Make sure your your owners' corporation is a happy one: Mal James and John Hazen

When you buy an apartment or townhouse you also become a member of an owners’ corporation, (which used to be called the body corporate), and its best as a buyer you know a few things about it. The normal matters to look at are the rules, fees, operations and such. But one of the most critical things to find out before you buy is whether or not it’s a “happy” OC.

The OC is there to make life easier for residents in the development and most of them work well. They have a meeting every few months and sort out matters such as insurance, accounts, painting, necessary repairs or other matters in a smooth and easy manner. But occasionally there are some that don’t – and you should make sure that you don’t find yourself becoming a member of an OC from hell.

Sometimes it can be so bad that people decide to sell their recently purchased apartment purely because they find out they’ve joined an OC which doesn’t work.

• It may be dominated by a small group of people who feel they own it;

• It may have an ineffective manager;

• The members may not be willing to spend any money;

• Or they simply can’t agree on anything.

Solutions:

You can easily discover how an OC works by getting copies of the last few OC minutes and reading them carefully.

Look to see if there is a person or group who resists everything and makes it impossible for the OC to operate.

Things such as ongoing disputes, drawn-out legal actions, refusal to approve requests from owners and money arguments over minor things are all matters for some concern and may cause you problems in future.

The badly-operating OC may cause you stress, it may cost you money or it may prevent you renovating or having a new pet – so check it out carefully.

As well as reading through the minutes, it may be worth having a chat with another resident or the OC manager to see how it works. Think carefully if you feel you may be getting into a situation you’re uncomfortable with. Your purchase of a new apartment is meant to be a positive lifestyle choice so make sure that it works for you.