![[object Object]](https://umsousercontent.com/lib_lphGCikIbVHjRWIV/w8mzrofmgaa9b3om.png?w=52){kind=small}
You’ve done the Saturday inspections, you’ve timed the tram ride, and you can already picture furniture in the living room. Then the agent emails the Section 32 and says, ‘Everything you need is in here.’
If you’re buying an apartment, unit or townhouse with shared property, one of the most useful parts of that bundle is the Owners Corporation Certificate (often still called a ‘Section 151 certificate’). It’s meant to show you what you’re stepping into: fees, insurance, upcoming works, disputes, and the general vibe of how the building is run.
It’s also easy to skim and miss the one line that later turns into a $8,000 special levy.
So let’s slow it down and read it like someone who’s seen a lot of these come across a desk in Melbourne.
What the certificate covers
An owners corporation looks after the shared parts of the property: common driveways, lifts, foyers, roofs, gardens, shared plumbing and electrical services, fire systems, and all the boring but essential bits that stop a building from falling apart.
The certificate is a formal snapshot of the owners corporation and your lot. It usually arrives with attachments, such as:
the owners corporation rules (sometimes amended and consolidated)
a prescribed information sheet for owners and buyers
copies of resolutions from the last annual general meeting
minutes from the most recent annual general meeting (and sometimes budgets, insurance schedules and financial statements)
Think of the certificate as the summary. The attachments show what’s behind the summary.
Step one: confirm you’re looking at the right owners corporation
Before you get into dollars, check you’ve got the right paperwork.
One owners corporation, or several?
Some developments have a ‘master’ owners corporation plus smaller ones underneath it. That’s common in larger apartment sites and mixed use buildings. It can mean multiple fees, multiple rules, and separate sets of works.
A simple example: a two lot townhouse subdivision in Pascoe Vale might only share a driveway. A high rise in Southbank might have a master owners corporation, a building owners corporation, and separate arrangements for retail areas. Your ongoing costs can look very different once you add them up.
Who manages it?
The certificate should list the manager (if one is appointed). A professional manager can bring order and good record keeping. It can also mean higher management fees. A self managed owners corporation can be perfectly fine for small blocks, but it’s riskier when there are many lots, lots of shared services, or an ageing building.
The money pages: where future bills tend to hide
Most buyers spot the quarterly fee amount and stop. The better approach is to read the fees section as a story:
what do owners pay now?
what do owners owe?
what work is planned that could change the fees?
Current fees and payment status
The certificate should show the current fees for the lot (quarterly, annual, or another period) and the date up to which fees have been paid.
If there are unpaid fees or charges for the lot, that’s something your conveyancer can deal with through settlement adjustments. It can also be a sign of wider arrears in the building, which matters because arrears can squeeze cash flow and push owners corporations towards special levies.
Special fees and levies
This is the section that can cost you real money, fast. The certificate should disclose any special levies that have been struck, plus the dates they were struck and payable.
Special levies commonly fund:
lift repairs or replacement
roof leaks and waterproofing
concrete repairs (spalling)
balcony rectification
fire safety upgrades
legal and expert costs for defects disputes
If a levy is mentioned, don’t settle for ‘It’s already been approved.’ Ask for the amount, the instalment dates, and whether more works are being scoped.
A very Melbourne scenario: an older apartment block in Elwood or St Kilda looks tidy, fees look manageable, then the certificate mentions a special levy for concrete repairs. In the minutes there’s also talk of balcony works ‘next’. That’s not a small admin item, it’s your budget.
Repairs, maintenance or other work that may incur extra charges
The certificate should list works that have been performed or are about to be performed that may add charges beyond the usual fees. This can be as small as a garden upgrade, or as big as a façade project.
Words worth circling:
‘tender’
‘engineer report’
‘rectification’
‘major works’
‘urgent works’
If you see them, ask for the scope, the quotes, and the timing. It’s far easier to plan for a likely levy than to be blindsided after settlement.
Total funds held
The certificate should state the total funds held by the owners corporation. In many buildings that’s split into an administrative fund and a maintenance fund.
Low funds don’t automatically mean ‘bad building’. Small, simple owners corporations can carry very little cash and still function well.
Low funds in a larger building with lifts, basements, ageing roofs or complex services is where you pause. It can point to under collection, repeated unplanned repairs, or owners not paying. Pair this number with the minutes and recent spending, and you’ll get a clearer picture.
Insurance: the quiet driver of rising fees
Insurance is a big part of owners corporation costs in Melbourne, especially for apartments. The certificate should include the insurer’s details, the policy type, what’s covered, the building sum insured, public liability cover, and the renewal date.
