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A Multiple Owners Corporation (MOC) is a unique legal structure allowing several property owners to jointly own and manage common property. This is typically used for properties with more than one section, building or type of property such as in large residential buildings, commercial office spaces, and mixed-use developments. In an MOC, there are one or more limited Owners Corporations that apply to only some lots and an unlimited Owners Corporation that owns the common property.
MOCs are used to give groups of lot owners the responsibility of, and access to, certain parts of the property. Each section or type of property has its own set of rules, by-laws, and budget, which are specific to its particular needs and requirements. This allows for more focused attention on the needs of each section of the property and for more efficient decision-making and communication. It also means important matters such as repairs, maintenance, and cleaning, as well as the provision of services such as garbage collection and landscaping are taken care of for each section.
An example of this grouping would be a person who purchases a ground floor unit in a multi-storey building and becomes a member of the Owners Corporation. They may also be a member of the Owners Corporation responsible for parking spaces, but not a member of the Owners Corporation responsible for the lifts.
Owners Corporation fees are paid by each section or type of property to cover the costs of maintaining and managing the common areas and services within their respective sections. The overall cost of managing the property as a whole is usually shared among the Owners Corporations, based on the size and needs of each section.
Unlimited and Limited Owners Corporation
An unlimited Owners Corporation is one where there is no limit on the number of lots or units that can be created within the property. This type of Owners Corporation is more commonly found in large-scale developments, such as high-rise apartment buildings or mixed-use developments. In an unlimited Owners Corporation, each lot owner holds an equal share of the common property and has equal voting rights in the management of the corporation.
On the other hand, a limited Owners Corporation is one where the number of lots or units is predetermined and cannot be increased beyond that limit. This type of Owners Corporation is more commonly found in smaller-scale developments, such as townhouses or low-rise apartment buildings. In a limited Owners Corporation, each lot owner also holds an equal share of the common property and has equal voting rights in the management of the corporation.
Properties with multiple Owners Corporations will usually have:
Therefore, lot owners will be a member to one unlimited Owners Corporation and one or more limited Owners Corporation.
Benefits and Disadvantages of a Multiple Owners Corporation
One of the most significant benefits of Multiple Owners Corporations is that they provide a framework for shared ownership and decision-making, which can help to ensure that the property is managed effectively. The structure also enables lot owners to share the costs of maintaining the common property, such as the lifts, pool, and common areas, which can be expensive to maintain.
However, Multiple Owners Corporations can also be complex and require careful management. It is essential for lot owners to be aware that these Owners Corporations affect their lot and and is essential lot owners understand their responsibilities as members of the Owners Corporation. A professional Strata Manager can provide valuable support in the administration of multiple Owners Corporations, ensuring that each Owners Corporation operates efficiently, and all legal requirements are met.
If you are part of an Owners Corporation and require assistance with managing Multiple Owners Corporations, it may be worth considering engaging the services of a professional Strata Manager. SELECT Strata Communities can provide expert advice and support to ensure that your Multiple Owners Corporation operates effectively, and your property is well-maintained.
Contact us today to learn more about how we can help you manage your Multiple Owners Corporation.
(03) 9862 3700