Plan of subdivision
A plan of subdivision depicts the break-up of a piece of land, showing parcels of land called ‘lots’, that can be sold separately. The plan of subdivision is registered with Land Victoria and an owners corporation is automatically created if the plan includes common property.
The plan of subdivision defines and governs the ownership of land, buildings and airspace. It sets out private lots, common property and each lot owner’s voting entitlements and financial contributions.
Land Victoria registers and allocates numbers to the plan of subdivision and any owners corporations created by that plan.
A lot is a part of land, buildings and airspace on a plan of subdivision that can be separately owned and sold. Technically, lots are those parts of land, buildings or airspace that are not common property, road or a reserve, and include accessory lots such as car spaces, storage bays and storerooms.
Lot entitlements and lot liabilities
These are set out in the plan of subdivision.
- Lot entitlement refers to a lot owner’s share of ownership of the common property and determines voting rights.
- Lot liability represents the share of owners corporation expenses that each lot owner is required to pay.
These entitlements and liabilities are determined by the developer at the time of subdivision.
This includes any parts of the land, buildings and airspace that are not lots on the plan of subdivision. It may include gardens, passages, walls, pathways, driveways, stairs, lifts, foyers and fences. The common property is collectively owned by the lot owners as ‘tenants-in-common’. Floor coverings and fixtures within a lot are usually the property of the lot owner.
Multiple owners corporations
These are most common in large, multistorey buildings, commercial properties, or developments that combine residential and non-residential lots.
Properties with more than one owners corporation will usually have:
- an unlimited owners corporation, which owns the common property, and
- one or more limited owners corporations, which will apply to only some lots.
Multiple owners corporations give groups of lot owners access to and responsibility for certain parts of the property.
For example: A person buys a ground floor unit in a multistorey building. The title includes off-street parking. As a lot owner, this person will be a member of the owners corporation. They may also be a member of the owners corporation responsible for the parking spaces, but not a member of the owners corporation responsible for the lifts.
Where a property has multiple owners corporations, it is important for lot owners to be aware that these owners corporations affect their lot.
An owners corporation must have a common seal, available from a stationery shop, which must contain the owners corporation’s name and plan of subdivision number. This represents the signature of the owners corporation.
The owners corporation certificate must be sealed using the common seal.
It must be used on all documents created by a resolution passed by the owners corporation; for example, contracts for services, making additional rules or the appointment of a manager. The use of the common seal must be witnessed by two lot owners or when affixed to an owners corporation’s certificate a manager or chairperson. Misuse of the common seal can have serious financial and legal consequences.
For more information, visit the Owners Corporations section of the Consumer Affairs Victoria website Learn More >>>