Owners’ Corporations play a pivotal role in maintaining the integrity and value of shared properties. They are essential for ensuring that common areas are well-maintained, disputes are resolved, and proper insurance coverage is in place. Here’s a breakdown of their key responsibilities so you can ensure your property is well taken care of.
Preserving common areas
Owners’ Corporations oversee the maintenance of common areas, ensuring they are well-presented and maintained. This includes spaces such as stairwells, parking areas, gardens, and waste disposal facilities. Proper upkeep of these areas not only enhances the aesthetic appeal of the property but also contributes to its long-term value.
Regular maintenance contracts
Engaging regular contractors for the upkeep of common areas is a crucial responsibility of Owners’ Corporations. Routine maintenance ensures that all shared spaces are kept in good condition, preventing deterioration and costly repairs in the future. This proactive approach helps maintain the overall quality and safety of the property.
Dispute resolution
Facilitating the resolution of disputes between owners is another important function of Owners’ Corporations. By providing a structured process for addressing conflicts, they help maintain a harmonious living environment. Effective dispute resolution mechanisms contribute to a positive community atmosphere and prevent minor issues from escalating.
For property owners, staying informed about the activities and decisions of the Owners’ Corporation is essential. Reviewing meeting minutes or attending Owners Corporation meetings allows owners to take an active role in decision-making processes. Active participation and awareness are key to ensuring that the Owners’ Corporation functions effectively and meets the needs of all residents.
Insurance coverage
Owners’ Corporations provide insurance coverage for the overall building and common property, protecting against accidents, fire, structural damage and unforeseen incidents such as burst pipes or hot water service failures. Most Owners’ Corporation insurance policies will also cover for public liability. This coverage is vital for safeguarding both owners and residents from liabilities and unexpected financial burdens. Ensuring comprehensive insurance policies are in place is a key aspect of its role.
Responsibilities of lot owners
While the Owners’ Corporation handles building insurance and common area public liability, lot owners are responsible for contents and landlord insurance of their individual units. Generally, the Owners’ Corporation insurance does not cover elements such as internal fittings, fixtures, and personal property like blinds, carpets, and appliances. Lot owners must ensure that their personal insurance policies cover these items. Likewise, lot owners should consider a specific landlord insurance policy that will cover them for accidental or malicious damage caused by a renter or their pets. Many landlord insurance policies also cover for loss of rent and legal expenses, areas that are not covered by the Owners’ Corporation insurance. It is advisable to check as to whether the Owners’ Corporation insurance covers public liability issues that can occur within their apartment as well.
In compiling this article, Kay & Burton relied upon information supplied by several external sources. This article has been provided for general information only and has not been tailored to your personal circumstances. Although high standards have been used in the preparation of the information, analysis, views, and projections presented in this article, Kay & Burton does not owe a duty of care to any person in respect of the contents of this document and does not accept any responsibility or liability whatsoever for any loss or damage resulting from any use of, reliance on, or reference to the contents of this article.