To change your owners corporation manager in Victoria, you need an ordinary resolution (simple majority of votes cast) at a properly convened general meeting. The 2021 reforms capped management contracts at 3 years, banned automatic renewal clauses, and limited notice periods to 3 months for larger OCs. Once you've voted to terminate, the outgoing manager has 28 days to return all records, documents, and funds — failure is a criminal penalty offence under section 127 of the Owners Corporations Act 2006.
You're on the committee of your Melbourne apartment building. Maintenance requests go unanswered for weeks. The sinking fund report hasn't been audited. Your AGM was held at short notice and most owners couldn't attend. Now you're wondering whether it's actually possible to replace your owners corporation manager. The answer is yes — and Victorian law, particularly since the December 2021 reforms, gives owners corporations more protection than most committees realise.
Note: This guide is editorially independent — we're not a management company trying to win your business. Our Victorian directory lists all 604 BLA-registered managers with independent Google review data. We offer a free quote-matching service, and some managers have commercial relationships with us, but those relationships don't influence this content. Legal claims in this guide are based on the Owners Corporations Act 2006 (Vic) and the December 2021 reforms (Owners Corporations and Other Acts Amendment Act 2021), verified against legislation.vic.gov.au.
This guide walks you through every practical step — from reading your contract to compelling a reluctant manager to hand over the building's financial records. It is written for lot owners and committee members, not lawyers, and uses plain English throughout.
A Quick Word on Terminology
Victoria's legislation calls the entity that manages shared property in apartment buildings and subdivisions an owners corporation (OC). The person or company you hire to manage it is an owners corporation manager.
You'll still hear "body corporate" and "body corporate manager" constantly — in conversations, in older contracts, and on many management company websites. These are the pre-2006 terms. The Owners Corporations Act 2006 renamed "body corporate" to "owners corporation" when it replaced the old legislation, but colloquial usage hasn't caught up. In this guide we use the current legal terms, but if you see "body corporate manager" anywhere, it means the same thing.
Victoria's owners corporation system is also different from NSW in one important respect: there is no public register linking each owners corporation to its manager the way NSW has StrataHub. In Victoria, the BLA register confirms who is licensed to manage, but not who manages which scheme. That changes some of the research you'll need to do when choosing a replacement.
The Legal Framework: Owners Corporations Act 2006
The Owners Corporations Act 2006 (Vic) — commonly shortened to "OCA 2006" — is the primary legislation governing owners corporations in Victoria. Part 5 of the Act covers management agreements. If your manager ever implies that changing managers requires a special resolution, a unanimous vote, or some kind of extraordinary procedure, they are wrong. The law could not be clearer.
Section 119(1) — An owners corporation may appoint a licensed manager. The appointment must be in writing.
Section 119(1D) — A contract of appointment must not have a term exceeding 3 years. Added by the 2021 reforms; any clause purporting to give a longer term has no effect.
Section 119(3) — The contract of appointment must be in the approved form set out in the Owners Corporations Regulations. A contract not in the approved form may be unenforceable.
Section 119(6) — The owners corporation may revoke the appointment of a manager by ordinary resolution. No special resolution required.
Section 119A — Automatic renewal clauses are prohibited. The contract must state the notice period for termination, and for tier 1 and tier 2 owners corporations, that notice period cannot exceed 3 months. Special-resolution-to-terminate clauses are also prohibited.
Section 122 — Manager duties: act honestly, in the OC's best interests, obtain competitive quotes for major services, and disclose any commission, gift, or benefit received in connection with the management.
Section 127 — Within 28 days of ceasing to act, the outgoing manager must return all records, documents, and money. Failure to comply is an offence attracting a penalty of 60 penalty units.
Who actually decides?
Only the owners corporation as a whole can appoint or dismiss a manager — acting by ordinary resolution at a general meeting or by ballot. The owners corporation committee cannot do this alone. The committee can run a tender process, recommend a new manager, and prepare the meeting agenda, but the actual vote must be cast by the lot owners. This is one of the most commonly misunderstood points in Victorian OC law — some committees believe they have unilateral authority they don't have, and some managers encourage this misunderstanding.
An ordinary resolution is a simple majority of votes cast at a general meeting where a quorum is present, or in a properly conducted ballot. It does not require the consent of any particular lot owner, and it cannot be overridden by a single large lot holder unless their combined entitlements exceed 50% of all votes cast. The manager being dismissed has no vote on the matter of their own termination.
