Owners Corporations - Low Balance?

[kai41314]

Hi everyone,

We are thinking to make an offer to an apartment in Melbourne and after read the section 32 and OC meeting minutes we found three Owners Corporations affect the apartment. All of them have a low balance administration fund. Is there something wrong? It is a 6 year old apartment and totally about 90 units in the building.

Administration fund for each corporation is as follows
OC1 $12,338
OC2 $23,202
OC3 $1,713

In addition, why does it have three owners corporations rather than a single one?

Many Thanks,
Kai

 

[The Y-man]

In addition, why does it have three owners corporations rather than a single one?

Well that's a new one...... never seen that before.

The Y-man

 

[Jake Milne]

Does the premise consist of multiple buildings/towers?

If so, it is common practice to split these up into smaller parcels.

 

[Tony3008]

My complex has five OCs and it would be better with six. Everyone is in OC1 which is responsible for all common parts; OC2 and OC3 are the two commercial buildings (office block and Quest apartment block); OC4 (the largest) is the resi tower and OC5 the penthouses (they split the cost of the second lift that serves them). We could do with an OC6 for the shops at street level as costs relating to them get paid by OC1 and thus 80% by the residential owners.

The figures you quote as balances look much too low. How many units?

 

[Melbournian]

it is common to have 2 or 3 OCs.

which building is this?

 

[Jake Milne]

Yes; common to have multiple owner's corps for mixed use buildings that usually consist of different towers/buildings. It's common for modern buildings to have retail on the ground floor, then an office on L1 then residential above; each with their own BC/OC.

 

[AXXO]

Hi everyone,

We are thinking to make an offer to an apartment in Melbourne and after read the section 32 and OC meeting minutes we found three Owners Corporations affect the apartment. All of them have a low balance administration fund. Is there something wrong? It is a 6 year old apartment and totally about 90 units in the building.

Administration fund for each corporation is as follows
OC1 $12,338
OC2 $23,202
OC3 $1,713

In addition, why does it have three owners corporations rather than a single one?

Many Thanks,
Kai

Low funds could mean the bank accounts are being skimmed by the strata management. I'm wary of this now as I've had the previous Strata Manager of the commercial centre where I own my Morley office unit charged with many criminal counts of stealing as a servant (easier to prove than fraud).

Otherwise it could be just bad management. Either way check it more thoroughly, check all previous minutes, financial statements & budgets.