section 69 of the Act.
• Record keeping: The OC must keep records as per section 144 of the Act. These include, but are not limited to, minutes of meetings, financial statements, insurance policies and a lot owner register.
• Maintenance of common property: Required under section 46 of the Act. This is mandatory, not optional, even for small informal blocks.

How to restart the owners corporation

There’s no special reinstatement process. The owners can meet and elect a chairperson, but they must also address broader compliance issues.

1. Identify all lot owners: Use title searches if needed.
2. Call a meeting
   
   • Any lot owner can convene a general meeting as per section 7(2)(d) of the Act in the absence of a committee.
   • Give proper notice as per section 72(1) of the Act (typically written notice to all owners).
3. Hold the meeting: At the general meeting, the owners should:
   
   • Elect office holders: chairperson, secretary and treasurer (optional).
   • Decide whether to appoint an owners corporation manager (recommended).
   • Set the annual fee (levies).
   • Address urgent compliance issues, including insurance and maintenance.

Do we need an owners corporation manager?

Whilst not legally required for a small OC, it is strongly recommended if the owners are elderly or there has been long-term non-compliance.

A manager can arrange insurance, keep records, issue notices and ensure legal compliance and due process is being maintained.

For a small 4-lot block, the biggest risks right now are: no insurance, no financial structure, and no decision-making process.

In summary, while the OC has been dormant, it has never ceased to exist and can be brought back into compliance by taking relatively straightforward, practical steps. The key is for the lot owners to take immediate action, particularly to obtain appropriate insurance, establish a basic governance structure, and begin keeping proper records in accordance with the Act and Owners Corporations Regulations 2007. By convening a general meeting, electing officeholders, and addressing these core obligations, the owners can restore the proper functioning of the owners corporation and significantly reduce their legal and financial risks in the future.

This post appears in the May 2026 edition of The VIC Strata Magazine.

Ben Quirk
TOCS
E: ben.quirk@tocs.co
P: 0448 663 616