Establishment Services
We offer Owners Corporations Establishment Services Melbourne wide including:
- Port Melbourne
- Elwood
- McKinnon
- Murrumbeena
- Prahran
- Oakleigh
- Richmond
- Elwood
- St Kilda
- St Kilda East
- Windsor
- South Yarra
- Toorak
- all surrounding areas
The Foundation of a New Owners Corporation
“Establishment Services” are the initial, critical actions taken by a manager when a new property, such as a multi-unit apartment complex or townhouse development, is subdivided and an Owners Corporation is created. The goal is to build a robust administrative and financial framework before the first settlements occur. This proactive approach ensures a smooth transition for both the developer and the new lot owners.
Key Components of Establishment Services
Creation of the Owners Corporation Register, Records and Administrative Procedures:
- This is the overarching task. Strata Minders designs and implements a complete system for managing the corporation. This involves setting up a filing system (both physical and digital) for all legal and operational documents and creating a procedural manual that aligns with the relevant state legislation. The system is designed to be efficient, transparent, and compliant from its inception.
Owners Register:
- As the initial lot owners are identified, Strata Minders creates the formal Owners Corporation register. This is a foundational document that includes the details of the developer and then the new lot owners as they settle. The register is essential for all future communications, meetings, and levy notices.
Books of Account & Computerised Accounting Records:
- The manager establishes the financial backbone of the corporation. This involves setting up a chart of accounts, which is a list of all the financial accounts used to track income and expenses. These are then entered into a computerised accounting system. This system is configured to track transactions for both the general administration fund and the maintenance fund, providing a clear and legally compliant financial structure from the beginning.
Separate Owners Corporation Bank Account:
- A new, dedicated bank account is opened in the name of the Owners Corporation. This is a legal requirement to ensure that the corporation’s funds are kept separate from the manager’s and other clients’ funds. The account is set up with appropriate signatories (typically the manager and a committee member once elected) and online access for transparent management.
Preparation of Owners Corporation Certificates for all Initial Settlements:
- As part of the sale of each new lot, the lot owner’s conveyancer or solicitor will require an Owners Corporation certificate. This document confirms the corporation’s legal status, any rules, and the initial levies payable. A key part of the establishment service is the preparation of these certificates for all lots in the development at no additional cost to the developer. This streamlines the settlement process for all parties.
Arrangement for the Common Seal:
- The common seal is the official stamp of the Owners Corporation. It is a legal instrument used to formally execute documents, such as contracts or legal agreements, on behalf of the corporation. The manager is responsible for having the common seal created and becomes its custodian, ensuring its proper and authorised use.
Obtaining Quotations for Insurances:
- Before the first lot owners move in, the common property must be insured. Strata Minders obtains competitive quotes for the necessary insurance policies, including building and public liability insurance. This ensures the property is protected from day one and provides the new Owners Corporation with a choice of policy at the inaugural general meeting.
Preparation of Draft Budgets & Calculation of Levies:
- The manager prepares a draft budget for the corporation’s first financial year. This is a critical task that involves estimating all initial and ongoing expenses, such as insurance premiums, utility costs, and management fees. From this budget, the initial levies for each lot are calculated based on their respective lot liability.
Issuance of Levy Notices:
- Once the initial levies are calculated, the manager prepares and issues the first levy notices to all lot owners. These notices are typically sent out prior to or at settlement, giving the new owners clear financial information and ensuring the corporation has the necessary funds to begin operating.
Convene and Attend the Inaugural General Meeting:
- This is a landmark event for the new Owners Corporation. Strata Minders organizes and facilitates this first official meeting. The agenda includes:
- Presenting the draft budget and having the first levies formally approved.
- Electing the first Owners Corporation Committee.
- Appointing an auditor (if required).
- Formally appointing Strata Minders as the manager.
- Approving the rules of the corporation. The manager attends and chairs the meeting, guiding the new lot owners through the process and ensuring all legal requirements are met. The manager then prepares and distributes the official minutes of this meeting.
Arrangement for Income Tax File and Australian Business Numbers:
- To ensure the corporation is compliant with its tax obligations from the outset, the manager arranges for the corporation to be registered with the Australian Taxation Office (ATO) and obtains an Australian Business Number (ABN) and Tax File Number (TFN), as required. This sets the stage for all future tax reporting and compliance.
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