Step 1: Read Your Management Contract
Before anything else, get your hands on the actual contract. Any committee member can request to inspect the OC's records. Read the whole thing, but pay particular attention to:
- Term and expiry date — Under the 2021 reforms, the maximum term is 3 years. If your contract was signed before December 2021 and runs longer, the excess term is invalid.
- Notice period — The contract must specify a notice period for termination. For tier 1 and tier 2 OCs, this cannot legally exceed 3 months. If your contract says 6 months or more, that clause may be unenforceable.
- Automatic renewal clause — Under s.119A, these are now prohibited. If your contract purports to roll over automatically without a resolution, that clause has no legal effect.
- Termination for cause — Most contracts permit termination without notice for material breach. Document any breaches carefully before relying on this.
- Commission and benefit disclosures — Under s.122, your manager is legally required to disclose any commissions received on insurance, maintenance, or other services. Check whether the contract states these amounts.
The December 2021 reforms apply to contracts entered into or renewed after the commencement date. If your contract was signed before December 2021 and hasn't been renewed since, some of the new protections may not apply directly — for instance, the 3-month notice cap under s.119A. In that case, the notice period in your existing contract governs. However, s.119(6) has always allowed termination by ordinary resolution — the mechanism for dismissing a manager is unchanged. Seek legal advice if you're relying on the 2021 reforms to invalidate a pre-reform clause.
The approved-form requirement
Section 119(3) requires the contract to be in the approved form set out in the Owners Corporations Regulations. This is a specific prescribed template, not just any written document. If your current manager was appointed using a non-compliant form, or if the contract was significantly altered from the approved template, this may affect its enforceability — and is worth raising with a lawyer or Consumer Affairs Victoria if you face resistance to termination.
Step 2: Verify Any Prospective Manager's Registration
Before you shortlist replacements, check that they are actually authorised to manage owners corporations in Victoria. The Business Licensing Authority (BLA) maintains the public register of owners corporation managers at licences.vic.gov.au. You can also use our Victoria directory, which lists all 604 registered managers with independent Google review data and contact details.
A professional owners corporation manager must hold a current BLA registration and carry professional indemnity insurance before they can legally manage an owners corporation. Managing without registration is an offence. If a company you're considering doesn't appear on the BLA register, do not engage them — regardless of how professional their pitch sounds.
Search by company name and verify: (1) the registration status is current (not suspended or cancelled); (2) the registered name matches the trading name you were given; (3) if you're comparing our profile page to the register, the registration number should match exactly. Suspended registrations are a red flag — CAV publishes disciplinary actions on the Consumer Affairs Victoria website.
Step 3: Get Competing Proposals
Under section 122, your existing manager has a legal duty to obtain competitive quotes for major services and contracts relating to the owners corporation — and to disclose any commission or benefit received. Before you commit to switching, it's worth asking: is your current manager actually fulfilling this duty? Request evidence of competitive tendering for insurance, maintenance contractors, and major works. If they can't produce it, that itself is grounds for complaint to Consumer Affairs Victoria.
When seeking a replacement, contact at least two or three BLA-registered managers. When comparing proposals, look at:
- Management fee per lot per year — Victorian OC management fees vary significantly. Larger OCs (Tier 1 and Tier 2, over 50 lots) typically attract lower per-lot fees than small OCs. Get figures net of GST and clarify what is included in the base fee versus charged as disbursements.
- Insurance commission disclosure — Under s.122, the manager must disclose any commission received from the insurer. Ask each candidate: what commission do you receive on the OC's insurance premium? Some managers rebate this; most don't.
- Technology and reporting — What owner portal does the manager provide? How are maintenance requests logged and tracked? How often are financial reports produced?
- AGM compliance — Ask how many of their managed OCs held their AGM on time last year. This is a basic performance metric.
- Google reviews — Our VIC directory shows independently verified Google ratings for 206 of the 604 registered managers. A manager with 200+ reviews averaging 4.5 stars is a different proposition from one with 12 reviews averaging 3.1.
The Tier Classification and Why It Matters
The 2021 reforms introduced a five-tier classification of owners corporations in Victoria, based on lot count. Your OC's tier affects the notice periods that legally apply to your management contract and some procedural rights.
| Tier | Lots managed | Key implication for management contracts |
|---|---|---|
| Tier 1 | More than 100 lots | Notice period capped at 3 months under s.119A |
| Tier 2 | 51–100 lots | Notice period capped at 3 months under s.119A |
| Tier 3 | 11–50 lots | Notice period as specified in contract (no statutory cap) |
| Tier 4 | 4–10 lots | Notice period as specified in contract (no statutory cap) |
| Tier 5 | 2–3 lots | Notice period as specified in contract (no statutory cap) |
Practically speaking, if you're in a building with more than 50 lots (tier 1 or 2), any contract clause requiring more than 3 months' notice to terminate is unenforceable for contracts entered into or renewed after the 2021 reforms. If your manager quotes a longer notice period, you can cite s.119A directly.
