10 May Owners Corporation Certificate
An Owners Corporation Certificate, which was previously known as a Body Corporate Certificate, is usually located in the vendor’s statement for the contract of sale of a lot. If an owner is seeking to refinance a lot, the prospective lender may require the production of a certificate.
The Owners Corporations Act 2006 and the Owners Corporations Regulations 2018 set out the matters to be included in a certificate which include:
- insurance held;
- actual and contingent liabilities
- fees in respect of a lot including unpaid fees at the date of the certificate;
- litigation which the owners corporation is a party, if any
- funds held;
- contracts, leases and licences affecting common property;
- if any services provided to a member which are outside of the statutory obligations of the owners corporation;
- any notices served such as a building notice by the municipal building surveyor;
- details of the manager;
A number of documents are attached to the certificate including:
- the rules of the owners corporation;
- minutes of most recent Annual General Meeting
In addition to the prescribed information documents, some owners corporation may provide other documents if considered appropriate.
The certificate is intended to set out details to allow a possible purchaser or lender to assess the scheme. It is sometimes erroneously described as the equivalent of a roadworthy certificate which is not correct. In some instances it may include undesirable information such as if the scheme is a respondent or defendant in a litigation.
Any person may apply for certificate in respect of a lot with the only requirement is to pay the fee prescribed by the State Government.
A certificate is valid as at the date of preparation.