Owners Corporation Maintenance Plan for Melbourne Buyers

The question usually starts with, ‘Is this owners corporation properly set up?’ and quickly becomes, ‘Could I be hit with a special levy after settlement?’

The short answer: Under the Owners Corporations Act 2006 (Vic), Tier 1 owners corporations with more than 100 occupiable lots and Tier 2 owners corporations with 51 to 100 occupiable lots must have an approved 10 year maintenance plan and a maintenance fund. Tier 1 buildings were required to comply by 1 December 2022, and Tier 2 buildings by 1 December 2023. Smaller Melbourne blocks, including many 10 to 50 lot walk ups and three to nine lot townhouse clusters, can adopt a plan voluntarily, but the law does not force them to do so.

What is an owners corporation maintenance plan?

An owners corporation maintenance plan is a 10 year schedule for major common property repairs and replacements. It looks past the next quarterly levy and asks the bigger question: what will this building need over the next decade, and how will owners pay for it?

For a Melbourne apartment buyer, that might mean the roof, lift, fire equipment, common stairwells, render, balcony waterproofing, pumps, garage doors, shared hot water, gutters or basement drainage. The plan should record the present condition of each major item, when work is expected, the estimated cost and the expected life of the item after repair or replacement.

Think of it as the building’s capital budget. Day to day cleaning and gardening are one thing. A lift replacement, façade repair or major waterproofing project is another. Without a plan, buyers are left guessing whether the owners corporation is saving properly or simply hoping nothing breaks.

Which Melbourne buildings must have a 10 year maintenance plan?

Only Tier 1 and Tier 2 owners corporations must have an approved 10 year maintenance plan. The tier system is based on occupiable lots, not the age, suburb or price bracket of the building.

Tier	Size	10 year maintenance plan required?
Tier 1	More than 100 occupiable lots	Yes
Tier 2	51 to 100 occupiable lots	Yes
Tier 3	10 to 50 occupiable lots	Optional
Tier 4	3 to 9 occupiable lots	Optional
Tier 5	Two lot subdivision or services only owners corporation	Optional

This is where Melbourne buyers get caught. A large Docklands tower or 70 lot South Yarra building should have a plan. A 12 unit brick walk up in Thornbury, a six townhouse group in Footscray, or a small villa block in Bentleigh may not need one at law, even if it has ageing roofs, shared drains and worn common driveways.

Optional does not mean useless. For Tier 3 and Tier 4 buildings, the absence of a plan is not automatically a legal breach, but it can still tell you plenty about how the owners corporation handles future costs.

Why does the maintenance plan matter for your settlement budget?

The maintenance plan matters because it is tied to the maintenance fund. If an owners corporation has a maintenance plan, it must also have a fund to pay for the works in that plan.

Money usually goes into the fund through annual fees, insurance money for plan items, interest and any extra amounts the owners corporation resolves to contribute. Money comes out for plan items by ordinary resolution. Payments for urgent items not listed in the plan need a special resolution, which generally means at least 75% support.

The fund should soften future repair bills. If the fund is too light for the planned works, the owners corporation may need to raise special levies from lot owners. That can hurt if you have just stretched your deposit, paid stamp duty and booked removalists.

In our practice, we’ve seen this worry come up with older walk up blocks around Hawthorn, Box Hill and the inner north, where the building looks tidy at inspection but the certificate shows a fund balance that would barely cover a small plumbing job. The real risk is not that the building has maintenance needs. Every building does. The risk is paying a premium price without seeing how those works are being budgeted.

What should the Section 32 tell me about the maintenance plan?

If the property is affected by an owners corporation, the Section 32 vendor statement should include owners corporation disclosure. Sellers often do this by attaching a section 151 owners corporation certificate and the required supporting documents.

The certificate should help you check:

current annual or quarterly fees for the lot
unpaid fees or charges
special fees or levies already approved
repairs, maintenance or other works that may lead to extra charges
total funds held by the owners corporation
insurance details
contracts affecting common property
legal proceedings or likely proceedings
the owners corporation rules
resolutions from the last annual general meeting

This is the paperwork that tells you whether the numbers match the building. A glossy two bedroom apartment near the tram line might feel move in ready, but the owners corporation records may show balcony repairs, lift work or water ingress issues that have not yet been fully funded.

The age of the paperwork also matters. Section 32 statements can be prepared up to 12 months before sale, and owners corporation information can change quickly after an AGM, insurance renewal or levy vote. If you are wondering how long is an owners corporation certificate valid for, the safer question is whether it is still accurate at the time you sign and settle.

How do I read the owners corporation certificate for maintenance risks?

Start with the maintenance fund balance, then compare it with the age and size of the building. A small balance is not always a deal breaker, but it should make you ask what work is coming and who will pay for it.

For a deeper checklist, our guide to how to read an owners corporation certificate red flags that could cost you thousands is a useful companion when you are reading the certificate beside the contract.

Look closely at:

Fund balance: Does the maintenance fund look realistic for the building’s size, age and shared assets?
Annual contributions: Are owners putting enough in each year to meet the 10 year plan?
Future works: Are roof, lift, render, fire equipment or waterproofing works mentioned?
Special levies: Have levies been approved, proposed or discussed in the AGM minutes?
AGM minutes: Do the minutes mention quotes, engineer reports, water ingress or deferred works?
Arrears: Are there unpaid fees against the lot that need to be adjusted at settlement?
Contracts: Is the owners corporation locked into long agreements for management, cleaning, lifts or building services?