Step 4: Choose Your Path — Expiry vs Early Termination
You have two basic routes to a new manager:
Route A: Wait for the contract to expire
This is the cleanest path. Most management contracts run 1–3 years. If you're within the last few months, simply serving the contractual notice of non-renewal at expiry avoids any dispute about early exit fees. The 2021 reforms' ban on auto-renewal clauses means your contract will genuinely end — it won't silently roll over.
Timing: give notice in writing at least as long before expiry as the contract requires (for tier 1/2 OCs, the contract notice period cannot exceed 3 months). Do not wait for the manager to prompt you — they have no obligation to remind you that the contract is expiring.
Route B: Terminate early
Early termination is valid under s.119(6) — the OC may revoke a manager's appointment by ordinary resolution at any time, in accordance with the contract. "In accordance with the contract" means you need to comply with any contractual notice period and termination clause. Early termination for cause (material breach) is also available in most contracts, and removes any entitlement to a notice period if the breach is sufficiently serious.
Some contracts include fees for early termination (sometimes framed as "management fees for the balance of the term"). The 2021 reforms introduced limits on penalties in management contracts — clauses imposing disproportionate exit fees are now at risk of being struck down. If your contract has a substantial early exit fee, seek advice from Consumer Affairs Victoria (free) or a property lawyer before proceeding.
Step 5: Prepare and Issue the Meeting Notice
The vote to change managers must be taken at a general meeting of the owners corporation — this means an AGM or an Extraordinary General Meeting (EGM). The committee can call an EGM for this purpose. If the committee refuses to act (for example, if a committee member has a conflict of interest), lot owners holding at least 25% of lot entitlements may requisition a general meeting in writing.
What to include in the meeting notice
- Motion 1: To terminate the appointment of [current manager] effective [date], in accordance with the management contract, by ordinary resolution.
- Motion 2: To appoint [new manager] as owners corporation manager for a term of [up to 3 years] commencing [date], and to authorise the chairperson to execute the contract of appointment in the approved form, by ordinary resolution.
- Attach the full proposed management contract as an annexure to the notice.
Notice must be given to all lot owners at least the minimum period required by your OC's rules, and at least the statutory minimum under the OCA 2006 (commonly 14 days for an AGM, consult your OC's registered rules for EGMs). If any lot owner is to be served by post, allow additional time for delivery.
The 2021 reforms introduced restrictions on how many proxies a person can hold at a general meeting. In particular, a manager cannot use proxy votes to influence decisions about their own appointment or management — a direct response to historic proxy farming by management companies. If your current manager is soliciting proxy forms from lot owners ahead of this vote, that is improper conduct worth reporting to Consumer Affairs Victoria.
Step 6: Hold the Meeting and Pass the Resolutions
At the meeting, the motion to terminate and the motion to appoint are each decided by ordinary resolution — a simple majority of votes cast by lot owners present (in person or by proxy) where a quorum is present. There is no minimum number of votes in favour; what matters is that the votes in favour outnumber the votes against.
Keep accurate minutes. Record: the date and time, persons present and by proxy, that quorum was present, the precise wording of each motion, the vote count (for/against/abstain), and the result. Minutes are the official record — if the outgoing manager later disputes the validity of the termination, well-kept minutes are your protection.
If the meeting is inquorate, it should be adjourned. Most OC rules provide that a reconvened adjourned meeting may proceed with lower quorum requirements. Do not attempt to pass the motions at an inquorate meeting — a resolution passed without quorum may be invalid and unenforceable against the outgoing manager.
Step 7: Serve Notice and Manage the Handover
Immediately after the vote, serve written notice of termination on the outgoing manager. The notice should state: that the owners corporation has resolved by ordinary resolution to terminate the appointment, the effective termination date (in accordance with the contractual notice period), and the items to be returned under s.127.
