Litigation & disputes

Owners corporation disputes in Victoria.

Unpaid levies, common property defects, unapproved works, noise and by-law breaches, and committees that have stopped functioning. CMK Legal in Richmond acts for lot owners, committees and owners corporations across Victoria, through internal grievance procedures, the Consumer Affairs process and VCAT.

Start onlineBook a consultation

Merits assessed first

Rules, minutes and the plan of subdivision checked before any application is made.

Early resolution preferred

Grievance and conciliation steps completed efficiently so VCAT is reached without delay.

Costs kept proportionate

Fixed fee for the initial review and advice, with estimates for conciliation and hearings.

Victorian courts & VCAT

Owners Corporations Act 2006, Subdivision Act 1988 and VCAT practice.

How owners corporation disputes work.

Owners corporations in Victoria are governed by the Owners Corporations Act 2006 and the plan of subdivision. The Act sets out the corporation's duties, to repair and maintain common property, to take out insurance, to keep proper records and financial statements, and to act fairly in its dealings with lot owners. It also imposes obligations on lot owners not to damage common property, to comply with the rules and to pay their fees.

There is a defined pathway. Most disputes must first go through the owners corporation's internal grievance procedure. If that fails, a party can apply to Consumer Affairs Victoria for conciliation, and from there to VCAT's Owners Corporations List, which can make orders for payment, for works, for compliance with the rules, to invalidate a resolution, or to appoint an administrator where the corporation is dysfunctional.

The recurring flashpoints are levies and defects. Unpaid fees are recoverable with interest and, after proper notice, through VCAT or the Magistrates' Court. Defects in common property, water ingress, cladding, balconies, waterproofing, raise the harder question of who is responsible and whether builder warranty or insurance claims are still within time.

Special resolutions and unanimous resolutions have strict notice, quorum and voting requirements. A significant number of owners corporation decisions are set aside at VCAT not because the decision was wrong, but because the meeting procedure was not followed.

How we approach an owners corporation dispute.

Common property and repair obligations

Establishing the boundary between lot and common property from the plan of subdivision, which determines who pays for the repair before anything else is argued.

Levy recovery and special levies

Recovering unpaid fees with interest through the correct notice and enforcement path, and testing whether a special levy was validly resolved.

Meetings, resolutions and rules

Reviewing notice, quorum, proxies and voting, challenging invalid resolutions, and drafting or enforcing rules that are within power.

VCAT applications and administrators

Applications for payment, works, compliance or the appointment of an administrator where the committee can no longer function.

Talk to us if.

  • Levies are unpaid and recovery action is needed
  • A special levy has been struck and you question its validity
  • Water ingress or defects in common property are not being repaired
  • An owner has carried out works without approval
  • Noise, short-stay letting or pets are breaching the rules
  • A resolution was passed without proper notice or quorum
  • The manager or committee is not providing records or accounts
  • The owners corporation has become dysfunctional or deadlocked

Bring the plan of subdivision, the owners corporation rules, recent minutes and the relevant correspondence. Responsibility usually turns on the plan rather than on what everyone assumes.

How an owners corporation dispute runs.

  1. 01

    Review and advice

    We review the plan of subdivision, the rules, minutes and financials and advise on rights and obligations.

  2. 02

    Internal grievance procedure

    The dispute raised through the owners corporation's grievance process, which is usually a precondition.

  3. 03

    Consumer Affairs conciliation

    An application to Consumer Affairs Victoria for conciliation where the internal process does not resolve it.

  4. 04

    VCAT application

    An application in the Owners Corporations List for payment, works, compliance or an administrator.

  5. 05

    Orders and implementation

    Orders enforced, works scoped and, where needed, rules or governance arrangements corrected for the future.

Transparent dispute fees.

The initial review of the plan, rules and minutes with advice is a fixed fee quoted before we begin. Levy recovery is quoted as a fixed fee per stage. Conciliation and VCAT hearings are estimated, and where we act for an owners corporation we set out how the costs may be recovered from the lot owner or the corporation's budget.

Request a fixed-fee quote

FAQs

Owners corporation dispute FAQs.

Still unsure? Call us on (03) 9008 7224 and speak to a lawyer, not a call centre.

Who is responsible for repairs, the owner or the owners corporation?
It depends on whether the item is within the lot or is common property, which is determined by the plan of subdivision. The owners corporation must repair and maintain common property, including services serving more than one lot, while owners maintain their own lot.
Do I have to go through the grievance procedure first?
Generally yes. The Owners Corporations Act requires disputes to go through the internal grievance procedure, and then Consumer Affairs Victoria conciliation, before most applications can be made to VCAT. Some matters, such as fee recovery, can proceed more directly.
Can I withhold my levies if the owners corporation is not doing its job?
No. Fees remain payable and interest accrues, and non-payment simply exposes you to recovery action and costs. The correct response is to pursue the corporation's failure through the grievance, conciliation and VCAT pathway.
Can a resolution be overturned?
Yes. VCAT can invalidate a resolution where the required notice, quorum or voting procedure was not followed, or where the decision was unfairly prejudicial or discriminatory towards a lot owner. Time limits apply, so act promptly.
What can be done about an owner who breaches the rules?
The owners corporation can serve a breach notice, then a final notice, and apply to VCAT for orders requiring compliance and, in some cases, a civil penalty. Consistent record keeping of the breaches is what determines whether the application succeeds.
What is an administrator and when is one appointed?
VCAT can appoint an administrator to exercise the powers of the owners corporation where it has become dysfunctional, no functioning committee, deadlock, failure to maintain common property or to keep proper accounts. The administrator's costs are borne by the owners corporation.

Related services.

Leasing disputes

Rent, repairs, breach notices, make good and termination for landlords and tenants.

Learn more

Property disputes

Boundaries, easements, caveats and failed property contracts.

Learn more

VCAT proceedings

Retail lease, owners corporation and building matters prepared for the right list.

Learn more

Resolve the owners corporation dispute.

Send us the contract, the correspondence or the notice you have received. Start online in a few minutes, or book a consultation and speak to a disputes lawyer the same business day.

Start onlineBook a consultation