Owners Corporation Management Services

New Development Owners Corporation Handover in Melbourne & Victoria

The transition from developer control to lot owner governance is one of the most critical and complex events in the lifecycle of any owners corporation. When a new residential or mixed-use development reaches practical completion and lots begin to settle, an entirely new owners corporation springs into existence — often with dozens or hundreds of new lot owners who have little experience with owners corporation obligations, a building that may still have unresolved defects, and a developer who is preparing to hand over responsibility as quickly as possible.

OC Support provides specialist new development handover services across Melbourne and Victoria, working with developers, conveyancers, and newly formed owners corporation committees to ensure the transition from developer to owner control is managed professionally, legally, and with the interests of all lot owners protected from day one. Whether you are a developer seeking an experienced OC manager to appoint at settlement, or a lot owner committee taking over a newly completed building, OC Support has the systems and expertise to make the handover seamless.

Why new development handover requires specialist expertise

The first twelve months of an owners corporation’s life are the most important — and the most demanding. During this period, the OC must be formally constituted, insurance must be placed, the first AGM must be held, levies must be set and collected, the owner registry must be established, defects must be identified and claims lodged with the builder, and the transition of all records, contracts, and accounts from the developer must be completed.

Each of these tasks has legal deadlines, legislative requirements under the Owners Corporation Act 2006, and practical consequences if handled incorrectly. A first AGM conducted without proper notice, levies set without an adequate budget, or defect claims missed because warranty periods expired unnoticed — these are real and costly mistakes that commonly occur when new development handovers are managed without specialist expertise.

OC Support has experience managing the full handover process for new residential and mixed-use developments across Melbourne and Victoria. Our structured approach protects lot owners, satisfies developer obligations, and establishes a solid governance foundation for the long-term management of your building.

Our new development handover process

Pre-settlement preparation

The most effective handovers begin before the first lot settles. OC Support works with developers and their conveyancers during the pre-settlement period to ensure everything is in place from day one:

OC establishment review — Reviewing the plan of subdivision, OC rules, and disclosure documents to understand the structure of the owners corporation, lot entitlements, lot liabilities, and any special provisions affecting management.
Insurance placement — Arranging building insurance and public liability insurance as required under Section 27 of the Owners Corporation Act 2006 before the first lot settles. Ensuring the insured value reflects the full replacement cost of the building is critical — underinsurance at this stage can have catastrophic consequences.
Initial budget preparation — Preparing a realistic first-year budget covering management fees, insurance premiums, common area utilities, cleaning, garden maintenance, and an appropriate maintenance fund contribution, forming the basis for levies to be set at the first AGM.
Owner portal setup — Establishing the OC Support owner portal and preparing welcome communication materials for distribution to lot owners as they settle.
Developer records collection — Requesting and reviewing all relevant documentation from the developer including as-built drawings, occupancy permits, building manuals, warranty documents, contractor contacts, and service agreements.

Settlement period — owner onboarding and levy establishment

As lots begin to settle and ownership transfers to individual lot owners, OC Support manages the administrative establishment of the owners corporation:

Strata roll establishment — Building the owners corporation register from the plan of subdivision and settlement advices, recording all lot owner contact details, lot entitlements, and lot liabilities accurately from the outset.
Levy invoicing — Issuing initial levy invoices to all new lot owners promptly following settlement, ensuring the OC has cash flow from the earliest possible stage to fund insurance, management, and maintenance obligations.
Welcome communications — Distributing welcome packs to all new lot owners explaining the owners corporation, their rights and obligations as lot owners, how to access the owner portal, and how to contact OC Support for maintenance requests and enquiries.
Common property inspection — Conducting an initial inspection of all common property areas to document the condition of the building at handover, identify any immediately apparent defects, and establish a baseline for ongoing maintenance management.
Service contract review — Reviewing all existing service contracts transferred from the developer — including cleaning, garden maintenance, lift servicing, fire equipment testing, and security — and renegotiating or replacing contracts where pricing or terms are not competitive.

First Annual General Meeting (AGM)

The first AGM of a newly established owners corporation is a significant milestone. It is the first opportunity for lot owners to meet, elect a committee, approve the budget and levies, and take formal control of their owners corporation. Under the Owners Corporation Act 2006, the first AGM must be held within the timeframe specified in the Act, and the notice and agenda requirements are identical to those for any subsequent AGM.

OC Support manages every aspect of the first AGM:

Notice preparation — Preparing and distributing compliant AGM notices within the required timeframe, including the agenda, proposed budget, proposed levy schedule, and explanatory notes for first-time OC participants.
Budget presentation — Presenting the first-year budget clearly and accessibly to lot owners who may have no prior experience with owners corporation finances, including an explanation of the administrative fund, maintenance fund, and how levies are calculated.
Committee election — Facilitating the election of the owners corporation committee in accordance with the Act, explaining committee roles and responsibilities, and ensuring the elected committee understands their obligations.
Rules review — Reviewing the existing OC rules with the committee and lot owners, explaining what the rules cover, and advising on whether any amendments should be considered at the first or a subsequent meeting.
Meeting facilitation — Professionally facilitating the meeting to ensure it runs efficiently, all required resolutions are properly moved and recorded, and lot owners leave with a clear understanding of the OC’s plans and governance structure.
Minutes preparation — Preparing accurate, compliant minutes of the first AGM and distributing them to all lot owners within the required 14-day timeframe.