What the outgoing manager must return (s.127)
Under section 127 of the OCA 2006, the outgoing manager has 28 days from ceasing to act to hand over all of the following to the owners corporation (or the incoming manager, as directed):
- The owners corporation's register (lot owner details, lot entitlements)
- The common seal (if held by the manager)
- All financial records and accounts (trust accounts, bank records, levy notices)
- All contracts and documents relating to the OC (maintenance contracts, insurance policies, warranties)
- All money held on behalf of the OC in trust accounts
- Keys, fobs, and access devices for common property
Failure to hand over within 28 days is a criminal offence under s.127, carrying a penalty of 60 penalty units (in 2026, one penalty unit is $192.31, making 60 penalty units approximately $11,500). This is not a civil penalty — it is an offence that can be reported to Consumer Affairs Victoria for prosecution. The existence of a financial dispute between the OC and the outgoing manager does not excuse the failure to return records.
Practical tips for a smooth handover
- Engage the incoming manager early — have them correspond directly with the outgoing manager about what they need and when.
- Get confirmation of the trust account balance before the termination date so you can reconcile any discrepancy.
- Send the outgoing manager a written checklist of the items you expect to be returned, specifying the 28-day deadline and referencing s.127.
- If the outgoing manager attempts to set off alleged unpaid management fees against trust funds they are holding, this is generally improper — OC funds held in trust belong to the OC, not to the manager as security for their fees.
If Things Go Wrong: CAV and VCAT
The vast majority of management transitions in Victoria complete without formal dispute. But if the outgoing manager refuses to cooperate — whether by denying the validity of the vote, withholding records, or demanding payment before handover — you have two escalation paths.
Consumer Affairs Victoria (CAV)
Consumer Affairs Victoria administers the OCA 2006 and can accept complaints about owners corporation managers. CAV's dispute resolution service offers free conciliation between the OC and the manager — often effective at resolving record-handover disputes without going to tribunal. If a manager is committing an offence (e.g. failing the 28-day handover deadline), CAV can initiate prosecution. Contact CAV via the Consumer Affairs Victoria website or call 1300 55 81 81.
Victorian Civil and Administrative Tribunal (VCAT)
VCAT's Owners Corporation List can hear and decide disputes between owners corporations and their managers. VCAT can make orders compelling the outgoing manager to return records, documents, and funds — enforceable like a court order. Filing fees apply but are modest. VCAT decisions are also publicly available, which creates additional accountability for a manager who refuses to cooperate.
Before applying to VCAT, document everything: the resolution minutes, your written notice of termination, the 28-day deadline letter, and any correspondence in which the outgoing manager has refused or delayed. VCAT will want to see that you've made a genuine attempt to resolve the matter before listing it for a hearing.
What Your Manager Is Legally Required to Do (and Disclose)
Understanding your manager's legal duties matters not just when you're leaving — it informs what standards you can hold your current manager to, and what evidence of breach might support a termination for cause.
Section 122 of the OCA 2006 imposes the following duties on an owners corporation manager:
- Act honestly and in the best interests of the owners corporation at all times.
- Obtain competitive quotes for any contract for the supply of goods or services to the OC over a prescribed threshold — the manager cannot simply direct work to preferred contractors without competitive procurement.
- Disclose any commission, gift, or financial benefit received in connection with the management of the OC — this includes insurance commissions, referral fees, and rebates from tradespeople.
- Not engage in conflicts of interest that affect their duty to the OC.
Breach of s.122 duties is a ground for complaint to Consumer Affairs Victoria and, depending on severity, may support early termination for cause. If your manager has been receiving undisclosed commissions — a common arrangement in the industry — document this before the termination meeting: it strengthens your position on both the right to terminate and any dispute about notice periods or exit fees.
Common Myths to Ignore
"You need a special resolution to change managers." False. Section 119(6) expressly provides that the OC may revoke a manager's appointment by ordinary resolution.
"The committee can just cancel the contract." False. The committee has no authority to appoint or dismiss a manager — that power rests with the owners corporation at a general meeting.
"The contract automatically renews so we're locked in." False. Section 119A prohibits automatic renewal clauses for contracts entered into or renewed after December 2021. If your contract purports to auto-renew, that clause has no legal effect.
"You must pay the balance of the contract term if you leave early." Depends. The 2021 reforms restrict disproportionate early termination penalties. A clause demanding full payment for the remainder of a 3-year term when terminated after 6 months is likely to be challenged successfully — particularly if the OC terminated for cause.
"We can't change managers while a dispute is ongoing." False. The OC's right to terminate by ordinary resolution under s.119(6) is not conditional on the absence of disputes. You can terminate while a dispute is active; the resolution of the dispute is a separate matter.