If something feels off, ask for the maintenance plan itself. You do not need to be an engineer to spot a plan that lists major works but has no matching funding path.

What should I do if the maintenance plan is missing?

If a Tier 1 or Tier 2 owners corporation does not have an approved plan, treat that as a serious warning sign before you sign. It suggests the building may not be complying with its maintenance planning duties and may not have a clear 10 year path for major repairs.

Your options may include:

Ask for the plan and minutes: The plan may exist but not be included in the first contract pack.
Request a fresh certificate: This is sensible where the Section 32 is older or an AGM has happened recently.
Ask targeted questions: What major works are expected? Are quotes available? Has a levy been discussed?
Negotiate the contract: A price adjustment or special condition may help where a real funding risk is clear.
Walk away if the risk is too large: Some buildings are not worth the stress, especially before auction.

For Tier 3, Tier 4 and Tier 5 buildings, a missing plan is different. It may be lawful, but it still leaves you with less information. In a small block, you may need to lean harder on AGM minutes, insurance records, inspection reports and the condition of the common property.

Can owners corporation maintenance plan disputes go to VCAT?

Maintenance plan and maintenance fund disputes can be taken to VCAT where the dispute fits within its owners corporation powers. This may include arguments about common property repairs, fund payments, resolutions, managers or records.

For buyers, VCAT is not the first step. Your first step is to read the contract, the certificate and the minutes before you sign. If you already own the lot and the owners corporation is not dealing with common property repairs or fund decisions properly, tailored advice can help you decide whether negotiation, a formal request, a general meeting motion or VCAT is the right path.

Frequently Asked Questions

What is an owners corporation maintenance plan?

An owners corporation maintenance plan is a 10 year plan for major common property repairs and replacements. It sets out the condition of major capital items, when work is expected, the estimated cost and the expected life of each item after repair or replacement. Where a plan exists, it should be supported by a dedicated maintenance fund.

Which Melbourne buildings legally need a 10 year owners corporation maintenance plan?

Tier 1 owners corporations with more than 100 occupiable lots and Tier 2 owners corporations with 51 to 100 occupiable lots legally need an approved 10 year maintenance plan and maintenance fund. Tier 1 buildings had a 1 December 2022 deadline, and Tier 2 buildings had a 1 December 2023 deadline. Tier 3, Tier 4 and Tier 5 owners corporations may adopt a plan voluntarily.

How do I check if an apartment’s owners corporation has a maintenance plan?

Check the section 151 owners corporation certificate and the documents attached to the Section 32 vendor statement. The certificate should disclose funds held, fees, arrears, special levies, future repairs, insurance, rules and AGM resolutions. If the building is Tier 1 or Tier 2 and no plan appears, ask your conveyancer to request it before you sign.

What happens if there’s no owners corporation maintenance plan and a special levy lands after settlement?

If a special levy is approved after settlement, the new owner will usually be responsible for paying it. Unpaid owners corporation fees can also become a settlement issue, so arrears should be checked and adjusted through the contract process. This is why buyers should review the plan, fund balance and certificate before signing.

Can I make my Melbourne purchase conditional on the owners corporation maintenance plan being adopted?

Yes, a purchase can sometimes include a special condition dealing with the maintenance plan, but the wording needs care. The vendor does not control the owners corporation by themselves, so the condition may need a fallback such as a price adjustment, extra disclosure or a right to end the contract if the risk is too high. Ask your conveyancer before relying on this kind of condition.

What’s the difference between the maintenance fund and the administrative fund?

The administrative fund usually pays for day to day costs such as cleaning, gardening, insurance and management fees. The maintenance fund is for the capital works listed in the maintenance plan. A healthy administrative fund does not mean the owners corporation has enough saved for major works.

Do owners corporation maintenance plan rules change soon?

Victorian owners corporation rules can change over time, so buyers should confirm the position at the time they review the contract. The current tier based system requires Tier 1 and Tier 2 owners corporations to have an approved maintenance plan, while smaller tiers may adopt one voluntarily. Your conveyancer can check the contract against the rules that apply when you buy.

About the Pearson Chambers Conveyancing team

Pearson Chambers Conveyancing is a Melbourne focused conveyancing team that works with buyers reviewing apartments, units and townhouses across the metropolitan area. We regularly review Section 32 vendor statements, owners corporation certificates and contract conditions for first home buyers who want clear answers before they sign. Owners corporation maintenance plans are part of what we check day to day when a client is buying strata titled property.

Sources we consulted

Talk to Pearson Chambers Conveyancing

If you’re buying an apartment, townhouse or unit in Melbourne and the Section 32 includes owners corporation documents, send them through before you sign. We’ll review the contract, check the owners corporation maintenance plan position and explain what the fund balance, levies and minutes may mean for your settlement budget.

Email: contact@pearsonchambers.com.au
Complimentary Section 32 contract review for first home buyers

General information only, current as at the date of publication. Victorian conveyancing rules and legislation change frequently. Please contact the Pearson Chambers Conveyancing team for advice on your specific contract.