Here’s what to look for:
Is there building insurance in place, or are lot owners meant to arrange their own? Some owners corporations resolve that members can arrange their own insurance in limited situations. If that’s the case, you’ll want to be very clear on who covers what, because it affects your risk and your lender’s comfort.
Does the cover look sensible for the building? Underinsurance can leave owners exposed if there’s a major loss.
Are excesses high? Water damage excesses can be eye watering in some buildings, and that can change how repairs are handled.
Is renewal close? If the renewal date is coming up, premiums and excesses can change quickly. Minutes will often mention premium increases or claims.
If the building has known risk issues, like cladding concerns or repeated water ingress, insurance can become the main reason fees climb year on year.
Notices and orders: a ‘to do list’ with a price tag
The certificate should disclose notices or orders served on the owners corporation in the last 12 months that have not been satisfied.
This can cover fire safety directions, building notices, or other compliance items.
Even if the detail is brief, the existence of an unsatisfied notice matters. It suggests work is outstanding, and owners will usually fund that work through fees or a levy.
Legal proceedings and disputes: don’t panic, but don’t ignore
The certificate should disclose legal proceedings the owners corporation is a party to, and circumstances likely to give rise to proceedings.
Sometimes this is a responsible owners corporation doing the right thing, like pursuing a defect claim. Sometimes it’s a drawn out dispute that drains money and energy.
Either way, it’s worth asking:
what stage is the matter at?
what costs have already been incurred?
have special levies been raised to fund it?
has the insurer been notified, and has the claim been accepted?
Disputes can also affect how the building is insured and how comfortable banks feel with the property.
Contracts and services: the stuff that follows you home
Owners corporations sign contracts for cleaning, gardening, lift servicing, fire equipment maintenance, building management, concierge services, and more. Some buildings also have embedded networks or service agreements that can be hard to unwind.
The certificate should include details of current contracts, leases, licences or agreements affecting common property, plus service agreements.
Red flags here tend to be practical:
long contracts with limited break rights
expensive building management arrangements
agreements that lock owners into certain service providers
licences over common property that affect use or maintenance (signage, equipment, rooftop plant)
If a contract is referenced but not attached, ask for it. The term and exit rights can matter as much as the price.
The AGM minutes: where the real story sits
The certificate is a snapshot. The minutes show the pattern.
Read the minutes looking for:
talk of major works, tenders, or raising funds
repeated maintenance issues: leaks, mould, cracking, water ingress
insurance claims and premium increases
debates about cladding, fire safety, or compliance notices
disputes between neighbours, short stay use, noise, smoking, or pets
decisions about changing or enforcing rules
A small tip from experience: if the same repair keeps being ‘deferred’ or ‘reviewed’ across multiple meetings, that’s often where costs blow out later. Buildings don’t get cheaper to fix with time.
Red flags that deserve a closer look
Not every red flag means you should walk away. It means you should get answers while you still have options.
A special levy is in place, and the minutes hint at more work. Plan for it as a real outgoing.
Big works are described without figures. ‘About to be performed’ can mean a bill is coming and the amount is still being argued over.
Funds look low for a complex building. Pair the fund balance with upcoming works and arrears.
Insurance looks unstable. Rising premiums, high excesses, or claims history can push fees up quickly.
Unsatisfied notices or orders. Treat these as urgent works in disguise.
Active legal proceedings or likely proceedings. Ask what it’s about and how it’s being funded.
Rules that clash with your plans. If you want a pet, or you’re planning renovations early, check the rules now.
Also keep an eye out for missing attachments or a certificate that looks old. Section 32 statements can be prepared months before a sale. If the documents feel stale, ask for an updated certificate or arrange a records inspection.
What to do next, before you sign
If you want a practical plan that doesn’t take a law degree, this is it:
Read the certificate once, circling anything about levies, works, insurance, notices and disputes.
Read the AGM minutes next, and highlight anything that sounds like a future cost or an unresolved problem.
Ask for supporting papers: insurance schedule, budget, recent financials, quotes, engineer reports, and any compliance notices.
Work out your likely outgoings for the next 12 to 24 months, not just today’s quarterly fees.
Have your conveyancer review the Section 32 as a whole, so owners corporation issues are assessed alongside title, planning and other disclosures.
If you’re buying at auction, do this before you bid. If you’re buying by private sale, do it before you sign, or as early as possible in any cooling off period.
Talk to Pearson Chambers Conveyancing
We review Owners Corporation Certificates and Section 32 statements every day for Melbourne buyers. We know the lines that tend to turn into expensive surprises, and we’ll explain what you’re looking at in plain English.
If you’d like a complimentary Section 32 contract review, call or email Pearson Chambers Conveyancing:
Email: contact@pearsonchambers.com.au
This article is general information only and isn’t legal advice. For guidance tailored to your property and your plans, get in touch and we’ll help you feel confident about what you’re buying into.