Summary: Your 8-Step Process
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1
Read your management contract
Identify the expiry date, notice period, and termination clause. Check for any auto-renewal clause (invalid post-2021) or unreasonable exit fee (challengeable post-2021).
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2
Choose replacement candidates
Confirm each candidate is BLA-registered and holds PI insurance. Use our VIC directory to compare Google reviews and contact details independently.
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3
Obtain competing proposals
Get at least two or three written proposals. Compare management fees, insurance commission disclosure, included services, and disbursement structures.
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4
Decide your timing
Wait for natural expiry (simplest), or serve notice of early termination under the contract's termination clause. For tier 1/2 OCs, notice cannot legally exceed 3 months under s.119A.
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5
Issue the meeting notice with draft motions
Call an EGM or use the AGM. Include a motion to terminate and a motion to appoint, with the new contract (in approved form) attached as an annexure.
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6
Pass both resolutions by ordinary majority
Ensure quorum. Vote to terminate and to appoint by simple majority. Keep accurate minutes. The committee cannot do this alone — it must be a vote of lot owners.
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7
Serve written notice on the outgoing manager
Provide the effective termination date, a s.127 handover checklist, and the 28-day deadline. Coordinate with the incoming manager on transition logistics.
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8
Enforce the handover deadline
If records or funds aren't returned within 28 days, report to Consumer Affairs Victoria and apply to VCAT's Owners Corporation List for a handover order.
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Find a Better Manager →Frequently Asked Questions
Can the owners corporation committee change managers without a general meeting?
No. The power to appoint or dismiss an owners corporation manager belongs to the owners corporation as a whole, acting by ordinary resolution at a general meeting. The committee can recommend a change, run a tender, and prepare the agenda, but the formal vote must involve lot owners. A purported termination by committee resolution alone has no legal effect.
What if our current manager refuses to accept the termination?
A termination by ordinary resolution under s.119(6), served in writing with proper notice, is legally effective regardless of whether the manager "accepts" it. If the manager refuses to hand over records within 28 days (the s.127 deadline), report the failure to Consumer Affairs Victoria and apply to VCAT for a handover order. A refusal to hand over records is a criminal offence — managers rarely follow through on this threat once they understand the penalty exposure.
Do we need to give the current manager a chance to fix their problems first?
Not legally — s.119(6) allows revocation by ordinary resolution without a prior notice to remedy. In practice, if you are relying on breach of contract to justify early termination (to avoid a notice period or exit fee), having a documented record of complaints and a formal notice to remedy strengthens your position. For a planned switch at contract expiry, no prior notice of concern is legally required.
Can we use the AGM to make this change?
Yes — an AGM is a general meeting for all purposes. If the timing aligns, combining the manager change with the AGM avoids the cost and effort of a separate EGM. Ensure you include both motions (terminate and appoint) on the formal agenda distributed to all lot owners in advance, and attach the proposed new contract as an annexure. Surprising lot owners with a major motion at an AGM without prior notice may expose the resolution to challenge.
What is the difference between an owners corporation manager and a real estate agent managing a property?
They are different roles. An owners corporation manager manages the shared/common property of all lots in the OC — maintaining common areas, collecting levies, organising insurance, convening meetings. A real estate agent or property manager manages individual privately owned lots on behalf of a landlord. The owners corporation manager is appointed by the OC; individual property managers are appointed by each lot owner. You will sometimes deal with both, but they have entirely separate roles and are regulated differently.
How is changing an OC manager in Victoria different from NSW?
The process is similar in broad terms — ordinary resolution, written notice, statutory handover period — but the key differences are: (1) Victoria uses "owners corporation" and "OC manager" rather than NSW's "strata scheme" and "strata managing agent"; (2) Victoria's register (BLA) covers managers, not scheme-manager relationships — there's no StrataHub equivalent; (3) Victoria's 2021 reforms introduced the 3-year contract cap and auto-renewal ban, which NSW implemented differently under the SSMA 2015; (4) The handover deadline is 28 days in Victoria (s.127) vs 14 days in NSW (s.181); (5) Victoria's dispute tribunal is VCAT; NSW uses NCAT.
This guide reflects the Owners Corporations Act 2006 (Vic) as amended by the Owners Corporations and Other Acts Amendment Act 2021 (Vic). It is general information only, not legal advice. For advice specific to your situation, consult Consumer Affairs Victoria (free) or a Victorian property lawyer. Last updated July 2026.