Defect period management

Building defects in newly completed developments are common across Melbourne’s strata sector. Identifying, documenting, and pursuing defects within the statutory warranty period is one of the most important tasks in the first twelve to twenty-four months of an owners corporation’s life. Missed defects or expired warranty periods can result in the owners corporation bearing the full cost of rectification that should have been the builder’s responsibility.

OC Support provides dedicated defect period management for new developments:

Independent defect inspection — Coordinating a comprehensive independent building inspection by a qualified building consultant within the defect liability period, covering common property structure, building envelope, fire services, mechanical systems, and common area finishes.
Defect schedule preparation — Compiling a detailed defect schedule documenting every identified defect by location, description, cause, and required remedy — the foundation of any successful warranty claim.
Formal defect notification — Issuing formal written defect notices to the builder and developer within statutory timeframes, ensuring all warranty claims are properly lodged and legally valid.
Rectification management — Monitoring the builder’s rectification program, re-inspecting completed works to verify defects are genuinely remedied, and escalating unresolved defects through appropriate channels including the Victorian Building Authority (VBA) and VCAT where necessary.
Post-warranty transition — Once the defect liability period expires, transitioning ongoing maintenance and any unresolved defect matters into the standard maintenance coordination program in coordination with our maintenance coordination team.

Information for developers

OC Support works with residential and mixed-use property developers across Melbourne and Victoria to ensure smooth, compliant handovers that protect the developer’s reputation and satisfy their obligations to purchasers.

Engaging OC Support before settlement gives developers confidence that:

Insurance is in place before the first lot settles, protecting both the developer and purchasers.
The first AGM is conducted professionally and within legislative timeframes.
New lot owners receive a positive first experience of their owners corporation — reducing complaints directed back to the developer.
All developer obligations under the Owners Corporation Act 2006 relating to the establishment of the OC are met correctly.
Records, contracts, and accounts are transferred in an orderly and documented manner.

We are experienced in working with developers’ solicitors, project managers, and sales teams to coordinate the handover process efficiently and with minimal disruption to the settlement program.

Interested in appointing OC Support for your new development? Contact our team at the earliest opportunity — ideally three to six months before the first expected settlement date — to allow sufficient time for pre-settlement preparation.

Information for new lot owner committees

If your building has recently been handed over from the developer and you are a newly elected committee member, you may be discovering that the transition has left gaps — missing records, inadequate insurance, unresolved defects, or levies that don’t reflect the true cost of managing your building.

OC Support can step in at any stage of the handover process. Whether you need a new manager to take over from the developer’s appointed manager, assistance pursuing building defects, or support preparing for your first or second AGM, our team has the experience to stabilise your owners corporation and establish sound governance going forward.

Contact our team to discuss your situation — we offer a no-obligation consultation to assess your owners corporation’s current position and recommend the most effective path forward. See also our manager transition page for details on how we manage the changeover from an existing manager.

Frequently asked questions

When should a developer appoint an OC manager for a new development? Ideally three to six months before the first anticipated settlement date. Early appointment allows time for pre-settlement insurance placement, budget preparation, owner portal setup, and developer records collection before the first lot owner settles. Appointing a manager at or after settlement creates gaps in insurance coverage, delays levy collection, and increases the risk of a non-compliant or rushed first AGM.

Who is responsible for holding the first AGM of a new owners corporation? Under the Owners Corporation Act 2006, the developer is responsible for ensuring the first AGM is held within the required timeframe following the registration of the plan of subdivision. In practice, this obligation is typically fulfilled by the appointed OC manager on behalf of the developer. OC Support manages the full first AGM process — notice preparation, budget presentation, committee election, meeting facilitation, and minute preparation.

What insurance must be in place before the first lot settles? Building insurance covering the full replacement value of the building and public liability insurance must be in place before the first lot settles. This is a requirement under Section 27 of the Owners Corporation Act 2006 and a practical necessity — without building insurance in place, any damage to common property during the settlement period could result in significant uninsured losses. OC Support arranges all required insurance as part of our pre-settlement preparation service.

How long does the builder’s defect liability period last in Victoria? Under the Domestic Building Contracts Act 1995, builders are subject to statutory warranty obligations for a period of two years for defects generally and ten years for major defects (including structural defects and waterproofing failures). It is critical that defects are identified and formally notified to the builder within these warranty periods. OC Support coordinates independent defect inspections and formal defect notification within the required timeframes to protect the owners corporation’s warranty rights.

What records should the developer hand over to the owners corporation? The developer should hand over a comprehensive package of records including as-built drawings and plans of subdivision, occupancy permits and building approvals, building manuals and warranties for all installed systems and equipment, fire engineering reports, energy rating certificates, all service contracts, and a complete list of all contractors who worked on the development. OC Support requests and reviews all required documentation as part of our handover process and follows up with developers where records are incomplete.

What happens if the developer’s OC manager is not performing? It is common for developers to appoint their own preferred OC manager — sometimes a related party — who may not act in the best interests of lot owners. If lot owners are dissatisfied with the developer’s appointed manager, the owners corporation can resolve to terminate that appointment and appoint a new manager at any committee or general meeting. See our manager transition page for details on how OC Support manages the changeover process. The change can typically be effected within 30 days of the resolution.

Whether you are a developer seeking a specialist OC manager for a new Melbourne or Victorian development, or a newly formed lot owner committee looking for experienced support through the handover process, OC Support is ready to help. Contact our team today for a no-obligation discussion about your development’s owners corporation management requirements.